The Owner Builder Agreement is essential for construction projects in England and Wales where a property owner directly engages a builder for construction work. This contract type is particularly important as it establishes clear responsibilities, timelines, and payment terms while ensuring compliance with UK construction regulations and building standards. The agreement should be used whenever an owner is undertaking significant construction work, whether for new builds or major renovations. It includes crucial elements such as scope of work, payment schedules, insurance requirements, and dispute resolution procedures, providing legal protection for both parties throughout the construction process.
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1. Parties: Identifies and defines the Owner and Builder, including full legal names and addresses
2. Background: Sets out the context of the agreement, including the project overview and parties' intentions
3. Definitions: Defines key terms used throughout the agreement
4. Scope of Work: Detailed description of the construction work to be performed
5. Contract Sum and Payment Terms: Specifies the total contract price and payment schedule
6. Time for Completion: Specifies project timeline, completion date, and provisions for extensions of time
7. Builder's Obligations: Lists all responsibilities and duties of the builder
8. Owner's Obligations: Lists all responsibilities and duties of the owner
9. Insurance and Liability: Details required insurance coverage and liability arrangements
10. Termination: Circumstances and procedures for contract termination
1. Variations: Procedures for managing changes to scope - recommended for complex projects likely to require changes
2. Dispute Resolution: Specific procedures for resolving disputes - recommended for high-value contracts or complex projects
3. Warranties: Additional warranties beyond statutory requirements - recommended when specific quality guarantees are required
4. Subcontracting: Terms governing use of subcontractors - recommended when subcontractors are likely to be used
1. Schedule 1 - Plans and Specifications: Detailed construction drawings and specifications
2. Schedule 2 - Payment Schedule: Detailed breakdown of payment stages and amounts
3. Schedule 3 - Construction Programme: Detailed timeline of construction activities
4. Schedule 4 - Insurance Requirements: Specific insurance policies and coverage requirements
5. Appendix A - Planning Permissions: Copies of relevant planning permissions and approvals
6. Appendix B - Building Regulations Approval: Copies of building regulations approval documents
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