Works Contract Template for Australia

Works Contract Template for Australia

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Key Requirements PROMPT example:

Works Contract

"I need an Australian Works Contract for a commercial building renovation project in Sydney CBD, with a contract value of $5M and completion date of March 2025. The contract should include specific provisions for working in an occupied building and managing noise restrictions."

What is a Works Contract?

The Works Contract is a fundamental document in Australian construction and infrastructure projects, used to establish legally binding obligations between a principal (project owner) and a contractor. This contract type is specifically designed to comply with Australian federal and state legislation, including security of payment laws, work health and safety requirements, and building regulations. It is typically used for projects requiring substantial construction, renovation, or infrastructure works, providing detailed provisions for project execution, risk allocation, and management of time, cost, and quality. The Works Contract includes essential elements such as scope definition, payment mechanisms, completion requirements, and dispute resolution procedures, while allowing customization to accommodate specific project requirements and risk profiles. It serves as the primary reference document throughout the project lifecycle, from commencement to final completion and defects liability period.

What sections should be included in a Works Contract?

1. Parties: Identification and details of the Principal and Contractor

2. Background: Context of the agreement and brief description of the works

3. Definitions and Interpretation: Defined terms and rules for interpreting the contract

4. Contract Documents: Hierarchy and list of documents forming the complete contract

5. Scope of Works: Detailed description of works to be performed by the Contractor

6. Contract Sum and Payment: Price, payment terms, variations, and security of payment provisions

7. Time for Completion: Commencement date, completion date, extensions of time, and liquidated damages

8. Site Access and Conditions: Site possession, access rights, and site conditions

9. Contractor Obligations: General and specific obligations including quality, safety, and environmental requirements

10. Principal Obligations: Principal's responsibilities including provision of information and approvals

11. Variations: Process for managing changes to the scope, time, or cost

12. Quality and Defects: Quality requirements, inspections, and defects liability period

13. Work Health and Safety: Safety obligations and requirements

14. Insurance and Indemnities: Required insurances and indemnification provisions

15. Default and Termination: Events of default, termination rights, and consequences

16. Dispute Resolution: Process for resolving disputes

17. General Provisions: Standard contract provisions including notices, governing law, and assignment

What sections are optional to include in a Works Contract?

1. Security: Required when bank guarantees or other forms of security are needed for the project

2. Intellectual Property: Needed when design elements or proprietary information are involved

3. Environmental Requirements: Required for projects with significant environmental impacts or requirements

4. Indigenous Participation: Include when project involves Indigenous participation requirements

5. Building Code Requirements: Required for federal government funded projects

6. Subcontracting: Detailed provisions when significant subcontracting is anticipated

7. Materials and Plant: Specific provisions for supply and management of materials and plant

8. Acceleration: Include when project may require acceleration provisions

9. Force Majeure: Detailed provisions for managing force majeure events

10. Performance Guarantees: Required when specific performance metrics need to be guaranteed

What schedules should be included in a Works Contract?

1. Schedule 1 - Contract Particulars: Key project details, contacts, and commercial terms

2. Schedule 2 - Scope of Works: Detailed technical specifications and drawings

3. Schedule 3 - Program: Project timeline, milestones, and completion dates

4. Schedule 4 - Payment Schedule: Payment breakdown, rates, and pricing details

5. Schedule 5 - Site Details: Site plans, access points, and site-specific requirements

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

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

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

9. Schedule 9 - Quality Requirements: Quality standards, testing requirements, and procedures

10. Appendix A - Drawings: Complete set of contract drawings

11. Appendix B - Technical Specifications: Detailed technical requirements and standards

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

Relevant legal definitions
Clauses
Relevant Industries

Construction

Infrastructure

Mining

Commercial Development

Residential Development

Industrial Construction

Civil Works

Energy and Resources

Transport

Healthcare Infrastructure

Education Infrastructure

Public Works

Relevant Teams

Legal

Procurement

Commercial

Operations

Project Management

Construction

Finance

Risk and Compliance

Health Safety Environment

Quality Assurance

Technical Services

Contract Administration

Relevant Roles

Project Manager

Contract Manager

Construction Manager

Commercial Manager

Legal Counsel

Procurement Manager

Site Manager

Quantity Surveyor

Risk Manager

Operations Director

Chief Executive Officer

Financial Controller

Technical Director

Design Manager

Quality Manager

HSE Manager

Industries
Building and Construction Industry Security of Payment Act: Ensures timely payment for contractors and subcontractors in the building and construction industry, establishing a statutory payment claim process
Work Health and Safety Act 2011: Sets out the main duties of care for workplace health and safety in construction projects, including responsibilities of contractors and principals
Competition and Consumer Act 2010 (including Australian Consumer Law): Governs fair trading practices and consumer protections, including warranties and unfair contract terms in construction contracts
Building Code of Australia (National Construction Code): Contains technical provisions for building work and plumbing installations, setting minimum requirements for safety, health, amenity and sustainability
Environmental Protection and Biodiversity Conservation Act 1999: Federal legislation governing environmental impacts of construction projects and necessary approvals
Fair Work Act 2009: Regulates employment relationships and working conditions, including specific provisions for the building and construction industry
Building and Construction Industry (Improving Productivity) Act 2016: Regulates building work and establishes the Australian Building and Construction Commission
Home Building Act (State-specific): State-based legislation governing residential building work, licensing requirements, and statutory warranties
Building Products (Safety) Act: Regulates the use of building products and materials to ensure safety and compliance with standards
Contract Law Act (Common Law): General principles of contract law governing formation, terms, performance, and remedies for breach of contract
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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