Building Work Agreement for Hong Kong

Building Work Agreement Template for Hong Kong

A Building Work Agreement governed by Hong Kong law is a legally binding contract that establishes the terms and conditions for construction work to be carried out on a property. This document complies with Hong Kong's Buildings Ordinance and related regulations, setting out the scope of works, payment terms, completion timeline, quality standards, and safety requirements. It includes provisions for regulatory compliance, insurance requirements, and dispute resolution mechanisms specific to the Hong Kong construction industry, while incorporating local building codes and practices.

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What is a Building Work Agreement?

The Building Work Agreement is a fundamental document used in Hong Kong's construction industry to establish a contractual relationship between property owners or developers and construction contractors. This agreement is essential when undertaking any significant building work, from renovations to new construction projects, and must comply with Hong Kong's Buildings Ordinance (Cap. 123) and related regulations. The document typically includes detailed specifications of the work, pricing structures, timelines, quality standards, and safety requirements. It should be drafted with consideration of Hong Kong's unique building regulations, space constraints, and high-density urban environment. The agreement serves as a critical risk management tool, providing clear allocation of responsibilities and incorporating necessary provisions for insurance, warranties, and dispute resolution.

What sections should be included in a Building Work Agreement?

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

2. Background: Brief context of the project and purpose of the agreement

3. Definitions and Interpretation: Definitions of key terms used throughout the agreement and rules of interpretation

4. Scope of Works: Detailed description of the construction work to be performed, including general obligations of the contractor

5. Contract Sum and Payment Terms: The agreed price, payment schedule, and mechanisms for variations

6. Time for Completion: Project timeline, completion date, and provisions for extensions of time

7. Contractor's Obligations: Key responsibilities including workmanship, materials, compliance with laws, and safety requirements

8. Employer's Obligations: Responsibilities of the employer including site access, permits, and information provision

9. Variations: Process for handling changes to the scope of work and their cost implications

10. Insurance and Indemnity: Required insurance coverage and indemnification obligations

11. Defects Liability: Defects liability period and rectification obligations

12. Termination: Grounds and procedures for contract termination by either party

13. Dispute Resolution: Procedures for handling disputes, including mediation and arbitration provisions

14. General Provisions: Standard contractual provisions including notices, governing law, and entire agreement

What sections are optional to include in a Building Work Agreement?

1. Performance Bond: Required for larger projects where the employer requires security for contractor performance

2. Parent Company Guarantee: Used when the contractor is a subsidiary and additional security is required

3. Intellectual Property Rights: Needed when the works involve design elements or proprietary systems

4. Environmental Compliance: Detailed environmental obligations for projects with significant environmental impact

5. Quality Assurance: Specific quality control requirements for complex or high-specification projects

6. Liquidated Damages: Specific compensation amounts for delay or performance failures

7. Site Safety Management: Detailed safety requirements for large or complex sites

8. Subcontracting: Provisions governing the appointment and management of subcontractors

9. Force Majeure: Extended provisions for handling unforeseen events and their consequences

What schedules should be included in a Building Work Agreement?

1. Schedule 1 - Scope of Works: Detailed specifications, drawings, and technical requirements

2. Schedule 2 - Contract Sum Breakdown: Detailed breakdown of costs and bill of quantities

3. Schedule 3 - Programme of Works: Detailed timeline and construction schedule

4. Schedule 4 - Site Information: Site details, access points, and relevant site conditions

5. Schedule 5 - Insurance Requirements: Specific insurance types and coverage amounts required

6. Schedule 6 - Forms and Certificates: Template forms for variations, completion certificates, and payment applications

7. Schedule 7 - Key Personnel: List of key personnel from both parties and their roles

8. Schedule 8 - Special Conditions: Any project-specific requirements or variations to standard terms

9. Appendix A - Drawings: Complete set of construction drawings and plans

10. Appendix B - Technical Specifications: Detailed technical specifications for materials and workmanship

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

Hong Kong

Publisher

Genie AI

Document Type

Purchase Agreement

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Real Estate

Construction

Property Development

Infrastructure

Commercial Property

Residential Property

Industrial

Retail

Hospitality

Education

Healthcare

Government and Public Works

Relevant Teams

Legal

Construction

Project Management

Property Development

Procurement

Risk and Compliance

Commercial

Technical Services

Facilities Management

Operations

Finance

Contract Administration

Relevant Roles

Construction Manager

Project Manager

Contract Manager

Property Developer

Building Surveyor

Quantity Surveyor

Architect

Site Manager

Facilities Manager

Legal Counsel

Risk Manager

Procurement Manager

Development Director

Construction Director

Technical Director

Commercial Manager

Industries
Buildings Ordinance (Cap. 123): Primary legislation governing building works, construction standards, and safety requirements in Hong Kong. Includes regulations about building permits, authorized persons, and structural requirements.
Construction Workers Registration Ordinance (Cap. 583): Regulates the registration of construction workers and ensures only qualified workers carry out construction work.
Occupational Safety and Health Ordinance (Cap. 509): Sets out workplace safety requirements, particularly relevant for construction sites and building works.
Contracts (Rights of Third Parties) Ordinance (Cap. 623): Governs how third parties may acquire and enforce rights under a contract, relevant for subcontractors and suppliers.
Employment Ordinance (Cap. 57): Covers employment terms and conditions that must be considered when engaging workers and contractors.
Environmental Impact Assessment Ordinance (Cap. 499): Requires assessment and mitigation of environmental impacts from construction projects.
Construction Industry Council Ordinance (Cap. 587): Establishes standards for the construction industry and provides for levy collection.
Minimum Wage Ordinance (Cap. 608): Sets minimum wage requirements that apply to construction workers.
Building Management Ordinance (Cap. 344): Relevant for works affecting common areas or requiring consent from building management.
Supply of Services (Implied Terms) Ordinance (Cap. 457): Implies certain terms into contracts for services, including building work agreements.
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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