The Residential Construction Agreement is a crucial legal document used in Australian residential building projects to establish a binding contract between builders/contractors and property owners. It is designed to comply with state-specific building legislation, the National Construction Code, and Australian Consumer Law. This agreement is essential for any new home construction, major renovation, or significant residential building work, typically required for projects exceeding the statutory threshold value specified by state legislation. The document includes detailed specifications of the work, pricing structures, timeframes, quality standards, statutory warranties, and dispute resolution processes. It incorporates mandatory consumer protection provisions and reflects the specific requirements of Australian building regulations, including necessary insurances and statutory warranties. The agreement should be customized based on the specific state or territory jurisdiction, as building regulations and consumer protection requirements vary across Australian jurisdictions.
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1. Parties: Identifies the builder/contractor and the owner/client, including full legal names, addresses, and license details
2. Background: Contextual information about the project, property details, and purpose of the agreement
3. Definitions and Interpretation: Defines key terms used throughout the agreement and sets out interpretation rules
4. Contract Documents: Lists all documents forming part of the contract, including order of precedence
5. Scope of Works: Detailed description of the construction work to be performed
6. Contract Price and Payment Terms: Total price, payment schedule, progress payments, and payment conditions
7. Time for Completion: Project timeline, stages, completion date, and provisions for extensions of time
8. Builder's Obligations: Key responsibilities including compliance with laws, warranties, and workmanship standards
9. Owner's Obligations: Client responsibilities including site access, approvals, and timely decisions
10. Variations: Process for requesting, pricing, and executing changes to the scope of work
11. Quality and Inspections: Quality standards, inspection requirements, and defects management
12. Insurance and Risk: Required insurances, risk allocation, and indemnities
13. Default and Termination: Events of default, termination rights, and consequences
14. Dispute Resolution: Process for handling disputes including mediation and arbitration procedures
15. General Provisions: Standard contractual provisions including notices, assignment, and governing law
1. Provisional Sums and Prime Cost Items: Include when the contract includes allowances for items not fully specified at contract signing
2. Staging and Milestone Requirements: Include for larger projects with distinct construction phases or milestone payments
3. Environmental Management: Include when project has specific environmental requirements or risks
4. Heritage Requirements: Include when working on or near heritage-listed properties
5. Rock and Subsurface Conditions: Include when site conditions pose particular risks or uncertainties
6. Neighbour Relations: Include when construction impacts neighbouring properties significantly
7. Building Materials Supply: Include when specific materials are critical or supply chain issues need addressing
8. Liquidated Damages: Include when parties agree to pre-determined damages for delay
9. Early Completion Bonus: Include when offering incentives for early completion
10. Security of Payment: Include when additional payment security mechanisms are required
1. Schedule 1 - Contract Details: Key project information including contract sum, completion date, and party details
2. Schedule 2 - Plans and Drawings: Approved architectural and engineering drawings
3. Schedule 3 - Specifications: Detailed technical specifications for materials and finishes
4. Schedule 4 - Payment Schedule: Breakdown of progress payments and payment milestones
5. Schedule 5 - Construction Program: Detailed timeline of construction activities and milestones
6. Schedule 6 - Provisional Sums and Prime Cost Items: List of allowances for items not fully specified
7. Schedule 7 - Special Conditions: Any project-specific conditions or requirements
8. Schedule 8 - Form of Progress Claim: Template for progress payment claims
9. Schedule 9 - Statutory Warranties: Required warranties under relevant building legislation
10. Appendix A - Site Safety Plan: Safety management procedures and requirements
11. Appendix B - Quality Management Plan: Quality control procedures and requirements
12. Appendix C - Required Insurances: Certificates of currency for required insurances
Relevant legal definitions
Approved Plans
Authority
Authority Requirements
Building Works
Builder
Building Code of Australia
Building Period
Certificate of Occupancy
Commencement Date
Completion
Completion Date
Contract
Contract Documents
Contract Price
Contract Sum
Date of Possession
Defects
Defects Liability Period
Development Approval
Extension of Time
Final Certificate
Fixed Price Components
Force Majeure Event
Home Building Acts
Home Warranty Insurance
Latent Condition
Legislative Requirements
Material
Owner
Owner-Supplied Items
Practical Completion
Prime Cost Items
Principal
Progress Claim
Progress Payment
Project
Provisional Sum
Quality Assurance System
Reasonable Time
Site
Specifications
Substantial Breach
Superintendent
Variation
Variation Order
Work Health and Safety
Works
Working Day
Authority
Authority Requirements
Building Works
Builder
Building Code of Australia
Building Period
Certificate of Occupancy
Commencement Date
Completion
Completion Date
Contract
Contract Documents
Contract Price
Contract Sum
Date of Possession
Defects
Defects Liability Period
Development Approval
Extension of Time
Final Certificate
Fixed Price Components
Force Majeure Event
Home Building Acts
Home Warranty Insurance
Latent Condition
Legislative Requirements
Material
Owner
Owner-Supplied Items
Practical Completion
Prime Cost Items
Principal
Progress Claim
Progress Payment
Project
Provisional Sum
Quality Assurance System
Reasonable Time
Site
Specifications
Substantial Breach
Superintendent
Variation
Variation Order
Work Health and Safety
Works
Working Day
Clauses
Interpretation
Contract Formation
Scope of Works
Payment Terms
Time for Completion
Extensions of Time
Variations
Builder's Obligations
Owner's Obligations
Site Access
Materials and Workmanship
Quality Assurance
Defects Liability
Work Health and Safety
Insurance
Indemnity
Warranties
Security of Payment
Intellectual Property
Confidentiality
Force Majeure
Suspension
Termination
Default
Dispute Resolution
Notices
Assignment
Subcontracting
Compliance with Laws
Environmental Protection
Risk Allocation
Progress Claims
Practical Completion
Certification
Building Approvals
Consumer Protection
Liability Limitations
Governing Law
Severability
Entire Agreement
Contract Formation
Scope of Works
Payment Terms
Time for Completion
Extensions of Time
Variations
Builder's Obligations
Owner's Obligations
Site Access
Materials and Workmanship
Quality Assurance
Defects Liability
Work Health and Safety
Insurance
Indemnity
Warranties
Security of Payment
Intellectual Property
Confidentiality
Force Majeure
Suspension
Termination
Default
Dispute Resolution
Notices
Assignment
Subcontracting
Compliance with Laws
Environmental Protection
Risk Allocation
Progress Claims
Practical Completion
Certification
Building Approvals
Consumer Protection
Liability Limitations
Governing Law
Severability
Entire Agreement
Relevant Industries
Residential Construction
Real Estate
Architecture
Engineering
Building Materials
Construction Management
Property Development
Building Certification
Insurance
Legal Services
Relevant Teams
Legal
Operations
Construction
Commercial
Finance
Procurement
Compliance
Risk Management
Project Management
Contract Administration
Relevant Roles
Construction Manager
Project Manager
Contract Administrator
Legal Counsel
Building Surveyor
Site Supervisor
Quantity Surveyor
Risk Manager
Compliance Officer
Operations Manager
Managing Director
Chief Executive Officer
Commercial Manager
Finance Manager
Procurement Manager
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