The Builder Agreement Between Builder And Owner is a crucial legal document used in Australian construction projects to establish a binding contract between licensed builders and property owners. This agreement is essential for both residential and commercial construction projects, ensuring compliance with state-specific building regulations, the National Construction Code, and consumer protection laws. It should be used whenever engaging a builder for construction works, whether for new builds, renovations, or extensions. The document incorporates mandatory provisions required by Australian building legislation, including statutory warranties, progress payment schedules, and dispute resolution mechanisms. It provides comprehensive coverage of project specifications, timeframes, payment terms, variations procedures, and quality standards while protecting both parties' interests through clear risk allocation and insurance requirements. The agreement must comply with state-specific legislation such as the Home Building Act and the Building and Construction Industry Security of Payment Act.
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1. Parties: Identification of the builder and property owner with full legal details
2. Background: Context of the agreement including property details and purpose of construction
3. Definitions: Defined terms used throughout the agreement
4. Scope of Works: Detailed description of the construction work to be performed
5. Contract Price and Payment Terms: Total price, payment schedule, and progress payment conditions
6. Time for Completion: Project timeline, stages, and completion requirements
7. Builder's Obligations: Responsibilities including warranties, compliance, and workmanship standards
8. Owner's Obligations: Site access, approvals, and owner-supplied items
9. Variations: Process for requesting and approving changes to the scope of work
10. Extensions of Time: Circumstances allowing time extensions and notification requirements
11. Insurance and Risk: Required insurance coverage and risk allocation between parties
12. Defects Liability: Defects period and rectification obligations
13. Statutory Warranties: Mandatory warranties required by state building legislation
14. Termination: Grounds and process for contract termination by either party
15. Dispute Resolution: Process for resolving disputes including mediation and arbitration
16. General Provisions: Standard contract clauses including notices, governing law, and assignment
1. Design Services: Include when builder is responsible for design elements of the project
2. Heritage Requirements: Include for projects involving heritage-listed properties
3. Environmental Management: Include for projects with specific environmental considerations
4. Staging: Include for projects delivered in multiple stages
5. Provisional Sums: Include when certain costs cannot be accurately determined at contract signing
6. Prime Cost Items: Include when specific items are to be selected by the owner during construction
7. Special Site Conditions: Include when site has unique characteristics affecting construction
8. Existing Structures: Include for renovations or works involving existing buildings
1. Schedule 1 - Contract Details: Key project information including contact details, price, and timeframes
2. Schedule 2 - Plans and Specifications: Detailed construction drawings and technical specifications
3. Schedule 3 - Progress Payment Schedule: Breakdown of progress payments and completion stages
4. Schedule 4 - Prime Cost and Provisional Sum Items: Itemized list of PC items and provisional sums
5. Schedule 5 - Special Conditions: Any specific requirements or variations to standard conditions
6. Schedule 6 - Form of Variation: Template for documenting and costing variations
7. Appendix A - Council Approvals: Copies of relevant building and planning permits
8. Appendix B - Insurance Certificates: Copies of required insurance policies
9. Appendix C - Construction Program: Detailed timeline of construction activities
Authors
Relevant legal definitions
Clauses
Relevant Industries
Residential Construction
Commercial Construction
Building and Construction
Real Estate
Property Development
Home Improvement
Construction Services
Property Management
Relevant Teams
Legal
Construction
Operations
Compliance
Risk Management
Commercial
Contract Administration
Project Management
Quality Assurance
Property Development
Relevant Roles
Construction Manager
Project Manager
Contract Administrator
Legal Counsel
Building Surveyor
Site Supervisor
Quantity Surveyor
Construction Lawyer
Building Inspector
Compliance Officer
Property Developer
Operations Manager
Risk Manager
Claims Manager
Commercial Manager
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