Are any terms and conditions imposed or implied by law or mandatory in contracts for the design or carrying out of building works?
Yes.
Construction works procured by the public sector are governed by the Public Procurement Law. In general, the provisions of the said law cannot be amended or excluded by the parties. In contracts for the design and construction of works procured by a private-sector developer, the parties have greater freedom to agree their own terms and conditions, but there are some mandatory provisions in the civil code regarding, for example, variations, defects, warranty period against construction defects and work withdrawal.
In addition, in the case of subcontracting, the contract must clearly set out:
If the contract fails to include this information, its terms will be deemed null and void.
The Civil and Commercial Code does not impose any term or conditions, except for those mentioned in this document. The implied terms and conditions are also those mentioned in this text.
The Building Code of Australia has been given the force of statute in each State and territory. The BCA is a performance-based document and contains technical provisions for the design and construction of buildings and other structures, covering such matters as structure, fire resistance, access and egress, services and equipment, and energy efficiency as well as certain aspects of health and amenity. All work carried out in Australia must comply with the BCA. This is usually assessed by one of the bodies responsible for signing off on the building works, such as the building surveyor.
Certain provisions are implied into construction contracts by case law and statute.
There is Security of Payment (SOP) Legislation in all states and territories which gives a party to a construction contract the right to refer a dispute in relation to payment to adjudication provided the relevant Act has been ‘triggered’ by the payment claim.
In some states, legislation operates to imply certain warranties that the contractor will use materials that are reasonably fit for the purpose for which they are to be used (whether or not that is a purpose for which the materials are commonly supplied) and of good quality. However, these warranties are limited to residential work.
Australian Competition and Consumer legislation also implies certain warranties into contracts for services (for example that the services must be fit for a particular purpose) but this only applies to smaller contracts or consumer arrangements.
If a contract is silent in relation to liability for design, there is an implied term that the services will be carried out with reasonable skill and care. The burden of proof falls on the party claiming that the supplier of the service (design and build contractor, design sub-contractor or consultant) has failed to use reasonable skill and care.
Although there are exceptions, in general, construction contracts can be concluded orally as well as in writing (the latter being preferred for the sake of legal certainty).
No mandatory terms and conditions are imposed or implied by law, with the exception of (i) public contracts (see below) and (ii) contracts with respect to certain residential building activities, which impose mandatory requirements to include certain information in the contract to avoid the contract being deemed null and void. Such information includes:
It should also be noted that the 10-year liability rule with respect to buildings and major works cannot be contractually excluded by the architects or contractors. It is a rule of public interest as it affects public security. Briefly, this rule applies to claims based on ‘serious latent defects’ as well as defects that concern the (partial) stability of the building. In respect of such potential claims, the Belgian Civil Code provides that contractual claims against a contractor and/or an architect need to be instigated within a period of 10 years from the date of final acceptance of the related works. As this rule is governed by the Belgian Civil Code (article 1792 of the Belgian Civil Code), and is therefore of public interest in nature, it is not possible to contractually exclude the rule.
With regard to the execution of public (works) contracts, reference can be made to the aforementioned Royal Decree of 14 January 2013 on the general execution rules of public contracts. Article 9 of the aforementioned Royal Decree of 14 January 2013 enlists those provisions of the Royal Decree from which the parties cannot deviate in the contract. These mandatory provisions relate in particular to the verification and payment periods. Deviations from other than the aforementioned mandatory provisions are only permitted in duly justified cases, i.e. insofar as the special requirements of the contract so require.
According to the deontological or ethical rules applicable to architects, any contract between an architect and his client must be made in writing. Other than a number of other specified deontological rules applicable to architects (Reglement van de Beroepsplichten van de Architect), there are no other mandatory rules with respect to the content of architect contracts or contracts for the design of building works, although the 10-year liability rule (see above) cannot be set aside or excluded.
The Law on Obligations provides that terms and conditions dealing with the following issues must be included in construction contracts:
Other provisions of the Law on Obligations relating to all contracts are also implied. All other specific contractual terms are to be agreed between the parties and must be expressly incorporated into the contract.
The mandatory provisions of the Civil Code will apply even if the parties do not include them in the agreement or if they stipulate otherwise. The act of selling future real estate units, which will be constructed, has a specific mandatory regulation in Law No. 4.591/91.
