Construction Short Form Contract for Pakistan

Construction Short Form Contract Template for Pakistan

A streamlined construction contract template designed for use in Pakistan, incorporating essential elements of Pakistani contract law and construction regulations. This document provides a simplified yet comprehensive framework for smaller to medium-sized construction projects, ensuring compliance with local building codes, environmental regulations, and labor laws. The contract balances practical construction requirements with legal protections while maintaining clarity and ease of use for all parties involved. It includes provisions for payment terms, project timelines, quality standards, and dispute resolution mechanisms tailored to the Pakistani legal system.

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What is a Construction Short Form Contract?

The Construction Short Form Contract is specifically designed for use in Pakistan's construction industry, particularly suited for smaller to medium-sized construction projects where a full standard form contract would be overly complex. This document represents a balanced approach between comprehensive legal protection and practical usability, incorporating key requirements from Pakistani contract law, construction regulations, and industry standards. It is typically used for projects such as residential buildings, small commercial developments, or industrial facilities where the scope and complexity are well-defined and manageable. The contract includes essential provisions for project execution, payment terms, quality standards, and dispute resolution, while remaining compliant with local legal requirements and construction practices. This version is particularly valuable for projects where speed of execution and clarity of terms are priorities, while still maintaining necessary legal and technical rigour.

What sections should be included in a Construction Short Form Contract?

1. Parties: Identification and details of the Employer and Contractor, including their legal status and registered addresses

2. Background: Brief context of the construction project and purpose of the agreement

3. Definitions: Key terms used throughout the contract, including technical construction terminology

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

5. Contract Price and Payment: Agreed price, payment schedule, and payment terms

6. Timeline: Project commencement date, completion date, and key milestones

7. Contractor's Obligations: Core responsibilities including quality standards, materials, workmanship, and safety requirements

8. Employer's Obligations: Key responsibilities including site access, permits, and information provision

9. Variations: Process for handling changes to the scope of work

10. Completion and Defects: Completion requirements, defects liability period, and rectification process

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

12. Termination: Grounds and process for contract termination

13. Dispute Resolution: Process for resolving disputes, including mediation and arbitration procedures

14. Governing Law: Specification of Pakistani law as governing law and jurisdiction

What sections are optional to include in a Construction Short Form Contract?

1. Performance Security: Required for projects where the employer needs additional financial security, specifying bond or guarantee requirements

2. Advance Payment: Include when advance payments are part of the payment structure, detailing amount and recovery mechanism

3. Environmental Requirements: For projects with significant environmental impact, detailing specific environmental compliance requirements

4. Force Majeure: Detailed force majeure provisions for projects in areas prone to natural disasters or political instability

5. Subcontracting: Include when subcontracting is permitted, specifying conditions and approval requirements

6. Site Security: For projects in sensitive or high-risk areas, detailing security requirements

7. Quality Control: Detailed quality control procedures for projects with specific quality requirements

8. Local Content Requirements: For projects subject to local content regulations or preferences

What schedules should be included in a Construction Short Form Contract?

1. Schedule 1: Scope of Works: Detailed technical specifications and drawings of the construction work

2. Schedule 2: Bill of Quantities: Itemized list of quantities, rates, and prices for the construction work

3. Schedule 3: Project Timeline: Detailed project schedule including milestones and completion dates

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

5. Schedule 5: Site Details: Site location, access points, and relevant site conditions

6. Schedule 6: Required Insurance: Specific insurance requirements and minimum coverage amounts

7. Schedule 7: Key Personnel: List of key personnel from both parties with roles and responsibilities

8. Appendix A: Technical Drawings: Architectural and engineering drawings

9. Appendix B: Material Specifications: Detailed specifications for construction materials

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

Pakistan

Publisher

Genie AI

Cost

Free to use
Relevant Industries

Construction

Real Estate Development

Infrastructure

Residential Development

Commercial Development

Industrial Development

Engineering Services

Architecture

Project Management

Construction Materials Manufacturing

Relevant Teams

Legal

Operations

Construction

Project Management

Procurement

Finance

Commercial

Risk Management

Quality Control

Contract Administration

Relevant Roles

Construction Manager

Project Manager

Contract Administrator

Legal Counsel

Construction Director

Site Supervisor

Procurement Manager

Quality Control Manager

Cost Controller

Risk Manager

Commercial Manager

Operations Director

Chief Executive Officer

Managing Director

Finance Director

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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