CONTRACT DOCUMENTS - Leading Construction and Building Group

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CONTRACT DOCUMENTS

There are various types of contracts to suit different circumstances and copies of contracts can be obtained from a range of institutions depending on the size and magnitude of the building project:
  • NHBRC (National Home Building Registration Council),
  • MBA (Master Builders Association)
  • JBCC Series (Joint Building Contracts Committee)
  • CIDB (Construction Industry Development Board)

Dial a Contractor can also provide you with a basic building agreement at a very reasonable price. Contact us today!

No matter how well a contract may be legally written, it is incomplete without specific information. This information, and most importantly, the specification described in Building Specifications, must be put into the contract by the parties concerned, as well as the building plans. We suggest annexing the following documents to the contract:
  • specification and drawings,
  • a clear description of what must be done and
  • the materials and services to be used.

How much will it cost?
The contract amount that will be paid at predetermined and agreed intervals.

How long with it take?
The contract period – a contract must allow for extension and should have a penalty clause. It is a good idea to employ the services of a lawyer to at least check the contract before signing. The legal fees compared to the average contract amount are negligible.

LIST OF RELEVANT CONTRACTS/ AGREEMENTS WITHIN THE JBCC SERIES AND FORMS:

THE PRINCIPAL BUILDING AGREEMENT (PBA)
The document is the cornerstone of the JBCC Series 2000. The Agreement is made up of nine sections starting with the definitions of all the primary elements and phrases. The next sections are ordered as closely as possible to the project execution sequence. State substitution clauses are listed in the penultimate section. The final section is a schedule of all the variables required to complete the Agreement The Agreement is designed to be used with or without bills of quantities. The building industry, like almost every aspect of modern life, does not stand still, and in the ensuing seven years JBCC found it necessary to publish three further editions – in 2003, 2004 and finally edition 4.1 in 2005 – to deal with changing circumstances.

The Nominated/Selected Subcontract Agreement (N/S) See Principal Building Agreement. The document covers both nominated and selected subcontractors and is modelled on the Principal Building Agreement with all common clauses retaining the same numbering.

PRELIMINARIES
The document covers all generally recurring aspects of preliminaries for most types of projects and therefore simplify tendering and administering of building contracts. Users should note that this document has been specifically formulated for use with all editions of the Principal Building, N/S Subcontract and Minor Works Agreements and maintains the same definitions and numbering style as are consistent throughout the JBCC Series 2000 and further editions.

MINOR WORKS AGREEMENT
The Agreement is designed for use where the works are of a minor and simple nature. The employer appoints a principal agent to administer the contract and direct contractors appointed for specialised work and installations that will not fall within the contractor’s responsibilities or liabilities.

ADJUDICATION RULES
Adjudication is an accelerated form of dispute resolution in which the adjudicator determines a dispute as an expert and not as an arbitrator. Adjudication is now the default dispute resolution process for the Principal Building and N/S Subcontract Agreements and these Rules are to be read in conjunction with the dispute clause of the Agreements. The State does not make use of this form of dispute resolution.

FORM OF TENDER
This document is for use with the Principal Building Agreement, Nominated/Selected Subcontract Agreement and the Minor Works Agreement. The form sets out the primary Conditions for Tendering, the Tender Sum and the tenderer’s choice of Preliminaries and Security options.

SITE POSSESSION CERTIFICATE
This certificate records the hand-over of the site to the contractor which is an act that is contractually signifi cant and should be formally recorded.

CONTRACT PRICE ADJUSTMENT PROVISIONS (CPAP)
Escalation adjustment based on a workable formula method rather than on actual cost changes simplifi es claims and accounting procedures. To achieve this objective it is necessary to agree on a “basket” of work groups and the weighting of the elements of the work group. The agreements require that the contract value shall be adjusted according to the procedure laid down in a CPAP listing the appropriate base month.

WAIVER OF CONTRACTOR’S LIEN
This form can be used for both the Principal Building and Minor Works Agreements and requires the provision of a Payment Guarantee from the Employer. The waiving of the lien by the contractor is of contractual significance.


  

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