Cost Plus Contractor Agreement Template for Australia

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Key Requirements PROMPT example:

Cost Plus Contractor Agreement

"I need a Cost Plus Contractor Agreement for an emergency infrastructure repair project in Queensland, with work starting March 2025, including specific provisions for after-hours work and rapid mobilization requirements."

Document background

The Cost Plus Contractor Agreement is designed for use in Australian construction and service projects where the scope of work cannot be precisely defined upfront or where flexibility is required in the execution of works. This contract type is particularly suitable for complex projects, emergency works, or situations where the exact extent of work is difficult to determine at the outset. The agreement establishes a transparent framework for cost calculation, including direct costs, overheads, and agreed profit margins, while incorporating necessary protections for both principal and contractor. It includes provisions for cost verification, progress monitoring, quality control, and compliance with Australian regulatory requirements. The document is structured to comply with relevant state and federal legislation, including security of payment laws, work health and safety regulations, and fair trading provisions.

Suggested Sections

1. Parties: Identifies and provides full details of the principal and contractor

2. Background: Sets out the context of the agreement and the parties' intentions

3. Definitions and Interpretation: Defines key terms and establishes interpretation principles

4. Engagement and Scope: Defines the contractor's appointment and scope of works

5. Cost Plus Mechanism: Details the cost structure, including direct costs, markup percentage, and allowable expenses

6. Payment Terms: Specifies payment procedures, timing, and documentation requirements

7. Contractor's Obligations: Lists key responsibilities and performance requirements

8. Principal's Obligations: Outlines the principal's responsibilities and commitments

9. Time and Progress: Addresses project timeline, milestones, and scheduling requirements

10. Quality and Compliance: Sets quality standards and compliance requirements

11. Work Health and Safety: Establishes safety requirements and responsibilities

12. Insurance and Indemnity: Specifies required insurances and indemnification obligations

13. Intellectual Property: Addresses ownership and usage rights of project-related IP

14. Confidentiality: Protects confidential information of both parties

15. Termination: Sets out termination rights and procedures

16. Dispute Resolution: Establishes process for resolving disputes

17. General Provisions: Includes standard boilerplate clauses

Optional Sections

1. Performance Security: Include when bank guarantees or other security is required

2. Environmental Requirements: Include for projects with significant environmental impacts

3. Indigenous Engagement: Include when working on Indigenous lands or with Indigenous participation requirements

4. Subcontracting: Include when subcontracting is likely or needs specific regulation

5. Variations: Include detailed variation procedures for complex projects

6. Site Access and Conditions: Include for projects involving work on specific sites

7. Design Obligations: Include when contractor has design responsibilities

8. Materials and Equipment: Include when specific requirements exist for materials or equipment

9. Testing and Commissioning: Include for projects requiring formal testing procedures

10. Defects Liability: Include when post-completion warranty period is required

Suggested Schedules

1. Schedule 1 - Scope of Works: Detailed description of works to be performed

2. Schedule 2 - Cost Structure and Rates: Breakdown of cost components, markup percentages, and agreed rates

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

4. Schedule 4 - Site Details: Site information, access requirements, and conditions

5. Schedule 5 - Key Personnel: Details of key staff and their roles

6. Schedule 6 - Insurance Requirements: Specific insurance types and coverage levels

7. Schedule 7 - WHS Requirements: Detailed safety requirements and procedures

8. Schedule 8 - Quality Requirements: Quality standards, testing procedures, and acceptance criteria

9. Schedule 9 - Forms and Templates: Standard forms for payment claims, variations, etc.

10. Appendix A - Technical Specifications: Detailed technical requirements and standards

11. Appendix B - Drawings: Project drawings and technical diagrams

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

alex.den.21@genieai.co

Relevant legal definitions

Clauses

Relevant Industries

Construction

Mining

Infrastructure

Manufacturing

Engineering Services

Industrial Projects

Commercial Development

Resources

Energy

Utilities

Defense Contracting

Technology Implementation

Relevant Teams

Legal

Procurement

Commercial

Operations

Project Management

Finance

Risk and Compliance

Engineering

Construction

Contracts Administration

Relevant Roles

Project Manager

Construction Manager

Commercial Manager

Contract Administrator

Quantity Surveyor

Procurement Manager

Legal Counsel

Risk Manager

Operations Manager

Site Manager

Finance Manager

Chief Operating Officer

Technical Director

Engineering Manager

Estimating Manager

Compliance Officer

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