Design And Construct Contract for Australia

Design And Construct Contract Template for Australia

This is a comprehensive contract framework used in Australian construction projects where a single contractor takes responsibility for both design and construction aspects of the project. The document encompasses detailed provisions for design development, construction obligations, risk allocation, payment mechanisms, and quality requirements, all aligned with Australian construction law and industry standards. It includes specific provisions for compliance with state and federal legislation, including security of payment acts, work health and safety requirements, and environmental regulations.

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What is a Design And Construct Contract?

The Design And Construct Contract is a fundamental document in Australian construction projects where a single contractor assumes responsibility for both design and construction elements. This contract type is particularly suitable for projects where the principal wants to transfer design risk and seek a single point of responsibility for project delivery. It includes comprehensive provisions covering design obligations, construction requirements, payment terms, quality standards, and risk allocation. The document is structured to comply with Australian federal and state legislation, including security of payment acts, work health and safety laws, and environmental regulations. It's commonly used in commercial, infrastructure, and large-scale residential projects where design innovation and construction efficiency are priorities.

What sections should be included in a Design And Construct Contract?

1. Parties: Identification of the Principal and Contractor, including ABN/ACN

2. Background: Project context, purpose, and basic parameters

3. Definitions and Interpretation: Key terms, interpretation rules, and order of precedence

4. Contract Formation and Documentation: Contract documents, order of precedence, and entire agreement provisions

5. Design Obligations: Contractor's design responsibilities, standards, and approval processes

6. Construction Obligations: Construction requirements, workmanship standards, and compliance obligations

7. Time and Progress: Commencement, completion dates, programs, and extensions of time

8. Variations: Process for changes to scope, pricing, and approval mechanisms

9. Payment: Contract sum, payment claims, certificates, and payment terms

10. Quality and Defects: Quality requirements, inspection rights, and defects rectification

11. Site Access and Conditions: Site possession, conditions, and responsibilities

12. WHS and Environmental Requirements: Safety obligations and environmental compliance

13. Insurance and Indemnities: Required insurances and indemnity provisions

14. Default and Termination: Default events, remedies, and termination rights

15. Dispute Resolution: Process for resolving disputes including mediation and arbitration

16. General Provisions: Standard boilerplate clauses including notices and governing law

What sections are optional to include in a Design And Construct Contract?

1. Staging and Milestone Requirements: Used for projects with distinct stages or milestone completions

2. Liquidated Damages: Include when specific damages for delay or performance failures are quantifiable

3. Performance Security: Required for projects needing bank guarantees or other security forms

4. Interface Management: Necessary when coordinating with other contractors or stakeholders

5. Value Engineering: Include for projects where cost optimization opportunities are encouraged

6. Building Information Modeling (BIM): Required for projects using BIM technology

7. Intellectual Property Rights: Detailed IP provisions for projects with significant design elements

8. Community and Stakeholder Management: Important for projects with significant public interface

9. Provisional Sums: Include when certain works cannot be precisely scoped or priced

10. Early Works: Used when certain works need to commence before full contract execution

What schedules should be included in a Design And Construct Contract?

1. Schedule 1 - Contract Particulars: Key project details, dates, amounts, and contact information

2. Schedule 2 - Scope of Works: Detailed description of design and construction scope

3. Schedule 3 - Principal's Project Requirements: Technical specifications and performance requirements

4. Schedule 4 - Design Documents: Initial design documents and development requirements

5. Schedule 5 - Fee Schedule: Pricing breakdown, rates, and payment milestones

6. Schedule 6 - Program: Project timeline, milestones, and critical dates

7. Schedule 7 - Quality Management Requirements: Quality systems, testing, and validation requirements

8. Schedule 8 - Site Requirements: Site-specific conditions, access requirements, and restrictions

9. Schedule 9 - Forms of Security: Templates for bank guarantees and other security forms

10. Schedule 10 - Insurance Requirements: Detailed insurance specifications and certificates

11. Appendix A - Site Plans and Drawings: Site layouts, boundaries, and existing conditions

12. Appendix B - Authority Requirements: Permits, approvals, and compliance requirements

13. Appendix C - Environmental Requirements: Environmental management and compliance details

Authors

Alex Denne

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

Jurisdiction

Australia

Publisher

Genie AI

Document Type

Service Agreement

Sector

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Commercial Construction

Infrastructure Development

Residential Development

Industrial Construction

Healthcare Construction

Education Facilities

Transport Infrastructure

Energy and Resources

Government Infrastructure

Retail Development

Relevant Teams

Legal

Commercial

Operations

Construction

Design

Procurement

Risk and Compliance

Project Management

Business Development

Executive Leadership

Finance

Technical Services

Relevant Roles

Project Director

Construction Manager

Contract Administrator

Commercial Manager

Legal Counsel

Project Manager

Design Manager

Quantity Surveyor

Risk Manager

Procurement Manager

Technical Director

Operations Director

Chief Executive Officer

Development Manager

Construction Lawyer

Bid Manager

Estimating Manager

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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