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Building Works Agreement

Document Type
Microsoft Word (Editable)
Pages
5
Price: KES 400
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Document Overview

A Building Works Agreement is a legally binding contract between a Client (property owner or developer) and a Contractor (builder) that outlines the terms, responsibilities, and expectations for carrying out building or construction works. It ensures both parties understand their obligations from project start to completion.

Purposes:

1. Define Responsibilities – Clarifies who does what, including materials, labour, and supervision.

2. Control Quality and Cost – Sets the construction standards and total contract price to avoid disputes.

3. Ensure Timely Completion – Establishes clear timelines and conditions for extensions or delays.

4. Protect Legal Interests – Provides legal protection to both Client and Contractor in case of breach, defects, or accidents.

5. Guide Payment Process – Specifies payment schedules and retention for quality assurance.

Key Components:

1. Parties to the Agreement – Client and Contractor details.

2. Project Description – Location, nature, and scope of the building works.

3. Contract Sum & Payment Terms – Total cost, milestones, and payment method.

4. Duration and Completion – Start and finish dates plus extension provisions.

5. Materials and Workmanship – Quality standards and responsibility for materials.

6. Supervision and Inspection – Client’s right to inspect and approve work.

7. Variations – How changes to work or cost are approved.

8. Safety and Insurance – Compliance with safety laws and required insurance covers.

9. Defects Liability – Contractor’s duty to fix faults after completion.

10. Termination Clause – Conditions under which either party may end the contract.

11. Dispute Resolution – Mechanism for settling disagreements (e.g., arbitration).

12. Governing Law and Execution – Legal jurisdiction and signatures to formalize the agreement.
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