General Construction Contract (UK) (Construction)
This General Construction Contract (the “Contract”) is entered into on [Contract Date] by and between:
[Employer Name], with address at [Employer Address], [Employer City], [Employer Postcode], England (email: [Employer Email]) (hereinafter referred to as the “Employer”); and
[Contractor Name], with address at [Contractor Address], [Contractor City], [Contractor Postcode], England (email: [Contractor Email]) (hereinafter referred to as the “Contractor”).
The Employer and the Contractor are referred to collectively as the “Parties” and individually as a “Party”.
BACKGROUND
A. The Employer wishes to commission construction works at the property situated at [Site Address], [Site City], [Site Postcode], England and Wales (the “Site”).
B. The Contractor has agreed to carry out and complete the Works in accordance with the terms and conditions of this Contract.
C. The Parties intend this Contract to comply with the requirements of the Housing Grants, Construction and Regeneration Act 1996 (HGCRA 1996, as amended by the Local Democracy, Economic Development and Construction Act 2009), the Construction (Design and Management) Regulations 2015 (CDM 2015), the Building Regulations 2010, the Building Safety Act 2022, and the Defective Premises Act 1972.
NOW, THEREFORE, in consideration of the mutual obligations set out below and for good and valuable consideration, the Parties agree as follows:
1. DEFINITIONS
1.1 In this Contract, unless the context otherwise requires:
- “Contract Documents” means this Contract, together with any drawings, specifications, schedules, and bills of quantities attached hereto or incorporated by reference.
- “Contract Sum” has the meaning given in clause 4.1.
- “Defects Liability Period” means the period specified in clause 7.1.
- “Practical Completion” means the state at which the Works are complete for all practical purposes and the Employer can take full possession and use of the Site, notwithstanding minor items that do not prevent such use.
- “Site” means the land and property described in clause 2.
- “Variation” means any change to the scope, character, or quality of the Works instructed in writing by the Employer.
- “Works” means the construction works described in clause 3.
2. THE SITE
2.1 The Works shall be carried out at the Site located at: [Site Address], [Site City], [Site Postcode], England and Wales.
2.2 The Employer shall give the Contractor access to the Site on or before the Commencement Date and shall maintain such access throughout the Works.
2.3 The Employer warrants that it has the authority and right to commission the Works on the Site.
3. SCOPE OF WORKS
3.1 The Contractor shall carry out and complete the following construction works (the “Works”) in a good and workmanlike manner, using materials of satisfactory quality and workmanship of the required standard, in accordance with this Contract and all applicable laws and regulations:
[Works Description]
3.2 The Contractor shall comply with all applicable Building Regulations made under the Building Act 1984, including the Building Regulations 2010 (SI 2010/2214), and shall obtain all necessary approvals, consents, and notices from the local authority building control body or an approved inspector at its own cost, unless otherwise agreed in writing.
3.3 The Contractor shall carry out the Works in accordance with CDM 2015 and shall comply with all duties imposed on a Principal Contractor (where so designated) or Contractor under those Regulations, including preparing and maintaining the Construction Phase Plan.
3.4 The Works shall be fit for the purpose for which the Employer intends them, in accordance with the Defective Premises Act 1972.
3.5 The Contractor shall take all reasonable steps to minimise disruption to neighbouring properties and comply with all conditions attached to any planning permission, listed building consent, or other regulatory approval.
4. CONTRACT SUM AND PAYMENT
4.1 In consideration of the Contractor carrying out and completing the Works, the Employer shall pay the Contractor the sum of £[Contract Sum] ([Vat Status]) (the “Contract Sum”), subject to any adjustments permitted under this Contract.
4.2 The Contract Sum shall be paid in accordance with the following payment schedule:
[Payment Schedule]
4.3 Payment Notices (HGCRA 1996 Compliance): The Employer shall, not later than [Payment Notice Days] days after each payment due date, issue a Payment Notice specifying the sum the Employer considers due and the basis on which that sum is calculated, pursuant to section 110A of the Housing Grants, Construction and Regeneration Act 1996.
