HIA_Contract_unit_1 (4)
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University of Melbourne *
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Course
ICT201
Subject
Law
Date
Jan 9, 2024
Type
Pages
124
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OWNERS:
MD Abdus Sayek Khan
Umme Safura Aliya Khan
JOB:
STD001
LOT:
60
SITE:
unit 1 70 Portico Parade
Toongabbie
NSW 2146
NSW Residential Building Contract for
New Dwellings
To verify your builder is a HIA member email enquiry@hia.com.au
© HIA Contracts Online (Revised May 2021.v2)
All rights reserved. No part of this document may be reproduced, stored, copied,
distributed or transmitted in any form or by any means without the prior written
consent of HIA.
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DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
Schedule 1. Particulars of Contract
1
Date
1
Contract price
1
Owners
1
Builder
2
The Land
2
Building period
2
Initial Period
2
Encumbrances, covenants and easements
3
Sources of funds
3
Development application and complying development certificate
3
Liquidated damages
3
Interest
3
Builder's margin
3
Guarantors
3
Schedule 2. Progress Payments
4
Schedule 3. Excluded Items (Clause 9)
5
Schedule 4. Description of Work
5
Schedule 5. Other Contract Documents
6
Schedule 6. Warranty Insurance
6
Schedule 7. Prime Cost and Provisional Sum Items (Clause 20)
7
Special Conditions
8
Signatures
9
Deed of guarantee and indemnity
11
General Conditions
13
Clause 1. Interpretation
13
Clause 2. Builder's Obligations
14
Clause 3. Owner's Obligations
14
Clause 4. Essential Matters
14
Clause 5. Planning and Building Approvals
15
Clause 6. Survey of the Site
15
Clause 7. Security Account and Ability to Pay
16
Clause 8. Accuracy of Contract Documents
16
Clause 9. Excluded Items
17
Clause 10. Specified Materials
17
Clause 11. Materials Supplied by Owner
17
Clause 12. Commencing the Building Works
17
Clause 13. Site Possession and Access
17
Clause 14. Hidden Site Conditions
18
Clause 15. Other Costs
19
Clause 16. Contract Price Adjustments
19
Clause 17. Progress Payments
19
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Clause 18. Variations
20
Clause 19. Delays and Extensions of Time
20
Clause 20. Prime Cost and Provisional Sum Items
21
Clause 21. Practical Completion
22
Clause 22. Final Certificate
23
Clause 23. Notices
23
Clause 24. Defects Liability Period
23
Clause 25. Suspension
23
Clause 26. Early Possession
24
Clause 27. Ending the Contract - Breach
24
Clause 28. Ending the Contract -
Insolvency
25
Clause 29. Effect of the Builder Ending the Contract
25
Clause 30. Effect of the Owner Ending the Contract
25
Clause 31. Charge on the Site
25
Clause 32. Liquidated Damages
25
Clause 33. Interest on Late Payments
26
Clause 34. Debt Collection Costs
26
Clause 35. Dispute Resolution
26
Clause 36. Risk
26
Clause 37. Indemnity
26
Clause 38. Insurances
26
Clause 39. Statutory Warranties
27
Clause 40. Mandatory Conditions
28
Clause 41. Assignment and Subcontracting
28
Clause 42. No Waiver
28
Clause 43. Severance
29
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Date
This contract is dated the:
(a)
Contract price
PRICE EXCLUDING GST:
$406,260.00
GST ON THE ABOVE AMOUNT:
$45,140.00
THE CONTRACT PRICE IS:
$451,400.00
The contract price is GST inclusive
WARNING
-
The contract price
may vary under this
contract
. The reasons for variations to the
contract price
may include:
Clause 5 - planning and building approvals;
Clause 6 - a survey being required;
Clause 14 - a consultant being engaged to report on the
site
conditions;
Clause 15 - an increase in a tax, charge or levy after this
contract
is signed;
Clause 18 -
variations
to the
building works
;
Clause 20 - an adjustment for
prime cost items
and
provisional sum items
.
The
contract price
does not include the costs that the
owner
will have to pay to a third party for
conveying services to the
site
or connecting or installing services for use at the
site
.
Note: The
builder
cannot demand or receive any of the
contract price
(including the deposit) until
warranty insurance is in force and the
owner
is provided with a certificate of insurance.
(b)
Deposit
(Clause 17.1)
THE DEPOSIT IS:
$45,140.00
(The deposit must not exceed 10% of the contract price)
Owners
Owner 1
NAME
MD Abdus Sayek Khan
ADDRESS
26 Telfer Road
SUBURB
Castle Hill
STATE
NSW
POSTCODE
2154
ABN/ACN
WORK
HOME
MOBILE
EMAIL
Sayekkhan@yahoo.com.au
Schedule 1. Particulars of Contract
Item
1.
2.
3.
