Construction Agreement Between Builder And Owner Template for Switzerland

A comprehensive legal agreement governed by Swiss law that establishes the contractual relationship between a property owner and a construction company (builder) for the execution of construction works. The agreement incorporates requirements from the Swiss Code of Obligations (particularly Articles 363-379), cantonal building regulations, and typically references SIA 118 standards. It details the scope of work, payment terms, timeline, quality requirements, warranties, and risk allocation between parties, while ensuring compliance with Swiss construction and safety regulations.

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What is a Construction Agreement Between Builder And Owner?

The Construction Agreement Between Builder And Owner is a fundamental document in Swiss construction projects, essential for both commercial and residential developments. It serves as the primary contract governing the relationship between the property owner commissioning the construction and the builder undertaking the works. This agreement must comply with Swiss federal law (particularly the Code of Obligations), cantonal building regulations, and typically incorporates SIA 118 standards. It is used when a property owner needs to engage a construction company for new builds, renovations, or major modifications, providing detailed specifications for the project scope, quality standards, timeline, and payment terms. The document includes crucial provisions for risk allocation, warranties, and dispute resolution, while ensuring compliance with Swiss construction regulations, environmental requirements, and safety standards.

What sections should be included in a Construction Agreement Between Builder And Owner?

1. Parties: Identification and details of the Owner (Bauherr) and Builder (Unternehmer), including full legal names, addresses, and registration details

2. Background: Context of the construction project, including property details and purpose of the construction

3. Definitions: Definitions of key terms used throughout the agreement, including technical construction terms and contract-specific terminology

4. Scope of Work: Detailed description of the construction work to be performed, including reference to plans and specifications

5. Contract Price and Payment Terms: Fixed price or cost structure, payment schedule, invoicing requirements, and payment conditions

6. Project Timeline: Construction schedule, completion date, milestones, and provisions for extensions of time

7. Builder's Obligations: Key responsibilities including workmanship standards, compliance with laws and regulations, site management, and safety requirements

8. Owner's Obligations: Responsibilities including site access, permits, approvals, and provision of necessary information

9. Variations: Process for handling changes to the scope of work, including pricing and approval procedures

10. Quality and Inspection: Quality standards, inspection rights, and acceptance procedures

11. Defects Liability: Warranty period, defects notification process, and remediation obligations as per Swiss law

12. Insurance and Liability: Required insurance coverage, liability allocation, and indemnification provisions

13. Termination: Grounds for termination, procedures, and consequences

14. Dispute Resolution: Dispute resolution procedures, applicable law, and jurisdiction

15. General Provisions: Standard contract clauses including notices, assignment, and entire agreement

What sections are optional to include in a Construction Agreement Between Builder And Owner?

1. Environmental Requirements: Required when the project has specific environmental considerations or requirements

2. Heritage Protection: Required when construction involves protected buildings or areas of historical significance

3. Subcontracting: Include when the builder will be engaging subcontractors

4. Performance Security: Include when bank guarantees or other security is required

5. Intellectual Property: Required when custom designs or innovative construction methods are involved

6. Force Majeure: Optional but recommended for larger projects to address unforeseen circumstances

7. Liquidated Damages: Include when specific penalties for delay or non-performance are agreed

8. Materials Supply: Required when there are specific arrangements for material procurement or owner-supplied materials

What schedules should be included in a Construction Agreement Between Builder And Owner?

1. Schedule 1 - Construction Plans and Drawings: Detailed architectural and engineering drawings approved for construction

2. Schedule 2 - Technical Specifications: Detailed technical requirements and specifications for materials and workmanship

3. Schedule 3 - Bill of Quantities: Itemized list of quantities, materials, and unit prices

4. Schedule 4 - Construction Schedule: Detailed timeline with milestones and critical path activities

5. Schedule 5 - Payment Schedule: Detailed breakdown of payment installments and milestone payments

6. Schedule 6 - Site Plan and Access Details: Site layout, access points, and logistics arrangements

7. Schedule 7 - Quality Assurance Plan: Quality control procedures and acceptance criteria

8. Schedule 8 - Safety Management Plan: Safety procedures and SUVA compliance requirements

9. Appendix A - Required Permits and Approvals: Copies of building permits and other regulatory approvals

10. Appendix B - Insurance Certificates: Copies of required insurance policies and certificates

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Switzerland

Publisher

Genie AI

Cost

Free to use

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