4.4 The final date for payment of each instalment shall be [Final Payment Days] days after the payment due date. If the Employer intends to pay less than the notified sum, the Employer shall issue a Pay Less Notice not later than 5 days before the final date for payment, specifying the sum considered due and the grounds for paying less.
4.5 Suspension for Non-Payment: If the Employer fails to pay any sum by the final date for payment and has not issued a valid Pay Less Notice, the Contractor may give 7 days’ written notice of intention to suspend performance of the Works pursuant to section 112 of the HGCRA 1996. The Contractor may suspend after the expiry of that notice period.
4.6 Late payment interest shall accrue on any overdue sum at the rate of 8% per annum above the Bank of England base rate, pursuant to the Late Payment of Commercial Debts (Interest) Act 1998.
5. PROGRAMME AND COMPLETION
5.1 The Contractor shall commence the Works on site on [Commencement Date] and shall regularly and diligently proceed with the Works.
5.2 The Contractor shall achieve Practical Completion by [Completion Date] (the “Date for Completion”), subject to any extensions of time granted pursuant to clause 6.3.
5.3 Extensions of Time: If and to the extent that completion of the Works is delayed by a Relevant Event (including exceptionally adverse weather, delay by statutory undertakers, or Employer-caused delay), the Contractor shall be entitled to apply in writing for an extension of time. Any extension of the Date for Completion shall be agreed in writing by the Employer acting reasonably.
5.4 The Contractor shall provide an initial programme for the Works within 7 days of the Commencement Date and shall update that programme as necessary.
6. PRACTICAL COMPLETION AND DEFECTS
6.1 When the Works reach Practical Completion, the Employer shall issue a written notice confirming Practical Completion. The Defects Liability Period shall be [Defects Period] from the date of Practical Completion.
6.2 During the Defects Liability Period, the Employer shall notify the Contractor in writing of any defects, shrinkages, or other faults in the Works attributable to the Contractor’s breach of this Contract or to materials or workmanship not in accordance with this Contract.
6.3 The Contractor shall, at its own cost, make good all notified defects within a reasonable time. If the Contractor fails to do so within 28 days of written notification, the Employer may employ others to carry out such remedial works and recover the reasonable cost from the Contractor.
6.4 Nothing in this clause limits the Contractor’s liability for latent defects. Claims in contract may be brought within 6 years of Practical Completion (or 12 years if this Contract is executed as a deed). The Defective Premises Act 1972 and the Building Safety Act 2022 may also extend the Contractor’s liability for defects in dwellings to 15 years from completion.
7. VARIATIONS
7.1 The Employer may instruct Variations to the Works in writing at any time. No Variation shall vitiate this Contract.
7.2 The value of any Variation shall wherever practicable be agreed in writing by both Parties before the Variation is carried out. Where prior agreement is not possible, the valuation shall be carried out on a fair and reasonable basis having regard to the rates and prices contained in this Contract and the nature of the Variation.
7.3 The Contract Sum shall be adjusted to reflect all agreed Variations, whether additions or omissions. No deduction shall be made from the Contract Sum for any omission unless the value of that omission has been agreed in writing.
8. INSURANCE
8.1 The Contractor shall, prior to commencing the Works and throughout the construction period, take out and maintain the following insurance policies with reputable insurers authorised by the Financial Conduct Authority (FCA):
- Public liability insurance: not less than £[Public Liability Amount] per occurrence or series of occurrences arising from one cause;
- Employer’s liability insurance: as required by the Employers’ Liability (Compulsory Insurance) Act 1969, minimum £5,000,000 per occurrence;
- Contractors’ All Risks insurance (where applicable): covering the full reinstatement value of the Works and unfixed materials on Site.
8.2 The Contractor shall produce evidence of all required insurance policies and premium payment receipts upon request by the Employer, prior to commencement and at any time during the Works.
8.3 The Contractor shall indemnify and hold harmless the Employer from and against all claims, losses, liabilities, costs, and expenses arising out of or in connection with the Contractor’s performance of the Works, to the extent caused by the negligent act, omission, or default of the Contractor, its employees, agents, or subcontractors.
