Legal agreement

In the UK construction industry, a "legal agreement" refers to a binding contract between two or more parties that outlines their rights, responsibilities, and obligations concerning a construction project. This contract is enforceable by law and forms the foundation of the relationship between the parties involved, such as the client, contractor, subcontractors, suppliers, and other stakeholders.

Whether an agreement is legally enforceable will depend on its type and form. A non-binding agreement, also known as a ‘gentleman’s agreement’ is typically oral (but can be written), or may be part of an unspoken agreement, and relies on an understanding between the parties that they will honour the agreement as opposed to it being enforceable. A binding agreement is also known as a contract and creates rights and obligations between the parties.

Legal agreements in the UK construction industry ensure that all parties are clear on their duties and responsibilities, help manage risks, and provide a framework for addressing any issues that arise during the course of the project.

Examples of legal agreements in the UK construction industry include:

• Construction contracts such as the JCT (Joint Contracts Tribunal) contracts, NEC (New Engineering Contract) contracts, and FIDIC (International Federation of Consulting Engineers) contracts.
• Subcontracts - agreements between the main contractor and subcontractors outlining the specific works to be carried out by the subcontractor.
• Supply agreements - contracts with suppliers for the provision of materials and equipment.
• Consultancy agreements - contracts with professional consultants, such as architects, engineers, and project managers.
• Framework agreements, often used by clients that are continuously commissioning construction work, to allow them to invite tenders from suppliers of goods and services to be carried out over a period of time on a call-off basis as and when required. For more information, see Framework contract.
• Partnering agreement is a broad term used to describe a collaborative management approach that encourages openness and trust between parties to a contract. The parties become dependent on one another for success and this requires a change in culture, attitude and procedures throughout the supply chain. Partnering can be arranged either by use of a traditional contract with a separate partnering agreement, or by use of a contract with an aligned partnering agreement. For more information, see Partnering.
• Pre-Construction Services Agreements (PCSAs) enable clients to employ contractors before the main construction contract commences. Typically, they are part of a two-stage tender process, used in the first stage to procure contractor involvement in the design process. For more information, see Pre-construction services agreement.
• Non-disclosure agreement.
• Planning performance agreement.
• Service level agreement.
• Concession agreement.
• Working rule agreement.
• Heritage partnership agreement.
• Hold harmless agreement.
• Listed building heritage partnership agreement.
• Project labor agreement (PLA).
• Reservation agreement for property purchase.
• Section 38 agreement - adoption of highways.
• Section 184 agreement - vehicle crossings over footways and verges
• Section 106 agreement - planning obligation.
• Section 278 agreement - works to existing highways.

[edit] Related articles on Designing Buildings

• Alternative dispute resolution.
• Boilerplate.
• Breach of contract.
• Clause.
• Collaborative practices.
• Construction contract.
• Duress and undue influence.
• Legal action.
• Legal agreements.
• Letter of intent.
• Maverick buying.
• Memorandum of understanding.
• Partnering and joint ventures.
• Standard form of contract.