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Framework Agreement (Construction)

Framework Agreement (Construction) Template for New Zealand

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Key Requirements PROMPT example:

Framework Agreement (Construction)

"I need a Framework Agreement (Construction) for a residential development company in Auckland that will be engaging multiple contractors for building 200 homes over 3 years starting January 2025, with specific provisions for local iwi consultation and sustainable building practices."

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Document background
The Framework Agreement (Construction) is designed for use in New Zealand when a client anticipates requiring multiple construction projects or works over an extended period. This agreement type is particularly valuable for organizations with ongoing construction needs as it eliminates the need to repeatedly negotiate full contracts for each project. The document establishes standard terms, rates, and procedures compliant with New Zealand construction law, while allowing flexibility for project-specific requirements through individual call-off contracts. It includes provisions for pricing, quality standards, health and safety requirements, and dispute resolution mechanisms, all aligned with New Zealand legislative requirements including the Construction Contracts Act 2002, Building Act 2004, and Health and Safety at Work Act 2015.
Suggested Sections

1. Parties: Identification of the Framework Contractor and the Client

2. Background: Context of the framework agreement, including its purpose and scope

3. Definitions and Interpretation: Definitions of key terms and interpretation rules

4. Framework Structure: Duration, operation and principles of the framework arrangement

5. Call-off Procedures: Process for initiating individual projects under the framework

6. Pricing and Payment: Framework rates, pricing mechanisms, and payment terms

7. Performance Standards: Required quality standards and performance metrics

8. Health and Safety: Health and safety obligations and compliance requirements

9. Insurance and Liability: Insurance requirements and liability allocation

10. Contract Administration: Management procedures and administrative requirements

11. Variations: Process for varying framework terms or individual projects

12. Termination: Framework and project termination provisions

13. Dispute Resolution: Procedures for resolving disputes

14. General Provisions: Standard boilerplate clauses including governing law

Optional Sections

1. Exclusive Arrangement: Used when the client wants to establish exclusivity with the contractor

2. Multiple Contractor Provisions: Required when the framework involves multiple contractors

3. KPI Regime: Include when specific performance measurements and incentives are required

4. Supply Chain Requirements: Used when specific supply chain management obligations are needed

5. Building Information Modelling (BIM): Include when BIM requirements are part of the framework

6. Environmental Requirements: Used when specific environmental standards or certifications are required

7. Maori Cultural Considerations: Include when projects may involve culturally significant sites or requirements

8. Community Engagement: Used for projects requiring specific community consultation or engagement

Suggested Schedules

1. Schedule 1: Framework Rates and Prices: Detailed pricing structure and rates for the framework

2. Schedule 2: Scope of Services: Detailed description of services covered under the framework

3. Schedule 3: Call-off Terms and Conditions: Standard terms for individual project agreements

4. Schedule 4: Form of Call-off Contract: Template contract for individual projects

5. Schedule 5: KPI Framework: Performance indicators and measurement criteria

6. Schedule 6: Required Insurances: Detailed insurance requirements and levels

7. Schedule 7: Health and Safety Requirements: Detailed H&S procedures and requirements

8. Schedule 8: Quality Management Requirements: Quality standards and management procedures

9. Appendix A: Project Request Form: Standard form for requesting new projects under the framework

10. Appendix B: Rate Card Review Process: Procedures for reviewing and updating framework rates

11. Appendix C: Contractor's Personnel: Key personnel and qualifications requirements

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

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant legal definitions
Applicable Laws
Approved Form
Background IP
Building Consent
Call-off Contract
Call-off Notice
Charges
Commencement Date
Completion
Construction Period
Construction Site
Construction Works
Contract Documents
Contractor's Personnel
Defects
Deliverables
Design Documents
Dispute
Environmental Requirements
Expiry Date
Extension Event
Force Majeure Event
Framework Period
Framework Rates
Good Industry Practice
Health and Safety Plan
Intellectual Property Rights
Key Personnel
Loss
Material Breach
Milestone
Minimum Performance Standards
Notice
Order
Payment Claim
Payment Schedule
Performance Security
Permitted Purpose
Personnel
Practical Completion
Principal's Requirements
Project
Project Brief
Quality Management System
Rates
Related Company
Required Insurances
Schedule of Rates
Services
Site Conditions
Specifications
Subcontractor
Term
Variation
Works
Working Day
Clauses
Interpretation
Framework Structure
Duration
Exclusivity
Call-off Procedure
Ordering Process
Performance Standards
Quality Requirements
Construction Methodology
Design Obligations
Site Access
Programme
Extensions of Time
Variations
Payment
Invoicing
Set-off
Health and Safety
Environmental Protection
Insurance
Indemnity
Liability
Force Majeure
Delay
Defects
Warranties
Intellectual Property
Confidentiality
Data Protection
Personnel
Subcontracting
Assignment
Compliance with Laws
Building Consent
Dispute Resolution
Suspension
Termination
Step-in Rights
Security
Records and Audit
Notices
Governing Law
Boilerplate Clauses
Relevant Industries

Commercial Construction

Residential Construction

Infrastructure Development

Industrial Construction

Civil Engineering

Public Works

Education Construction

Healthcare Construction

Retail Construction

Transport Infrastructure

Energy Infrastructure

Water Infrastructure

Relevant Teams

Legal

Procurement

Commercial

Operations

Construction

Project Management

Risk and Compliance

Health and Safety

Facilities Management

Contract Administration

Relevant Roles

Construction Manager

Commercial Director

Project Director

Procurement Manager

Contract Manager

Legal Counsel

Chief Operating Officer

Development Manager

Operations Director

Risk Manager

Health and Safety Manager

Quantity Surveyor

Project Manager

Commercial Manager

Facilities Manager

Industries
Construction Contracts Act 2002: Primary legislation governing construction contracts in New Zealand, including payment provisions, dispute resolution procedures, and remedies for non-payment
Building Act 2004: Regulates building work, establishes the building code, and sets requirements for compliance and consents
Health and Safety at Work Act 2015: Sets out the health and safety obligations for construction work and workplace safety requirements
Contract and Commercial Law Act 2017: Provides the general framework for contract law in New Zealand, including formation, interpretation, and remedies
Fair Trading Act 1986: Ensures fair trading practices and prohibits misleading conduct in trade, including construction contracts
Building (Building Products and Methods, Modular Components, and Other Matters) Amendment Act 2021: Updates to building product requirements and responsibilities in the construction industry
Resource Management Act 1991: Governs environmental and planning requirements that may affect construction projects
Arbitration Act 1996: Provides the legal framework for arbitration as a dispute resolution method in construction contracts
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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