Basic Construction Contract for the United Kingdom

Basic Construction Contract Template for England and Wales

A Basic Construction Contract governed by the laws of England and Wales, designed for straightforward construction projects. It establishes the fundamental rights and obligations between the employer and contractor, including scope of works, payment terms, timeline, and basic risk allocation. The contract incorporates key requirements from UK construction legislation while maintaining simplicity and clarity for smaller-scale projects.

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What is a Basic Construction Contract?

The Basic Construction Contract is designed for use in straightforward construction projects where a comprehensive standard form contract might be unnecessarily complex. It's particularly suitable for small to medium-sized construction works in England and Wales, incorporating essential requirements from the Housing Grants, Construction and Regeneration Act 1996 and other relevant legislation. This contract balances the need for legal compliance with practical usability, making it ideal for projects where clarity and simplicity are priorities while maintaining adequate protection for both parties.

What sections should be included in a Basic Construction Contract?

1. Parties: Identification and details of contracting parties (Employer and Contractor)

2. Background: Context and purpose of the construction contract, including project overview

3. Definitions: Key terms and their meanings used throughout the contract

4. Scope of Works: Detailed description of construction work to be performed, including specifications and standards

5. Contract Price: Payment terms, amounts, schedule of payments, and valuation procedures

6. Programme: Timeline, completion dates, and key milestones for the project

7. Contractor Obligations: Key responsibilities including workmanship, materials, compliance with laws and regulations

8. Employer Obligations: Key responsibilities including site access, permits, and information provision

9. Variations: Process for handling changes to scope, including pricing and timing implications

10. Termination: Conditions and process for contract termination by either party

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

1. Design Responsibility: Allocation of design responsibilities and obligations where contractor has design duties

2. Performance Bonds: Requirements for performance security and bonding arrangements for larger projects

3. Insurance: Specific insurance requirements beyond standard provisions

4. Liquidated Damages: Pre-agreed damages for delay and performance failures

What schedules should be included in a Basic Construction Contract?

1. Schedule of Works: Detailed specification and scope of construction works

2. Programme Schedule: Detailed timeline, critical path, and project milestones

3. Payment Schedule: Detailed breakdown of payments, installments, and timing

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

5. Design Documents: Drawings, technical specifications, and design requirements

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
Relevant legal definitions
Clauses
Industries

Housing Grants, Construction and Regeneration Act 1996: Core construction legislation (amended by Local Democracy, Economic Development and Construction Act 2009) governing payment provisions, adjudication rights, and notice requirements in construction contracts

Contracts (Rights of Third Parties) Act 1999: Regulates third-party rights and beneficiaries in contractual relationships

Supply of Goods and Services Act 1982: Establishes requirements for quality of service and reasonable care and skill in service provision

Construction (Design and Management) Regulations 2015: Sets out health and safety requirements, principal contractor duties, and client obligations in construction projects

Late Payment of Commercial Debts (Interest) Act 1998: Governs payment terms and interest provisions for late commercial payments

Defective Premises Act 1972: Establishes standards for fitness for habitation and quality standards in construction

Building Act 1984: Primary legislation ensuring compliance with building standards and regulations

Health and Safety at Work etc Act 1974: Establishes general safety obligations and requirements in the workplace

Consumer Rights Act 2015: Governs fair terms and quality standards, particularly relevant when dealing with residential clients

Modern Slavery Act 2015: Ensures supply chain compliance and prevents modern slavery in business operations

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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