9. HEALTH AND SAFETY
9.1 The Contractor shall comply with all applicable health and safety legislation, including the Health and Safety at Work etc. Act 1974, the Management of Health and Safety at Work Regulations 1999 (SI 1999/3242), the Work at Height Regulations 2005, and CDM 2015.
9.2 The Contractor shall prepare and maintain a Construction Phase Plan before the construction phase begins and shall update it throughout the Works as necessary.
9.3 The Contractor shall not permit any person to work on the Site without appropriate induction, training, and personal protective equipment.
9.4 The Contractor shall immediately notify the Employer of any notifiable accident, incident, or dangerous occurrence on the Site and shall notify the Health and Safety Executive (HSE) as required under the Reporting of Injuries, Diseases and Dangerous Occurrences Regulations 2013 (RIDDOR).
10. DISPUTE RESOLUTION — ADJUDICATION
10.1 Either Party has the right to refer any dispute arising under or in connection with this Contract to adjudication at any time, pursuant to section 108 of the Housing Grants, Construction and Regeneration Act 1996.
10.2 The adjudicator shall be agreed between the Parties, or in default of agreement within 2 days of a Notice of Adjudication, nominated by [Adjudication Body].
10.3 The adjudicator shall reach a decision within 28 days of the referral notice (or such longer period as may be agreed in accordance with section 108 of the HGCRA 1996). The adjudicator’s decision shall be binding on the Parties and shall be complied with pending any final determination.
10.4 Any dispute not resolved by adjudication shall be determined by the courts of England and Wales.
11. TERMINATION
11.1 Either Party may terminate this Contract by written notice if the other Party: (a) becomes insolvent, enters administration, receivership, or liquidation (other than for the purposes of a solvent reconstruction); (b) commits a material breach that is irremediable; or (c) commits a material breach that is capable of remedy but fails to remedy it within 14 days of receiving a written notice requiring remedy.
11.2 The Employer may terminate this Contract for convenience on 14 days’ written notice. In such event, the Contractor shall be entitled to payment for all Works properly executed to the date of termination, reasonable demobilisation costs, and any loss of profit on the remaining Works, unless termination is otherwise attributable to the Contractor’s default.
12. GENERAL PROVISIONS
12.1 Assignment and Subcontracting: Neither Party may assign, transfer, or subcontract this Contract or any rights or obligations under it without the prior written consent of the other Party, such consent not to be unreasonably withheld or delayed.
12.2 Notices: All notices under this Contract shall be in writing and delivered by hand, first-class post, or email with read receipt to the addresses set out in this Contract.
12.3 Entire Agreement: This Contract constitutes the entire agreement between the Parties in relation to the Works and supersedes all prior negotiations, representations, warranties, and agreements.
12.4 Severability: If any provision of this Contract is held invalid or unenforceable, the remaining provisions shall continue in full force and effect.
12.5 Third Party Rights: A person who is not a party to this Contract shall have no right to enforce any of its terms under the Contracts (Rights of Third Parties) Act 1999, unless expressly stated otherwise.
12.6 Governing Law and Jurisdiction: This Contract shall be governed by and construed in accordance with the law of England and Wales. Each Party submits to the exclusive jurisdiction of the courts of England and Wales.
IN WITNESS WHEREOF the Parties have executed this General Construction Contract as of the date first written above.
THE EMPLOYER
Full name: [Employer Name]
Address: [Employer Address], [Employer City], [Employer Postcode]
Email: [Employer Email]
THE CONTRACTOR
Full name: [Contractor Name]
Address: [Contractor Address], [Contractor City], [Contractor Postcode]
Email: [Contractor Email]
Employer
________________
Signature
Date: ________________
Contractor
________________
Signature
Date: ________________
What Is a General Construction Contract (UK) (Construction)?
A General Construction Contract (Construction) in the United Kingdom sets the scope of works, price, programme, and payment terms for the building or installation project, as regulated by the Construction and Regeneration Act 1996.
