Enabling Works Agreement

Enabling Works Agreement: What You Need to Know

An Enabling Works Agreement (EWA) is an agreement entered into by a developer and a contractor that governs the early stages of a construction project. The purpose of an EWA is to allow the contractor to undertake site works and infrastructure improvements necessary to enable the main construction work to take place.

The EWA is typically entered into at the start of a construction project, before the main contract is signed. It sets out the scope of works, timelines, and payment terms for the enabling works, as well as any other relevant terms such as insurance, safety, and warranties.

Enabling works may include the construction of access roads, infrastructure for utilities such as water and electricity, site clearance and preparation, and any other works necessary to make the site ready for the main construction work to begin.

Why is an Enabling Works Agreement important?

An EWA is a crucial part of any construction project, as it provides a clear framework for the early stages of the work. By setting out the scope of works, timelines, and payment terms, it ensures that both the developer and the contractor are clear on what is expected of them and when.

An EWA also helps to mitigate project risk. By agreeing on the scope of works and timelines, the developer can be confident that the contractor will be able to complete the enabling works on time and within budget. This, in turn, ensures that the main project can commence as planned, reducing the risk of delays and cost overruns.

Finally, an EWA helps to ensure that the project is carried out safely and to the required standards. By specifying requirements for insurance, safety, and warranties, the EWA helps to protect both the developer and the contractor from any potential risks or liabilities that may arise during the enabling works.

Key considerations for an Enabling Works Agreement

When entering into an EWA, it`s important to consider a number of key factors, including:

Scope of works: The EWA should clearly define the scope of works that the contractor will undertake as part of the enabling works. This should include any necessary site preparation, infrastructure improvements, and other works required to make the site ready for the main construction work.

Timelines: The EWA should set out clear timelines for the enabling works, including any milestones or deliverables that must be completed within a certain timeframe.

Payment terms: The EWA should specify the payment terms for the enabling works, including any upfront payments, progress payments, or retention amounts.

Insurance: The EWA should specify the insurance requirements for the enabling works, including any necessary liability insurance, worker`s compensation, and property insurance.

Safety: The EWA should include requirements for safety, such as the use of personal protective equipment, adherence to safe work practices, and any necessary safety training.

Warranties: The EWA should specify any warranties or guarantees that the contractor must provide in relation to the enabling works, including any defects liability period.

Conclusion

An Enabling Works Agreement is a critical part of any construction project. By setting out the scope of works, timelines, and payment terms for the enabling works, an EWA helps to ensure that the project is completed on time, within budget, and to the required standards. It also helps to mitigate project risk and protect both the developer and the contractor from any potential liabilities or disputes that may arise during the early stages of the project. As such, it`s important to draft an EWA carefully, with the assistance of legal and other relevant professionals.