Construction Partnership Agreement for the United Kingdom

Construction Partnership Agreement Template for England and Wales

A Construction Partnership Agreement under English and Welsh law is a legally binding document that establishes and governs a partnership between two or more entities for construction projects. It outlines capital contributions, profit sharing, project management responsibilities, and operational procedures while ensuring compliance with the Partnership Act 1890 and Construction Act 1996. The agreement includes specific provisions for health and safety compliance under CDM Regulations 2015 and addresses risk allocation, dispute resolution, and partnership dissolution procedures.

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What is a Construction Partnership Agreement?

The Construction Partnership Agreement is essential when multiple construction entities wish to collaborate on projects while sharing risks, resources, and rewards. This agreement, governed by English and Welsh law, establishes the framework for partnership operation, including capital contributions, profit sharing, and project management responsibilities. It ensures compliance with key legislation including the Partnership Act 1890 and Construction Act 1996, while addressing specific construction industry requirements such as CDM regulations, health and safety obligations, and project delivery mechanisms.

What sections should be included in a Construction Partnership Agreement?

1. Parties: Identification and details of all partnership members

2. Background: Context of the partnership formation and construction project

3. Definitions: Key terms used throughout the agreement

4. Partnership Structure: Organization, management and decision-making processes

5. Capital Contributions: Initial and ongoing financial commitments

6. Profit and Loss Sharing: Distribution of profits and allocation of losses

7. Project Management: Construction project execution and management procedures

8. Health and Safety: CDM compliance and safety responsibilities

9. Term and Termination: Duration and termination provisions

What sections are optional to include in a Construction Partnership Agreement?

1. Intellectual Property: IP rights management, use when significant design work involved

2. Non-Compete: Competition restrictions, use when partners have other business interests

3. Insurance: Specific insurance requirements beyond standard coverage

What schedules should be included in a Construction Partnership Agreement?

1. Schedule 1 - Project Details: Specific construction project information and specifications

2. Schedule 2 - Capital Contributions: Detailed breakdown of partner contributions

3. Schedule 3 - Management Structure: Organizational chart and responsibilities

4. Schedule 4 - Insurance Requirements: Required insurance policies and coverage levels

5. Appendix A - Project Timeline: Construction milestones and deadlines

6. Appendix B - Health and Safety Plan: Detailed H&S procedures and responsibilities

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

Partnership Act 1890: Core legislation defining partnerships, establishing basic rights and obligations between partners, governing relationships and covering profit sharing and liability arrangements

Housing Grants, Construction and Regeneration Act 1996: Also known as the Construction Act, covers crucial construction-specific elements including payment provisions, adjudication rights, and notice requirements

Construction (Design and Management) Regulations 2015: CDM regulations governing health and safety requirements, defining duties of different parties and project management obligations in construction projects

Limited Liability Partnerships Act 2000: Relevant legislation if the construction partnership is to be structured as an LLP, defining the legal framework for limited liability partnerships

Late Payment of Commercial Debts (Interest) Act 1998: Legislation governing interest on late payments in commercial transactions, relevant for payment terms and disputes

Contracts (Rights of Third Parties) Act 1999: Legislation determining how and when third parties can enforce terms of a contract, important for subcontractor relationships

Building Act 1984: Primary legislation governing building works and providing the framework for Building Regulations

Building Regulations 2010: Detailed technical requirements for construction works ensuring standards of design and construction

Public Contracts Regulations 2015: Regulations governing public procurement, relevant if the partnership undertakes public sector construction work

JCT Standards: Joint Contracts Tribunal standard forms and guidance, widely used industry standards for construction contracts

NEC Standards: New Engineering Contract standards, providing alternative standardized contract forms for construction projects

FIDIC Standards: International Federation of Consulting Engineers contract standards, relevant for international construction projects

Common Law Contract Principles: Fundamental legal principles covering contract formation, breach, remedies, and implied terms as established through case law

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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