The Commercial Construction Agreement is essential for any significant construction project in England and Wales. It provides a comprehensive framework for managing construction projects, protecting both parties' interests, and ensuring compliance with relevant legislation. This agreement is particularly important as it addresses key aspects such as payment mechanisms, dispute resolution, and health and safety requirements. The document should be tailored to specific project requirements while maintaining compliance with statutory requirements such as the Housing Grants, Construction and Regeneration Act 1996 and CDM Regulations 2015.
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1. Parties: Identifies and defines the contracting parties
2. Background: Sets out context and purpose of the agreement
3. Definitions: Defines key terms used throughout the agreement
4. Scope of Works: Detailed description of construction works to be performed
5. Contract Price and Payment Terms: Payment amounts, mechanisms, and schedules
6. Programme and Completion: Timing, completion dates, and delay provisions
7. Contractor Obligations: Key responsibilities and duties of the contractor
8. Employer Obligations: Key responsibilities and duties of the employer
9. Insurance and Liability: Insurance requirements and liability allocation
10. Termination: Circumstances and processes for contract termination
1. Design Responsibility: Required when contractor has design obligations in design and build contracts
2. Performance Bonds: Security for performance, typically used in high-value projects or where required by employer
3. Parent Company Guarantee: Additional security from contractor's parent company, used when contractor is subsidiary of larger group
4. Liquidated Damages: Pre-agreed damages for delay, used when specific completion date is crucial
1. Schedule of Works: Detailed specification of construction works
2. Programme: Detailed timeline of works
3. Payment Schedule: Breakdown of payments and milestone dates
4. Site Information: Details about the construction site
5. Forms of Bonds/Guarantees: Standard forms for any required security
6. Insurance Requirements: Detailed insurance specifications
7. Design Drawings: Technical drawings and specifications
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