Although the National Building Code of Canada has no legal status, substantial parts of the Code have been adopted by many jurisdictions in Canada, within provincial building codes. However, building codes do vary significantly in some areas from province to province. In addition, the Code applies to construction that falls under the federal jurisdiction of Canada, such as military bases, federal government land and airports.
Terms and conditions are imposed by Civil Code, which sets out different regimes for contracts for works and construction project contracts.
Articles 770 to 787 set out specific provisions governing the obligations of contractors and customers under contracts for works (being contracts by which a contractor agrees to complete work according to a customer's requirements and delivers the work product and the customer agrees to pay for it) .
Articles 788 to 808 set out specific provisions governing the obligations of employers and customers under construction project contracts (being contracts by which a contractor agrees to construct a project and the employer agrees to pay the relevant price).
In general, the parties to a contract for the design or execution of building works are free to contract as they wish. However, the contract must contain the essential conditions to be considered valid. So the parties must reach an agreement at least on basic provisions such as object, price, form of payment and duration.
In addition, certain conditions imposed by law are mandatory for designing or executing construction works even if they are not included in the contract. Some of the most common mandatory requirements established by Colombian law are:
There are no mandatory terms or conditions to contracts for the design or carrying out of building works in Croatia; however, the object and the price of the construction must be defined.
These are the following basic requirements which must be included in a contract:
Basic provisions which are not essential (ie not mandatory) include the time for completion.
No written form of contract is required.
Certain provisions are implied into construction contracts by case law.
The general conditions that follow from the standard form contracts AB 18 and ABT 18 are based on fundamental principles of contract law. Thus, even when AB 18 or ABT 18 are not incorporated into the construction contract between the parties, certain provisions derived from the standard form contracts still apply.
In construction contracts governed by private law (ie private sector projects), the following provisions amongst others are mandatory:
Contracts for certain residential buildings are subject to mandatory requirements to include certain information and provisions in order to avoid the contract being deemed null and void.
It should also be noted that what is known in French law as the ‘10 year liability rule with respect to buildings’ cannot be contractually excluded by architects or contractors.
German law contains many mandatory provisions which cannot be summarised here. It is important to note that the Construction Contract Procedures Part B (VOB/B) are regarded as the model for general terms and conditions and if those are substantially departed from, individual provisions of the contract are likely to be checked by courts with the result that a court may declare one or more particularly onerous provisions to be invalid.
An important mandatory provision in construction contracts is section 650e of the Civil Code. Section 650e allows the contractor to get the benefit of security mortgage registered on the land register where the principal is the registered owner of the property. Contractors always have a right to ask for a bank guarantee covering the total outstanding amount due to them. Even if the parties agree on a 10% payment guarantee in the contract, the contractor may come back to the principal again and ask for appropriate security for the remaining 90% of the amount payable. Principals should usually comply with such requests because contractors are entitled to cease work if the payment guarantee is not provided within reasonable period of time.
Every contract must include an adequate mechanism for determining what payments become due, when they become due and a final date for payment. A party is also entitled to payment by instalments, stage payments or other periodical payments. Finally, a party also has the right to suspend performance for non-payment. If the contract does not make adequate provision, the provisions of a statutory scheme will automatically apply to it.
Since December 2021, the Development Bureau (DEVB) of the Government of Hong Kong Special Administrative Region has published a consultation on an important new legislation for the construction industry known as Security of Payment Legislation (SOPL), which aims to establish a legislative framework for addressing improper payment practices amongst contracting parties in the Hong Kong construction industry. In May 2024, the Construction Industry Security of Payment Bill (SOP Bill) was gazetted and subsequently introduced into the Legislative Council for its first reading. The SOP Bill, once in force, will replace the SOPL for the introduction of security of payment provisions into public sector construction contracts. Whilst the Legislative Council timeline has not been made public, it is anticipated that the SOP Bill will be enacted in 2024. This SOP Bill is expected to represent a transformational change for the way in which the construction industry in Hong Kong will operate.
Once enacted, the SOP Bill will apply to all contracts and sub-contracts for public sector works including maintenance and renovation. In the private sector, the SOP Bill will only apply to the procurement of new buildings at a cost over HK$5 million or related consultancy services costing over HK$0.5 million. The SOP Bill will also apply to contracts for “ancillary” construction work such as architectural, landscaping, electrical and civil works, as well as contracts for “related goods and services” such as feasibility and planning studies and plant and equipment supply. Private sector repair (excluding hotels, serviced apartments and hospitals), maintenance,renovation and works on existing private non-residential buildings that do not require approval and consent of the building Authority under the Buildings Ordinance (Cap. 123 of the Laws of Hong Kong) will not be covered.
