Basic Building Contract for the United Kingdom

Basic Building Contract Template for England and Wales

A Basic Building Contract is a standardized construction agreement governed by the laws of England and Wales, designed for projects where a traditional procurement route is followed. It establishes the legal framework for construction works, defining the responsibilities and obligations of both the employer and contractor, including payment terms, project timeline, quality standards, and dispute resolution mechanisms. The contract is particularly suited for projects where the design is provided by the employer or their appointed consultants.

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What is a Basic Building Contract?

The Basic Building Contract is a fundamental legal instrument in the construction industry of England and Wales, typically used for projects where the design responsibility remains with the employer. This contract type provides a comprehensive framework for managing construction projects, including essential provisions for payment, variations, completion, and dispute resolution. It's particularly suitable for projects where the scope is well-defined and the works are of a straightforward nature. The document incorporates requirements from key legislation such as the Housing Grants, Construction and Development Act 1996 and the CDM Regulations 2015.

What sections should be included in a Basic Building Contract?

1. Parties: Details of the employer and contractor including full legal names, addresses and company registration numbers

2. Background: Context of the construction project, including the purpose and basic scope of works

3. Definitions: Key terms used throughout the contract, including defined project-specific terminology

4. Contractor's Obligations: Core responsibilities and duties of the contractor, including workmanship standards and compliance requirements

5. Payment Terms: Payment schedule, amounts, mechanisms and compliance with Construction Act requirements

6. Time and Completion: Project duration, completion requirements, and provisions for extensions of time

7. Variations: Process for handling changes to the works, including pricing and approval procedures

What sections are optional to include in a Basic Building Contract?

1. Design Responsibilities: Specific provisions for contractor's design obligations and professional indemnity requirements

2. Insurance Requirements: Detailed insurance obligations beyond standard requirements for high-value or high-risk projects

3. Performance Bond: Requirements for performance security including bond amount and provider requirements

What schedules should be included in a Basic Building Contract?

1. Schedule of Works: Detailed description of construction works including specifications and requirements

2. Contract Sum Analysis: Detailed breakdown of costs, pricing and payment schedule

3. Programme of Works: Timeline, project milestones and critical path activities

4. Site Information: Details about the construction site including access, restrictions and existing conditions

5. Drawings and Specifications: Technical documents, design details and construction specifications

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 | Serial Founder & Legal AI Author

Jurisdiction

England and Wales

Publisher

Genie AI

Cost

Free to use
Clauses
Industries

Housing Grants, Construction and Development Act 1996: Primary legislation governing construction contracts in England and Wales, also known as 'The Construction Act'. Covers crucial aspects like payment provisions and statutory right to adjudication.

Contracts (Rights of Third Parties) Act 1999: Legislation that governs how third parties may enforce terms of a contract, particularly relevant in construction projects involving multiple stakeholders.

Supply of Goods and Services Act 1982: Legislation that sets standards for quality of work and materials in construction contracts, including implied terms about workmanship and materials.

Construction (Design and Management) Regulations 2015: Known as CDM 2015, these regulations govern health and safety in construction projects, defining duties for all parties involved in the construction process.

Building Act 1984 and Building Regulations 2010: Core legislation governing building standards and control requirements, ensuring construction works meet minimum technical standards.

Late Payment of Commercial Debts (Interest) Act 1998: Legislation allowing businesses to claim interest on late payments from other businesses, relevant for payment terms in construction contracts.

Defective Premises Act 1972: Legislation imposing duties on builders to ensure dwellings are built in a workmanlike manner and with proper materials.

Health and Safety at Work etc. Act 1974: Fundamental health and safety legislation setting out general duties for employers, employees, and contractors on construction sites.

Environmental Protection Act 1990: Legislation covering environmental considerations in construction, including waste management and pollution control.

Party Wall etc. Act 1996: Legislation governing works affecting party walls, boundary walls, and excavations near neighboring buildings.

British Standards (BS): Technical standards published by the British Standards Institution that specify requirements for construction materials, methods, and practices.

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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