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General Contractor Agreement Cost Plus Fee Template for England and Wales

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Key Requirements PROMPT example:

General Contractor Agreement Cost Plus Fee

"I need a General Contractor Agreement Cost Plus Fee for a large commercial renovation project in Manchester, with a 15% contractor's fee and specific provisions for heritage building requirements, to commence in March 2025."

Document background
The General Contractor Agreement Cost Plus Fee is particularly suitable for projects where the scope cannot be fully defined at the outset or where flexibility is required during execution. This contract type, governed by English and Welsh law, provides a transparent mechanism for managing costs while ensuring fair compensation for the contractor. It is commonly used in complex construction projects, renovations, or emergency works where traditional fixed-price contracts may not be suitable. The agreement includes comprehensive provisions for cost monitoring, verification procedures, and fee calculations, while ensuring compliance with UK construction legislation and industry standards.
Suggested Sections

1. Parties: Identification and details of the contracting parties

2. Background: Context and purpose of the agreement

3. Definitions: Key terms used throughout the agreement

4. Scope of Works: Detailed description of contracted works and specifications

5. Cost Plus Fee Structure: Definition of costs, fee calculation methodology, and payment mechanisms

6. Payment Terms: Payment procedures, timing, and mechanisms including provisions under the Housing Grants, Construction and Development Act

7. Duration: Project timeline, completion dates, and extension provisions

8. Contractor Obligations: Key responsibilities including quality standards, CDM compliance, and general duties

9. Client Obligations: Client responsibilities including site access, approvals, and information provision

10. Insurance and Liability: Required insurance coverage, liability limitations, and indemnities

11. Health and Safety: Compliance with CDM Regulations 2015 and general H&S obligations

12. Termination: Grounds for termination and consequences

13. Dispute Resolution: Process for resolving disputes including adjudication rights

Optional Sections

1. Performance Bonds: Security for performance, typically used for larger projects or when required by client

2. Parent Company Guarantee: Additional security from contractor's parent company when contractor is subsidiary of larger organization

3. Liquidated Damages: Pre-agreed damages for specific breaches, used when specific completion dates are critical

4. Third Party Rights: Rights of third parties under the Contracts (Rights of Third Parties) Act 1999

5. Value Engineering: Provisions for cost optimization and alternative solutions

Suggested Schedules

1. Schedule of Rates: Detailed breakdown of labor and material rates for cost calculation

2. Schedule of Works: Detailed specification of works to be performed including drawings and technical requirements

3. Project Programme: Detailed timeline, milestones, and critical path activities

4. Insurance Requirements: Specific insurance types, levels, and requirements

5. Quality Standards: Applicable quality standards, specifications, and testing requirements

6. Site Information: Details about the construction site, conditions, and any known risks

7. Cost Breakdown Structure: Detailed breakdown of allowable costs, overheads, and fee calculation methodology

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions












































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Relevant Industries
Relevant Teams
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Industries

Housing Grants, Construction and Development Act 1996: Primary legislation governing construction contracts in England and Wales, covering payment provisions, adjudication rights, and notice requirements

Construction Act 2009: Updates to the 1996 Act, introducing revised payment provisions and changes to adjudication procedures

Supply of Goods and Services Act 1982: Establishes requirements for quality of service and obligations for reasonable care and skill in service contracts

Late Payment of Commercial Debts (Interest) Act 1998: Governs interest provisions on late payments in commercial contracts

Contracts (Rights of Third Parties) Act 1999: Regulates third-party rights and their enforcement in contractual arrangements

Construction (Design and Management) Regulations 2015: Sets out health and safety requirements, principal contractor duties, and client responsibilities in construction projects

Health and Safety at Work etc. Act 1974: Establishes general safety obligations and workplace regulations for construction activities

Public Contracts Regulations 2015: Governs procurement procedures and requirements for public sector construction works

Building Regulations 2010: Specifies mandatory building standards and compliance requirements for construction works

VAT Act 1994: Establishes tax implications and requirements for cost-plus arrangements in construction contracts

Environmental Protection Act 1990: Sets out environmental obligations and compliance requirements for construction activities

JCT (Joint Contracts Tribunal): Industry standard form contracts and guidance for construction projects

NEC (New Engineering Contract): Alternative standard form contracts and principles for construction and engineering projects

FIDIC Contracts: International standard form contracts and principles commonly referenced in construction agreements

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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