The SOP Bill provides for the parties’ autonomy to agree on their terms of contract in respect of contract payments and dispute resolution mechanism is respected except for the following:
payment response by the paying party shall be served on the claiming party within 30 days and the paying party shall make payment of admitted amount within 60 days to the claiming party from the date of payment claim served by the claiming party;
conditional payment provisions (such as ‘pay when paid’ clause, etc.) shall be rendered ineffective and unenforceable;
claimant may refer a payment dispute to adjudication through which the adjudicator shall decide on the payment dispute within 55 working days from the date of his appointment, and the adjudicated amount shall be paid as decided by the adjudicator;If the claiming party is dissatisfied with the adjudicator’s determination, both parties may refer the payment dispute to litigation or arbitration. The adjudicator’s determination is binding on the parties unless and until the dispute is determined by litigation or arbitration;and
claiming party / claimant may exercise his right to suspend or reduce rate of progress if admitted amount / adjudicated amount is not received.
The Contracts (Rights of Third Parties) Ordinance, Cap 623, which came into force on 1 January 2016, also applies to construction contracts. Under this Ordinance, a third party can enforce a term of the contract, if the contract expressly provides for this, or if, on the proper construction of the contract, the term purports to confer a benefit on the third party.
As far as the works themselves are concerned, the contractor must do the work with all proper skill and care. Breach of this duty includes the use of materials containing patent defects. There is also an implied warranty that the contractor will use materials that are reasonably fit for the purpose for which they are to be used (whether or not that is a purpose for which the materials are commonly supplied) and of good quality. If a contract is silent in relation to liability for design, there is an implied term that the services will be carried out with reasonable skill and care. The burden of proof falls on the party claiming that the supplier of the service (design and build contractor, design sub-contractor or consultant) has failed to use reasonable skill and care. These terms will be implied only if the contract is silent on the issues; express terms are required to displace the implication of these terms.
In general, the parties to a contract for the design or carrying out of building works are free to contract as they wish.1 There are, however, certain provisions that are mandatory. Such mandatory requirements include (among others):
1Civil Code 6:59.§ (2)
2Construction Act 32/A§
3Gov. Decree 191/2009. 3.§ (1); Construction Act 39/A. § (6)
4Civil Code 6:152.§
5Government Decree 181/2003 (XI.5.)
6Construction Act 39/B.§
Mandatory terms under statute:
Consumers, under statute, enjoy statutory rights under the Sale of Goods and Supply of Services Act 1980 (“1980 Act”) when they contract with a builder to construct a one-off property or to improve an existing property. Such contracts would generally be seen as amounting to contracts for services. As a result, the 1980 Act will imply certain minimum guarantees of quality into the contract. Specifically, a contractor must have the necessary skill to render the service, the service must be provided with due care and diligence and, where materials are used, they must be sound and reasonably fit for the purpose for which they are required. It is possible for a trader to reject these minimum quality guarantees in a contract of service. However, where they are dealing with a consumer, they may only contract out of the statutory guarantees where it is fair and reasonable to do so and where they have expressly brought the issue to the consumer's attention.
It is not possible to contract out of obligations arising under several distinct areas of legislation (such as planning, environmental, health and safety and building control).
Implied terms under common law:
Terms will generally only be implied insofar as the contract is silent in that regard.
Construction activity is subject to a building permit or self-declaration, respectively, issued by or submitted with the competent local authority board/committee.
As far as the works themselves are concerned, the contractor must do the work with all proper skill and care.
Breach of this duty includes the use of materials containing patent defects. There is also an implied warranty that the contractor will use materials that are reasonably fit for the purpose for which they are to be used (whether or not that is a purpose for which the materials are commonly supplied) and of good quality. If a contract is silent in relation to liability for design, there is an implied term that the services will be carried out with reasonable skill and care. The burden of proof falls on the party claiming that the supplier of the service (design and build contractor, design sub-contractor or consultant) has failed to use reasonable skill and care. These terms will be implied only if the contract is silent on the issues; express terms are required to displace the implication of these terms.
Note that should the building works involve the utilization of reinforced concrete, the law provides that the designer must submit to the competent public authorities, prior to the commencement of the relevant works, the technical details of the reinforced concrete portions of the building works and that the final testing of the reinforced concrete structures shall be carried out.
