New Construction Agreement Template for Hong Kong

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Key Requirements PROMPT example:

New Construction Agreement

I need a New Construction Agreement under Hong Kong law for a 40-story commercial building project in Kowloon, with specific provisions for green building certification and smart building technology integration, expected to commence in March 2025.

Document background
The New Construction Agreement is a fundamental legal document used in Hong Kong's construction industry to establish a binding contractual relationship between property owners or developers and construction contractors. This agreement is essential when initiating new building projects, whether commercial, residential, or industrial. It ensures compliance with Hong Kong's strict building regulations, including the Buildings Ordinance (Cap. 123) and related legislation. The document comprehensively covers all aspects of the construction project, from initial site preparation to project completion and defects liability period. It includes detailed specifications, payment mechanisms, safety requirements, and quality standards, while incorporating provisions for variations, disputes, and risk allocation. This agreement type is particularly crucial in Hong Kong's dynamic construction market, where complex projects require clear legal frameworks to protect all parties' interests.
Suggested Sections

1. Parties: Identification and details of the employer/owner and the contractor

2. Background: Context of the construction project and the purpose of the agreement

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

4. Scope of Works: Detailed description of the construction works to be performed

5. Contract Sum and Payment Terms: Agreement on pricing, payment schedule, and payment mechanisms

6. Commencement and Completion: Project timeline, completion dates, and provisions for extensions of time

7. Contractor's Obligations: Primary responsibilities including workmanship, materials, and compliance with regulations

8. Employer's Obligations: Key responsibilities including site access, permits, and information provision

9. Variations: Procedures for handling changes to the scope of work

10. Quality and Inspection: Quality standards, inspection procedures, and acceptance criteria

11. Health, Safety and Environment: Requirements for site safety, environmental protection, and regulatory compliance

12. Insurance and Indemnities: Required insurance coverage and indemnification obligations

13. Defects Liability: Defects notification period and rectification obligations

14. Suspension and Termination: Rights and procedures for suspending or terminating the agreement

15. Dispute Resolution: Methods and procedures for resolving disputes

16. General Provisions: Standard contractual provisions including notices, assignment, and governing law

Optional Sections

1. Performance Bond: Required when project value exceeds certain thresholds or when specifically requested by the employer

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

3. Intellectual Property Rights: Necessary when the project involves design elements or proprietary methods

4. Liquidated Damages: Specific provisions for compensation in case of delay or performance failures

5. Site Conditions: Detailed provisions about site conditions when there are known challenges or uncertainties

6. Archaeological Findings: Required for sites with potential historical or archaeological significance

7. Environmental Impact Measures: Detailed provisions when the project requires specific environmental protection measures

8. Nominated Subcontractors: Included when the employer wants to specify certain subcontractors

9. Anti-Corruption Provisions: Enhanced provisions for projects with public sector involvement or specific compliance requirements

Suggested Schedules

1. Schedule 1 - Contract Drawings: Detailed architectural and engineering drawings for the project

2. Schedule 2 - Technical Specifications: Detailed specifications for materials, workmanship, and technical requirements

3. Schedule 3 - Price Schedule: Breakdown of the contract sum including unit rates and quantities

4. Schedule 4 - Project Timeline: Detailed project schedule including milestones and critical dates

5. Schedule 5 - Site Details: Site plan, access points, and relevant site-specific information

6. Schedule 6 - List of Approved Materials: Pre-approved materials and suppliers for the project

7. Schedule 7 - Form of Bonds and Guarantees: Templates for required performance bonds or guarantees

8. Schedule 8 - Insurance Requirements: Detailed insurance specifications and minimum coverage requirements

9. Schedule 9 - Quality Assurance Plan: Specific quality control procedures and requirements

10. Schedule 10 - Health and Safety Requirements: Detailed safety procedures and requirements

11. Appendix A - Statutory Declarations: Required declarations under Hong Kong law

12. Appendix B - Permits and Licenses: Copies of relevant permits and licenses for the project

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

Relevant legal definitions
Clauses
Relevant Industries

Real Estate

Construction

Infrastructure

Commercial Property

Industrial Development

Residential Development

Public Works

Urban Development

Manufacturing

Hospitality

Healthcare

Education

Retail

Relevant Teams

Legal

Construction

Project Management

Commercial

Operations

Risk & Compliance

Property Development

Procurement

Technical Services

Contract Administration

Quality Assurance

Health & Safety

Relevant Roles

Construction Manager

Project Director

Legal Counsel

Contract Manager

Property Developer

Development Director

Site Manager

Project Manager

Quantity Surveyor

Commercial Director

Chief Executive Officer

Operations Director

Risk Manager

Compliance Officer

Construction Director

Technical Director

Procurement Manager

Industries
Buildings Ordinance (Cap. 123): Primary legislation governing the planning, design, and construction of buildings in Hong Kong, including building standards, safety requirements, and approval processes
Construction Workers Registration Ordinance (Cap. 583): Regulates the registration and management of construction workers, ensuring only qualified personnel work on construction sites
Occupational Safety and Health Ordinance (Cap. 509): Sets out requirements for workplace safety and health protection in construction sites
Contracts (Rights of Third Parties) Ordinance (Cap. 623): Governs third-party rights in contractual relationships, which is relevant for subcontractors and suppliers
Environmental Impact Assessment Ordinance (Cap. 499): Requires assessment and mitigation of environmental impacts for designated construction projects
Construction Industry Council Ordinance (Cap. 587): Establishes the regulatory framework for the construction industry and sets industry standards
Building Management Ordinance (Cap. 344): Relevant for construction works in existing buildings and management of common areas
Noise Control Ordinance (Cap. 400): Regulates construction noise and requires permits for construction works during restricted hours
Air Pollution Control Ordinance (Cap. 311): Controls air pollution from construction activities and requires compliance with emission standards
Waste Disposal Ordinance (Cap. 354): Governs the handling and disposal of construction waste and requires proper waste management plans
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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