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Pre-construction services agreements: key drafting issues and checklist, including two-stage tendering, design liability, Building Safety Act Gateway 2, HGCRA payment compliance, insurance, collateral warranties, assignment, termination and adjudication

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This checklist identifies the principal points to bear in mind when preparing or assessing a pre-construction services agreement (PCSA). Remember that the content and scope of any PCSA will hinge on the services the contractor is to deliver and the expected length of the pre-construction phase. Consequently, the drafting may differ significantly. For further detail on PCSAs, see Practice Note: Pre-construction services agreements. PCSAs generally draw together aspects from several sources. Core terms are akin to those used in a letter of intent, but with added provisions to address liaising with other parties and preliminary works taking place on site. By contrast with a letter of intent, a PCSA is set out as a conventional legal agreement, with distinct sections for the parties and for recitals.

  • A letter of intent
  • A consultant’s appointment
  • A building contract

Key issues and clauses • Background

A PCSA should include a recitals or background section that explains the basis for the appointment and the parties’ intentions...

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Web page updated on 20/05/2026

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Date [ date ] Parties [ name of Landlord ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Landlord) [ name of Tenant ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Tenant) [ [ name of Guarantor ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Guarantor) ] [ [ name of Mortgagee ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Mortgagee) ] Definitions Within this Deed, the terms below shall be interpreted as follows: [ Annual Rent • the annual sum reserved under the Lease; ] [ Insurance Rent • the Tenant’s share of the Landlord’s costs of insuring the Property (as set out in the Lease); ] Lease • the lease of the Property dated [ date ], entered into between (1) [ the Landlord OR [ name ...

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