There are statutory required terms and conditions which must be stipulated in contracts for construction works under the CBA. Such terms and conditions include:
Regarding a design works contract, under the Act on Architects and Building Engineers, the architect's office is required to explain to the owner the following statutory mandated items in writing:
There is no obligation to include specific provisions in a construction contract, but the Dutch Civil Code prescribes rules which apply by law to construction contracts. Some rules can be agreed to be not applicable, but some rules are mandatory law.
In addition, there are all kind of “NEN-standards” on all kind of topics (such as safety or , sustainability) that are generally declared applicable in the market.
For building work relating to residential household units, the Building Act 2004 implies warranties into applicable contracts. These warranties, broadly, relate to the workmanship, material use, and whether the completed project is fit for purpose.
Although parties to contracts under New Zealand law are generally free to determine for themselves the obligations they undertake, the Construction Contracts Act 2002 imposes some limitations. First, a party cannot make payment conditional on them receiving payment from a third party. Secondly, the Act imposes a default payment regime for contracts where the parties did not agree on a mechanism for (a) the number of payments, (b) the interval between those payments, (c) the amount of each of those payments, and (d) the date when each of those payments become due. This legislation also prohibits “paid-when-paid” clauses in sub-contracting arrangements.
Finally, the Health and Safety at Work Act 2015 also imposes obligations on construction contracts. It imposes
Federal Government developments are subject to the Public Procurement Act 2007 which requires that certain contracts or procurements are to be approved by the Bureau of Public Procurement (BPP) except a waiver is obtained. One of the guidelines for the approval of contracts by the BPP is that they are governed by Nigerian law. If works are procured by a state government, the rules may differ in accordance with the respective states’ procurement law.
In the case of private sector developments, the parties are free to contract provided the general legal requirements of a valid contract are satisfied. There is a general duty of compliance with standards prescribed under the applicable laws and regulations and parties cannot agree to exclude the provisions of extant laws regulating design standards and the carrying out of building works. The terms that are implied by law include the contractor’s duty to carry out the construction works with proper skill and care; obligation to adhere to particular best standards; fitness for the expected purpose particularly as the employer relies on the contractor’s design skills; it must meet the standard imposed by regulations and codes.
Norwegian contract law is based on the principle of contractual freedom. The principle provides the parties a right to agree and enter into contracts without mandatory governmental restrictions. However, when one of the parties to the contract is regarded as a non-professional or ‘a consumer’, some Acts contain mandatory provisions.
Certain provisions in the standard construction documents are incorporated as a result of statutes and case law.
From 24 April 2013 minimum wage rates for skilled and unskilled construction workers apply on construction sites. The minimum wage is mandatory in all construction projects. The regulation has been updated several times, with the latest version entering into force in December 2022.
Certain provisions are implied into construction contracts by case law and statute.
Every contract must include an adequate mechanism for determining what payments become due, when they become due and a final date for payment. A party is also entitled to payment by instalments, stage payments or other periodic payment.
In addition, the contractor has to complete the work with all proper skill and care. Breach of this duty includes the use of materials containing patent defects. There is also an implied warranty that the contractor will use materials that are reasonably fit for the purpose for which they are to be used and of good quality.
Construction work procured by the public sector is governed by the Public Contracts Code. In general, the provisions of this code cannot be amended or excluded by the parties. In contracts for the design and construction of works procured by a private sector developer, the parties have greater freedom to agree their own terms and conditions. However, in a scenario where subcontracting is allowed by the Public Contracts Code, such contracts must clearly set out::
If the agreement fails to include this information, its terms will be deemed null and void. These contracts must also be kept on file for a ten-year period following completion of the works.
Law 10/1995 regarding quality in construction works provides the main framework of requirements that must be fulfilled by client/employers, designers and contractors. In addition, there are several additional detailed technical regulations that apply.
Certain standards must be met throughout the entire existence of the construction relating to:
Technical expertise must be provided by authorized experts for any works of rebuilding, consolidation, transformation or partial demolition.
When the construction works are finished, the parties sign handover minutes in order to certify that the contractor has fulfilled its obligations in accordance with the construction contract and the relevant legislation. The handover involves two phases:
In certain cases, the handover upon completion of the works shall take place only together with the handover at the completion of connection works to the public services and technical infrastructure, corresponding to the ensembles of individual and collective housing units, the constructions of public utility and the access routes. Furthermore, the handing over of the construction to the owner shall take place only after the admission of the reception upon completion of works and after putting into service the authorized and final connections to the public utilities networks of the urban infrastructure, both in case of new investments and interventions on existing constructions that were not used during the execution of the construction works. Failure to comply with this, if considered an administrative offence, is sanctioned with a fine ranging from RON 1,000 to RON 100,000 (approx. EUR 200 to EUR 20,000).
Under the relevant legislation, the designer and the contractor participate in both phases of the handover, so provisions obliging the designer and the contractor to participate in the handover should be included in the design agreement, respectively in the construction contract in order to avoid any additional fee becoming payable.
The contract for work being the contract typically used in this field is governed by the Civil Code and the Commercial Code. Unlike the Civil Code, the majority of the provisions of the Commercial Code regulating the contract for work can be adjusted by the parties according to their contractual freedom, as they are of a non-mandatory nature. In accordance with the Commercial Code, a contractor will execute development works at his own expense and at his own risk within the contractually agreed period of time. Mandatory requirements of the contract for work regulated by the Commercial Code include the obligation to stipulate the following information:
Apart from the obligation on the contractor to fulfil the technical requirements set out in the Spanish Building Act, the Spanish Technical Construction Code, the Energy Efficiency Act and other technical regulations, there are only few legal provisions implied specifically into construction contracts.
One of these provisions implied by the Civil Code is the right for the developer to terminate the contract early without cause, being obliged only to pay costs to the contractor.
An additional specific provision implied into construction contracts is that subcontractors are entitled to claim against the developer, even if no contractual relationship exists between them, for any debt owed by the contractor to the subcontractor and up to the amount owed by the developer to the contractor.
Only when building for consumers. The contractor is then forced to follow the regu-lations stipulated in the Consumer Service Act (Konsumenttjänstlagen).
In principle, the terms and conditions of the construction contract govern the design or carrying out of building works to the extent that such terms and conditions are not expressly prohibited by law and are not impossible or contrary to public order or good morals.
Unless the construction contract states otherwise, the following provisions of the Civil and Commercial Code apply in relation to the construction of a building:
A wide variety of provisions apply to consultancy and construction contracts by statute. For example:
Certain provisions are implied into construction contracts by statute.
The Civil Code imposes certain conditions on muqwala (work) contracts, including a provision that a contractor is liable for damage caused by its acts.
The provisions in the Building Codes and guidelines issued by Dubai Municipality, JAFZA and TECOM dictate the design terms and conditions.
Certain provisions are implied into construction contracts by case law and statute.
The Housing Grants, Construction and Regeneration Act 1996 gives a party to a construction contract the right to refer a dispute to adjudication. In addition, every contract must include an adequate mechanism for determining what payments become due, when they become due and a final date for payment. A party is also entitled to payment by instalments, stage payments or other periodic payment. Finally, a party also has the right to suspend performance for non-payment. If the contract does not make adequate provision, the provisions of a statutory scheme will automatically apply to it.
As far as the works themselves are concerned, the contractor must do the work with all proper skill and care. Breach of this duty includes the use of materials containing patent defects. There is also an implied warranty that the contractor will use materials that are reasonably fit for the purpose for which they are to be used (whether or not that is a purpose for which the materials are commonly supplied) and of good quality. If a contract is silent in relation to liability for design, there is an implied term that the services will be carried out with reasonable skill and care. The burden of proof falls on the party claiming that the supplier of the service (design and build contractor, design subcontractor or consultant) has failed to use reasonable skill and care. These terms will be implied only if the contract is silent on the issues; express terms are required to displace the implication of these terms.
Certain provisions are implied into construction contracts by case law and statute.
The Housing Grants, Construction and Regeneration Act 1996 (as amended) gives a party to a construction contract the right to refer a dispute to adjudication. In addition, every contract must include an adequate mechanism for determining what payments become due, when they become due and a final date for payment. A party is also entitled to payment by instalments, stage payments or other periodic payment. Finally, a party also has the right to suspend performance of its works or services for non‑payment by its employer/client. If the contract does not make adequate provision for interim payments and/or the adjudication of disputes, the provisions of a statutory scheme will automatically apply to it under the Scheme for Construction Contracts (Scotland) Regulations 1998 (as amended).
As far as the works themselves are concerned, the contractor must do the work with all proper skill and care. Breach of this duty includes the use of materials containing patent defects. There is also an implied warranty (under the Sale of Goods Act 1979, as amended) that the contractor will use materials that are reasonably fit for the purpose for which they are to be used (whether or not that is a purpose for which the materials are commonly supplied) and of good quality. If a contract is silent in relation to the standard applicable to a design obligation and does not specify that a particular outcome or purpose is required, there is an implied term (under the Supply of Goods and Services Act 1982) that the services will be carried out with reasonable skill and care. However, if a contract is silent on the applicable design standard but specifies that a particular outcome or purpose is to be achieved by the design, a ‘fitness for purpose’ standard of design may be implied at common law. The burden of proof falls on the party claiming this. These terms will be implied only if the contract is silent on the issues and, therefore, express terms are required to displace the implication of these terms.
The contracts for carrying out building works should contain the mandatory terms and conditions prescribed by the Civil Code of Ukraine, the Commercial Code of Ukraine and the General Conditions of Conclusion and Execution of Contractor's Agreements in Capital Construction approved by the Resolution of the Cabinet of Ministers of Ukraine No. 668 dated 1 August 2005, in particular names and details of the parties, the place and date of the execution of the contract, the contractual price, terms for commencement and completion of works and rights and responsibilities of the parties. Any contract which lacks the mandatory provisions envisaged by the law, may be declared invalid by the court.
Yes, numerous provisions are or can be implied in design and construction contracts by either case law or statute. These provisions vary from state to state; however, a few examples of implied obligations include:
While the owner, designer, and contractor are free to agree contractually on the standard of care by which the work will be performed, in most cases a standard of care will be provided by statute or common law if the construction contract is silent. While most implied standards will differ in some respects from state to state, the standards are reasonably similar and in some manner require proper workmanship or skill ordinarily used by members of the profession.
Setting forth the standard of care in the contract could be of benefit to either the owner or the design professional or contractor, depending on the standard of care agreed to and other circumstances. On the one hand, an owner may be able to negotiate a higher standard of care than common law or statute would provide. On the other hand, once agreed to by contract, the design professional or contractor may be able to avoid implied warranties that could heighten a standard of care or even punitive damages that could be awarded were the contract silent.
A design professional generally has a duty to design the project in accordance with applicable building codes.
Most US states (but not all) obligate the parties to a contract to act in good faith. The obligation of good faith also has been incorporated into the Uniform Commercial Code. Simply put, the covenant of good faith requires that people deal fairly with another.
Even in states where good faith is not universally implied in commercial contracts, a state may require good faith in specific instances. For example, a contractor may be obligated to comply with building codes, even though such compliance is not an express obligation in the contract.
Common law may, in some jurisdictions, allow a contractor additional compensation and/or time when encountering hidden, unexpected conditions on a construction site that a contractor should not have been able to discover during its examination of the site. The contractor may be entitled to additional compensation and/or time under certain circumstances even if the contractor agreed to perform the work for a lump sum, guaranteed a not-to-exceed price, or guaranteed a completion date the contractor cannot meet because of the differing site conditions.
Lien rights are provided by statute in all states; however, provisions and requirements vary. Stated broadly, a person who contracts to improve real property may have a legal right to encumber the property for the amount owed.
Some states require that the law of that state is applicable to any contract for construction in that state, despite the parties’ agreement otherwise.
See Limitation period.
Other provisions that may or may not be implied in a contract, depending on the jurisdiction in the United States, include copyright protection, impartiality of an architect, cardinal change, implied authority for a change order, implied contractual indemnity coverage, common law one-year corrective remedy, implied warranties of design and design adequacy, duty of cooperation, duty of disclosure, site investigation duty, duties regarding the handling and disposal of hazardous materials, implied inspection authority, doctrine of impracticability, anti-indemnity statutes, implied contractual indemnity, merchantability, strict compliance doctrine, implied warranty of habitability and consumer protection statutes.
Although there is no mandatory requirement to that effect, the parties would need to ensure that they incorporate the necessary approvals from the local authority into their agreements. The terms and conditions of engagement are usually governed by contract, and they therefore tend to vary in each case. The common law fiduciary duties of a contractor therefore apply. These include but are not limited to:
When engaging in construction on behalf of a procuring authority, the Public Procurement and Disposal of Public Assets Act [Chapter 22:23], and The Public Procurement and Disposal of Public Assets Regulations of 2018 provide for the minimum standards applicable in construction contracts with procuring authorities.