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Owner 2
NAME
Umme Safura Aliya Khan
ADDRESS
26 Telfer Road
SUBURB
castle hill
STATE
NSW
POSTCODE
2154
ABN/ACN
WORK
HOME
MOBILE
EMAIL
Builder
NAME
sandtech Property group
ADDRESS
32 somerset street
SUBURB
Stanhope Gardens
STATE
NSW
POSTCODE
2768
ABN/ACN
63621525193
WORK
HOME
MOBILE
0402171503
EMAIL
Sandtechpa@gmail.com
HIA MEMBER NUMBER
1230128
HIA MEMBERSHIP EXPIRY
31/01/2023
BUILDER'S LICENCE NUMBER
332412C
The Land
THE LAND IS:
LOT
60
DP NO
1255595
CERTIFICATE OF TITLE
STREET ADDRESS:
unit 1 70 Portico Parade
SUBURB
Toongabbie
STATE
NSW
POSTCODE
2146
Mortgage 1
LENDING BODY
NAB
AMOUNT
BRANCH
Sydney 2000
CONTACT NAME
0436637882
Building period
(Clause 12)
The
building works
must reach the stage of
practical completion
no more than 52
weeks after
the
building period
commences, subject to Clause 19.
Initial Period
The
owner
must satisfy the essential matters in Clause 4 within the
initial period
being a period of
working days
(If nothing stated then 15 working days from date of contract)
Note: The builder does not need to commence on
site
until the essential matters are satisfied and
may terminate the contract if the essential matters are not satisfied.
4.
5.
6.
7.
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Encumbrances, covenants and easements
(Clause 4)
The
site
is affected by the following encumbrances, covenants, easements and caveats. Please
specify the substance of each encumbrance, covenant, easement and caveat and give details of any
registrations where registered at the Titles Office.
Sources of funds
(Clauses 4 and 7)
The
contract price
will be funded by:
TOTAL FUNDS
Note: The total funds are to equal the
contract price
.
Lending Body 1
LENDING BODY
BRANCH
CONTACT NAME
Development application and complying development
certificate
(Clause 5)
The person to make and pay for all applications for development consent and/or a complying
development certificate is: Owner
(If no person stated then the owner)
Liquidated damages
(Clause 32)
per
working day
calculated on a daily basis.
(If nothing stated, then $1)
Interest
(Clause 33)
Interest on late payments is:
19.00%
(If nothing stated then the post judgement interest rate applicable to judgements in the NSW Supreme Court from time to time.)
Builder's margin
The builder's margin is:
10.00%
(If nothing stated then 20%)
Guarantors
(refer to Deed of Guarantee and Indemnity)
NAME
ADDRESS
SUBURB
STATE
POSTCODE
8.
9.
10.
11.
12.
13.
14.
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Schedule 2. Progress Payments
Stage
Percent
Amount
Deposit
Home owners insurance and other preliminary items.
10.00%
$45,140.00
Floor slab Complete
Footing poured, internal and external drainage complete. Electrical, Gas and plumbing
rough in below the floor complete. Concrete floor slab complete.
20.00%
$90,280.00
Frame and Truss complete
Wall frame and truss complete and braced. Window frame installed. All structural supports
installed. Framing inspection complete
20.00%
$90,280.00
Lock up stage complete
Windows and doors installed. All frames straightened. Electrical, Gas and Plumbing rough
in Completed. Roofing, brickwork and insulation completed.
20.00%
$90,280.00
Fixing complete
Plasterboard fixed, sanded and cornices finished. All tiling and floor cover complete. All
internal architraves, skirting and doors installed. Painting finished
20.00%
$90,280.00
Practical Completion
All kitchen cupboards, pantry and detailed joinery installed. All appliances, bathroom, toilet
installed, laundry fittings, tiling, Driveway and final house clean complete, excess items from
the site removed.
10.00%
$45,140.00
Total
100.00% $451,400.00
Note:
•
The total amount must be the same as the
contract price
.
•
The deposit is brought to account in the first progress payment.
•
Progress stages must be stated in clear and plain language.
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Schedule 3. Excluded Items (Clause 9)
The
owner
acknowledges that the
builder
is not responsible for the supply and installation of materials,
goods or the provision of services that are listed below:
❖
Any easement related work.
❖
Outdoor shower
❖
Rock excavation
❖
Payment of fees, charge and section 94A contributions by client as per clause 8 of
the Development Consent.
❖
Payment of Fees in associate with Environmental Service charge clause 8 & 9,
Infrastructure and restoration fee clause 10 and security bond clause 11 to be paid
by client.
❖
Payments of all fees and charges in relation to Sydney Water section 73 approval and
notice of requirements will be responsible of the client including all subdivision
costs. It will be facilitated by the builder.
❖
Traffic control fees if required (by builder)
❖
Removal of more than 1 Truck and boggy (30 tonnes) loads of excess dirt or excess
soil as a result of excavation
❖
Gas bottle provision
❖
Bush fire zone requirement
❖
Special window glazing to accommodate bush zone area or any acoustic glazing for
traffic area.