General construction contracts in England and Wales are governed by the common law of contract supplemented by a number of key statutes. The Housing Grants, Construction and Regeneration Act 1996 (HGCRA 1996), as amended, is the most important piece of legislation. It requires all construction contracts within its scope to include compliant payment provisions — including a mechanism for payment notices and pay less notices — and grants both parties a statutory right to refer any dispute to adjudication at any time. Where a contract does not comply with the HGCRA 1996, the Scheme for Construction Contracts (England and Wales) Regulations 1998 is implied by statute.
The Construction (Design and Management) Regulations 2015 (CDM 2015) impose health and safety obligations on all parties involved in a construction project. For projects involving more than one contractor, the client must appoint a Principal Designer and a Principal Contractor in writing before construction begins. The Building Safety Act 2022 introduced further obligations for those working on higher-risk buildings (broadly, buildings of 18 metres or more). The Defective Premises Act 1972 imposes a duty of care on those who carry out work in connection with dwellings.
The JCT (Joint Contracts Tribunal) publishes a suite of standard form construction contracts — including the JCT Standard Building Contract, JCT Minor Works, and JCT Design and Build — that are widely used throughout the UK construction industry. Our UK General Construction Contract template is modelled on the JCT approach and incorporates the mandatory HGCRA 1996 requirements, CDM 2015 provisions, and Building Safety Act 2022 obligations in an accessible format.
The legal framework governing the General Construction Contract (UK) in United Kingdom draws on several key statutes and regulatory bodies. Under the Companies Act 2006, Companies House maintains the register of UK companies. Section 386 of the Companies Act 2006 sets accounting record obligations. The Competition and Markets Authority (CMA) enforces the Consumer Rights Act 2015. The Financial Conduct Authority (FCA) regulates financial services under the Financial Services and Markets Act 2000. The High Court of Justice has jurisdiction under the Senior Courts Act 1981. Parties executing a General Construction Contract (UK) in United Kingdom should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Companies Act 2006 sets the foundational requirements.
When Do You Need a General Construction Contract (UK) (Construction)?
A General Construction Contract should be used for any commercial or large-scale residential construction project of substance where detailed contractual protection is required for both parties.
The United Kingdom General Construction Contract (UK) form of contract is appropriate when commissioning: new commercial buildings such as offices, warehouses, retail units, or mixed-use developments; large residential developments involving multiple units; substantial extensions or major structural alterations to commercial properties; design and build projects where the contractor is responsible for both design and construction; fit-out works to commercial or industrial premises; civil engineering or infrastructure works forming part of a building project; or any project where the contract sum is significant and the employer requires strong protections for payment, delay, and quality.
A General Construction Contract is more appropriate than a simpler building contract in several situations: where the project involves multiple specialist subcontractors requiring coordination; where the employer requires detailed programme obligations and extension of time provisions; where the project requires Bills of Quantities or a detailed specification forming part of the Contract Documents; where the employer requires the full suite of HGCRA 1996 payment mechanisms with clearly defined Payment Notices and Pay Less Notices; or where the project involves obligations under the Building Safety Act 2022 as a higher-risk building.
Without a written construction contract of sufficient detail, disputes about the scope of works, the contract price, the programme, and the allocation of risk are inevitable. The courts of England and Wales will imply terms where necessary, but this is a costly and uncertain process. A well-drafted General Construction Contract provides certainty and a clear framework for resolving issues as they arise during the project.
Parties in United Kingdom should prepare a General Construction Contract (UK) proactively rather than waiting for a dispute to arise. Courts interpret agreements based on the written terms rather than oral representations. Under the Companies Act 2006, Companies House maintains the register of UK companies. Section 386 of the Companies Act 2006 sets accounting record obligations. The Competition and Markets Authority (CMA) enforces the Consumer Rights Act 2015. The Financial Conduct Authority (FCA) regulates financial services under the Financial Services and Markets Act 2000. The High Court of Justice has jurisdiction under the Senior Courts Act 1981. Where the transaction involves regulated activities, prior approval from the relevant authority may be required before execution.
What to Include in Your General Construction Contract (UK) (Construction)
A thorough General Construction Contract for use in England and Wales must address a number of key provisions to protect both the employer and the contractor throughout the project.
