Simple Construction Contract Template for Australia

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Key Requirements PROMPT example:

Simple Construction Contract

"I need a Simple Construction Contract for a residential renovation project in New South Wales, with work commencing March 2025, including specific provisions for heritage building requirements and staged payments over a 6-month period."

Document background
This Simple Construction Contract is designed for use in Australian construction projects where a straightforward but comprehensive agreement is required. It is particularly suited for projects where the scope of work is well-defined and the risk profile is relatively straightforward. The contract incorporates all essential elements required under Australian construction law, including state-specific Security of Payment provisions, while avoiding the complexity of major construction contracts. It is commonly used for residential renovations, small commercial builds, and medium-scale construction projects where the contract value typically ranges from small to medium-sized projects. The document provides a balanced approach to risk allocation between principal and contractor, while ensuring compliance with relevant building codes and regulations.
Suggested Sections

1. Parties: Identifies and provides details of the contracting parties (Principal/Owner and Contractor)

2. Background: Sets out the context of the agreement and basic premises

3. Definitions and Interpretation: Defines key terms used throughout the contract and interpretation rules

4. Scope of Works: Details the work to be performed by the contractor, including specifications and standards

5. Contract Price and Payment: Specifies the contract sum, payment schedule, and payment claim processes in accordance with Security of Payment legislation

6. Time for Completion: Specifies commencement date, completion date, and provisions for extensions of time

7. Contractor Obligations: Sets out key responsibilities including workmanship, compliance with laws, and site management

8. Principal Obligations: Details the principal's responsibilities including site access and information provision

9. Variations: Procedures for varying the scope of works and adjusting the contract price

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

11. Practical Completion: Defines practical completion and processes for inspection and certification

12. Defects Liability: Specifies defects liability period and obligations to rectify defects

13. Termination: Grounds and procedures for contract termination

14. Dispute Resolution: Procedures for resolving disputes between parties

15. General Provisions: Standard boilerplate clauses including notices, governing law, and GST

Optional Sections

1. Bank Guarantee: Details requirements for security bonds or bank guarantees - include when project value exceeds certain threshold

2. WHS Requirements: Detailed workplace health and safety obligations - include for higher risk projects

3. Environmental Requirements: Specific environmental protection measures - include when project has significant environmental impacts

4. Quality Assurance: Detailed quality management requirements - include for complex or high-value projects

5. Intellectual Property: IP ownership and licensing provisions - include when design or innovative construction methods are involved

6. Liquidated Damages: Pre-agreed damages for delay - include when time is critical and damages can be pre-estimated

7. Subcontracting: Requirements for engaging and managing subcontractors - include when subcontracting is anticipated

Suggested Schedules

1. Schedule 1 - Contract Particulars: Key project details including contract sum, dates, and party details

2. Schedule 2 - Scope of Works: Detailed description of works including drawings and specifications

3. Schedule 3 - Program: Construction program showing key milestones and completion dates

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

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

6. Appendix A - Drawings: Approved construction drawings and plans

7. Appendix B - Specifications: Technical specifications for materials and workmanship

8. Appendix C - Special Conditions: Any special conditions or variations to standard terms

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
Relevant Industries

Residential Construction

Commercial Construction

Industrial Construction

Building Renovation

Property Development

Infrastructure Development

Interior Fit-out

Building Maintenance

Small-scale Construction

Relevant Teams

Legal

Operations

Construction

Project Management

Commercial

Procurement

Risk & Compliance

Property Development

Contract Administration

Relevant Roles

Construction Manager

Project Manager

Contract Administrator

Site Supervisor

Building Contractor

Property Developer

Construction Lawyer

Quantity Surveyor

Building Inspector

Procurement Manager

Risk Manager

Operations Manager

Legal Counsel

Development Manager

Commercial Manager

Industries
Security of Payment Act: State-specific legislation that ensures timely payment for construction work and related goods and services, establishing a rapid adjudication process for payment disputes
Building and Construction Industry (Improving Productivity) Act 2016: Federal legislation governing conduct in the building and construction industry, including industrial relations and compliance requirements
National Construction Code (NCC): Technical design and construction requirements for buildings, incorporating the Building Code of Australia (BCA) and Plumbing Code of Australia (PCA)
Australian Consumer Law: Provides consumer protections and statutory warranties for construction work, particularly relevant for residential construction
Work Health and Safety Act 2011: Federal legislation establishing requirements for workplace safety, particularly important in construction projects
Environmental Protection and Biodiversity Conservation Act 1999: Federal legislation governing environmental protection requirements that may affect construction projects
Home Building Act: State-specific legislation regulating residential building work, including licensing requirements and statutory warranties
Contract Law Act: State-specific legislation governing formation and enforcement of contracts, including construction contracts
Insurance Contracts Act 1984: Federal legislation governing insurance requirements, relevant for construction insurance and indemnity provisions
Building Products (Safety) Act: State-specific legislation ensuring building products used in construction meet safety standards and are fit for purpose
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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