❖
Generally anything outside the scope of the work, approved plan and client’s general
inclusions specified above
Schedule 4. Description of Work
Insert brief description of the
building works
:
180.56sqm 3 bedrooms double storey house with 3 toilets, BBQ provision at alfresco, single garage and
façade and OSD as per plan.
The
building works
are described in detail in the plans and specifications.
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Schedule 5. Other Contract Documents
In addition to these general conditions, any special conditions, the plan and specifications, the following
documents form part of this contract.
1. Inclusion List is mentioned in the SandTech Smart Specification: STD001 (attached in the appendix).
Schedule 6. Warranty Insurance
NOTE:
The
builder
must not carry out any
building work
or demand or receive any part of the
contract
price
until warranty insurance is in force and the
owner
is provided with the certificate of insurance.
INSURER
ICARE
Cost of insurance under Part 6 of the
Home Building Act 1989
(NSW) (Home Building Act) (or alternative
indemnity product under Part 6B of the Home Building Act) is $
CERTIFICATE ATTACHED.
Except for the
builder's
interest in this
contract
and the legal requirement for warranty insurance to be
arranged in respect of the
building works
, the
builder
receives no benefit in relation to arranging such
insurance.
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Prime cost items
Detailed description of the Item
Estimated
quantity
allowed for
Estimated $
per item
Allowance $
Builder Range 90cm,5 burner cook top
2
$500.00
$1,000.00
Builder Range 90cm Built in oven
2
$1,000.00
$2,000.00
Builder Range 90cm Rangehood
2
$350.00
$700.00
Main floor Tiles per sqm
1
$27.00
$27.00
Shower screen
6
$500.00
$3,000.00
Toilet
6
$220.00
$1,320.00
Vanity
6
$600.00
$3,600.00
shower Head
6
$500.00
$3,000.00
Water tap
6
$85.00
$510.00
LED light each
70
$10.00
$700.00
main entrance door
2
$650.00
$1,300.00
Internal Hollow Door
1
$40.00
$40.00
Timber floor per sqm(incl installation)
1
$45.00
$45.00
Kitchen sink
2
$220.00
$440.00
Kitchen sink mixers
2
$80.00
$160.00
bathroom tile per sqm
1
$27.00
$27.00
Provisional sum items
Detailed description of the Item
Estimated
quantity
allowed for
Estimated $
per item
Allowance $
Schedule 7. Prime Cost and Provisional Sum Items
(Clause 20)
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Special Conditions
Important Note: Quotation is subject to reviewing the 149(2) & (5) certificate, sewer diagram and the title
search. SandTech Property Group Pty Ltd will remove only 1 boggy of excess soil or construction dirt if
required and excess soil or dirt will be removed at client’s cost. SandTech Property Group Pty Ltd will
remove any concrete obstructing the connection of sewer, stormwater and electricity services. However, will
not reinstate the concrete, and recommends this is done along with the landscaping. If we are building within
the zone of influence to a sewer, peg out will requested with additional cost of $1,500 including GST.
Additional charge will be imposed if extra piering needed apart from structural engineering plan. Owner is to
provide electricity and water during the construction of the house. If these services can’t be provided,
SandTech will arrange to install temporary service at the cost of the client. SandTech will be liable for any
damage caused on existing driveway or over an existing kerb due to gain reasonable access during the
construction. Any pre-existing damage to surface objects such as concrete path/driveway etc on the
property, is SandTech’s responsibility. PC items must be selected from SandTech preferred supplier within
the specified range in this quotation. If no allowance is given in the quotation for any item, “Builder’s Range”
will be applicable. If client wish to bring any PC items, then SandTech will credit allowance money on that
item. Sandtech will not be liable on any warranty and maintenance issue for any items supplied by the client.
Site access for the owner can be allowed prior to 24hours of notice to Sandtech. But all the periodical
meetings can be conducted on site. SandTech Guidelines: Any update in this quotation should be treated
as variation. No credits will be provided, if client wants to obsolete any items (listed in the inclusion) after
signing the tender. Any update before the contract signed needs to be approved by the client and the cost
of update will be added to the standard contract price. Any update after the contract signed needs to be
confirm by the client by email and is treated as additional variation. 50% cost of any additional variation is
payable to next applicable progress claim.
THE CLIENT OR ANY ASSOCIATED PARTY ACCESS TO THE BUILDING SITE: The SandTech follows WHS
Act 2011 seriously. Due to Section-8 WHS Act-2011, the builder needs to ensure the safety of all personals
entering the job site who could be adversely affected by the building activity. To keep the site free of injury
and risks of all parties, SandTech limited the building site access. Since we are liable for any incident on the
site, so the client or associate party is only allowed when accompanied by the Page 8 of 30 Nominated
SandTech Supervisor.
Client Communication: During construction, all communications between the client and builder would be
done by email (to: taj02_in@yahoo.com ; cc: sandtechpa@gmail.com)
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Owner 1
Owner 2
Signatures
This
contract
is made between the
Owner
and the
Builder
.
