Australian Design and Construct Contracts: An Overview
Design and construct contracts are a common method used in the Australian construction industry. These types of contracts are used for projects where the client wants a single point of responsibility for both the design and construction processes. In this article, we will take a closer look at Australian design and construct contracts, their benefits, and some of the key clauses that should be included in them.
Benefits of Design and Construct Contracts
The design and construct contract has many benefits for both the client and the contractor. One of the main benefits is the single point of responsibility that it provides. This means that the contractor is responsible for both the design and construction phases of the project, which helps to reduce the risk of misunderstandings and disputes between the client and the contractor.
Another benefit of design and construct contracts is cost savings. Since the contractor is responsible for both design and construction, they can identify cost savings during the design phase that can be carried over to the construction phase. This can help to reduce the overall cost of the project.
Key Clauses in Design and Construct Contracts
There are several key clauses that should be included in a design and construct contract. These clauses are designed to protect both the client and the contractor`s interests.
The scope of work clause is one of the most important clauses in a design and construct contract. This clause outlines the scope of work that the contractor will be responsible for during the project. It should be clear and concise and include all details of the work to be performed.
The payment clause is also an essential clause in a design and construct contract. This clause should outline the payment schedule and any penalties for late payments. The payment schedule should be reasonable and based on milestones completed during the project.
The quality assurance clause is another crucial clause in a design and construct contract. This clause should outline the quality standards that the contractor must meet during the project. Quality control procedures should be included in this clause, as well as any penalties for failing to meet the quality standards.
Conclusion
Design and construct contracts are a popular method used in the Australian construction industry. They provide a single point of responsibility for both the design and construction phases of the project, which can help to reduce disputes and errors. Key clauses, such as the scope of work, payment, and quality assurance, should be included in these contracts to protect both the client and the contractor`s interests.