The Construction Agreement Between Owner And Builder is a fundamental legal document used in the Australian construction industry when a property owner engages a licensed builder to undertake construction works. This agreement is essential for any construction project, whether residential, commercial, or industrial, and must comply with Australian federal and state-specific building regulations, including the Building and Construction Industry Security of Payment Act and the National Construction Code. The document typically includes detailed specifications of the work, pricing structures, timelines, quality standards, insurance requirements, and dispute resolution mechanisms. It serves to protect both parties' interests by clearly defining roles, responsibilities, and remedies while ensuring compliance with Australian consumer protection laws and building standards. The agreement is particularly important as it forms the basis for project execution and provides legal recourse in case of disputes or breaches.
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1. Parties: Identifies and provides full details of the Owner and Builder, including registered addresses and ABN numbers
2. Background: Outlines the context of the agreement, including the Owner's possession of the property and Builder's qualifications and licenses
3. Definitions and Interpretation: Defines key terms used throughout the agreement and sets out rules for interpreting the document
4. Scope of Works: Detailed description of the construction work to be performed, including specifications and standards
5. Contract Price and Payment Terms: Specifies the total contract price, payment schedule, and progress payment procedures
6. Time for Completion: Sets out the construction timeline, including start date, completion date, and provisions for extensions of time
7. Builder's Obligations: Lists all responsibilities and obligations of the Builder, including quality standards, compliance requirements, and warranties
8. Owner's Obligations: Details the Owner's responsibilities, including site access, approvals, and payment obligations
9. Variations: Procedures for requesting, approving, and implementing changes to the scope of works
10. Insurance and Indemnity: Specifies required insurance coverage and indemnification obligations of both parties
11. Defects Liability: Details the defects liability period and procedures for identifying and rectifying defects
12. Workplace Health and Safety: Outlines safety requirements and responsibilities on the construction site
13. Dispute Resolution: Procedures for handling disputes between parties
14. Termination: Grounds and procedures for termination of the agreement by either party
15. General Provisions: Standard legal provisions including notices, governing law, and entire agreement clause
1. Provisional Sums: Include when there are elements of work that cannot be accurately priced at the time of contract formation
2. Prime Cost Items: Include when specific items or materials are to be selected by the Owner during construction
3. Environmental Requirements: Include for projects with specific environmental compliance needs or green building requirements
4. Heritage Considerations: Include when working on heritage-listed properties or in heritage conservation areas
5. Staging and Separable Portions: Include when the project is to be completed and handed over in distinct stages
6. Building Management Systems: Include for complex commercial or industrial buildings requiring specific management systems
7. Performance Guarantees: Include when specific performance criteria must be met, particularly for commercial construction
8. Intellectual Property: Include when custom designs or innovative construction methods are involved
1. Schedule 1 - Contract Details: Essential project information including contact details, project address, and key dates
2. Schedule 2 - Contract Price Breakdown: Detailed breakdown of costs including labor, materials, and other components
3. Schedule 3 - Construction Plans and Specifications: Approved architectural plans, engineering drawings, and technical specifications
4. Schedule 4 - Construction Program: Detailed timeline of construction activities and milestones
5. Schedule 5 - Special Conditions: Any specific conditions or requirements unique to the project
6. Schedule 6 - Form of Progress Claim: Template for submitting progress payment claims
7. Schedule 7 - Certificates and Approvals: Copies of all required permits, licenses, and regulatory approvals
8. Appendix A - Site Safety Plan: Detailed workplace health and safety procedures and requirements
9. Appendix B - Quality Assurance Plan: Quality control procedures and inspection requirements
10. Appendix C - Environmental Management Plan: Environmental protection measures and compliance procedures
Authors
Relevant legal definitions
Clauses
Relevant Industries
Residential Construction
Commercial Construction
Industrial Construction
Property Development
Construction Services
Real Estate
Architecture and Design
Engineering Services
Relevant Teams
Legal
Construction
Project Management
Contracts Administration
Risk and Compliance
Property Development
Operations
Quality Assurance
Building Services
Document Control
Relevant Roles
Construction Manager
Project Manager
Contract Administrator
Legal Counsel
Building Surveyor
Site Supervisor
Quantity Surveyor
Property Developer
Architect
Structural Engineer
Building Inspector
Compliance Officer
Risk Manager
Operations Manager
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