Real Estate Construction Contract for Nigeria

Real Estate Construction Contract Template for Nigeria

A comprehensive legal agreement governed by Nigerian law that establishes the terms and conditions for construction work on real estate properties. This document outlines the rights, responsibilities, and obligations of the property owner/employer and the contractor, including scope of work, payment terms, timeline, quality standards, and compliance requirements. It incorporates specific provisions aligned with Nigerian construction regulations, land use laws, and environmental requirements, while providing mechanisms for project management, dispute resolution, and risk allocation. The contract ensures compliance with local building codes and standards while protecting the interests of all parties involved in the construction project.

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What is a Real Estate Construction Contract?

The Real Estate Construction Contract is a vital legal instrument used in Nigeria when engaging contractors for construction projects on real estate properties. This document is essential for any property development project, whether commercial, residential, or industrial, where construction works are to be undertaken. It provides a comprehensive framework that ensures compliance with Nigerian construction laws, including the Land Use Act, National Building Code, and Environmental Protection regulations. The contract typically includes detailed specifications of the construction work, payment structures, timelines, quality standards, and dispute resolution mechanisms. It's particularly important in the Nigerian context where proper documentation and clear contractual terms are crucial for project success and regulatory compliance. The document serves to protect both the property owner's interests and the contractor's rights while ensuring that the construction project meets all legal and technical requirements.

What sections should be included in a Real Estate Construction Contract?

1. Parties: Identification of the contracting parties including the employer/owner and the contractor, with their full legal names and addresses

2. Background: Context of the construction project, including brief description of the property and purpose of the development

3. Definitions: Detailed definitions of key terms used throughout the contract

4. Scope of Work: Detailed description of the construction work to be performed, including general obligations of the contractor

5. Contract Price and Payment Terms: Total contract sum, payment schedule, and payment conditions

6. Project Timeline: Construction schedule, completion date, and any milestone dates

7. Contractor's Obligations: Specific duties and responsibilities of the contractor including quality standards, supervision, and safety measures

8. Employer's Obligations: Responsibilities of the employer including site access, permits, and approvals

9. Materials and Workmanship: Standards for materials, quality requirements, and inspection procedures

10. Variations and Changes: Procedures for handling changes to the scope of work and their cost implications

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

12. Warranties and Defects Liability: Warranty periods, defects correction procedures, and quality guarantees

13. Termination: Grounds and procedures for contract termination by either party

14. Dispute Resolution: Procedures for resolving disputes, including mediation and arbitration provisions

15. Force Majeure: Provisions for handling unforeseen circumstances and their impact on the contract

16. Governing Law: Specification of Nigerian law as governing law and relevant jurisdiction

What sections are optional to include in a Real Estate Construction Contract?

1. Environmental Protection: Special environmental requirements and compliance measures, used when project has significant environmental impact

2. Local Content Requirements: Provisions for local workforce and material usage, required for projects subject to Nigerian local content laws

3. Performance Bond: Requirements for performance security, used for larger construction projects

4. Advance Payment: Terms for advance payment and associated guarantees, used when advance payment is required

5. Subcontractors: Provisions governing the use and management of subcontractors, used when subcontracting is anticipated

6. Equipment and Temporary Works: Provisions for construction equipment and temporary structures, used for complex projects

7. Site Security: Special security requirements, used for projects in sensitive or high-risk areas

8. Intellectual Property Rights: Protection of design rights and other IP, used when custom designs are involved

What schedules should be included in a Real Estate Construction Contract?

1. Schedule 1 - Construction Drawings and Specifications: Detailed technical drawings and specifications for the construction work

2. Schedule 2 - Bill of Quantities: Itemized list of materials, labor, and costs

3. Schedule 3 - Construction Schedule: Detailed timeline of construction activities and milestones

4. Schedule 4 - Payment Schedule: Detailed breakdown of payment installments and timing

5. Schedule 5 - Quality Control Requirements: Specific quality standards, testing procedures, and acceptance criteria

6. Schedule 6 - Site Information: Details about the construction site, including surveys and existing conditions

7. Schedule 7 - Required Permits and Approvals: List of necessary regulatory permits and approvals

8. Schedule 8 - Key Personnel: List of key project personnel and their responsibilities

9. Appendix A - Insurance Requirements: Detailed insurance specifications and coverage requirements

10. Appendix B - Forms of Guarantees and Bonds: Templates for required guarantees and bonds

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

Real Estate

Construction

Infrastructure Development

Commercial Property

Residential Property

Industrial Development

Hospitality

Healthcare

Education

Retail

Manufacturing

Energy

Government and Public Works

Relevant Teams

Legal

Operations

Construction

Property Development

Procurement

Risk and Compliance

Project Management

Technical Services

Quality Assurance

Facilities Management

Contract Administration

Business Development

Relevant Roles

Construction Manager

Project Director

Legal Counsel

Contract Manager

Property Developer

Real Estate Manager

Chief Executive Officer

Operations Director

Development Manager

Procurement Manager

Risk Manager

Compliance Officer

Facilities Manager

Technical Director

Site Manager

Quality Assurance Manager

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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