The scope of works is the foundation of the contract. It should describe the works with sufficient precision to prevent disputes about what is and is not included in the Contract Sum. Best practice is to attach detailed drawings and a specification to the contract, cross-referenced to the works description. The contract should also make clear which party is responsible for obtaining planning permission, Building Regulations approvals, and other regulatory consents.
The payment provisions are the most legally regulated aspect of a construction contract. The contract must comply with the HGCRA 1996 by specifying the payment due dates, the procedure for Payment Notices and Pay Less Notices, and the final date for payment. The practical consequence of the Pay Less Notice regime is that an employer who fails to issue a Pay Less Notice before the final date for payment must pay the full sum notified in the Payment Notice, regardless of any dispute about the quality or extent of the works.
The programme and completion date clause defines the Contractor's obligation to complete by a specific date and the consequences of delay. The liquidated damages clause — specifying a pre-agreed rate per week of culpable delay — provides the employer with a readily quantifiable remedy without the need to prove actual loss. The extension of time mechanism allows the Contractor relief from liquidated damages where delay is caused by employer risk events, preventing the employer from benefiting from its own delays.
The defects liability period (typically 6 to 12 months after practical completion) obliges the Contractor to return and make good any defects at its own cost. This period should be distinguished from the Contractor's wider liability for latent defects under the Limitation Act 1980, the Defective Premises Act 1972, and (for higher-risk buildings) the Building Safety Act 2022, which can extend to 12 or 15 years depending on the nature of the defect and the form of contract.
The adjudication clause must comply with section 108 of the HGCRA 1996 and grant each party the right to refer any dispute to adjudication at any time. Adjudication provides a rapid, binding (though temporarily final) dispute resolution mechanism that can resolve payment and other disputes in as little as 28 days, without the cost and delay of litigation.
Additional compliance elements for a General Construction Contract (UK) used in United Kingdom include: Under the Companies Act 2006, Companies House maintains the register of UK companies. Section 386 of the Companies Act 2006 sets accounting record obligations. The Competition and Markets Authority (CMA) enforces the Consumer Rights Act 2015. The Financial Conduct Authority (FCA) regulates financial services under the Financial Services and Markets Act 2000. The High Court of Justice has jurisdiction under the Senior Courts Act 1981. Forms-legal.com provides this template as a starting point for United Kingdom-compliant documentation.
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"General Construction Contract (UK) (Construction) (United Kingdom)." Forms Legal, 2026, https://forms-legal.com/uk/business/construction/general-construction-contract-uk.
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year = {2026},
howpublished = {\url{https://forms-legal.com/uk/business/construction/general-construction-contract-uk}},
note = {Free legal document template. Based on Companies Act 2006}
}Also available for these jurisdictions:
Frequently Asked Questions
The Housing Grants, Construction and Regeneration Act 1996 (HGCRA 1996), as amended by the Local Democracy, Economic Development and Construction Act 2009, sets mandatory requirements for all construction contracts that fall within its scope. To be compliant, a construction contract must: specify an adequate mechanism for determining the sum due for each payment and when it becomes due; require the paying party to issue a Payment Notice within 5 days of each payment due date, setting out the sum due and the basis for it; allow the paying party to issue a Pay Less Notice (no later than 5 days before the final date for payment) if it intends to pay less than the notified sum; include a final date for payment that is at least the prescribed minimum period after the payment due date; grant the contractor a right to suspend performance on 7 days' written notice if payment is not made by the final date for payment; and include a right for either party to refer any dispute to adjudication at any time. If a construction contract does not contain compliant provisions, the Scheme for Construction Contracts (England and Wales) Regulations 1998 is automatically implied by statute.
The Construction (Design and Management) Regulations 2015 (CDM 2015) impose specific duties on the Principal Contractor — the contractor appointed by the client to coordinate and manage the construction phase of a project. The Principal Contractor's key duties include: planning, managing, monitoring, and coordinating the construction phase to confirm that construction work is carried out, so far as is reasonably practicable, without risks to the health and safety of any person; preparing and maintaining a Construction Phase Plan before the construction phase begins, and updating it regularly throughout the project; organising cooperation between contractors and coordinating their activities to satisfy compliance with the Construction Phase Plan; ensuring that all workers on site receive an induction and that only authorised persons are on site; consulting workers on health and safety matters; and ensuring that the Health and Safety File is completed and handed to the client at the end of the project. These duties apply where there is more than one contractor on the project. If only one contractor is involved, that contractor takes on the duties directly without the Principal Contractor role being separately required.
