Document background
The Residential Cost Plus Contract is specifically designed for Australian construction projects where the final scope or costs cannot be accurately determined at the outset. This contract type is particularly suitable for renovation projects, heritage properties, or complex builds where unforeseen conditions may arise. Unlike fixed-price contracts, it allows for flexibility while maintaining transparency in cost calculation and builder's margin. The document includes essential elements required by Australian building laws, such as statutory warranties, progress payment schedules, and dispute resolution procedures. It provides detailed mechanisms for cost verification, variation handling, and project management, while ensuring compliance with state-specific building regulations and consumer protection laws. This contract type is often chosen when the project involves complex design elements, potential variations, or when rapid project commencement is required before all details are finalized.
