Basic Building Contract for Nigeria

Basic Building Contract Template for Nigeria

A standardized construction agreement governed by Nigerian law that establishes the legal framework for building projects. This contract defines the relationship between the employer (property owner) and the contractor, outlining their respective rights, obligations, and responsibilities throughout the construction process. It includes provisions for project execution, payment terms, quality standards, timeline management, and dispute resolution mechanisms, all while ensuring compliance with Nigerian building regulations and construction industry standards.

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What is a Basic Building Contract?

The Basic Building Contract serves as a fundamental legal instrument in the Nigerian construction industry, designed for straightforward construction projects where detailed works are clearly defined at the outset. This document is particularly suitable for small to medium-sized construction projects where the design is complete before construction begins. It incorporates essential elements required under Nigerian law, including compliance with the National Building Code 2006 and relevant state-level regulations. The contract provides a balanced framework for managing the relationship between the employer and contractor, covering crucial aspects such as payment mechanisms, quality control, project timeline management, and dispute resolution procedures. It is structured to be comprehensive yet accessible, making it an ideal choice for projects where a standard form of contract is needed without the complexity of more sophisticated construction agreements.

What sections should be included in a Basic Building Contract?

1. Parties: Identifies and provides full details of the Employer and the Contractor

2. Background: Sets out the context of the agreement and basic project information

3. Definitions: Defines key terms used throughout the contract

4. Contractor's Obligations: Details the core responsibilities of the contractor including quality of work, compliance with laws and standards

5. Employer's Obligations: Specifies the employer's duties including site access, payments, and information provision

6. Contract Price and Payment: Details the agreed price, payment schedule, and payment mechanisms

7. Time and Completion: Specifies completion dates, project timeline, and provisions for extensions of time

8. Quality and Defects: Sets standards for workmanship and materials, and processes for dealing with defects

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

10. Insurance and Indemnity: Specifies required insurance coverage and indemnification obligations

11. Force Majeure: Provisions for handling events beyond parties' control

12. Termination: Grounds and procedures for contract termination

13. Dispute Resolution: Procedures for resolving disputes between parties

14. Governing Law: Specifies Nigerian law as governing law and jurisdiction

What sections are optional to include in a Basic Building Contract?

1. Performance Security: Required when the employer needs additional security for contractor's performance

2. Advance Payment: Include when advance payments are to be made to the contractor

3. Nominated Subcontractors: Include when specific subcontractors are to be nominated by the employer

4. Environmental Protection: Detailed environmental requirements for environmentally sensitive projects

5. Local Content Requirements: Include when specific local content obligations apply

6. Health and Safety Requirements: Detailed safety provisions for high-risk projects

7. Confidentiality: Include for projects involving sensitive information or proprietary designs

What schedules should be included in a Basic Building Contract?

1. Schedule 1 - Works Description: Detailed specification of the works to be carried out

2. Schedule 2 - Contract Price Breakdown: Detailed breakdown of the contract price and bill of quantities

3. Schedule 3 - Programme of Works: Detailed timeline and milestones for the project

4. Schedule 4 - Site Information: Details of the construction site and access arrangements

5. Schedule 5 - Insurance Requirements: Specific details of required insurance coverage

6. Schedule 6 - Forms of Certificates: Templates for payment, completion, and other certificates

7. Schedule 7 - Key Personnel: Details of key staff from both parties

8. Appendix A - Drawings: All relevant technical drawings and plans

9. Appendix B - Technical Specifications: Detailed technical specifications for materials and workmanship

10. Appendix C - Permits and Licenses: Copies of relevant permits and licenses

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

Nigeria

Publisher

Genie AI

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Construction

Real Estate Development

Infrastructure

Commercial Property

Residential Property

Industrial Development

Public Works

Urban Development

Building Materials

Architecture and Design

Relevant Teams

Legal

Construction

Project Management

Procurement

Commercial

Operations

Risk and Compliance

Technical Services

Design

Quality Assurance

Relevant Roles

Construction Manager

Project Director

Contract Manager

Quantity Surveyor

Site Engineer

Procurement Manager

Legal Counsel

Risk Manager

Commercial Director

Project Architect

Building Inspector

Cost Controller

Technical Director

Compliance Officer

Industries
National Building Code 2006: Provides the framework for the Nigerian building industry, setting standards for building works, specifications, and minimum requirements for all stages of construction
Builders (Registration, etc.) Act Cap B13 LFN 2004: Regulates the registration and practice of the building profession in Nigeria, ensuring qualified professionals handle construction projects
Labor Act Cap L1 LFN 2004: Governs employment relationships, working conditions, and workers' rights in Nigeria, crucial for construction labor management
Environmental Impact Assessment Act Cap E12 LFN 2004: Mandates environmental impact assessments for construction projects and sets environmental protection standards
Nigerian Contract Law (Common Law principles): Governs the formation and enforcement of contracts, including essential elements like offer, acceptance, consideration, and capacity
Public Procurement Act 2007: Relevant if the project involves public funds, establishing procedures for procurement and contract awards
Federal Competition and Consumer Protection Act 2018: Regulates competition and fair business practices, affecting contractor selection and pricing
National Environmental Standards and Regulations Enforcement Agency Act 2007: Establishes environmental standards and regulations for construction activities
Employee's Compensation Act 2010: Provides for compensation in cases of work-related injuries, deaths, and diseases in the construction industry
Urban and Regional Planning Act Cap U2 LFN 2004: Governs physical planning, development control, and building permits in urban areas
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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