The Construction Agreement Between Owner And Contractor is a fundamental document for managing construction projects in Australia. It is designed for use when a property owner or developer engages a building contractor to undertake construction works, whether for commercial, residential, or industrial projects. The agreement complies with Australian federal and state construction laws, including security of payment legislation, work health and safety requirements, and building codes. It contains comprehensive provisions covering project execution, risk allocation, payment mechanisms, time management, and dispute resolution. This document is particularly important as it establishes clear contractual obligations, protects both parties' interests, and provides mechanisms for managing common construction issues such as variations, delays, and defects. The agreement is structured to accommodate various project sizes and complexities while maintaining compliance with Australian regulatory requirements.
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1. Parties: Identification and details of the Owner and Contractor, including ABN/ACN
2. Background: Context of the agreement, project overview, and basis for entering into the contract
3. Definitions and Interpretation: Defined terms, rules of interpretation, and hierarchies of documents
4. Contract Sum and Payment: Agreement price, payment schedule, variations pricing, and payment claim procedures
5. Time for Completion: Project timeline, milestone dates, and completion requirements
6. Contractor Obligations: Core responsibilities, workmanship standards, and compliance requirements
7. Principal's Obligations: Owner's responsibilities including site access, approvals, and information provision
8. Variations: Procedures for requesting, pricing, and executing variations to the work
9. Extensions of Time: Process for claiming and assessing time extensions and delay costs
10. Defects and Warranties: Defect liability period, rectification process, and warranty obligations
11. Insurance and Indemnities: Required insurances, indemnification obligations, and liability limitations
12. Security: Performance security requirements, retention monies, and release conditions
13. Termination: Grounds for termination, procedures, and consequences
14. Dispute Resolution: Process for resolving disputes including mediation and arbitration procedures
15. General Provisions: Standard clauses covering notices, governing law, GST, and assignment
1. Staged Completion: Used when the project has multiple separable portions or stages requiring separate completion processes
2. Environmental Management: Required for projects with significant environmental considerations or requirements
3. Heritage Protection: Included when working on or near heritage-listed properties
4. Interface Management: Used when multiple contractors are working on the same site requiring coordination
5. Financing Requirements: Included when there are specific requirements from third-party financiers
6. Community Engagement: Required for projects with significant community impact requiring stakeholder management
7. Quality Assurance: Detailed quality management requirements for complex projects
8. Building Information Modeling: Specific provisions for projects utilizing BIM technology
9. Acceleration: Procedures for accelerating works when required by the Principal
10. Provisional Sums: Required when certain work cannot be priced at contract formation
1. Schedule 1 - Contract Particulars: Key project details, contacts, dates, and contract-specific variables
2. Schedule 2 - Scope of Works: Detailed description of works, specifications, and exclusions
3. Schedule 3 - Program: Construction program, milestones, and critical dates
4. Schedule 4 - Payment Schedule: Breakdown of contract sum, payment milestones, and rates
5. Schedule 5 - Site Details: Site information, access points, and conditions
6. Schedule 6 - Forms: Standard forms for variations, EOTs, payment claims, and certificates
7. Schedule 7 - Drawings: List of contract drawings and specifications
8. Schedule 8 - Special Conditions: Project-specific conditions modifying standard terms
9. Schedule 9 - Insurance Requirements: Detailed insurance requirements and minimum coverage
10. Appendix A - Technical Specifications: Detailed technical requirements and standards
11. Appendix B - Environmental Requirements: Environmental management requirements and procedures
12. Appendix C - Quality Management Plan: Quality assurance requirements and procedures
Relevant legal definitions
Clauses
Relevant Industries
Commercial Construction
Residential Construction
Industrial Construction
Infrastructure Development
Mining
Healthcare Facilities
Education Facilities
Retail Development
Hospitality
Government Projects
Energy and Resources
Transport and Logistics
Relevant Teams
Legal
Commercial
Operations
Project Management
Construction
Procurement
Risk and Compliance
Property Development
Contract Administration
Executive Leadership
Finance
Quality Assurance
Relevant Roles
Construction Manager
Project Director
Contract Administrator
Commercial Manager
Legal Counsel
Development Manager
Site Manager
Quantity Surveyor
Project Manager
Risk Manager
Procurement Manager
Operations Director
Chief Executive Officer
General Counsel
Property Developer
Construction Director
Claims Manager
Contracts Manager
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