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Preferred Contractor Agreement for Australia

Preferred Contractor Agreement Template for Australia

An Australian-jurisdiction agreement that establishes a preferred contractor relationship between a business and a service provider. This agreement sets out the framework for ongoing service engagement, including preferred status benefits, work order processes, service standards, payment terms, and compliance requirements under Australian law. It provides flexibility for multiple service engagements while maintaining consistent terms and conditions, incorporating key protections under Australian contractor legislation and relevant state/territory requirements.

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What is a Preferred Contractor Agreement?

This Preferred Contractor Agreement is designed for use in Australian business contexts where organizations wish to establish long-term, preferential relationships with reliable contractors. The agreement provides a master framework for engaging contractors on multiple projects or assignments while maintaining preferred supplier status. It includes comprehensive terms covering service delivery, work order processes, payment structures, and compliance with Australian legislation including the Independent Contractors Act 2006 and relevant state/territory laws. This agreement is particularly suitable for businesses requiring regular contractor services who want to streamline their engagement process while maintaining consistent quality standards and commercial terms. The document includes provisions for work orders, service levels, insurance requirements, and risk management, adaptable to various industry contexts while ensuring compliance with Australian regulatory requirements.

What sections should be included in a Preferred Contractor Agreement?

1. Parties: Identifies the contracting parties with their full legal names and details

2. Background: Sets out the context and purpose of the agreement

3. Definitions and Interpretation: Defines key terms and establishes interpretation rules

4. Appointment and Scope: Establishes the contractor's appointment and preferred status

5. Term and Renewal: Specifies the duration of the agreement and renewal provisions

6. Services: Outlines the general nature of services to be provided

7. Work Orders: Process for issuing and accepting specific work assignments

8. Contractor Obligations: Key responsibilities and service standards

9. Principal's Obligations: Client's responsibilities and commitments

10. Fees and Payment: Payment terms, rates, and invoicing procedures

11. Intellectual Property: Ownership and usage rights of IP created during services

12. Confidentiality: Protection of confidential information

13. Insurance and Liability: Insurance requirements and liability limitations

14. Termination: Grounds and process for ending the agreement

15. Dispute Resolution: Process for resolving disagreements

16. General Provisions: Standard boilerplate clauses including governing law

What sections are optional to include in a Preferred Contractor Agreement?

1. Work Health and Safety: Detailed WHS obligations when services involve physical work or site access

2. Security Requirements: For contractors requiring access to sensitive information or secure facilities

3. Performance Management: KPIs and performance review process for long-term or critical service arrangements

4. Subcontracting: Rules around engaging subcontractors when permitted

5. Data Protection: Additional data handling requirements for services involving personal or sensitive data

6. Non-Compete: Restrictions on working with competitors when commercially justified

7. Equipment and Resources: When specific equipment or resource provisions need to be detailed

8. Training Requirements: When specific qualifications or ongoing training is required

9. Business Continuity: For critical services requiring disaster recovery planning

What schedules should be included in a Preferred Contractor Agreement?

1. Schedule 1 - Fee Schedule: Detailed breakdown of rates, charges, and payment terms

2. Schedule 2 - Services Description: Detailed specification of services and delivery requirements

3. Schedule 3 - Service Levels: Performance standards and measurement criteria

4. Schedule 4 - Insurance Requirements: Specific insurance types and coverage levels required

5. Schedule 5 - Key Personnel: Details of approved contractor personnel for service delivery

6. Schedule 6 - Work Order Template: Standard form for engaging services under the agreement

7. Schedule 7 - Policies and Procedures: Relevant principal's policies contractor must comply with

8. Appendix A - Site Rules: Site-specific requirements and procedures when applicable

9. Appendix B - Equipment List: Details of any equipment provided or required

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok˰ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Australia

Publisher

tiktok˰

Sector

Cost

Free to use
Relevant legal definitions





































Clauses








































Relevant Industries

Construction

Information Technology

Professional Services

Mining

Engineering

Healthcare

Manufacturing

Consulting

Energy

Telecommunications

Relevant Teams

Procurement

Legal

Operations

Human Resources

Risk Management

Commercial

Supply Chain

Vendor Management

Compliance

Finance

Relevant Roles

Procurement Manager

Contract Administrator

Project Manager

Legal Counsel

Operations Manager

Human Resources Manager

Risk Manager

Commercial Manager

Supply Chain Manager

Vendor Manager

Business Unit Manager

Compliance Officer

Industries









Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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