The Construction Short Form Contract is specifically designed for use in the Australian construction industry where a simplified but legally robust agreement is required. It is particularly suitable for projects valued between $100,000 and $5 million, where the full complexity of standard form contracts (such as AS4000) would be unnecessary. This document includes all essential elements required by Australian law, including security of payment provisions, insurance requirements, and safety obligations, while maintaining a streamlined structure. The contract is most appropriate for projects with straightforward scope and risk allocation, where design is largely complete before construction begins. It provides sufficient protection for both parties while avoiding the complexity and administrative burden of larger contract forms, making it ideal for residential builds, commercial fit-outs, and smaller industrial projects.
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1. Parties: Identification and details of the Principal (client) and Contractor
2. Background: Context of the agreement and general project overview
3. Definitions: Key terms used throughout the contract
4. Scope of Works: Detailed description of the construction works to be performed
5. Contract Price and Payment: Payment terms, amounts, and mechanics including payment claims and schedules
6. Time for Completion: Project timeline, completion date, and provisions for extensions of time
7. Contractor Obligations: Key responsibilities including quality, safety, and compliance requirements
8. Principal Obligations: Client responsibilities including site access and information provision
9. Variations: Process for managing changes to scope, price, or timeline
10. Defects and Warranties: Defect liability period and warranty obligations
11. Insurance and Indemnity: Required insurances and indemnification provisions
12. Termination: Grounds and process for contract termination
13. Dispute Resolution: Process for handling disputes between parties
14. General Provisions: Standard boilerplate clauses including notices and governing law
1. Security: Optional section for bank guarantees or retention monies - include for higher value projects
2. Design Obligations: Include when contractor has design responsibilities
3. Intellectual Property: Include when design or innovative construction methods are involved
4. Environmental Requirements: Include for projects with significant environmental considerations
5. Aboriginal Heritage: Include for projects in areas with potential indigenous heritage significance
6. Provisional Sums: Include when certain costs cannot be fixed at contract formation
7. Subcontracting: Include detailed subcontracting provisions for larger projects
8. Site Conditions: Include for projects with significant ground works or uncertain site conditions
1. Schedule 1 - Contract Particulars: Key project details, contact information, and specific requirements
2. Schedule 2 - Scope of Works: Detailed specifications, drawings, and technical requirements
3. Schedule 3 - Program: Project timeline, milestones, and completion dates
4. Schedule 4 - Payment Schedule: Payment amounts, timing, and milestone payments
5. Schedule 5 - Site Details: Site information, access requirements, and existing conditions
6. Schedule 6 - Forms: Standard forms for variations, payment claims, and completion certificates
7. Appendix A - Drawings: Construction drawings and design documents
8. Appendix B - Technical Specifications: Detailed technical requirements and standards
Authors
Relevant legal definitions
Clauses
Relevant Industries
Residential Construction
Commercial Construction
Industrial Construction
Infrastructure Development
Property Development
Renovations and Refurbishments
Small-scale Civil Works
Retail Fit-outs
Educational Facilities
Healthcare Facilities
Relevant Teams
Legal
Operations
Construction
Commercial
Procurement
Risk Management
Project Management
Contract Administration
Business Development
Property Development
Relevant Roles
Construction Manager
Project Manager
Contract Administrator
Commercial Manager
Quantity Surveyor
Site Supervisor
Building Manager
Procurement Manager
Legal Counsel
Risk Manager
Operations Manager
Development Manager
Construction Director
Chief Operating Officer
Business Development Manager
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