The Construction Framework Agreement serves as a master agreement designed to streamline the engagement process for multiple construction projects in Australia. It is particularly useful for organizations planning to undertake several construction projects over an extended period, providing efficiency through standardized terms while maintaining flexibility for project-specific requirements. The agreement incorporates key requirements under Australian federal and state legislation, including security of payment provisions, work health and safety obligations, and building code compliance. It establishes the commercial framework, performance standards, pricing mechanisms, and risk allocation between parties, reducing the need to negotiate these elements for each individual project. This type of agreement is commonly used by government departments, property developers, and large organizations with ongoing construction programs.
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1. Parties: Identification of the principal/client and the contractor, including full legal names and ABNs
2. Background: Context of the agreement, relationship between parties, and general intent of the framework arrangement
3. Definitions and Interpretation: Detailed definitions of terms used throughout the agreement and rules for interpretation
4. Term and Extension: Duration of the framework agreement and any extension options
5. Framework Operation: Process for issuing work orders, project acceptance, and operation of the framework
6. Pricing and Payment Terms: Framework rates, pricing mechanisms, payment terms, and invoicing requirements
7. Performance Standards: Required quality standards, KPIs, and performance measurement criteria
8. Work Health and Safety: WHS obligations, compliance requirements, and safety management procedures
9. Insurance and Liability: Required insurance coverage, liability limitations, and indemnities
10. Variations: Process for varying work orders or framework terms
11. Default and Termination: Events of default, termination rights, and consequences of termination
12. Dispute Resolution: Process for resolving disputes between parties
13. General Provisions: Standard boilerplate clauses including notices, governing law, and entire agreement
1. Security: Include when bank guarantees or other forms of security are required
2. Intellectual Property: Include when significant IP will be created or licensed during projects
3. Environmental Requirements: Include for projects with significant environmental impacts or requirements
4. Indigenous Engagement: Include when working in areas requiring indigenous consultation or engagement
5. Building Information Modeling: Include when BIM is required for projects
6. Community Engagement: Include when projects require significant community consultation
7. Subcontracting: Include detailed subcontracting provisions for complex projects
8. Innovation and Continuous Improvement: Include when seeking ongoing improvements in delivery methods
9. Force Majeure: Include detailed force majeure provisions for high-risk environments
1. Schedule 1 - Pricing Schedule: Detailed rates, prices, and pricing mechanisms
2. Schedule 2 - Scope of Works: General scope and types of works covered under the framework
3. Schedule 3 - KPIs and Reporting Requirements: Detailed performance indicators and reporting templates
4. Schedule 4 - Insurance Requirements: Specific insurance types and coverage levels required
5. Schedule 5 - Work Order Template: Standard form for issuing individual work orders
6. Schedule 6 - Site Requirements: Standard site access and management requirements
7. Schedule 7 - WHS Requirements: Detailed safety requirements and procedures
8. Schedule 8 - Quality Management Requirements: Quality assurance and control procedures
9. Appendix A - Contract Administration Forms: Standard forms for administration of the framework
10. Appendix B - Security Forms: Templates for bank guarantees and other security documents
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