The
schedules
form part of this
contract
.
The Consumer Building Guide in Attachment B, Role of registered certifier information in Attachment C and
the Security of Payment Guide in Attachment D do not form part of this
contract
.
The parties have signed this
contract
on the date stated in Item 1 of Schedule 1.
The
Owner
has received the Checklist in Attachment A, the Consumer Building Guide in Attachment B, the
Role of registered certifiers information in Attachment C and the Security of Payment Guide in Attachment D
before signing this
contract
.
The
Owner
has read and understood this
contract
.
NAME
MD Abdus Sayek Khan
SIGNATURE
/s1/\\signer1_sig
WITNESS'S
SIGNATURE
/na/
WITNESS'S NAME AND ADDRESS
/na/
/na/
/na/
NAME
Umme Safura Aliya Khan
SIGNATURE
/s2/\\signer2_sig
WITNESS'S
SIGNATURE
/na/
WITNESS'S NAME AND ADDRESS
/na/
/na/
/na/
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Builder
NAME
SIGNATURE
/bs1/
Signed for and on behalf of:sandtech Property group
WITNESS'S
SIGNATURE
/na/
WITNESS'S NAME AND ADDRESS
/na/
/na/
/na/
Please note
1.
Where a company is signing: 'by A. Smith, Director' or 'Signed for and on behalf of XYZ Pty Ltd'.
2.
Where a partnership is signing: 'Enterprises by Andrew Smith, Partner. Signed for and on behalf of
Andrew Smith and Jane Smith.'
STATEMENT SETTING OUT THE OWNER'S RIGHT TO WITHDRAW FROM THIS CONTRACT
UNDER SECTION 7BA OF THE HOME BUILDING ACT
This
contract
may be subject to a
cooling off period
that entitles the owner to rescind this contract by giving a
notice in writing as required by Section 7BA of the Home Building Act:
(a) If the
owner
has been given a copy of the signed
contract
– at any time before the expiration of 5 clear
business days after the
owner
is given a copy of the signed
contract
; or;
(b) If the
owner
has not been given a copy of the signed
contract
within 5 days after the
contract
has been
signed – at any time before the expiration of 5 clear business days after the
owner
becomes aware that the
owner
is entitled to be given a copy of the signed
contract
If the
owner
exercises the right to cool off then this
contract
is rescinded and the
builder
is entitled to a
reasonable price for the work carried out under the
contract
until the date the
contract
is rescinded.
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Interpretation
Background
Operative
Deed of guarantee and indemnity
BUILDER IS
OWNER IS
Guarantors
ADDRESS LINE 1
ADDRESS LINE 2
SUBURB
STATE
POSTCODE
Contract
is that between the
Builder
and the
Owner
dated:
The
Guarantor
executed this Deed at the
Owner's
request.
The
Guarantor
is aware of the
Owner's
obligations under the
Contract
.
1.
Guarantee
The
Guarantor
guarantees to the
Builder
, the fulfilment of the
Owner's
obligations under the
Contract
including but not limited to the due payment of all moneys arising out of the subject matter of
the
Contract.
2.
Indemnity
The
Guarantor
indemnifies the
Builder
against any claim, loss or damage arising out of the subject
matter of the
contract
caused by or resulting from any non-fulfilment of the
Owner's
obligations under
the
Contract
.
3.
Principal Debtor
The
Guarantor
is deemed to be a principal debtor jointly and severally liable with the
Owner
to
discharge the
Owner's
obligations under the
Contract
.
4.
No Merger
The
Guarantor
agrees that this Deed does not merge on completion or on the ending of the
Contract
by either party and continues notwithstanding that the
Owner
, if a corporation, is placed in liquidation
or if a person, is declared bankrupt.
5.
No Release
The
Guarantor
is not discharged by:
◦
any variation to the
Contract
including a variation to the building works;
◦
any delay or claim by the
Builder
to enforce a right against the
Owner
; and
◦
any forbearance given to the
Owner
to perform the
Owner's
obligations under the
Contract
.
6.
Severability
Any provision of this Deed which is illegal, void or unenforceable will be ineffective to the extent only of
such illegality, voidness or unenforceability and will not invalidate any other provision of this Deed.
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Guarantor's Statement
7.
When More Than One Guarantor
If the
Guarantor
consists of more than one person, this guarantee and indemnity is not affected by the
failure of all persons comprising the
Guarantor
to sign this guarantee and indemnity or this Deed
being unenforceable against any of them.
8.
Waiver of Rights
The
Guarantor
waives all rights as surety inconsistent with any of the terms of this Deed or to the
detriment or disadvantage of the
Builder
.
I/we understand the nature, terms and extent of the guarantee and indemnity provided by me/us and further
acknowledge that I/we have obtained legal advice prior to executing this Deed.
