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Construction contracts are the foundation of any successful building project. Whether you're a property owner commissioning work or a contractor taking on projects, having properly drafted and reviewed contracts protects your interests and prevents costly disputes.
Standard Form Contracts:
Bespoke Contracts:
Essential Provisions:
Dispute Resolution:
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Security Options:
Proper contract advice at the outset can prevent expensive disputes and ensure your construction project runs smoothly from start to finish.
This information is for general guidance only and does not constitute legal advice. For specific legal advice tailored to your situation, please consult with a qualified solicitor.
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Essential construction contract terms include: detailed scope of work, contract price and payment terms, start and completion dates, variation procedures, risk allocation and insurance, dispute resolution clauses, performance bonds, and liquidated damages. Professional legal review ensures fair terms and protects your interests throughout the project.
JCT (Joint Contracts Tribunal) contracts are industry-standard construction contracts widely used in the UK. They include forms for different project types: JCT Minor Works for smaller projects, JCT Standard Building Contract for larger works, and Design & Build contracts. JCT contracts provide balanced risk allocation but may need amendments for specific project needs.
Protect against non-completion through: performance bonds or guarantees, staged payment terms linked to completion milestones, retention money provisions, clear completion dates with liquidated damages, right to engage alternative contractors, and proper insurance requirements. Legal review of contract terms before signing is essential for adequate protection.
Contract variations must follow agreed procedures: written instructions for changes, valuation methods for additional work, approval processes for cost increases, time extension provisions for delays, and documentation requirements. Proper variation management prevents disputes and ensures fair payment for additional work beyond the original scope.
Construction contracts can be terminated for: contractor default or breach, insolvency, health and safety breaches, frustration, or convenience (if provided). Termination procedures must follow contract terms and may require notice periods. Legal advice ensures proper termination procedures and protects against wrongful termination claims.
Fair payment terms include: clear payment schedules (monthly/stage payments), interim payment application procedures, payment notices and timescales, retention money provisions (typically 3-5%), final account procedures, and interest on late payments. Construction Act 1996 provides statutory payment rights that cannot be excluded from construction contracts.
While oral contracts can be legally binding, written construction contracts are essential for: clarity of terms and scope, payment schedules and procedures, dispute resolution mechanisms, insurance and liability provisions, and evidence in case of disputes. Professional contract drafting prevents misunderstandings and protects all parties' interests.
Essential construction insurance includes: public liability insurance (minimum £2-6 million), employer's liability insurance, professional indemnity insurance for design work, contractor's all risks insurance for works, and motor insurance for vehicles. Insurance requirements should match project risks and provide adequate protection for all parties.
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