Construction Service Contract Template for England and Wales

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Key Requirements PROMPT example:

Construction Service Contract

"I need a Construction Service Contract for a commercial office building project in Manchester, with a contract value of £5M and completion date of June 2025, including specific provisions for sustainable construction methods and BREEAM requirements."

Document background
The Construction Service Contract is essential for any construction project in England and Wales where formal terms need to be established between a contractor and employer. This contract type is specifically designed to comply with UK construction law, including the Housing Grants, Construction and Regeneration Act 1996 and CDM Regulations 2015. It provides comprehensive coverage of project specifics, including scope, payment mechanisms, timelines, quality standards, and risk allocation. The document is particularly crucial for protecting both parties' interests and ensuring clear understanding of responsibilities and obligations throughout the construction process.
Suggested Sections

1. 1. Parties: Identifies and defines the contracting parties including their registered addresses and company details

2. 2. Background: Sets out the context of the agreement and brief description of the project

3. 3. Definitions and Interpretation: Defines key terms used throughout the contract and rules of interpretation

4. 4. Scope of Works: Detailed description of construction services to be provided, including standards and specifications

5. 5. Contract Price and Payment Terms: Details of the contract sum, payment schedule, valuation procedures, and payment notices as required by the Construction Act

6. 6. Programme: Project timeline, key milestone dates, completion dates and extension of time provisions

7. 7. Contractor Obligations: Key responsibilities including workmanship standards, compliance with laws, and CDM Regulations obligations

8. 8. Employer Obligations: Key responsibilities including site access, permits, and information provision

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

10. 10. Insurance and Liability: Insurance requirements, liability caps, and indemnities

11. 11. Defects: Defects liability period, rectification procedures and warranties

12. 12. Termination: Grounds and procedures for contract termination and consequences

13. 13. Dispute Resolution: Procedures for resolving disputes including adjudication rights under the Construction Act

Optional Sections

1. Design Responsibility: Allocation of design responsibilities and professional indemnity requirements - include when contractor has design obligations

2. Performance Security: Requirements for bonds, parent company guarantees or other security - include for high-value contracts

3. Liquidated Damages: Pre-agreed damages for delay or specific breaches - include when specific completion dates are critical

4. Materials and Goods: Specific provisions for materials, including ownership, storage and security - include for contracts with significant materials supply

5. Sub-contracting: Rules and procedures for appointment of sub-contractors - include when sub-contracting is anticipated

Suggested Schedules

1. Schedule 1 - Schedule of Works: Detailed specification of works including drawings, specifications and standards

2. Schedule 2 - Contract Price Breakdown: Detailed breakdown of the contract sum including rates and prices

3. Schedule 3 - Programme: Detailed construction programme showing sequence and timing of works

4. Schedule 4 - Site Information: Details about the construction site, access points and site conditions

5. Schedule 5 - Insurance Requirements: Detailed insurance requirements including types and levels of coverage

6. Schedule 6 - Forms of Certificates: Template certificates for payment, completion and making good defects

7. Schedule 7 - Drawing Register: List of all contract drawings and specifications

8. Schedule 8 - Key Personnel: Details of key personnel from both parties including contact details

Authors

Alex Denne

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

Relevant legal definitions
Clauses
Industries

Housing Grants, Construction and Regeneration Act 1996: Key construction legislation (amended by Local Democracy, Economic Development and Construction Act 2009) governing payment provisions, adjudication rights, and payment notice requirements in construction contracts

Supply of Goods and Services Act 1982: Establishes statutory requirements for quality of service, reasonable care and skill, and reasonable time and price in service contracts

Contracts (Rights of Third Parties) Act 1999: Governs third-party rights and enforcement of contractual terms by parties not directly involved in the contract

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

Construction (Design and Management) Regulations 2015: Health and safety regulations specific to construction projects, including duties of principal contractors and designers

Environmental Protection Act 1990: Legislation covering waste management and environmental protection measures in construction activities

Working Time Regulations 1998: Regulates working hours and conditions for construction workers

Health and Safety at Work etc. Act 1974: Primary legislation governing workplace health and safety requirements

Building Regulations 2010: Technical and safety standards for construction works

Party Wall etc. Act 1996: Legislation governing works affecting party walls and adjacent properties

Defective Premises Act 1972: Establishes duties regarding the quality and fitness for habitation of residential properties

Data Protection Act 2018/GDPR: Regulations governing the handling and protection of personal data in construction projects

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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