Last edited 20 Jul 2016

Articles of agreement

[edit] Introduction

Contract documents for a construction contract will typically consist of:

Contract drawings.
Priced bill of quantities.
Articles of agreement.
Contract conditions.
For contracts where there is a contractor’s designed portion; employer’s requirements, contractor’s proposals and contract sum analysis.

The ‘articles of agreement’ setting out the core obligations of the parties involved. Typically they consist of four sections:

By way of an example, the contents of the articles of agreement in the JCT standard building contract (SBC) are set out below in more detail.

[edit] Recitals

Recitals contextualise the agreement, giving factual explanations for the basis of the contract. Seven recitals describe what is required and the events that have taken place.

[edit] First recital

Describes the work required by the employer, identifies the site, confirms the preparation of the design and bill of quantities.

[edit] Second recital

Confirms a priced copy of the bill of quantities has been supplied by the contractor to the employer, with a priced activity schedule where required.

[edit] Third recital

Identifies the contract drawings.

[edit] Fourth recital

Identifies whether the employer is to be considered a contractor for tax deduction purposes under the Construction Industry Scheme.

[edit] Fifth recital

Refers to an information release schedule provided to the contractor by the employer. (This is optional.)

[edit] Sixth recital

Clarifies whether the works are to be carried out in sections.

[edit] Seventh recital

This only applies (along with three more recitals), where the contractor is obliged to complete design works under the provisions for a contractor’s designed portion.

[edit] Articles

These set out what is agreed between the parties.

[edit] Article 1

The obligation of the contractor, i.e. the carrying out and completing of the works subject to the contract documents.

[edit] Article 2

The obligation of the employer, i.e. to pay the contract sum or such other sum as becomes payable under the contract (through variations and/or correction of errors).

[edit] Article 3

Identifies the architect (or contract administrator) under the contract, and provides the employer with the power to maintain someone in the role of duty-holder (or employer’s agent).

[edit] Article 7

Makes reference to the right to adjudication in the event of any dispute.

[edit] Article 8

Makes reference to the right to arbitration in the event of any dispute.

[edit] Contract particulars

This section sets out the aspects of the contract that are particular to the project to which the contract relates. It is a schedule for the variables in the agreement and conditions. It is important that the variables are compatible with the relevant operating mechanism in the agreement, conditions and schedules as disputes may arise when either party applies the contract particulars information without proper reference to the operating clause.

[edit] Attestation

The attestation is the process of confirming that something is correct or genuine, or that a particular requirement has been met. It may be completed: