Customer’s Copy /

Contractor’s Copy1

This Contract is made the ……….....…….... day of ………………… 20 …………..…..

between2 ……………………..…………………………………………..............…..............
of 3…………………………………………………………………….................…….............
…………………………………………..........………….. (“the Customer”) of the one part
and4 …………………..……………………………………................…………………..……
of5 ………………………………………………………………................……………………..
……….…………………..…….…............…….…….. (“the Contractor”) of the other part.

It is agreed as follows:

1. Description of the Works

The Customer wishes the following work6 …...........…………….….…………...........
………………………….………………………..… (“the Works”) to be carried out at7
……………………………………..………………..............……………………………...
………………………………………………………………............… (“the Premises”).

2. Work Details
The details of the Works are given in the documents ticked below:8

Contractor’s quotation dated ………………..………………..;

Drawings numbered …..…………………....................…......;

Specification numbered ………………………............….......;

Other documents ...………………………………………….…..…………………
……………………………………………………………………………..............
which are parts of this Contract and are collectively called the “Work Details”.

3. Price
3.1 The price for the Works is Hong Kong Dollars …….………………………………..........
…………………………………………………….......…... (HK$ …......……………..).

3.2 The price is deemed to include the cost of all works necessary for the timely and
satisfactory completion of the Works in its entirety, whether it is expressly stated
in the Work Details or not.

__________________________________
1
This Contract must be prepared in duplicate. Delete as appropriate.
2
Insert the name of the Customer.
3
Insert the address of the Customer.
4
Insert the name of the Contractor.
5
Insert the address of the Contractor.
6
State accurately the nature and scope of the Works to be carried out.
7
Insert the address of the Premises where the Works will be carried out.
8
Tick the appropriate box(es) and fill in the relevant details. Both the Customer and the Contractor must sign all
documents and the Customer must keep the original documents with his copy of this Contract.

1
4. Contractor’s obligations
4.1 The Contractor shall organize, carry out and complete the Works diligently and in a
good and workmanlike manner, in accordance with the Work Details and the
provisions of this Contract. The Contractor shall complete the design for the Works
using reasonable skill and care including the selection or specification of the
materials and goods and workmanship to be used in the Works so far as not stated
in the Work Details.

4.2 The Contractor shall comply with any and all statutory requirements applicable to
the Works including obtaining all approvals and consents and paying all fees and
charges including those due to statutory undertakers and utility companies. The
Contractor shall also comply with any Deed of Mutual Covenant and Management
Agreement and House Rules of the Premises in respect of the working hours,
control of air, noise, wastewater and waste, delivery of materials and goods,
connection to public services, etc.

5. Working period and hours

5.1 The Contractor shall commence the Works on ………….………. and shall complete
by ………………..……. 9

5.2 The Contractor shall carry out the Works at the Premises between ……..…. a.m.
and …….…......... p.m.10 from Monday to Saturday, excluding any Sundays and
Public Holidays. The Customer shall give the Contractor access to the Premises
during these working hours throughout the working period.

6. Sufficient working areas

The Customer shall keep the working areas sufficiently clear of obstructions to
allow the Contractor to carry out the Works so as to enable him to complete the
Works on time.

7. Materials, goods and workmanship

7.1 The Contractor must supply materials and goods which are of satisfactory types,
standards and quality and as set out in the Work Details. The Contractor warrants
that all materials and goods are reasonably fit for the intended purposes.

7.2 The Contractor must carry out the Works in a good and workmanlike manner, as
set out in the Work Details and to the Customer’s satisfaction.

8. Change of the Works

8.1 The Customer may request changes to the Works. These may include the alteration
of the design, quality or quantity of the Work Details.

8.2 If the Contractor agrees to execute the change requested by the Customer, he
shall quote both a price for the change and the time involved for the Customer’s
agreement. The Contractor shall proceed with the change after receiving the
Customer’s written agreement.

__________________________________
9
State the commencement date and completion date.
10
State the working hours.

2
9. Sub-contracting
The Contractor shall not sub-contract any part of the Works without the Customer’s prior
consent.

10. Injury, damage and insurance

10.1 The Contractor shall be liable for, and shall indemnify the Customer against, any
expense, liability, loss, claim and damage which may be caused to his employees
and his sub-contractor’s employees of all tiers, or to the Premises and its contents,
the Works or neighbouring properties.

10.2 Without prejudice to his obligation to indemnify the Customer, the Contractor shall
take out and maintain, in the joint names of the Customer, himself and his sub-
contractors of all tiers,
(a) Contractor’s All Risks insurance to cover the full reinstatement value of the
Works;
(b) Third Party Liability insurance to cover the liability to the third party in respect
of bodily injury or death and damage to properties with a minimum amount
of HK$ …………………..11 for any one occurrence or series of occurrences
arising out of any one event; and
(c) Employees’ Compensation insurance in compliance with the Employees
Compensation Ordinance to cover claims for bodily injury to or the death of
any workers employed in connection with the Works.

11. Extension of working period

The Customer shall extend the working period by a fair and reasonable amount if the Contractor
(a) has to spend extra time on the Works because of the change requested by the
Customer; or
(b) cannot complete the Works on time because of any delay caused by the Customer.

12. Payment
12.1 The Customer shall pay the Contractor in accordance with clauses 12.3 and 12.4 by
the method ticked below:

one payment when the Works are all completed; or

stage payment12 shown below when each of the following stages of the Works is
completed.
Work stage Payment
.................................................................... HK$........………………
.................................................................... HK$........………………
.................................................................... HK$........………………
.................................................................... HK$........………………

12.2 When all of the Works are properly completed or when each stage of the work described
in clause 12.1 is properly completed, the Contractor shall give the Customer an itemized
invoice for the amount due taking account only of any price increase or decrease due to
changes made to the Works under clause 8. For the purposes of this clause, the Works
shall be considered as being properly completed only when they are free from obvious
defects.

__________________________________
11
Insert the appropriate amount.
12
State the details of each work stage together with the corresponding amount of payment, including any advance payment.

3
12.3 The Customer shall pay 90% / ……………. %13 of the amount of the invoice within
7 days after receiving the invoice from the Contractor unless a greater sum has
already been paid.

12.4 The Customer shall pay the remaining portion of the amount of the invoice or
invoices within 7 days of the Contractor having made good all defects in the Works
which may be or become apparent at any time within 3 months / …....... months14
after its completion.

13. Occupation and security of the Premises

13.1 The Premises shall be / shall not be15 occupied during the working period.

13.2 If the Premises are unoccupied at any time during the working period, the
Contractor shall take practical precautions to deter intruders entering.

14. Use of facilities on the Premises

The Customer shall allow the Contractor to use, free of charge, the facilities ticked
below:
=
electricity
toilet
=
telephone (local call)
water

15. Health and safety

15.1 The Contractor shall take all practical steps to:
(a) prevent health and safety risks to the Customer and other people occupying
or visiting the Premises; and
(b) minimize environmental pollution, nuisance, disturbance or inconvenience
to the existing and neighbouring occupants.

15.2 The Contractor shall provide suitable safety/precautionary measures for carrying
out the Works particularly on external walls of the Premises.

15.3 The Customer shall take notice of all warnings the Contractor gives about any
health and safety or environmental risks which he is taking measures to prevent
or minimize.

16. Protection and cleaning of the Works

16.1 The Contractor shall stow away his tools, equipment and ladders at the end of
each working day in a place agreed to be used for such storage and shall regularly
dispose of any rubbish from the Premises.

16.2 The Contractor shall protect the finished works and the Premises during the
progress of the Works and bear all costs incurred in making good any damage
caused.

16.3 Upon completion of the Works, the Contractor shall remove all plant, tools and
surplus materials, make good and reinstate all damages, clean the Works and
leave the Premises in a clean and tidy condition to the Customer’s satisfaction.

__________________________________
13
If a different payment percentage is required, delete 90% and insert the desired percentage.
14
If a different period is required, delete 3 months and insert the desired period.
15
Delete as appropriate.

4
17. Customer’s right to terminate the Contract
17.1 If the Contractor
(a) does not regularly and diligently carry out the Works; or
(b) does not comply with his health and safety and environmental responsibilities; or
(c) is incompetent so that the Works are of an unacceptable standard and not in
accordance with the Work Details;
and if the Contractor does not remedy the default within 7 days of receiving a
written warning from the Customer summarising the Contractor’s default, the
Customer may terminate this Contract by giving the Contractor a written notice of
termination which is to take immediate effect.

17.2 Upon termination of this Contract under clause 17.1, the Customer shall not be
bound to make any further payment to the Contractor until after completion of the
Works by another contractor. The Customer may recover from the Contractor the
additional cost to him of completing the Works and any direct loss and/or damage
caused to him by the termination of this Contract.

18. Contractor’s right to terminate the Contract

18.1 If the Customer
(a) does not pay an amount properly due to the Contractor without having good
reason; or
(b) prevents or obstructs the Contractor from carrying out the Works for a
continuous period of at least 14 days;
and does not remedy the default within 7 days of receiving a written warning
from the Contractor, the Contractor may terminate this Contract by giving the
Customer a written notice which is to take immediate effect.

18.2 Upon termination of this Contract under clause 18.1, the Customer shall pay the
Contractor within 14 days for the value of work properly executed and unfixed
materials and goods ordered for the Works.

19. Settlement of disputes

19.1 The Customer and the Contractor shall attempt to resolve any disputes through
mediation. The Customer and the Contractor shall agree a person to act as the
mediator. If the Customer and Contractor fail to agree a person to act as the
mediator within 14 days of one party requesting the other to agree on a mediator
then, either party can request the President of the Hong Kong Institute of Surveyors
to appoint a mediator for them.

19.2 The Customer or the Contractor may also start legal proceedings to settle any
disputes.

20. Law of the contract

This Contract shall be governed by and construed according to the laws for the
time being in force in the Hong Kong Special Administrative Region.

_____________________________ _____________________________
Customer’s signature Contractor’s signature

5
 Guidance Notes

(This Guidance Notes do not form part of, and shall not affect the interpretation of, any
contract.)

Use of this Contract

This Contract is designed for use where the Customer deals directly with a Contractor
making improvements to his premises such as decorations, repairs, maintenance or
minor alterations, and the Works involved is simple in character with a contract value up
to HK$400,000 (at 2008 prices).

Where the Works are of a complex nature or involve building works defined under
Buildings Ordinance, the Customer should consider appointing a professional consultant
who will act for you, including choosing the appropriate contract.

Choice of a suitable contractor

The Customer should choose a reputable contractor for the Works. Personal
recommendations from friends can be very useful.

The Customer should decide exactly the Work Details before asking the contractor(s)
to quote for the Works. This will avoid misunderstandings and disputes later on.

The Customer should get quotations from more than one contractor in order to obtain
a competitive price for the Works. Three quotations are quite usual. Before they tender
you should tell the tendering contractors that you want to use this Contract; otherwise,
you may find that the contractor’s quotation is based on their own terms and conditions
which might not be fair and reasonable.

Before signing the Contract, the Customer and Contractor should agree all contract
details, including the Work Details, price, working period and hours, etc. The Customer
should make sure that all the appropriate parts of the Contract have been filled in.

Outline of the Contract

Price
This is the lump sum stated in the Contract. This lump sum may be increased or
decreased, depending only on whether any changes to the Works are requested by the
Customer.

Customer’s obligations
The Customer should keep the working areas sufficiently clear of obstructions so as
not to prevent or obstruct the Contractor from carrying out and completing the Works
on time. The Customer should also make payments to the Contractor in accordance
with clause 12, except where the Works have not been properly executed.

Extension of working period

If the Works cannot be completed within the original working period due to the change
requested or delay caused by the Customer, the Customer should grant a reasonable
extension of time.

6
Termination
Either the Customer or the Contractor may terminate this Contract if the other does
not comply with certain obligations stated in the Contract.

Disputes
If the Customer and the Contractor have any disputes while the Works is being done or
afterwards, both parties should try to resolve it through negotiation before considering
going to mediation or to the courts.

Rights and remedies generally

This Contract does not limit any other legal remedies which may be available to the
Customer or the Contractor. Proceedings can be commenced within 6 years from the
date of breach.

7
Published by the Hong Kong Institute of Surveyors
Suite 801, 8/F Jardine House, 1 Connaught Place, Central, Hong Kong
Telephone: 2526 3679
E-mail: [email protected]
Web Site: www.hkis.org.hk

Printed in Hong Kong SAR, China

by The Green Pagoda Press Limited

ISBN (Number to be inserted here)

Disclaimer

All parties must rely exclusively upon their own skill and judgment when making use of
this document. Neither the Hong Kong Institute of Surveyors, nor any of its committee
members nor any other contributor assumes any liability to anyone for any loss or
damage caused by any error or omission, whether such error or omission is the result
of negligence or any other cause. Any and all such liability is disclaimed.

Copyright

The copyright of this publication is owned by The Hong Kong Institute of Surveyors. All
rights reserved. No part of this publication may be reproduced, stored in a retrieval
system, or transmitted, in any form or by any means, electronic, mechanical,
photocopying, recording, Internet or otherwise, without the prior written permission of
the Hong Kong Institute of Surveyors.