Signed as a Deed
SIGNATURE
WITNESS'S NAME AND ADDRESS
SIGNATURE
DATE
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Clause 1. Interpretation
1.1
In this
contract
:
'
adverse weather
' means any weather condition that, in the reasonable
opinion of the
builder
, prevents work from being carried out in the usual
manner;
'
all weather access
' means access in all weather conditions as required
by the
builder
for carrying out the
building works
.
'
builder
' means the party named in Item 4 of Schedule 1 and, where
appropriate, includes a representative appointed by the
builder
;
'
builder's margin
' means the percentage stated in Item 13 of Schedule 1;
'
building period
' means the number of calendar weeks or
working days
stated in Item 6 of Schedule 1 as extended by Clause 19;
'
building works
' means the
building works
to be carried out, completed
and handed over to the
owner
in accordance with this
contract
as shown
in the
contract documents
and includes
variations
.
'
contract
' means the agreement between the
builder
and the
owner
set
out in the
contract documents
;
'
contract documents
' means these general conditions, any special
conditions, the plans, the specifications and other documents specified in
Schedule 5;
'
contract price
' means the amount stated in Item 2(a) of Schedule 1, as
changed by this
contract
;
Refer to Clause 16
for when to pay a
contract price
adjustment.
'
contract price adjustment
' means an amount that is added to or
deducted from the
contract price
under this
contract
;
Refer to Clause 21
for practical
completion.
'
date of practical completion
' means the date that is deemed to be the
date of practical completion
under Clause 21 except where the date is
determined by dispute resolution (including litigation) then it is that date;
'
initial period
' means the period stated in Item 7 of Schedule 1;
'
lending body'
means any corporation or institution that lends to the
owner
part of or the whole of the
contract price
;
'
notice of practical completion
' means the notice given by the
builder
to the
owner
under Clause 21;
'
owner
' means the party named in Item 3 of Schedule 1 and includes the
owner's
agents, employees and invitees;
Refer to Clause 21.
'
practical completion'
means when the
building works
are complete
except for minor omissions and defects that do not prevent the
building
works
from being reasonably capable of being used for their usual
purpose;
Refer to Clause 20.
'
prime cost item
' means an item (for example a fixture or fitting) that either
has not been selected or cannot be costed exactly at the time that the
contract
is entered into and for which the
builder
has made allowance in
the
contract price
;
Refer to Clause 20.
'
provisional sum item
' means an item of work (including labour and
materials) which cannot be costed exactly at the time that the
contract
is
entered into and for which the
builder
has made allowance in the
contract
price
;
'
rock
' means material, other than clay or soil, that cannot, in the
builder's
opinion, be readily removed by hand;
General Conditions
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Refer to Clauses 4
and 7.
'
security account
' means an account described in Clause 7;
'
site
' means the land described in Item 5 of Schedule 1;
'
stage
' means any of the stages described in Schedule 2;
'
statutory or other authority
' means the principal certifying authority,
Local Government, State or Federal Government, or any Government
agency that has power to affect the
building works
;
Refer to Clause 18.
'
variation
' means:
(a) an omission, addition or change to the
building works
; or
(b) a change in the manner of carrying out the
building works
;
'
warranty insurance
' means Home Building Compensation (HBC) cover as
referred to in the Home Building Act;
'
working days
' means days other than Saturdays, Sundays or public
holidays;
and like words have corresponding meanings.
1.2
In this
contract
the general notes, the table of contents, clause headings
and side notes do not form part of this
contract
and cannot be used in its
interpretation.
Clause 2. Builder's Obligations
Refer to Clause 39
for Statutory
Warranties.
Refer to Clause 40
for Mandatory
Conditions.
2.1
The
builder
must carry out and complete the
building works
in
accordance with this
contract
.
Clause 3. Owner's Obligations
3.1
The
owner
must pay the
contract price
and other money that becomes
payable under this
contract
in the manner and at the times stated in this
contract
.
3.2
If there is more than one
owner
:
(a) the obligations in this
contract
apply to each of them individually
and to all of them as a group;
(b) a quote, notice, claim or any other communication to the
owners
has only to be given to one of the
owners
; and
(c) only one of the
owners
has to sign a quote, notice, instruction,
direction or other communication to bind all of the
owners
.
Clause 4. Essential Matters
Evidence of
ownership includes a
copy of the certificate
of title to the site.
Refer to Clause 7 for
the security account.
The builder does not
have to start the
works until this
Clause is satisfied.
Refer to Clause 12.
4.1
The
owner
must, within the
initial period
, give the
builder
:
(a) written proof that the
owner
owns or is otherwise entitled to build
on the
site
;
(b) written details of any encumbrances, covenants, easements and
caveats affecting the
site
;
(c) if required written evidence that the
security account
has been
established and the amount required to be paid into the
security
account
is held in clear funds;
(d) if the
owner
is obtaining finance from a
lending body
, written
advice from the
lending body
that:
(i) the amount of finance, when added to the
owner's
own
available funds, is sufficient to pay the
contract price
; and
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(ii) the
building works
may commence;
(e) written evidence of development consent for the
building works
;
(f) if required, written proof that the
owner
has obtained any building
approvals and has satisfied any conditions imposed by a
statutory or
other authority
where required prior to commencement of work; and
(g) if required, written proof that the
owner
has appointed the
principal certifying authority and has paid any costs associated with
such appointment.
