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Construction Cost Plus Contract
"I need a Construction Cost Plus Contract for a commercial building renovation in Auckland, with work starting March 2025, including standard cost-plus terms with a 12% markup and monthly reporting requirements."
1. Parties: Identification of the Principal/Client and the Contractor, including their legal details and representatives
2. Background: Context of the agreement, project overview, and basis for entering into the contract
3. Definitions and Interpretation: Definitions of key terms and rules for interpreting the contract
4. Scope of Works: Detailed description of the construction works to be performed
5. Cost Plus Mechanism: Definition of cost components, markup/fee structure, and allowable expenses
6. Contractor's Obligations: Key responsibilities including work quality, reporting, record-keeping, and cost management
7. Principal's Obligations: Client responsibilities including site access, information provision, and timely decisions
8. Cost Reporting and Transparency: Requirements for regular cost reporting, open-book accounting, and audit rights
9. Payment Terms: Payment process, timing, documentation requirements as per Construction Contracts Act
10. Variations: Process for managing changes to scope, costs, or time
11. Time and Programme: Project timeline, milestones, and management of delays
12. Quality and Compliance: Quality standards, inspections, and compliance with Building Code and regulations
13. Health and Safety: HSE requirements and responsibilities under Health and Safety at Work Act
14. Insurance and Liability: Required insurances and allocation of risks
15. Dispute Resolution: Process for resolving disputes as per Construction Contracts Act
16. Termination: Grounds and process for contract termination
17. General Provisions: Standard contractual terms including notices, assignment, and governing law
1. Performance Security: Requirements for bonds or guarantees, used for higher-value projects
2. Value Management: Procedures for cost optimization and value engineering, useful for complex projects
3. Subcontractor Management: Specific requirements for managing subcontractors, relevant for larger projects
4. Environmental Management: Environmental obligations and compliance, important for environmentally sensitive projects
5. Provisional Sums: Management of provisional sum items, used when certain costs cannot be determined initially
6. Intellectual Property: IP rights and obligations, relevant when design or innovative methods are involved
7. Building Information Modeling: BIM requirements and protocols, for projects using BIM
8. Defects Liability Period: Extended defects coverage, important for larger or complex buildings
1. Schedule 1: Scope of Works: Detailed specifications, drawings, and technical requirements
2. Schedule 2: Cost Components: Breakdown of cost categories, mark-up rates, and fee calculation method
3. Schedule 3: Key Personnel: Details of key staff from both parties and their roles
4. Schedule 4: Programme: Detailed project timeline and milestones
5. Schedule 5: Site Information: Site details, access requirements, and known site conditions
6. Schedule 6: Insurance Requirements: Specific insurance types and coverage levels required
7. Schedule 7: Forms and Procedures: Standard forms for variations, payment claims, and other processes
8. Schedule 8: Special Conditions: Any project-specific requirements or variations to standard terms
9. Appendix A: Drawings: Construction drawings and design documents
10. Appendix B: Reports: Relevant technical reports, surveys, and investigations
Authors
Allowable Costs
Approved Variation
Architect
Background IP
Building Consent
Business Day
Certificate of Practical Completion
Change in Law
Completion Date
Construction Documents
Construction Period
Construction Programme
Construction Site
Construction Works
Consultant
Contract Documents
Contract Sum
Contractor's Fee
Contractor's Mark-up
Contractor's Personnel
Defects Liability Period
Design Documents
Direct Costs
Engineer
Extension of Time
Fixed Fee
Force Majeure Event
Goods and Materials
Governmental Authority
GST
Indirect Costs
Insurance Requirements
Intellectual Property Rights
Key Personnel
Labour Costs
Latent Conditions
Materials
Milestone
Notice
Overhead Costs
Payment Claim
Payment Schedule
Percentage Fee
Plant and Equipment
Practical Completion
Principal's Requirements
Project
Project Manager
Provisional Sum
Quality Assurance System
Quantity Surveyor
Relevant Authority
Resource Consent
Retention Money
Schedule of Rates
Scope of Works
Site
Subcontractor
Substantial Completion
Superintendent
Time for Completion
Variation
Works
Working Day
Contract Formation
Scope of Works
Cost Plus Mechanism
Payment Terms
Cost Verification
Financial Reporting
Progress Reports
Site Access
Construction Programme
Time for Completion
Extensions of Time
Variations
Quality Assurance
Health and Safety
Environmental Protection
Insurance
Indemnities
Intellectual Property
Confidentiality
Record Keeping
Audit Rights
Subcontracting
Assignment and Novation
Force Majeure
Default and Termination
Dispute Resolution
Warranties
Defects Liability
Security of Payment
Performance Security
Risk Allocation
Materials and Equipment
Labour Requirements
Compliance with Laws
Building Consent
Resource Consent
Project Management
Communication Protocol
Documentation Requirements
Cost Control
Mark-up and Fees
Progress Claims
Retention
Practical Completion
Final Completion
Governing Law
Notices
GST and Taxation
Entire Agreement
Construction
Property Development
Real Estate
Infrastructure
Commercial Building
Residential Development
Industrial Construction
Public Works
Healthcare Construction
Education Construction
Legal
Construction
Commercial
Finance
Operations
Procurement
Risk Management
Project Management
Contract Administration
Business Development
Construction Manager
Project Manager
Contract Administrator
Quantity Surveyor
Commercial Manager
Construction Director
Legal Counsel
Risk Manager
Cost Controller
Chief Financial Officer
Development Manager
Site Manager
Procurement Manager
Operations Director
Client Representative
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