Project-Based Contract Template for Nigeria

A Project-Based Contract sets out specific terms for completing a defined piece of work within an agreed timeframe and budget. Under Nigerian contract law, these agreements detail project deliverables, payment schedules, and quality standards while keeping both parties accountable throughout the project lifecycle.

Common in Nigeria's construction, IT, and consulting sectors, these contracts protect both clients and contractors by clearly outlining scope, timelines, and dispute resolution methods. They differ from traditional employment contracts because they focus on delivering specific outcomes rather than ongoing services, making them particularly useful for one-off projects or specialized work assignments.

Project-Based Contracts work best for temporary, clearly defined assignments with specific deliverables and timelines. They're essential when hiring contractors for building projects, software development, or consulting work in Nigeria, especially when the scope involves multiple milestones and payment stages.

Use these contracts for any project requiring detailed quality standards, specialized expertise, or significant resource allocation. They're particularly valuable for Nigerian businesses managing government tenders, infrastructure projects, or technical implementations where clear accountability and documented outcomes matter. The contract helps prevent scope creep, establishes performance metrics, and ensures compliance with local procurement regulations.

• Fixed-Price Contracts: Set a predetermined total cost for the entire project scope, popular in Nigerian construction and IT sectors
• Time-and-Materials Contracts: Bill based on actual hours worked plus material costs, common for consulting and development projects
• Cost-Plus Contracts: Add an agreed profit percentage to actual project costs, often used in complex engineering projects
• Milestone-Based Contracts: Structure payments around completed project phases, typical in large infrastructure projects
• Unit-Price Contracts: Price work by measurable units, frequently used in Nigerian road construction and quantity-based projects

• Project Owners/Clients: Organizations or individuals who commission and fund the project, including government agencies, private companies, and NGOs
• Contractors/Service Providers: Companies or professionals who execute the project deliverables, from construction firms to IT consultants
• Legal Counsel: Internal or external lawyers who draft and review Project-Based Contracts to ensure compliance with Nigerian law
• Project Managers: Professionals who oversee contract implementation, monitor deliverables, and manage stakeholder relationships
• Regulatory Bodies: Government agencies that enforce contract standards and industry-specific regulations in Nigeria

• Project Scope: Define clear deliverables, timelines, and quality standards for the work to be performed
• Party Details: Gather complete business information, registration numbers, and authorized representatives of all involved parties
• Payment Terms: Outline payment schedules, milestone-based disbursements, and any performance-linked bonuses
• Resource Requirements: List necessary materials, equipment, personnel, and expertise needed for project completion
• Compliance Check: Verify alignment with Nigerian procurement laws, industry regulations, and local contract requirements
• Risk Management: Include dispute resolution mechanisms, termination clauses, and force majeure provisions

• Project Definition: Detailed scope of work, deliverables, and quality standards
• Party Information: Full legal names, addresses, and registration details of all contracting parties
• Duration Clause: Project timeline, start date, completion date, and milestone deadlines
• Payment Terms: Fee structure, payment schedule, and conditions for disbursement
• Performance Standards: Expected quality levels, acceptance criteria, and review procedures
• Termination Rights: Conditions for contract termination and associated penalties
• Dispute Resolution: Agreed methods for handling disagreements under Nigerian law
• Force Majeure: Provisions for unforeseen circumstances affecting project execution

Project-Based Contracts differ significantly from an Employment Contract in several key ways, though both govern work relationships in Nigeria. The main distinction lies in their fundamental purpose and structure.

• Duration and Scope: Project-Based Contracts focus on specific deliverables with clear end dates, while Employment Contracts establish ongoing relationships with no fixed completion point
• Payment Structure: Project contracts typically involve milestone-based or deliverable-linked payments, unlike employment contracts' regular salary arrangements
• Legal Obligations: Employment contracts include statutory benefits, leave entitlements, and worker protections under Nigerian Labour Law, while project contracts focus on deliverables without these obligations
• Control and Supervision: Project contracts grant more autonomy to contractors in how work is performed, whereas employment contracts establish direct supervisory relationships