The builder may end
this contract.
4.2
If the
owner
fails to satisfy all of the above within the
initial period
the
builder
may end this
contract
, by giving the
owner
a written notice to that
effect, at any time prior to physical commencement of the
building works
.
4.3
If the
builder
so ends this
contract
, the
owner
must pay to the
builder
the price of the services provided and works carried out to the date that this
contract
is ended. The price includes the
builder's margin
applied to the
costs incurred by the
builder
which costs include the cost of materials on
site
or already ordered from suppliers that are non-returnable.
Clause 5. Planning and Building Approvals
5.1
The party named in Item 10 of Schedule 1 must obtain and pay for all
applications for development consent and/or a complying development
certificate for the
building works
.
5.2
If the
builder
is named in Item 10 of Schedule 1, the
owner
must provide a
signed statement to the effect that the
owner
consents to the
builder
making any application for development consent and/or a complying
development certificate in relation to the
building works
.
5.3
Notwithstanding that the
builder
may be named in Item 10 of Schedule 1,
unless otherwise stated in this
contract
, at all times the
owner
is
responsible for the payment of any and all additional fees, charges, taxes,
costs and levies, however described, associated with:
(a) inspections conducted by the principal certifying authority or its
agents, employees and invitees;
(b) registrations relating to title to the
site
;
(c) planning and building approvals for the
building works
;
(d) complying with the conditions of the development consent,
including but not limited to payment of infrastructure contributions.
For variations refer to
Clause 18.
5.4
If the requirements of a
statutory or other authority
necessitate a
change to the
building works
the
builder
must inform the
owner
of the
change required and ask for a
variation
for the
building works
to comply
with the requirements.
Clause 6. Survey of the Site
6.1
If, in the
builder's
opinion, the boundaries of the
site
are unclear, the
builder
must give the
owner
a written notice asking the
owner
to provide
a survey of the
site
.
6.2
If the
owner
does not provide a survey within 5
working days
of the
builder
giving notice the
builder
may, as the
owner's
agent, obtain the
survey. The
owner
must pay to the
builder
on demand the total of the
price of the survey plus the
builder's margin
applied to that price.
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Clause 7. Security Account and Ability to Pay
This is an essential
matter. Refer to
Clause 4.
7.1
The
owner
, when requested by the
builder
at any time, must deposit that
part of the
contract price
not being supplied by a
lending body
into an
account at a bank, building society or a similarly recognised financial
institution (to be known as a
security account
). The
security account
must be in the joint names of the
owner
and the
builder
with:
(a) the
owner
receiving interest, if any, on the money deposited in the
account; and
(b) the
builder
as joint signatory for any withdrawal from the account.
7.2
The
owner
must, within 2
working days
of being requested by the
builder
at any time, give the
builder
written evidence, to the
builder's
satisfaction, of the
owner's
ability to pay all money that is or may become
payable to the
builder
under this
contract
.
Clause 8. Accuracy of Contract Documents
8.1
Where the
owner
supplies any
contract document
, the
owner
warrants:
(a) that
contract document
is accurate; and
(b) the suitability of the design, materials and methods of working each
specified therein.
Notices are to be
given in the manner
set out in Clause 23.
8.2
If either party becomes aware of any error, ambiguity or inconsistency in or
between the
contract documents
, that party must, within 2
working days
of becoming aware, give the other party written notice detailing the
problem.
8.3
The
owner
must, within 2
working days
of receiving a notice or becoming
aware of a problem, give the
builder
written instructions as to how the
builder
is to proceed with the
building works
.
8.4
If the
owner
fails to give the
builder
such written instructions within
2
working days
, the
builder
may proceed with the
building works
applying the following order of precedence:
(a) any special conditions;
(b) these general conditions;
(c) the specifications;
(d) the plans, then
(e) other documents.
For variations refer to
Clause 18.
8.5
If:
(a) compliance with the
owner's
instructions or the order of
precedence, as applicable, involves more or less cost than a
reasonable builder would have anticipated on the signing of this
contract
; and
(b) the problem is caused by documents other than those provided by
the
builder
,
the
owner
is deemed to have asked the
builder
for a
variation
to carry
out that work and the procedure for
variations
in Clause 18 will apply.
8.6
In relation to a document that is:
(a) supplied by;
(b) prepared under instruction of; or
(c) prepared from sketches provided by,
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Indemnity is a legal
concept requiring the
payment to the other
party of all costs and
expenses.
a party, that party indemnifies the other party for all costs, expenses, losses
or damages that are incurred by the other party relating to or as a
consequence of any claim for breach of copyright or moral right arising
from the
builder
carrying out the
building works
in accordance with that
document.
8.7
The
builder
owns the copyright in any document prepared by the
builder
.
