Key contractual clauses
Here is s short list looking at some key clauses that might be found in a construction contract:
- Scope of work : This clause clearly outlines the project's objectives, deliverables, and specifications. It's essential to prevent "scope creep," where additional tasks are added without proper compensation.
- Payment terms : This clause specifies how and when payments are made throughout the project. It should detail payment schedules, retainage, and how to handle progress payments or milestones.
- Change Orders: This clause outlines the process for making changes to the original scope of work. It should address how changes are approved, documented, and how costs are adjusted.
- Dispute resolution : This clause specifies the process for handling disagreements. It may involve mediation, arbitration, or litigation, and should be tailored to the specific project and jurisdiction.
- Termination Conditions : This clause defines the conditions under which the contract can be terminated by either party. It's crucial for protecting rights and managing risk in various scenarios.
- Insurance and Liability : This clause clarifies who is responsible for risks, delays, and damages on the construction site. It's essential to ensure adequate insurance coverage and liability protection.
- Force majeure : This clause addresses unforeseen events that prevent a party from fulfilling their contractual obligations. It should be carefully drafted to cover various scenarios like pandemics or natural disasters.
- Delay and Extension of Time (EOT) : This clause deals with project delays. It defines what constitutes an excusable delay and how extensions of time are granted.
- Variations: This clause addresses the process for making changes to the original scope of work or the contract.
[edit] Related articles on Designing Buildings
- Addendum.
- Alternative dispute resolution.
- Articles of agreement.
- Common law.
- Competitive procedure with negotiation.
- Condition.
- Construction contract.
- Construction law.
- Contract administrator.
- Contract negotiations.
- Contract strategy.
- Contractual right.
- Delay damages.
- Disallowed cost.
- Escalation.
- Essentials of a contract.
- Excepted risk.
- Extension of time.
- Form of tender.
- Hybrid construction contract.
- Key dates.
- Liquidated damages.
- Loss and expense.
- Modifying clauses in standard forms of contract.
- Named specialist work.
- Negotiated Procedure without Prior Publication NPwPP.
- Outturn cost.
- Payment for extra work.
- Pre-contract management.
- Proprietary information.
- Quantum meruit.
- Right to payment.
- Supply chain management.
- Variation.
- Z clauses.
Featured articles and news
Costs and insolvencies mount for SMEs, despite growth
Construction sector under insolvency and wage bill pressure in part linked to National Insurance, says report.
The place for vitrified clay pipes in modern infrastructure
Why vitrified clay pipes are reclaiming their role in built projects.
Research by construction PR consultancy LMC published.
Roles and responsibilities of domestic clients
ACA Safety in Construction guide for domestic clients.
Fire door compliance in UK commercial buildings
Architect and manufacturer gives their low down.
Plumbing and heating for sustainability in new properties
Technical Engineer runs through changes in regulations, innovations in materials, and product systems.
Awareness of the Carbon Border Adjustment Mechanism
What CBAM is and what to do about it.
The new towns and strategic environmental assessments
12 locations of the New Towns Taskforce reduced to 7 within the new towns draft programme and open consultation.
Buildings that changed the future of architecture. Book review.
The Sustainability Pathfinder© Handbook
Built environment agency launches free Pathfinder© tool to help businesses progress sustainability strategies.
Government outcome to the late payment consultation, ECA reacts.
IHBC 2025 Gus Astley Student Award winners
Work on the role of hewing in UK historic conservation a win for Jack Parker of Oxford Brookes University.
Future Homes Building Standards and plug-in solar
Parts F and L amendments, the availability of solar panels and industry responses.
How later living housing can help solve the housing crisis
Unlocking homes, unlocking lives.
Preparing safety case reports for HRBs under the BSA
A new practical guide to preparing structural inputs for safety cases and safety case reports published by IStructE.
Male construction workers and prostate cancer
CIOB and Prostate Cancer UK encourage awareness of prostate cancer risks, and what to do about it.