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Stipulated Price Contract for Australia

Stipulated Price Contract Template for Australia

A comprehensive construction contract governed by Australian law that establishes a fixed price arrangement between a principal/owner and a contractor for the completion of specified works. The contract details the agreed-upon price, scope of works, completion timeframes, quality standards, and risk allocation while incorporating relevant Australian construction legislation and industry standards. It includes provisions for variations, progress payments, dispute resolution, and defects liability, all structured to comply with Australian state and federal construction laws and regulations.

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What is a Stipulated Price Contract?

The Stipulated Price Contract is designed for use in Australian construction projects where parties wish to establish a fixed price for the entire scope of works at the outset. This contract type is particularly suitable when the project scope is well-defined and unlikely to change significantly during execution. It provides certainty for both the principal and contractor regarding project costs, while including mechanisms for handling variations and unforeseen circumstances. The document incorporates requirements from Australian construction law, security of payment legislation, and industry standards, making it suitable for various scales of construction projects across different Australian jurisdictions. It includes comprehensive provisions for project execution, risk allocation, quality control, and dispute resolution, while maintaining compliance with state-specific building regulations and federal laws.

What sections should be included in a Stipulated Price Contract?

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

2. Background: Outlines the context of the agreement and the parties' intentions

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

4. Contract Sum: Clearly states the fixed price amount and what it includes/excludes

5. Scope of Works: Detailed description of the works to be performed under the contract

6. Time for Completion: Specifies the commencement date, completion date, and any milestone dates

7. Payment Terms: Details the payment schedule, progress payments, and payment claim procedures

8. Variations: Processes for handling changes to the scope, including pricing and approval procedures

9. Quality and Standards: Specifies required quality standards, inspections, and compliance requirements

10. Defects Liability: Defines the defects liability period and obligations for rectifying defects

11. Insurance and Indemnities: Specifies required insurances and indemnification obligations

12. Work Health and Safety: Outlines WHS obligations and responsibilities

13. Security: Details any performance bonds, bank guarantees, or retention monies

14. Dispute Resolution: Procedures for resolving disputes between parties

15. Termination: Grounds and procedures for contract termination

16. General Provisions: Standard contract clauses including notices, governing law, and assignment

What sections are optional to include in a Stipulated Price Contract?

1. Intellectual Property: Required when the works involve design elements or proprietary systems

2. Environmental Requirements: Needed for projects with significant environmental considerations

3. Indigenous Participation: Required for projects in areas with indigenous heritage or participation requirements

4. Local Content: Include when there are local content or industry participation requirements

5. Building Information Modeling: Required when BIM is used in the project

6. Acceleration: Include when there might be a need for accelerated works

7. Provisional Sums: Required when certain work elements cannot be fully scoped at contract formation

8. Liquidated Damages: Include when specific damages for delay need to be pre-agreed

9. Early Completion Bonus: Optional incentive for ahead-of-schedule completion

10. Nominated Subcontractors: Required when principal-nominated subcontractors are involved

What schedules should be included in a Stipulated Price Contract?

1. Schedule 1 - Contract Particulars: Key project details, contact information, and contract-specific variables

2. Schedule 2 - Scope of Works: Detailed technical specifications and drawings

3. Schedule 3 - Program: Detailed construction program and milestone dates

4. Schedule 4 - Price Schedule: Breakdown of the contract sum and schedule of rates for variations

5. Schedule 5 - Safety Requirements: Specific WHS requirements and procedures

6. Schedule 6 - Quality Management Plan: Quality assurance requirements and procedures

7. Schedule 7 - Forms: Standard forms for variations, progress claims, and certificates

8. Schedule 8 - Insurances: Insurance certificates and requirements

9. Appendix A - Drawings: Complete set of construction drawings

10. Appendix B - Technical Specifications: Detailed technical requirements and standards

11. Appendix C - Special Conditions: Any special conditions or project-specific requirements

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Australia

Publisher

Ƶ

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions















































Clauses



































Relevant Industries

Construction

Infrastructure

Mining

Commercial Property

Residential Development

Industrial

Healthcare Facilities

Education Facilities

Government Infrastructure

Renewable Energy

Transport

Retail Development

Relevant Teams

Legal

Commercial

Procurement

Operations

Finance

Risk Management

Project Management

Construction

Estimating

Business Development

Technical Services

Contract Administration

Relevant Roles

Contract Manager

Project Manager

Construction Manager

Commercial Manager

Legal Counsel

Quantity Surveyor

Procurement Manager

Risk Manager

Chief Financial Officer

Operations Director

Site Manager

Estimating Manager

Business Development Manager

Chief Executive Officer

Technical Director

Industries








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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