Estimated reading time: 3 minutes

An Early Work Agreement (EWA) is a crucial pre-construction instrument that allows contractors and suppliers to begin limited project activities before the main contract becomes fully effective. In complex industrial, infrastructure, and energy projects, it ensures that key equipment procurement, site mobilization, or engineering preparations can proceed without waiting for the full release of project funding.

Purpose and Function of an Early Work Agreement

An EWA creates a bridge between planning and execution. It allows the project team to begin essential work—like ordering long-lead materials or starting design tasks—without waiting for full funding.
Through this agreement, both contractor and supplier confirm their early roles, scope, and payment schedule. It keeps the project timeline intact and avoids costly delays.

Core Elements of the Agreement

A clear EWA, such as the one from ContractDirectory.net, usually includes:

• Scope of Early Works – The annex defines the exact early tasks and deliverables.
• Payments and Guarantees – The contractor pays in stages, and the supplier provides performance and advance guarantees to secure both sides.
• Activation Conditions – The agreement starts once both parties sign and the supplier receives the first payment.
• Link to Main Contract – All technical, quality, and legal terms from the main contract apply here as well.
• Termination and Delivery Rules – These parts describe how deliveries, title transfer, and possible termination occur.

Why Early Work Agreements Matter

In complex projects, every day counts. The EWA helps project owners, contractors, and suppliers save time and reduce uncertainty. It lets suppliers begin fabrication and delivery early, and it gives contractors more control over scheduling.
Such agreements also protect each party through clear documentation, defined scope, and bank-backed guarantees.

Practical Insights

Project owners often use EWAs when they expect staged funding or are still waiting for permits. Suppliers gain cash flow and production certainty. Contractors secure time-sensitive materials and stay ahead of inflation or transport risks.
To make an EWA effective, both parties must agree on scope, delivery schedules, and financial safeguards. When well-structured, it becomes a reliable project management tool and a sign of strong coordination.

The Early Work Agreement is mostly used for early-stage performance in the following contracts:

• Engineering, Procurement, and Construction Management Contract (EPCM)
• EPC Contract (Turnkey)
• Revamping Agreement
• Engineering, Procurement, and Financing Contract (EPF)
• Engineering, Procurement, and Construction Contract (EPC)
• Construction Contract (Civil Project) 
• Project Implementation Contract
• Engineering, Supply, and Training Contract (EP)
• Engineering, Procurement, Construction and Finance Agreement (EPCF)

References (2024–2025)

• FIDIC. Conditions of Contract for Construction (Red Book). International Federation of Consulting Engineers.
• World Bank – Standard Procurement Documents for Works. Procurement Framework (2024).
• NEC Contracts. Early Contractor Involvement and Early Works Guidance Notes. NEC4 Suite.
• Government of Western Australia, Department of Finance. Early Contractor Involvement Policy. (2024).
• International Chamber of Commerce (ICC). Uniform Rules for Demand Guarantees (URDG 758).
• Institution of Civil Engineers (ICE). Procurement and Contract Strategy Guidance. (2024).
• Project Management Institute (PMI). PMBOK® Guide – Seventh Edition. (2024).