Liquidated damages (LDs) for a commercial construction project must represent a genuine pre-estimate of the employer's likely loss if the contractor fails to complete the works by the contractual completion date. Following the Supreme Court's decision in Cavendish Square Holding BV v Makdessi [2015] UKSC 67, LDs will be enforceable if they protect a legitimate business interest and are not extravagant or unconscionable relative to the employer's actual potential losses. For a commercial construction project, the employer's quantifiable losses from delay might include: additional costs of alternative accommodation or temporary premises; lost rental income from the development during the delay period; additional financing costs (e.g. bridging loan interest); business disruption costs; and costs of rescheduling the fit-out or other downstream contractors. The LD rate should be expressed per week (or per day for larger projects) and documented with a written calculation methodology. The LD rate should be agreed before the contract is signed and inserted into the contract without change. If the LD clause is challenged, having a documented pre-estimate will significantly strengthen the employer's position.
The Joint Contracts Tribunal (JCT) publishes a suite of standard form contracts for use in the UK construction industry. The choice between the JCT Minor Works Building Contract (MW) and the JCT Standard Building Contract (SBC) depends primarily on the value and complexity of the project. The JCT Minor Works contract is designed for smaller, straightforward projects (typically under £500,000 in value) where the contractor is given a specification or drawings rather than full bills of quantities, the employer does not require detailed cost control mechanisms, and a relatively simple payment and variation mechanism is sufficient. The JCT Standard Building Contract is intended for larger and more complex projects. It is available in versions with or without quantities (bills of quantities) and with or without contractor's design. The SBC includes more sophisticated provisions for: interim payment valuation, contractor's programme, design liability (in design and build variants), insurance options, and dispute resolution. Both contracts comply with the HGCRA 1996 payment and adjudication requirements. Our General Construction Contract template is modelled on the structure and approach of the JCT Minor Works contract, adapted for broader use.
UK law and commercial practice require construction contractors to hold several types of insurance. Employer's liability insurance is compulsory under the Employers' Liability (Compulsory Insurance) Act 1969 for any contractor employing workers in Great Britain. The minimum statutory cover is £5,000,000 per occurrence, though most contractors carry £10,000,000. Public liability insurance is not statutorily required but is commercially essential and is almost always required by contract. Typical minimum limits for commercial construction are £5,000,000 to £10,000,000 per occurrence. Contractors' All Risks (CAR) insurance covers the physical works, materials and plant during construction against accidental loss or damage. Professional indemnity (PI) insurance is required where the contractor also provides design services (design and build contracts) and should be maintained for at least 6 years after completion. Contractors working on higher-risk buildings (as defined in the Building Safety Act 2022) must also consider the additional insurance implications of their extended liability period under the Defective Premises Act 1972 (extended by the 2022 Act to 15 years) and their obligations as a dutyholder under the Building Safety Regulator's regime.
The Building Safety Act 2022 (BSA 2022) is the most significant reform of building safety law in England since the Health and Safety at Work etc. Act 1974, introduced in response to the Grenfell Tower fire of 2017. The Act has several key effects on construction contracts: It introduced a new regulatory regime for higher-risk buildings (broadly, residential buildings of at least 18 metres in height or 7 storeys containing at least 2 residential units), requiring gateway approvals at planning, before construction begins, and before the building is occupied. It created new dutyholder roles for those involved in the design and construction of higher-risk buildings, including a Principal Designer and a Principal Contractor under the BSA 2022 regime (separate from, but related to, the CDM 2015 roles). It requires the maintenance of a 'golden thread' of information — a digital record of design and construction information — throughout the life of the building. It extended the limitation period for claims under the Defective Premises Act 1972 from 6 years to 15 years for prospective claims and applied this new period retrospectively to historical claims in some cases. Construction contracts for higher-risk buildings should include provisions addressing these additional obligations.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
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