Construction Framework Agreement for Hong Kong

Construction Framework Agreement Template for Hong Kong

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Construction Framework Agreement

"I need a Construction Framework Agreement governed by Hong Kong law for a private developer entering into a 3-year arrangement with multiple contractors for residential development projects, with specific focus on sustainable building practices and smart building technology integration."

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What is a Construction Framework Agreement?

The Construction Framework Agreement serves as a master agreement for organizations requiring ongoing construction services in Hong Kong. It is particularly useful for clients with regular construction needs or large-scale development programs where multiple projects will be executed over time. The agreement streamlines the procurement process by pre-agreeing key terms, rates, and standards, while allowing flexibility for individual project specifications. This document type is commonly used by both public and private sector organizations in Hong Kong to establish long-term relationships with contractors while ensuring compliance with local construction laws, building codes, and safety regulations. The framework structure enables efficient project initiation while maintaining consistent quality and commercial terms across multiple construction projects.

What sections should be included in a Construction Framework Agreement?

1. Parties: Identification and details of the contracting parties

2. Background: Context of the framework agreement and general objectives

3. Definitions and Interpretation: Definitions of key terms and interpretation rules

4. Framework Structure: Overview of how the framework operates and project allocation process

5. Duration and Extension: Term of the framework agreement and extension provisions

6. Scope of Works: General description of types of construction works covered

7. Call-off Procedures: Process for initiating individual projects under the framework

8. Pricing and Payment Terms: Framework rates, pricing mechanisms, and payment procedures

9. Performance Standards: Required quality standards and performance metrics

10. Health and Safety: Safety requirements and compliance with Hong Kong regulations

11. Insurance and Liability: Required insurance coverage and liability provisions

12. Warranties and Representations: Standard warranties regarding capacity and performance

13. Termination: Grounds and procedures for termination

14. Dispute Resolution: Procedures for resolving disputes, including arbitration

15. General Provisions: Standard boilerplate clauses including governing law

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

1. Environmental Requirements: Include when projects may have significant environmental impact

2. Innovation and Technology: Include when specific technological requirements or BIM implementation is needed

3. Community Engagement: Include for projects requiring significant community interaction

4. Training and Development: Include when framework includes requirements for worker training

5. Supply Chain Management: Include when framework involves significant supply chain coordination

6. KPI Regime: Include when performance-based incentives are part of the framework

7. Value Engineering: Include when cost optimization is a key framework objective

8. Force Majeure: Include when specific force majeure provisions beyond standard terms are needed

What schedules should be included in a Construction Framework Agreement?

1. Schedule 1 - Pricing Schedule: Detailed pricing mechanisms, rates and fee calculations

2. Schedule 2 - Scope of Works: Detailed specification of work types and technical requirements

3. Schedule 3 - Call-off Terms and Conditions: Standard terms for individual project agreements

4. Schedule 4 - Performance Requirements: Detailed performance standards and KPIs

5. Schedule 5 - Form of Call-off Contract: Template contract for individual projects

6. Schedule 6 - Insurance Requirements: Detailed insurance specifications and minimum coverage

7. Schedule 7 - Site Requirements: Standard site management and access requirements

8. Appendix A - Required Forms: Standard forms for project initiation, reporting, and completion

9. Appendix B - Health and Safety Standards: Detailed health and safety requirements and procedures

10. Appendix C - Quality Management Requirements: Quality control procedures and standards

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

alex.den.21@genieai.co

Relevant legal definitions

Agreed Rates
Applicable Laws
Approval
Background IP
Call-off Contract
Call-off Notice
Commencement Date
Completion
Construction Period
Contract Price
Contractor's Equipment
Defects
Deliverables
Design Documents
Emergency Works
Environmental Requirements
Expiry Date
Extension Event
Force Majeure
Framework Period
Good Industry Practice
Hong Kong
Insurance Requirements
Intellectual Property Rights
Key Personnel
KPIs
Material Breach
Method Statement
Milestone
Notice
Optional Extension Period
Parent Company Guarantee
Performance Bond
Performance Standards
Permitted Purpose
Personnel
Programme of Works
Project
Project Manager
Project Site
Quality Management System
Registered Construction Workers
Regulatory Bodies
Safety Requirements
Schedule of Rates
Scope of Works
Services
Site Conditions
Specification
Subcontractor
Substantial Completion
Technical Requirements
Term
Variation
Works
Working Day

Clauses

Relevant Industries

Construction

Infrastructure

Real Estate Development

Civil Engineering

Building Services

Public Works

Commercial Development

Residential Development

Industrial Construction

Urban Development

Relevant Teams

Legal

Operations

Procurement

Commercial

Project Management

Construction

Technical

Risk and Compliance

Health and Safety

Contract Administration

Relevant Roles

Construction Director

Project Manager

Contract Manager

Legal Counsel

Commercial Director

Procurement Manager

Operations Director

Risk Manager

Technical Director

Chief Engineer

Development Manager

Quantity Surveyor

Construction Manager

Compliance Officer

Health and Safety Manager

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