Clause 9. Excluded Items
9.1
The
owner
and the
builder
agree that the items set out in Schedule 3 are
excluded from this
contract
.
Clause 10. Specified Materials
For variations refer to
Clause 18.
10.1
If any material specified to be used in the
building works
is unavailable
when required by the
builder
, the
builder
may ask the
owner
for a
variation
to substitute the use of similar material.
Clause 11. Materials Supplied by Owner
These items should
be listed in a contract
document.
11.1
The goods and services to be provided by the
owner
must be:
(a) suitable for inclusion into the
building works
;
(b) supplied or completed in the time required by the
builder
; and
(c) completed to the satisfaction of the
builder
.
For variations refer to
Clause 18.
11.2
If the
owner
breaches the above condition the
builder
may elect to either:
(a) carry out the
building works
without incorporating the goods or
services; or
(b) do either or both of the following:
(i) suspend the carrying out of the
building works
under
Clause 25;
(ii) give to the
owner
a notice of default under Clause 27.
11.3
The
builder
is not responsible for the performance and suitability of goods
and services provided by the
owner
.
Clause 12. Commencing the Building Works
12.1
The
builder
is to commence the
building works
within 20
working days
after the day that:
(a) the
builder
receives all necessary building permits and planning
approvals for the
building works
to commence; or
(b) the
owner
satisfies all of the requirements of Clause 4,
whichever is later.
12.2
The
building period
commences on the date the
builder
starts
performing the
building works
on the
site
.
Clause 13. Site Possession and Access
13.1
The
owner
gives the
builder
exclusive possession of the
site
to carry out
the
building works
.
For variations refer to
Clause 18.
13.2
The
owner
must provide
all weather access
. If the
owner
does not
provide
all weather access
and the
builder
will be required to carry out
further work to achieve such access the
owner
is deemed to have asked
the
builder
for a
variation
to carry out that extra work and the procedure
for
variations
in Clause 18 applies.
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13.3
The
owner
, the
owner's
agents and officers of the
lending body
:
(a) must not hinder;
(i) the
builder's
access or possession of the
site
; or
(ii) the progress of the
building works
;
(b) must not:
(i) make inquiry of;
(ii) issue directions to; or
(iii) give instructions to,
the
builder's
workers or subcontractors. Communication must only be
with the
builder's
nominated person; and
(c) may only have access to the
building works
at reasonable times
and after giving reasonable prior notice for the purposes of inspecting
the progress of the
building works
.
13.4
The
builder's
unused materials on the
site
are the property of the
builder
.
Clause 14. Hidden Site Conditions
14.1
If:
(a) either party believes that the surface or sub-surface conditions of
the site may not support or are likely to affect the
building works
, or
(b)
rock
is found at the
site
,
the
builder
may, or must at the
owner's
written request, as the
owner's
agent, retain consultants to report on the
site
conditions and their effect on
the
building works
and the cost of every consultant is to be paid by the
owner
as a
contract price adjustment
.
For variations refer to
Clause 18.
14.2
The
builder
must promptly give the
owner
a notice detailing the details of
any extra work required and the estimated cost of that work. The
builder
must attach a copy of any report to that notice.
14.3
Subject to sub-clause 14.6, the
owner
must:
(a) within 5
working days
of receiving the notice under sub-clause
14.2, confirm in writing that the
builder
is authorised to proceed with
the extra work as detailed by the
builder
under sub-clause 14.2;
(b) pay the
builder
the sum of the total cost of all extra work plus the
builder's margin
applied to that cost at the next progress payment
after the work is carried out unless a different time is agreed.
14.4
If the
owner
does not give the
builder
written notice under sub-clause
14.3 the
builder
may do either or both of the following:
(a) suspend the carrying out of the
building works
under Clause 25;
(b) end this
contract
and Clause 29 applies.
14.5
The
builder
is only entitled to payment for such extra work if the actual
site
conditions differ from those either:
(a) disclosed or known to the
builder
prior to this
contract
being
signed; or
(b) shown in the
contract documents
,
and if the effect of that difference requires more or less work than that
which a reasonable builder would have anticiapted on the signing of this
contract
.
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The owner may end
this contract.
14.6
If the estimated price of the extra work exceeds 5% of the
contract price
,
the
owner
may end this contract by giving the
builder
a written notice to
that effect within 5
working days
of receiving the estimated cost from the
builder
under sub-clause 14.2 and sub-clause 14.7 applies.
14.7
If the
owner
so ends this
contract
, the
owner
must pay to the
builder
the
price of the works carried out to the date that this
contract
is ended. The
price includes the
builder's margin
applied to the costs incurred by the
builder
which costs include the cost of materials on
site
or already
ordered from suppliers that are non-refundable.
Clause 15. Other Costs
The contract price
may change due to
an increased cost.
For contract price
adjustments refer to
Clause 16.
