The New Construction Agreement is a fundamental legal document used in Hong Kong's construction industry to establish a binding contractual relationship between property owners or developers and construction contractors. This agreement is essential when initiating new building projects, whether commercial, residential, or industrial. It ensures compliance with Hong Kong's strict building regulations, including the Buildings Ordinance (Cap. 123) and related legislation. The document comprehensively covers all aspects of the construction project, from initial site preparation to project completion and defects liability period. It includes detailed specifications, payment mechanisms, safety requirements, and quality standards, while incorporating provisions for variations, disputes, and risk allocation. This agreement type is particularly crucial in Hong Kong's dynamic construction market, where complex projects require clear legal frameworks to protect all parties' interests.
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1. Parties: Identification and details of the employer/owner and the contractor
2. Background: Context of the construction project and the purpose of the agreement
3. Definitions and Interpretation: Defined terms used throughout the agreement and rules of interpretation
4. Scope of Works: Detailed description of the construction works to be performed
5. Contract Sum and Payment Terms: Agreement on pricing, payment schedule, and payment mechanisms
6. Commencement and Completion: Project timeline, completion dates, and provisions for extensions of time
7. Contractor's Obligations: Primary responsibilities including workmanship, materials, and compliance with regulations
8. Employer's Obligations: Key responsibilities including site access, permits, and information provision
9. Variations: Procedures for handling changes to the scope of work
10. Quality and Inspection: Quality standards, inspection procedures, and acceptance criteria
11. Health, Safety and Environment: Requirements for site safety, environmental protection, and regulatory compliance
12. Insurance and Indemnities: Required insurance coverage and indemnification obligations
13. Defects Liability: Defects notification period and rectification obligations
14. Suspension and Termination: Rights and procedures for suspending or terminating the agreement
15. Dispute Resolution: Methods and procedures for resolving disputes
16. General Provisions: Standard contractual provisions including notices, assignment, and governing law
1. Performance Bond: Required when project value exceeds certain thresholds or when specifically requested by the employer
2. Parent Company Guarantee: Included when the contractor is a subsidiary and additional financial security is required
3. Intellectual Property Rights: Necessary when the project involves design elements or proprietary methods
4. Liquidated Damages: Specific provisions for compensation in case of delay or performance failures
5. Site Conditions: Detailed provisions about site conditions when there are known challenges or uncertainties
6. Archaeological Findings: Required for sites with potential historical or archaeological significance
7. Environmental Impact Measures: Detailed provisions when the project requires specific environmental protection measures
8. Nominated Subcontractors: Included when the employer wants to specify certain subcontractors
9. Anti-Corruption Provisions: Enhanced provisions for projects with public sector involvement or specific compliance requirements
1. Schedule 1 - Contract Drawings: Detailed architectural and engineering drawings for the project
2. Schedule 2 - Technical Specifications: Detailed specifications for materials, workmanship, and technical requirements
3. Schedule 3 - Price Schedule: Breakdown of the contract sum including unit rates and quantities
4. Schedule 4 - Project Timeline: Detailed project schedule including milestones and critical dates
5. Schedule 5 - Site Details: Site plan, access points, and relevant site-specific information
6. Schedule 6 - List of Approved Materials: Pre-approved materials and suppliers for the project
7. Schedule 7 - Form of Bonds and Guarantees: Templates for required performance bonds or guarantees
8. Schedule 8 - Insurance Requirements: Detailed insurance specifications and minimum coverage requirements
9. Schedule 9 - Quality Assurance Plan: Specific quality control procedures and requirements
10. Schedule 10 - Health and Safety Requirements: Detailed safety procedures and requirements
11. Appendix A - Statutory Declarations: Required declarations under Hong Kong law
12. Appendix B - Permits and Licenses: Copies of relevant permits and licenses for the project
Relevant legal definitions
Clauses
Relevant Industries
Real Estate
Construction
Infrastructure
Commercial Property
Industrial Development
Residential Development
Public Works
Urban Development
Manufacturing
Hospitality
Healthcare
Education
Retail
Relevant Teams
Legal
Construction
Project Management
Commercial
Operations
Risk & Compliance
Property Development
Procurement
Technical Services
Contract Administration
Quality Assurance
Health & Safety
Relevant Roles
Construction Manager
Project Director
Legal Counsel
Contract Manager
Property Developer
Development Director
Site Manager
Project Manager
Quantity Surveyor
Commercial Director
Chief Executive Officer
Operations Director
Risk Manager
Compliance Officer
Construction Director
Technical Director
Procurement Manager
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