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Works Contract

Works Contract Template for England and Wales

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Key Requirements PROMPT example:

Works Contract

"I need a Works Contract for a commercial office building renovation project in Manchester, with a contract value of £2.5 million and completion date of March 2025, including specific provisions for sustainable materials and phased completion."

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Document background
A Works Contract is essential for any construction or engineering project in England and Wales where one party (the contractor) agrees to carry out construction works for another (the employer). This contract type is fundamental to ensuring clear understanding of project scope, payment mechanisms, timelines, and quality standards. It incorporates mandatory provisions required by UK construction legislation, including payment terms and dispute resolution procedures. The Works Contract serves as the primary document governing the relationship between parties and should be carefully drafted to reflect specific project requirements and risk allocation.
Suggested Sections

1. Parties: Identification and details of contracting parties

2. Background: Context and purpose of the works contract

3. Definitions: Key terms used throughout the contract

4. Scope of Works: Detailed description of works to be performed

5. Contract Price and Payment Terms: Payment amounts, mechanisms, and schedules including requirements under Housing Grants, Construction and Regeneration Act 1996

6. Programme of Works: Timeline and completion dates

7. Contractor Obligations: Key responsibilities of the contractor including quality standards under Supply of Goods and Services Act 1982

8. Employer Obligations: Key responsibilities of the employer

9. Health and Safety: Requirements under CDM Regulations 2015 and health and safety legislation

10. Variations: Process for managing changes to scope

11. Defects and Warranties: Defect identification, rectification periods and warranty provisions

12. Insurance and Liability: Insurance requirements and liability limitations

13. Termination: Grounds and process for contract termination

14. Dispute Resolution: Procedures for resolving disputes including statutory adjudication rights

Optional Sections

1. Design Obligations: Required when contractor has design responsibilities in design and build contracts

2. Performance Bond: Security for performance, typically used in high-value contracts

3. Parent Company Guarantee: Additional security from contractor's parent company when working with subsidiary companies

4. Intellectual Property Rights: Required when design or creative works are involved

5. Collateral Warranties: Required when third-party rights need to be established

Suggested Schedules

1. Schedule of Works: Detailed breakdown of works to be performed

2. Schedule of Rates: Pricing breakdown and rates for various works elements

3. Programme: Detailed timeline of works

4. Site Information: Details about the construction site and conditions

5. Drawings and Specifications: Technical drawings and specifications for the works

6. Insurance Requirements: Details of required insurance coverage

7. Key Personnel: List of key personnel and their responsibilities

8. Form of Warranties: Template warranties to be provided

Authors

Alex Denne

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

alex.den.21@genieai.co
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Relevant Industries
Relevant Teams
Relevant Roles
Industries

Housing Grants, Construction and Regeneration Act 1996: Key construction legislation covering payment provisions, statutory right to adjudication, and payment notice requirements in construction contracts

Supply of Goods and Services Act 1982: Establishes implied terms about quality of service, reasonable care and skill, reasonable time and price in service contracts

Contracts (Rights of Third Parties) Act 1999: Governs third-party rights and enforcement provisions in contracts

Late Payment of Commercial Debts (Interest) Act 1998: Regulates interest on late payments and compensation for late payment in commercial transactions

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

Defective Premises Act 1972: Imposes duties on persons carrying out construction work to ensure the work is done properly and materials are appropriate

Consumer Rights Act 2015: Applies when client is a consumer, setting out consumer rights and business obligations

Unfair Contract Terms Act 1977: Regulates unfair terms in contracts, particularly regarding limitation of liability

Building Act 1984: Primary legislation for building regulations and control in England and Wales

Health and Safety at Work Act 1974: Establishes general duties for workplace health and safety in construction projects

Common Law Principles: Relevant case law and principles governing contract formation, interpretation, and enforcement

Industry Standards: Standard form contracts and industry practices (JCT, NEC, FIDIC) commonly used in construction

Environmental Legislation: Various environmental protection laws affecting construction works

Planning Regulations: Local and national planning requirements affecting construction projects

Building Control Requirements: Technical standards and approval processes for construction works

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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