The Early Works Agreement is a crucial document used in Hong Kong construction projects where certain works need to commence before the finalization of the main construction contract. This typically occurs in time-sensitive projects where early site preparation, design work, or procurement of long-lead items is necessary to maintain the project schedule. The agreement, governed by Hong Kong law, provides comprehensive coverage of essential elements including scope definition, payment terms, insurance requirements, and risk allocation. It serves as a bridge between project initiation and the main contract, ensuring that preliminary works are properly authorized and regulated while protecting all parties' interests. The document must comply with Hong Kong's construction regulations, including the Buildings Ordinance and Construction Workers Registration Ordinance, while maintaining flexibility for integration with the subsequent main contract.
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1. Parties: Identification of the employer and contractor, including their respective addresses and company registration details
2. Background: Context of the early works, relationship to the anticipated main contract, and purpose of this agreement
3. Definitions: Definitions of key terms used throughout the agreement, including 'Early Works', 'Site', 'Works', and 'Main Contract'
4. Scope of Early Works: Detailed description of the authorized preliminary works to be carried out under this agreement
5. Commencement and Duration: Start date, expected duration, and relationship to the main contract timeline
6. Payment Terms: Payment mechanism, rates, valuation process, and payment timeline for the early works
7. Contractor's Obligations: Key responsibilities including safety, compliance with laws, and standard of work
8. Employer's Obligations: Site access, information provision, and other employer responsibilities
9. Insurance and Liability: Required insurance coverage and allocation of risks between parties
10. Termination: Termination rights and consequences, including payment for work done
11. Transition to Main Contract: Process for integrating early works into the main contract when executed
12. Governing Law and Jurisdiction: Confirmation of Hong Kong law and jurisdiction
1. Performance Security: Required when the employer needs additional security for contractor performance
2. Intellectual Property Rights: Needed when early works involve design or other intellectual property
3. Variations: Include when flexibility is needed to vary the scope of early works
4. Delay and Extension of Time: Include for complex early works where delays might be anticipated
5. Dispute Resolution: Detailed dispute resolution procedures for high-value or complex early works
6. Environmental Compliance: Required for works with significant environmental impact
7. Site Conditions: Include when ground conditions or existing structures may affect the works
8. Quality Assurance: Include for works requiring specific quality standards or testing
1. Schedule 1 - Scope of Early Works: Detailed description of authorized preliminary works including drawings and specifications
2. Schedule 2 - Programme: Detailed timeline for the early works activities
3. Schedule 3 - Rates and Prices: Breakdown of agreed rates and prices for the early works
4. Schedule 4 - Site Plan: Plans showing the extent of the site and work areas
5. Schedule 5 - Insurance Requirements: Detailed insurance requirements and minimum coverage amounts
6. Schedule 6 - Key Personnel: List of key personnel from both parties involved in the early works
7. Appendix A - Forms and Notices: Standard forms for applications, certificates, and notices
8. Appendix B - Safety Requirements: Specific safety requirements and procedures for the early works
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