Standard Form Of Agreement Between Owner And Contractor for Nigeria

Standard Form Of Agreement Between Owner And Contractor Template for Nigeria

A comprehensive construction contract agreement governed by Nigerian law that establishes the legal relationship between a project owner and a main contractor. This document outlines the terms and conditions for construction project execution, including scope of work, payment terms, timeline, quality requirements, and risk allocation. It incorporates relevant Nigerian construction regulations, environmental requirements, and industry standards while providing mechanisms for project management, dispute resolution, and contract administration. The agreement is structured to protect both parties' interests while ensuring compliance with local content requirements and construction practices specific to the Nigerian market.

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What is a Standard Form Of Agreement Between Owner And Contractor?

The Standard Form of Agreement Between Owner and Contractor serves as the primary contract document for construction projects in Nigeria, establishing the legal and commercial framework for project execution. This agreement is typically used when a project owner needs to engage a main contractor for construction works, whether for new builds, renovations, or infrastructure projects. It includes comprehensive provisions for project execution, payment mechanisms, quality control, and risk allocation, while ensuring compliance with Nigerian construction laws, environmental regulations, and local content requirements. The document is designed to be adaptable to various project sizes and types while maintaining consistency with Nigerian legal requirements and construction industry best practices. It provides essential protection for both parties' interests through clear delineation of responsibilities, robust dispute resolution mechanisms, and standard industry procedures for contract administration.

What sections should be included in a Standard Form Of Agreement Between Owner And Contractor?

1. Parties: Identification and details of the Owner and Contractor, including registration numbers and addresses

2. Background: Context of the agreement, project overview, and basis for the contractual relationship

3. Definitions and Interpretation: Definitions of key terms used in the agreement and rules for interpreting the contract

4. Scope of Work: Detailed description of the work to be performed by the Contractor

5. Contract Price and Payment: Amount payable, payment schedule, payment terms, and invoicing requirements

6. Project Timeline: Commencement date, completion date, project milestones, and extension provisions

7. Contractor's Obligations: Key responsibilities and duties of the Contractor including quality standards

8. Owner's Obligations: Key responsibilities and duties of the Owner including site access and approvals

9. Materials and Workmanship: Standards for materials, quality requirements, and workmanship specifications

10. Variations and Changes: Process for handling changes to scope, pricing, or timeline

11. Health and Safety: Safety requirements, protocols, and responsibilities

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

13. Defects Liability: Defects notification period, remediation process, and warranties

14. Suspension and Termination: Grounds and process for suspension or termination of the contract

15. Dispute Resolution: Process for resolving disputes including mediation and arbitration

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

What sections are optional to include in a Standard Form Of Agreement Between Owner And Contractor?

1. Performance Security: Requirements for performance bonds or guarantees, used for high-value projects

2. Local Content Requirements: Specific provisions for local content compliance, required for oil/gas sector projects

3. Environmental Management: Detailed environmental requirements, needed for environmentally sensitive projects

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

5. Force Majeure: Provisions for unforeseen circumstances, recommended for long-term projects

6. Intellectual Property: IP rights and obligations, needed for projects involving design or technology elements

7. Liquidated Damages: Pre-agreed damages for delays or performance failures, used for time-critical projects

8. Quality Management System: Detailed quality management requirements, for complex technical projects

9. Subcontracting: Rules and restrictions on subcontracting, for projects allowing subcontractors

What schedules should be included in a Standard Form Of Agreement Between Owner And Contractor?

1. Schedule 1 - Scope of Works: Detailed technical specifications and scope breakdown

2. Schedule 2 - Contract Price Breakdown: Detailed pricing, rates, and payment milestones

3. Schedule 3 - Project Timeline: Detailed program of works and milestone dates

4. Schedule 4 - Key Personnel: List of key personnel from both parties and their roles

5. Schedule 5 - Technical Specifications: Detailed technical requirements and standards

6. Schedule 6 - Site Information: Site details, access requirements, and existing conditions

7. Schedule 7 - Forms and Procedures: Standard forms for variations, payments, and certificates

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

9. Appendix A - Drawings: Project drawings and design documents

10. Appendix B - Permits and Approvals: Required permits and regulatory approvals

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

Oil and Gas

Manufacturing

Healthcare

Education

Hospitality

Commercial Development

Industrial Development

Residential Development

Transportation

Energy

Mining

Telecommunications

Relevant Teams

Legal

Commercial

Operations

Project Management

Construction

Procurement

Technical

Risk Management

Compliance

Health and Safety

Contract Administration

Quality Control

Development

Engineering

Finance

Relevant Roles

Project Director

Construction Manager

Contract Manager

Legal Counsel

Commercial Manager

Project Manager

Quantity Surveyor

Chief Engineer

Procurement Manager

Risk Manager

Operations Director

Technical Director

Development Manager

Site Manager

Cost Controller

Claims Manager

Compliance Officer

Health and Safety Manager

Industries
Nigerian Contract Law Act: Fundamental legislation governing the formation, validity, and enforcement of contracts in Nigeria, including essential elements like offer, acceptance, consideration, and capacity to contract
Public Procurement Act 2007: Regulates procurement procedures and contracts involving public funds, establishing transparency and competitive bidding requirements
National Building Code: Sets standards for building construction, safety requirements, and technical specifications that must be adhered to in construction contracts
Labour Act Cap L1 LFN 2004: Governs employment relationships, working conditions, and labor rights that must be considered in construction contracts
Environmental Impact Assessment Act: Mandates environmental impact assessments for construction projects and sets environmental protection standards
Arbitration and Conciliation Act: Provides framework for alternative dispute resolution in commercial contracts, including construction disputes
Engineers Registration Act: Regulates the registration and practice of engineering professionals involved in construction projects
Nigerian Oil and Gas Industry Content Development Act 2010: If applicable to construction in oil/gas sector, sets local content requirements for contracts in these industries
Federal Competition and Consumer Protection Act 2018: Regulates competition and fair business practices, affecting contractor selection and pricing
Companies and Allied Matters Act 2020: Governs business entities and corporate structures, relevant for verifying contractor's legal status and capacity
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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