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Standard Building Contract for Hong Kong

Standard Building Contract Template for Hong Kong

This document is a comprehensive building contract governed by Hong Kong law, designed for construction projects where a formal contractual relationship is required between an employer and a contractor. It incorporates Hong Kong-specific regulatory requirements, industry practices, and legal standards for construction works. The contract provides detailed provisions for project execution, payment mechanisms, risk allocation, dispute resolution, and compliance with local building regulations and safety standards. It includes provisions for contract administration, variations, extensions of time, and completion procedures, all tailored to the Hong Kong construction industry context.

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What is a Standard Building Contract?

The Standard Building Contract is a fundamental document used in the Hong Kong construction industry for projects requiring a formal agreement between an employer (project owner) and a contractor. It is particularly suitable for medium to large-scale construction projects where detailed terms and conditions are necessary. The document incorporates requirements from Hong Kong's Buildings Ordinance, Construction Workers Registration Ordinance, and other relevant legislation. It provides comprehensive coverage of essential construction matters including payment terms, variations, extensions of time, defects liability, and dispute resolution procedures. This contract type is designed to balance the interests of all parties while ensuring compliance with Hong Kong's regulatory framework and construction industry best practices.

What sections should be included in a Standard Building Contract?

1. Parties: Identifies and defines the Employer and Contractor, including their registered addresses

2. Background: Sets out the context of the construction project and the parties' intentions

3. Definitions and Interpretation: Defines key terms and establishes rules for interpreting the contract

4. Contract Documents: Lists and establishes hierarchy of contract documents including drawings and specifications

5. Contractor's Obligations: Details the Contractor's primary responsibilities and scope of works

6. Employer's Obligations: Outlines the Employer's duties including site access and payment obligations

7. Contract Administrator: Defines the role, powers and limitations of the Contract Administrator

8. Time and Programme: Covers commencement, completion dates, extensions of time, and liquidated damages

9. Variations: Procedures for handling changes to the works and their valuation

10. Payment: Details payment terms, procedures, and certificates

11. Insurance and Indemnities: Specifies required insurances and indemnification obligations

12. Termination: Grounds and procedures for contract termination by either party

13. Dispute Resolution: Procedures for handling disputes including mediation and arbitration

14. General Provisions: Includes standard boilerplate clauses such as notices and governing law

What sections are optional to include in a Standard Building Contract?

1. Performance Bond: Required when the employer requires security for contractor's performance

2. Parent Company Guarantee: Used when the contractor is a subsidiary and additional security is required

3. Nominated Subcontractors: Included when the employer wishes to nominate specific subcontractors

4. Sectional Completion: Required when the works are to be completed and handed over in sections

5. Design Obligations: Included when the contractor has design responsibilities

6. Fluctuations: Used when price adjustments for material/labor cost changes are allowed

7. Intellectual Property Rights: Required when significant design or innovative construction methods are involved

8. Building Information Modeling (BIM): Included when BIM is to be used in the project

What schedules should be included in a Standard Building Contract?

1. Schedule 1: Contract Particulars: Key project-specific details including contract sum, completion date, and liquidated damages

2. Schedule 2: Contract Documents: Detailed list of all drawings, specifications and other contract documents

3. Schedule 3: Insurance Requirements: Specific details of required insurance types and coverage amounts

4. Schedule 4: Payment Schedule: Payment milestones and stage payments if applicable

5. Schedule 5: Form of Bonds and Guarantees: Templates for performance bond and other security documents

6. Schedule 6: Forms of Certificates: Standard forms for payment, completion and other certificates

7. Appendix A: Special Conditions: Project-specific amendments to standard conditions

8. Appendix B: Technical Specifications: Detailed technical requirements for the works

9. Appendix C: Bills of Quantities: Itemized quantities and rates for the works

10. Appendix D: Programme Requirements: Detailed programming and progress reporting requirements

Authors

Alex Denne

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

Jurisdiction

Hong Kong

Publisher

Ƶ

Document Type

Lease Agreement

Cost

Free to use
Relevant legal definitions




















































Clauses








































Relevant Industries

Construction

Real Estate Development

Infrastructure

Commercial Property

Residential Development

Industrial Development

Education

Healthcare

Hospitality

Retail

Relevant Teams

Legal

Construction

Commercial

Operations

Project Management

Procurement

Finance

Risk Management

Technical Services

Contract Administration

Relevant Roles

Project Manager

Construction Manager

Contract Manager

Commercial Director

Legal Counsel

Quantity Surveyor

Project Architect

Construction Director

Procurement Manager

Risk Manager

Chief Executive Officer

Operations Director

Technical Director

Finance Director

Industries










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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