The Design Build Finance Contract is a sophisticated project delivery mechanism used in Australian infrastructure and construction projects where a single contractor assumes responsibility for design, construction, and financing arrangements. This approach is particularly valuable for complex projects where the principal seeks to transfer significant project risk and reduce interface issues between different project elements. The contract integrates various aspects of Australian construction law, financial services regulations, and security of payment legislation, making it suitable for major projects where streamlined project delivery and clear accountability are priorities. It typically includes detailed provisions for design standards, construction methodologies, financing arrangements, security requirements, and risk allocation, while ensuring compliance with Australian regulatory requirements and industry standards.
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1. Parties: Identifies and defines all parties to the contract
2. Background: Sets out the context and purpose of the agreement
3. Definitions and Interpretation: Defines key terms and establishes interpretation principles
4. Contract Formation and Documents: Lists contract documents and their order of precedence
5. Design Obligations: Details the design requirements, standards, and approval processes
6. Construction Obligations: Specifies construction requirements, methods, and standards
7. Financial Terms: Outlines payment terms, financing arrangements, and security requirements
8. Time and Program: Sets out project timeline, milestones, and completion requirements
9. Variations: Procedures for changes to scope, design, or construction
10. Quality and Compliance: Quality standards, testing, and compliance requirements
11. Risk and Insurance: Risk allocation and required insurance coverage
12. Default and Termination: Events of default, remedies, and termination provisions
13. Dispute Resolution: Procedures for handling disputes between parties
14. General Provisions: Standard boilerplate clauses including notices, governing law, etc.
1. Site Conditions: Special provisions for site-specific conditions or requirements
2. Environmental Requirements: Additional environmental obligations beyond standard requirements
3. Indigenous Heritage Protection: Specific provisions for protecting indigenous cultural heritage
4. Interface Agreements: Provisions dealing with third-party interfaces or adjacent works
5. Community Engagement: Requirements for community consultation and engagement
6. Intellectual Property: Special IP arrangements beyond standard provisions
7. Security of Payment: Additional payment security mechanisms
8. Force Majeure: Detailed force majeure provisions if required by project circumstances
1. Design Requirements: Detailed technical specifications and design criteria
2. Construction Specification: Detailed construction requirements and methodologies
3. Project Program: Detailed timeline including milestones and critical path
4. Payment Schedule: Detailed payment terms, rates, and mechanisms
5. Site Details: Site plans, access requirements, and condition reports
6. Key Personnel: Lists of key personnel and their responsibilities
7. Forms of Security: Templates for bank guarantees and other security documents
8. Insurance Requirements: Detailed insurance specifications and minimum coverage
9. Environmental Management Plan: Detailed environmental management requirements
10. Quality Management Plan: Quality assurance and control procedures
11. Workplace Health and Safety Requirements: Detailed WHS obligations and procedures
12. Completion Tests: Specified tests and criteria for practical completion
13. Warranties: Forms of warranties and guarantees required
14. Financing Terms: Detailed financing arrangements and requirements
Relevant legal definitions
Clauses
Relevant Industries
Infrastructure
Commercial Construction
Industrial Construction
Transportation
Energy
Healthcare
Education
Public Works
Mining
Renewable Energy
Relevant Teams
Legal
Finance
Commercial
Project Management
Construction
Design
Risk & Compliance
Procurement
Operations
Business Development
Relevant Roles
Project Director
Commercial Manager
Contract Manager
Finance Director
Project Manager
Construction Manager
Design Manager
Risk Manager
Legal Counsel
Chief Financial Officer
Procurement Manager
Technical Director
Operations Director
Bid Manager
Financial Controller
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