The Buyer Builder Agreement is a fundamental legal document used in the Australian construction industry to establish and regulate the contractual relationship between builders and property owners undertaking residential construction projects. This agreement is essential when a property owner engages a licensed builder to construct or renovate a residential property. It includes detailed specifications about the construction work, pricing, payment schedules, timeframes, and quality standards, while ensuring compliance with state-specific building regulations and consumer protection laws. The document serves as a crucial risk management tool, clearly defining the rights and obligations of both parties, incorporating necessary warranties and insurance requirements, and establishing procedures for variations and dispute resolution. Its use is mandatory in most Australian jurisdictions for residential building works above certain value thresholds.
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1. Parties: Identification of the Builder and the Owner, including full legal names, addresses, and relevant license numbers
2. Background: Context of the agreement, including property details and general scope of the building work
3. Definitions: Defined terms used throughout the agreement for clarity and legal certainty
4. Contract Price and Payment Terms: Detailed breakdown of costs, payment schedule, and progress payment conditions
5. Scope of Works: Detailed description of all building works to be performed under the contract
6. Timeframes and Completion: Project commencement date, completion date, and stages of construction
7. Builder's Obligations: Key responsibilities of the builder including quality standards, compliance with laws, and insurance requirements
8. Owner's Obligations: Key responsibilities of the owner including site access, approvals, and payment obligations
9. Variations: Process for requesting, approving, and implementing changes to the scope of works
10. Defects and Warranties: Defect liability period, statutory warranties, and process for addressing defective work
11. Insurance and Risk: Required insurance coverage and allocation of risk between parties
12. Termination: Circumstances and process for contract termination by either party
13. Dispute Resolution: Process for resolving disputes between parties
14. General Provisions: Standard legal provisions including governing law, notices, and assignment
1. Prime Cost Items: Detailed provisions for items where exact cost is unknown at contract signing, to be selected later
2. Provisional Sums: Estimates for work that cannot be precisely costed at contract signing
3. Rock and Other Site Conditions: Special provisions for dealing with site conditions that may affect construction
4. Excavation and Foundations: Specific provisions for excavation work and foundation requirements when significant earthworks are involved
5. Environmental Requirements: Special environmental obligations or restrictions applicable to the project
6. Heritage Requirements: Special provisions for projects involving heritage-listed properties or areas
7. Pool and Landscaping: Additional provisions for projects including swimming pools or significant landscaping work
8. Finance Conditions: Provisions relating to owner's finance arrangements and conditions precedent
1. Schedule 1: Contract Details: Key project details including contract price, deposit, progress payments, and completion date
2. Schedule 2: Plans and Specifications: Detailed architectural plans, engineering drawings, and building specifications
3. Schedule 3: Prime Cost Items Schedule: List of items to be selected by the owner with budgeted allowances
4. Schedule 4: Provisional Sums Schedule: List of works with estimated costs that cannot be precisely determined
5. Schedule 5: Progress Payment Schedule: Detailed breakdown of progress payment stages and amounts
6. Schedule 6: Warranties and Certificates: Copies of builder's warranty insurance and other required certificates
7. Schedule 7: Special Conditions: Any special or additional conditions specific to the project
8. Appendix A: Site Investigation Reports: Soil tests, survey reports, and other site-specific technical reports
9. Appendix B: Council Approvals: Copies of development approvals and building permits
Relevant legal definitions
Clauses
Relevant Industries
Construction
Real Estate
Property Development
Building and Construction
Residential Construction
Architecture
Engineering
Legal Services
Relevant Teams
Legal
Construction
Operations
Project Management
Compliance
Risk Management
Property Development
Contract Administration
Quality Assurance
Document Control
Relevant Roles
Construction Manager
Project Manager
Contract Administrator
Legal Counsel
Building Supervisor
Site Manager
Quantity Surveyor
Property Developer
Risk Manager
Compliance Officer
Operations Manager
Licensed Builder
Building Inspector
Architect
Construction Lawyer
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