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
Acceptance
Applicable Laws
Approvals
Background IP
Bank Guarantee
Base Rate
Certificate of Practical Completion
Change in Law
Commencement Date
Completion Date
Construction Documents
Construction Period
Construction Program
Construction Works
Contract Sum
Contractor's Documents
Contractor's Personnel
Contractor's Representative
Date for Practical Completion
Date of Practical Completion
Defects
Defects Liability Period
Design Documents
Design Requirements
Development Approval
Environmental Laws
Environmental Requirements
Extension of Time
Final Completion
Finance Documents
Financial Close
Financial Default
Force Majeure Event
Good Industry Practice
Independent Certifier
Insolvency Event
Intellectual Property Rights
Key Personnel
Latent Conditions
Liquidated Damages
Material Adverse Effect
Milestone
Milestone Date
Notice of Dispute
Payment Claim
Payment Schedule
Performance Bond
Performance Specification
Practical Completion
Principal's Representative
Project Documents
Project IP
Project Requirements
Quality Assurance System
Reference Date
Security
Security Interest
Security of Payment Act
Site
Site Conditions
Subcontractor
Substantial Breach
Superintendent
Temporary Works
Variation
WHS Laws
WHS Requirements
Works
Applicable Laws
Approvals
Background IP
Bank Guarantee
Base Rate
Certificate of Practical Completion
Change in Law
Commencement Date
Completion Date
Construction Documents
Construction Period
Construction Program
Construction Works
Contract Sum
Contractor's Documents
Contractor's Personnel
Contractor's Representative
Date for Practical Completion
Date of Practical Completion
Defects
Defects Liability Period
Design Documents
Design Requirements
Development Approval
Environmental Laws
Environmental Requirements
Extension of Time
Final Completion
Finance Documents
Financial Close
Financial Default
Force Majeure Event
Good Industry Practice
Independent Certifier
Insolvency Event
Intellectual Property Rights
Key Personnel
Latent Conditions
Liquidated Damages
Material Adverse Effect
Milestone
Milestone Date
Notice of Dispute
Payment Claim
Payment Schedule
Performance Bond
Performance Specification
Practical Completion
Principal's Representative
Project Documents
Project IP
Project Requirements
Quality Assurance System
Reference Date
Security
Security Interest
Security of Payment Act
Site
Site Conditions
Subcontractor
Substantial Breach
Superintendent
Temporary Works
Variation
WHS Laws
WHS Requirements
Works
Clauses
Interpretation
Contract Formation
Design Obligations
Construction Obligations
Financing Obligations
Security Requirements
Site Access and Conditions
Time and Programming
Extensions of Time
Variations
Payment
Quality Assurance
Work Health and Safety
Environmental Requirements
Intellectual Property
Confidentiality
Insurance
Indemnities
Force Majeure
Default and Termination
Dispute Resolution
Assignment and Novation
Subcontracting
Representatives and Personnel
Records and Reporting
Warranties and Representations
Testing and Commissioning
Defects Liability
Project Management
Risk Allocation
Security of Payment
Practical Completion
Final Completion
Notices
Governing Law
Bank Guarantees
Parent Company Guarantee
Independent Certification
Interface Management
Compliance with Laws
Project Finance
Documentation Requirements
Performance Standards
Liability Limitations
Suspension Rights
Contract Formation
Design Obligations
Construction Obligations
Financing Obligations
Security Requirements
Site Access and Conditions
Time and Programming
Extensions of Time
Variations
Payment
Quality Assurance
Work Health and Safety
Environmental Requirements
Intellectual Property
Confidentiality
Insurance
Indemnities
Force Majeure
Default and Termination
Dispute Resolution
Assignment and Novation
Subcontracting
Representatives and Personnel
Records and Reporting
Warranties and Representations
Testing and Commissioning
Defects Liability
Project Management
Risk Allocation
Security of Payment
Practical Completion
Final Completion
Notices
Governing Law
Bank Guarantees
Parent Company Guarantee
Independent Certification
Interface Management
Compliance with Laws
Project Finance
Documentation Requirements
Performance Standards
Liability Limitations
Suspension Rights
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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