Design Build Maintain Contract Template for Australia

A Design Build Maintain Contract represents a comprehensive project delivery model that consolidates design, construction, and maintenance responsibilities under a single contractual arrangement. This approach streamlines project execution while providing you with a single point of accountability throughout the entire project lifecycle, from initial design through long-term asset maintenance.

When do you need this document?

You'll need this contract when undertaking major infrastructure or building projects where long-term performance and whole-life cost optimization are priorities. This delivery model is particularly valuable for complex projects like hospitals, schools, transport infrastructure, or renewable energy facilities where design innovation can significantly impact operational efficiency. Government agencies often prefer this approach for public infrastructure as it transfers design risk while ensuring consistent service delivery standards. Private developers also utilize this model when seeking integrated solutions that minimize coordination risks between different project phases.

Key legal considerations

The contract must clearly define performance standards and key performance indicators that will govern both construction delivery and ongoing maintenance obligations. Payment mechanisms require careful structuring, typically incorporating milestone payments during construction and service-based payments during the maintenance period. Risk allocation provisions are critical, particularly regarding design liability, latent defects, and force majeure events that could affect long-term performance. Intellectual property clauses need careful consideration as the contractor may develop proprietary design solutions. The agreement should include robust dispute resolution mechanisms and clearly defined termination procedures, given the long-term nature of these arrangements. Insurance requirements must cover all project phases, with particular attention to professional indemnity and long-term liability coverage.

Legal requirements in Australia

Your contract must comply with the Building and Construction Industry Security of Payment Act to ensure timely payment for construction work and related services. Work Health and Safety Act 2011 obligations apply across all project phases, requiring comprehensive safety management systems during design, construction, and maintenance activities. The National Construction Code sets mandatory requirements for safety, health, accessibility, and sustainability that must be incorporated into design specifications and ongoing maintenance standards. Environmental Protection and Biodiversity Conservation Act 1999 compliance is essential for projects with environmental impact, requiring appropriate assessment and protection measures. Australian Consumer Law provides statutory warranties that cannot be excluded, particularly relevant for building works and services. Professional indemnity insurance requirements align with industry standards and regulatory expectations for design professionals involved in the project.