The Design Build Lump Sum Contract is a specialized agreement used in the Australian construction industry where a single contractor takes responsibility for both design and construction services for a fixed price. This contract type is particularly suitable for projects where the principal wants to transfer design risk and seek cost certainty, while maintaining a single point of responsibility. It includes comprehensive provisions for design development, construction standards, payment mechanisms, and risk allocation, all aligned with Australian federal and state legislation. The document incorporates security of payment requirements, work health and safety obligations, and environmental compliance requirements specific to Australian jurisdictions. This contract type is commonly used for commercial, industrial, and infrastructure projects where the scope can be clearly defined and the contractor has the capability to manage both design and construction elements.
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1. Parties: Identifies and provides details of the contracting parties (Principal and Design-Build Contractor)
2. Background: Sets out the context of the agreement and the Principal's requirements for the project
3. Definitions and Interpretation: Defines key terms and establishes rules for interpreting the contract
4. Contract Formation and Documents: Lists contract documents in order of precedence and their interpretation
5. Design-Builder's Obligations: Details core obligations including design, construction, and fitness for purpose
6. Principal's Obligations: Outlines the Principal's responsibilities including site access and information provision
7. Time and Progress: Covers program requirements, completion dates, and delay management
8. Price and Payment: Details the lump sum price, payment terms, and variations
9. Design Development: Specifies design development process, approvals, and documentation requirements
10. Quality and Defects: Sets quality standards and processes for identifying and rectifying defects
11. Variations: Procedures for changes to scope, time, or cost
12. Insurance and Security: Specifies required insurances and security provisions
13. Risk and Liability: Allocates risks and establishes liability framework
14. Default and Termination: Defines events of default and termination procedures
15. Dispute Resolution: Sets out dispute resolution procedures
16. General Provisions: Includes standard boilerplate clauses
1. Stakeholder Management: Include when project involves significant community or stakeholder engagement
2. Environmental Requirements: Include for projects with specific environmental obligations or risks
3. Indigenous Participation: Include when project requires Indigenous employment or engagement
4. Building Information Modeling: Include when BIM is required for the project
5. Intellectual Property: Include detailed IP provisions when design innovations or special technologies are involved
6. Early Works: Include when certain works need to commence before full design completion
7. Interface Management: Include when project interfaces with other contractors or operations
8. Site Conditions: Include detailed provisions for projects with significant ground condition risks
1. Schedule 1 - Contract Particulars: Key project details, dates, and contact information
2. Schedule 2 - Principal's Requirements: Detailed technical and performance requirements
3. Schedule 3 - Design Documents: Initial design documents and development requirements
4. Schedule 4 - Program: Project timeline, milestones, and completion dates
5. Schedule 5 - Payment Schedule: Payment breakdown, milestones, and rates
6. Schedule 6 - Site Information: Site conditions, access, and environmental data
7. Schedule 7 - Forms of Security: Required forms for bank guarantees and other securities
8. Schedule 8 - Insurance Requirements: Detailed insurance requirements and minimum coverage
9. Schedule 9 - Quality Management Requirements: Quality systems and testing requirements
10. Schedule 10 - Subcontractor Requirements: Nominated subcontractors and requirements
11. Appendix A - Site Plans and Drawings: Relevant site plans and preliminary drawings
12. Appendix B - Environmental Requirements: Environmental management and compliance requirements
13. Appendix C - Safety Requirements: WHS requirements and safety management plans
Authors
Relevant legal definitions
Clauses
Relevant Industries
Commercial Construction
Industrial Construction
Infrastructure
Healthcare Facilities
Education Facilities
Renewable Energy
Mining
Transportation
Retail Development
Residential Development
Manufacturing Facilities
Data Centers
Sports Facilities
Relevant Teams
Legal
Commercial
Project Management
Construction
Design
Procurement
Risk and Compliance
Finance
Operations
Business Development
Technical Services
Quality Assurance
Relevant Roles
Project Director
Commercial Manager
Contract Manager
Project Manager
Design Manager
Construction Manager
Legal Counsel
Risk Manager
Quantity Surveyor
Chief Financial Officer
Procurement Manager
Technical Director
Operations Director
Development Manager
Business Development Manager
Cost Manager
Design Coordinator
Site Manager
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