Standard Form Of Agreement Between Contractor And Subcontractor for Australia

Standard Form Of Agreement Between Contractor And Subcontractor Template for Australia

This is a comprehensive legal agreement used in the Australian construction industry that establishes the contractual relationship between a main contractor and a subcontractor. The document outlines the scope of works, payment terms, timeframes, and obligations of both parties while ensuring compliance with Australian construction law, including security of payment legislation and work health and safety requirements. It includes provisions for variations, dispute resolution, and quality control, structured to protect both parties' interests while facilitating efficient project delivery.

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What is a Standard Form Of Agreement Between Contractor And Subcontractor?

The Standard Form of Agreement Between Contractor and Subcontractor is a crucial document in Australian construction projects that formalizes the relationship between main contractors and their subcontractors. It is typically used when a main contractor needs to engage specialized trades or services to complete specific portions of a larger construction project. The agreement ensures compliance with Australian construction laws, including state-specific security of payment legislation, work health and safety regulations, and insurance requirements. It provides a structured framework for managing the subcontract works, including detailed provisions for payment, variations, quality control, and dispute resolution. This document type is particularly important as it helps manage risk allocation between parties and ensures clear communication of project requirements and obligations.

What sections should be included in a Standard Form Of Agreement Between Contractor And Subcontractor?

1. Parties: Identifies and provides full details of the Contractor and Subcontractor

2. Background: Describes the context of the head contract and subcontract arrangement

3. Definitions and Interpretation: Defines key terms and establishes rules for interpreting the agreement

4. Scope of Works: Detailed description of the subcontract works to be performed

5. Contract Sum and Payment: Specifies the contract price, payment terms, and claim procedures

6. Time and Progress: Sets out program requirements, completion dates, and delay provisions

7. Variations: Procedures for changes to the scope of works and price adjustments

8. Quality and Defects: Quality requirements, inspection procedures, and defects rectification

9. Work Health and Safety: WHS obligations and compliance requirements

10. Insurance and Indemnity: Required insurances and indemnity provisions

11. Default and Termination: Events of default, remedies, and termination procedures

12. Dispute Resolution: Process for resolving disputes between parties

13. General Provisions: Standard contract clauses including notices, governing law, etc

What sections are optional to include in a Standard Form Of Agreement Between Contractor And Subcontractor?

1. Security: Required when bank guarantees or retention monies are part of the agreement

2. Environmental Requirements: For projects with specific environmental compliance needs

3. Indigenous Participation: For projects with indigenous participation requirements

4. Intellectual Property: When design or innovative construction methods are involved

5. Building Code Requirements: For projects subject to the Building Code

6. Site Conditions: When specific site access or condition issues need addressing

7. Materials and Plant: When specific requirements exist for materials supply or plant provision

8. Quality Assurance: When specific quality systems or certifications are required

What schedules should be included in a Standard Form Of Agreement Between Contractor And Subcontractor?

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

2. Schedule 2 - Scope of Works: Detailed specification of works including drawings and technical requirements

3. Schedule 3 - Program: Detailed construction program and milestone dates

4. Schedule 4 - Payment Schedule: Breakdown of contract sum, rates, and payment milestones

5. Schedule 5 - Site Requirements: Site-specific requirements and procedures

6. Schedule 6 - Forms: Standard forms for variations, claims, and notices

7. Schedule 7 - Insurance Requirements: Detailed insurance requirements and minimum coverage

8. Schedule 8 - WHS Requirements: Detailed safety requirements and procedures

9. Appendix A - Head Contract Provisions: Relevant provisions from the head contract that flow down

10. Appendix B - Drawings: Complete set of construction drawings

11. Appendix C - Technical Specifications: Detailed technical specifications for the works

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

Sector

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Commercial Construction

Residential Construction

Infrastructure

Mining

Industrial Construction

Civil Works

Healthcare Construction

Education Construction

Retail Construction

Transport Infrastructure

Energy and Resources

Government Projects

Relevant Teams

Legal

Commercial

Operations

Procurement

Project Management

Construction

Contracts Administration

Risk Management

Finance

Quality Assurance

Relevant Roles

Project Manager

Contract Administrator

Commercial Manager

Construction Manager

Site Supervisor

Quantity Surveyor

Procurement Manager

Legal Counsel

Risk Manager

Operations Manager

Estimator

Project Director

Construction Director

Subcontract Manager

Claims Manager

Industries
Building and Construction Industry Security of Payment Act: State-specific legislation that ensures timely payment for construction work and related goods and services, establishing payment claim processes and dispute resolution mechanisms
Work Health and Safety Act 2011: Federal legislation establishing obligations for workplace safety, particularly relevant for construction sites and contractor relationships
Australian Consumer Law (Schedule 2 of the Competition and Consumer Act 2010): Contains provisions relating to unfair contract terms, particularly relevant for standard form contracts and small business protections
Independent Contractors Act 2006: Federal legislation governing the rights of independent contractors and the nature of contractor relationships
Building and Construction Industry (Improving Productivity) Act 2016: Federal legislation establishing industry-specific regulations and compliance requirements for building work
State-specific Building Acts: Relevant state legislation governing building work, permits, and contractor obligations (varies by state/territory)
Insurance Contracts Act 1984: Regulates insurance requirements and obligations, relevant for mandatory insurance coverage in construction contracts
Contract Law (Australian Common Law): Common law principles governing contract formation, terms, and enforcement
Personal Property Securities Act 2009: Relevant for security interests in construction materials and equipment
State-specific Home Building Acts: Where applicable, governs residential building work and contractor licensing requirements
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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