Construction Agreement Drafting

Overview

Building a house on your own plot, or having a builder redevelop a property under a joint development arrangement, means months of work and large sums paid in instalments. The construction agreement is what keeps that arrangement from turning into an argument over who promised what. It is signed between the owner and the builder or contractor before the first brick is laid.

The document should state the scope of work in detail: the built-up area, the number of floors, the specifications for flooring, plumbing, electricals and finishes, and what is not included. It should set out the total cost or the rate, a payment schedule tied to completed stages, and the start and completion dates, with a consequence for delay. Clauses on who obtains sanctions and approvals, who supplies materials, how extra work is priced, what warranty applies after handover and how disputes will be resolved save a lot of trouble later. If the builder is also taking a share of the land or the built area, the agreement has to say so very clearly.

We draft construction agreements for owners and review contractor drafts, with attention to payment milestones linked to actual progress and not just calendar dates. Many owners also ask us to confirm that the plan sanction and licences are in place before work starts, since building without approvals can lead to penalties or demolition notices and can affect a later sale or loan.