Works Contract for Hong Kong

Works Contract Template for Hong Kong

A Works Contract governed by Hong Kong law is a comprehensive legal agreement between an employer and a contractor for the execution of construction or engineering works. This document incorporates requirements from Hong Kong's Buildings Ordinance, Construction Industry Council regulations, and related legislation. It details the scope of works, payment terms, completion requirements, quality standards, and risk allocation while ensuring compliance with local construction and safety regulations. The contract includes provisions for dispute resolution through Hong Kong's legal framework and addresses specific requirements for construction projects in the territory.

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What is a Works Contract?

This Works Contract template is designed for use in construction projects within Hong Kong's jurisdiction, providing a comprehensive framework for construction and engineering works. It incorporates essential elements required by Hong Kong law, including compliance with the Buildings Ordinance, Construction Industry Council requirements, and relevant safety regulations. The Works Contract is particularly suitable for medium to large-scale construction projects where detailed scope definition, payment mechanisms, and risk allocation are crucial. It includes provisions for variations, quality control, dispute resolution, and defects liability, all tailored to Hong Kong's construction industry practices and legal requirements. The document serves as a primary agreement between employers (typically developers or property owners) and contractors, ensuring clear definition of responsibilities and obligations while maintaining alignment with local regulatory requirements.

What sections should be included in a Works Contract?

1. Parties: Identification of the Employer and Contractor, including full legal names and addresses

2. Background: Context of the works contract, including project overview and tender process

3. Definitions: Defined terms used throughout the contract

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

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

6. Commencement and Completion: Project timeline, completion dates, and milestone requirements

7. Contractor's Obligations: General and specific obligations of the Contractor

8. Employer's Obligations: General and specific obligations of the Employer

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

10. Insurance and Indemnities: Required insurance coverage and indemnification provisions

11. Defects Liability: Defects notification period and rectification procedures

12. Termination: Grounds and procedures for contract termination

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

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

What sections are optional to include in a Works Contract?

1. Performance Bond: Required when project value exceeds certain threshold or employer requires additional security

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

3. Intellectual Property Rights: Necessary when works involve design elements or proprietary methods

4. Environmental Compliance: Required for projects with significant environmental impact

5. Liquidated Damages: Include when specific completion dates are crucial and damages can be pre-estimated

6. Site Conditions: Important for projects where ground conditions may impact works

7. Materials and Equipment: Detailed provisions when specific materials or equipment are crucial to the works

8. Subcontracting: Required when subcontracting will be a significant aspect of the works

What schedules should be included in a Works Contract?

1. Schedule 1 - Works Specifications: Detailed technical specifications of the works

2. Schedule 2 - Site Plans and Drawings: Technical drawings and site layout plans

3. Schedule 3 - Programme of Works: Detailed timeline and sequence of works

4. Schedule 4 - Payment Schedule: Breakdown of payment milestones and amounts

5. Schedule 5 - Key Personnel: List of key personnel from both parties and their roles

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

7. Schedule 7 - Forms and Certificates: Standard forms for variations, completion certificates, etc.

8. Schedule 8 - Health and Safety Requirements: Specific health and safety requirements for the project

9. Appendix A - Bill of Quantities: Detailed breakdown of quantities and rates

10. Appendix B - Quality Assurance Plan: Quality control procedures and requirements

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

Authorization Form

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Construction

Real Estate Development

Infrastructure

Commercial Property

Residential Property

Industrial Development

Civil Engineering

Building Services

Public Works

Urban Development

Relevant Teams

Legal

Construction

Project Management

Commercial

Procurement

Risk Management

Technical Services

Operations

Compliance

Contract Administration

Development

Relevant Roles

Project Director

Construction Manager

Contract Manager

Project Manager

Site Engineer

Quantity Surveyor

Commercial Director

Legal Counsel

Risk Manager

Procurement Manager

Technical Director

Chief Engineer

Development Manager

Construction Director

Compliance Officer

Industries
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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