The Design And Build Agreement is a crucial contract used in the Australian construction industry when a project owner (principal) wishes to engage a single contractor to take responsibility for both design and construction services. This procurement method offers advantages including single-point responsibility, potential time savings, and improved constructability input during design. The agreement is suitable for various project types, from commercial buildings to infrastructure works, and incorporates Australian legislative requirements including security of payment provisions, work health and safety obligations, and building code compliance. It typically includes comprehensive provisions for design development, construction methodology, variations, risk allocation, and payment mechanisms, while ensuring appropriate professional indemnity coverage for design liability.
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1. Parties: Identification of the principal and contractor, including ABN and address details
2. Background: Context of the agreement, project overview, and intent of the parties
3. Definitions and Interpretation: Defined terms, rules of interpretation, and hierarchy of documents
4. Contract Formation and Term: Engagement terms, contract period, and conditions precedent
5. Design Obligations: Design development, compliance requirements, and design warranties
6. Construction Obligations: Construction methodology, workmanship standards, and completion requirements
7. Time and Programming: Project timeline, milestones, extensions of time, and delay damages
8. Quality and Defects: Quality assurance, inspection rights, and defects liability period
9. Variations: Process for varying works, pricing variations, and time implications
10. Payment: Contract sum, payment claims, certificates, and retention provisions
11. Risk and Insurance: Risk allocation, required insurances, and liability caps
12. WHS and Environmental: Safety obligations, environmental compliance, and reporting requirements
13. Default and Termination: Events of default, termination rights, and consequences
14. Dispute Resolution: Process for resolving disputes, including mediation and arbitration
15. General Provisions: Standard boilerplate clauses including notices, governing law, and assignment
1. Staging and Separable Portions: Used when the works are to be completed and handed over in stages
2. Novation: Required when existing consultants are to be novated to the contractor
3. Building Information Modeling: Included for projects utilizing BIM technology and processes
4. Principal-Supplied Items: Used when the principal is supplying materials or equipment
5. Early Works: Required when certain works need to commence before full design completion
6. Site Conditions: Detailed provisions for contamination or difficult site conditions
7. Intellectual Property License: Extended IP provisions when specific licensing arrangements are needed
8. Performance Testing: For projects requiring specific performance or operational testing
9. Warranty Deed: Additional warranty requirements for specific elements or third parties
1. Schedule 1 - Contract Particulars: Key project details, contact information, and specific contract requirements
2. Schedule 2 - Scope of Works: Detailed description of design and construction scope
3. Schedule 3 - Principal's Project Requirements: Detailed technical and functional requirements for the project
4. Schedule 4 - Design Documents: Initial design documents and design development requirements
5. Schedule 5 - Program: Detailed construction program including milestones and critical dates
6. Schedule 6 - Payment Schedule: Contract sum breakdown, rates, and payment milestones
7. Schedule 7 - Insurance Requirements: Detailed insurance requirements and minimum coverage amounts
8. Schedule 8 - Forms of Security: Forms of bank guarantees and other security documents
9. Schedule 9 - Statutory Declarations: Forms of statutory declarations for payment claims
10. Schedule 10 - Site Details: Site conditions, access requirements, and existing conditions
11. Appendix A - Design Standards: Applicable design codes, standards, and guidelines
12. Appendix B - Quality Management Plan: Quality assurance requirements and procedures
13. Appendix C - Environmental Management Plan: Environmental management requirements and procedures
Relevant legal definitions
Clauses
Relevant Industries
Commercial Construction
Industrial Construction
Infrastructure Development
Residential Development
Healthcare Facilities
Education Facilities
Transport Infrastructure
Energy and Resources
Manufacturing Facilities
Data Centers
Retail Development
Mixed-Use Development
Relevant Teams
Legal
Commercial
Project Management
Design Management
Construction Management
Procurement
Risk and Compliance
Operations
Technical Services
Contract Administration
Business Development
Relevant Roles
Project Director
Construction Manager
Design Manager
Commercial Manager
Contract Administrator
Project Manager
Chief Engineer
Procurement Manager
Legal Counsel
Risk Manager
Technical Director
Operations Director
Development Manager
Cost Manager
Quality Manager
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