Building Contract Definition

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GLOSSARY

/ˈbɪldɪŋ/ /ˈkɒntrakt/

Published by a ��Ӱ�� Construction expert

What does Building Contract mean?

The contract between an employer and a contractor for the carrying out and completion of building works. The building contract may be referred to as the main contract, particularly when sub-contractors are to be engaged.

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Preparing a building contract for signature—checklist

Preparing a building contract for signature—checklist This Checklist can be used when preparing a building contract for signature. It is designed to help avoid errors when preparing or checking construction documents before they are signed by the parties and completed. • Consistency with other documents From the outset, liaise with the member of the professional team responsible for preparing contract documents such as Preliminaries and Employer’s Requirements to ensure that these are consistent with the schedule of amendments and accurately reflect the intentions of the parties. For more on drafting a building contract, see: Drafting a building contract/schedule of amendments—checklist. • Details of the parties Include full details for all contracting parties—the full company name and address, plus the registered company number (if any) as company names may change in future. Confirm the details are correct at Companies House (if applicable). • Contract Particulars Review the Contract Particulars (where a JCT contract is being used), or Contract Data (where an NEC contract is used), or other relevant contract details section...

Drafting and negotiating a time of the essence clause—checklist

Drafting and negotiating a time of the essence clause—checklist This Checklist outlines key provisions and issues for consideration when drafting and negotiating time of the essence clauses. For a Precedent time of the essence clause together with detailed drafting notes, see Precedent: Time of the essence clause. For information on time of the essence, exceptions to the general rule and practical issues to be considered by customers and suppliers, see Practice Note: Time of the essence. Legal Issues General comments What to watch out for Nature of the term: condition, innominate term or warranty Time will be of the essence where the parties expressly stipulate that time will be of the essence. If time is of the essence, a delay may give rise to the right to terminate the contract and a right to recover damages.In the absence of express wording, for time to be of the essence it must be a condition of the contract. If the provision dealing with time is construed as an innominate term or a warranty, it...

Discover our 46 Checklists on Building Contract

Interim payment in JCT Intermediate Building Contract 2024 and 2016—flowchart

Interim payment in JCT Intermediate Building Contract 2024 and 2016—flowchart This flowchart summarises the interim

Final payment in JCT Intermediate Building Contract 2016—flowchart

Final payment in JCT Intermediate Building Contract 2016—flowchart This flowchart illustrates the final

Discover our 13 Flowcharts on Building Contract

Assignment of construction documents—checklist

Assignment of construction documents—checklist This Checklist sets out a suggested list of matters to consider when reviewing the assignability of a construction contract such as a building contract, consultant appointment or collateral warranty. It also considers the steps to be followed to complete an assignment of the benefit of a construction contract from one party to another. • Does the construction contract contain assignment provisions? Most construction contracts contain an express provision relating to the assignment rights of the parties. If the contract is silent in relation to assignment, assignment of the contract by either party is permitted without restriction. Sometimes, the contract may expressly prohibit assignment of the contract by one or both parties. Typically the employer will not be absolutely prohibited from assigning, but there may be a limit on the number of times that the contract may be assigned without obtaining the consent of the other party (see the detail on restrictions below). See Practice Note: Assignment in construction contracts. • Are there any restrictions on the...

Introduction to the HGCRA 1996

Introduction to the HGCRA 1996 The need for legislation in the construction industry Throughout the 1980s and the early 1990s, the construction industry was characterised by inefficiencies, disputes and high levels of insolvency, particularly among contractors and sub-contractors. In 1994, Sir Michael Latham was commissioned to undertake a report on the issues affecting the construction industry. In his report, entitled ‘Constructing the Team’, Latham identified two areas which were pivotal to the issues affecting the industry: • disputes • payment Latham found that the industry needed a specific mechanism of dispute resolution which was accessible, quick and inexpensive to reduce the disputes culture within the industry. Latham also thought that ensuring cash flow to all levels of the industry would reduce contractor and sub-contractor insolvency, and create stability of employment. The HGCRA 1996 The legislative response to Latham's report was contained in Part II of the Housing Grants, Construction and Regeneration Act 1996 (HGCRA 1996), which was enacted in 1996 and came into force in May 1998....

Discover our 310 Practice Notes on Building Contract

Short form of consultant’s appointment

Short form of consultant’s appointment This Agreement is made on the [insert date] day of [insert month and year] Parties 1 [Insert Employer name] (Company Registration No. [insert number] whose registered office is at [insert office]) (the 'Employer' which term shall include all permitted assignees or other transferees under this Agreement); and 2 [Insert Consultant name] (Company Registration No. [insert number] whose registered office is at [insert office]) (the 'Consultant') Whereas (A) The Employer has entered into or proposes to enter into a contract with [insert name of contractor] of [insert contractor's address] for the [design and] construction of a [insert brief description of the project] (the ‘Project’) at [insert location of site] (the 'Building Contract'). (B) The Employer wishes to appoint the Consultant to perform the services set out in Schedule 1 (the 'Services') in accordance with the Agreement It is hereby agreed as follows 1 Definitions and Interpretation 1.1 In this Agreement the following expressions shall have the following meanings: [Beneficiaries • any and all...

Consequences of termination clauses (construction contract)

Termination (consequences) Consequences of termination of a consultant’s appointment 1 Subject to the other provisions of this Agreement and without prejudice to any right of action then accrued to either party on termination the Consultant will be entitled to fees for all Services properly performed and completed at the date of termination of this Agreement. 2 [Upon termination the Employer

Dive into our 110 Precedents related to Building Contract

Do you have a straight forward contract for building works between a contractor and home owner?

Do you have a straight forward contract for building works between a contractor and home owner? We do not have a precedent contract in Lexis®PSL Construction that would suit these purposes. We suggest that an appropriate form of contract to use in these circumstances would be either: • JCT Building Contract and Consultancy Agreement for a Home Owner/Occupier,

Is a contractor entitled to an extension of time if construction works are delayed due to the impact of coronavirus (COVID-19)?

Is a contractor entitled to an extension of time if construction works are delayed due to the impact of coronavirus (COVID-19)? The answer depends entirely on the contract between the parties. Standard form contracts provide for the granting of extensions of time and these usually include a provision for force majeure which would include the effects of coronavirus (COVID-19). The JCT standard forms of building contract contain an extension of time provision which defines the contractor’s entitlement to an extension of time by reference to ‘relevant events’. The definition of relevant events includes ‘force majeure’. The JCT standard forms do not contain a definition of force majeure, therefore, it is necessary to consider the common law position as it pertains to frustration. In Davis Contractors v Fareham UDC, the House of Lords gave what is now regarded as the classic definition of the doctrine when it said that frustration: ‘…occurs wherever the law recognises that without default of either party a contractual obligation has become...

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JCT 2024 contracts—good faith in practice

Construction analysis: In this Insight, Shy Jackson considers the scope and implications of the parties’ obligation to work together in good faith under the Joint Contracts Tribunal (JCT) 2024 contracts.

Construction weekly highlights—16 January 2025

This week's edition of Construction weekly highlights includes our review of key developments in construction law from the back end of 2024 and a look ahead to what may come in 2025, the Ministry of Housing, Communities and Local Government (MHCLG)’s publication of updated versions of Approved Document B on fire safety and the Welsh Government’s response to its October 2023 consultation on proposed amendments to Part B (Fire Safety) of the Building Regulations and associated guidance.

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