15.1
If, after this
contract
is signed, a
statutory or other authority
introduces
or increases:
(a) any tax, charge, levy or other regulation; or
(b) any requirement that affects the
building works
,
that causes any cost increase in the cost of the
building works
there is a
contract price adjustment
.
For variations refer to
Clause 18.
15.2
If the
builder
is required to do more or less work to comply with a
requirement of a
statutory or other authority
the
builder
must ask for a
variation
for the change required and Clause 18 applies.
Clause 16. Contract Price Adjustments
16.1
A
contract price adjustment
is due and payable at the next progress
payment after it arises unless a different time is agreed.
16.2
When there is a deletion to the
building works
or substitution of materials
resulting in a
contract price adjustment
, the
contract price
will be
adjusted at the progress payment of the stage where the
building works
would have been carried out, unless a different time is agreed in writing.
Clause 17. Progress Payments
17.1
The
owner
must pay the deposit stated in Item 2(b) of Schedule 1 on the
later of the day that:
(a) this
contract
is signed by the
owner
; and
(b) warranty insurance described in Schedule 6 is in force and the
owner
is provided with a certificate of insurance for such insurance.
The deposit is brought to account with the first progress payment.
17.2
The
owner
must pay the
contract price
progressively as claimed by the
builder
.
17.3
The
builder
must give the
owner
a written claim for a progress payment
for the completion of each
stage
.
17.4
A progress claim is to state:
(a) the amount claimed and not paid for the
stage
completed;
(b) the amount claimed and not paid for
contract price adjustments
;
(c) the amount claimed and not paid for
variations
; and
(d) the sum of the above amounts.
Payment does not
mean that the owner
accepts the work is
done in accordance
with the contract. The
owner cannot hold
any money back on a
progress claim.
17.5
The
owner
must pay a progress claim within 5
working days
of the
builder
giving the claim.
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17.6
Other than in relation to the final progress claim:
(a) payment of a progress claim is on account only; and
(b) the
owner
has no right of set off.
Clause 18. Variations
Variations may
change the contract
price.
18.1
A
variation
must be in writing and signed by or on behalf of the
builder
and the
owner
. Either the
owner
or the
builder
may ask for a
variation
.
Refer to Clause 40
for Mandatory
Conditions.
18.2
If the
owner
asks for a
variation
, the
builder
must reply in writing as soon
as is reasonable.
The builder may ask
the owner for
evidence of ability to
pay for the variation.
See Clause 7.2.
18.3
The reply is to be either:
(a) a signed written offer to carry out the
variation
detailing:
(i) the work required to carry out the
variation
;
(ii) the price of the
variation
; and
(iii) any extension of time to the
building period
as a result of
carrying out the
variation
; or
(b) a refusal to carry out the
variation
. The
builder
does not have to
give any reasons for refusing to carry out a
variation
.
18.4
If the
owner
does not give to the
builder
signed written acceptance of the
builder's
offer within 5
working days
of the
builder
giving the reply, the
builder's
offer is deemed to be withdrawn
18.5
If the price of a
variation
is not agreed prior to it being carried out that
price includes:
(a) the deduction of the reasonable cost of all deletions from the
building works
; and
(b) the addition of the total cost of all extra work plus the
builder's
margin
applied to that cost.
18.6
The price of a
variation
is due and payable at the next progress payment
after it is carried out unless a different time is agreed.
18.7
The
owner
must not unreasonably withhold consent to any
variation
which is required for the
building works
to comply with the law or a
requirement of any
statutory or other authority
.
18.8
The
owner
acknowledges that the colour and grain of timber, granite and
other natural materials can vary. The
builder
is to use reasonable
endeavours to match the colour or grain of any sample selected by the
owner
but is under no liability if there is a difference and such difference is
not a
variation
.
Clause 19. Delays and Extensions of Time
19.1
The
builder
is entitled to a reasonable extension of the
building period
if
the
building works
are delayed by the
builder
suspending the
building
works
under Clause 25 or from a cause beyond the sole control of the
builder
including but not limited to:
(a) a
variation
or a request for a
variation
by the
owner
;
(b) an act of God, fire, explosion, earthquake or civil commotion;
(c)
adverse weather
;
(d) an industrial dispute;
(e) a dispute with adjoining or neighbouring residents or owners;
(f) anything done or not done by the
owner
;
(g) delays in getting any approvals;
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(h) a delay in the supply of materials selected by the
owner
;
(i) the need for a survey of or other report in relation to the
site
; or
(j) the industry shutdown being a 3 week period commencing on or
about 22 December in each year if construction during the Christmas
period could not have been reasonably foreseen at the date of this
contract.
19.2
The
builder
is to give the
owner
written notice of an entitlement to an
extension of time detailing both:
(a) the cause of the delay; and
(b) the extension of time,
within 10
working days
after becoming aware of both the cause and the
extent of the delay.
For dispute
resolution refer to
Clause 35.
19.3
If the
owner
wishes to dispute the
builder's
entitlement to an extension of
time the
owner
must, within 5
working days
of receiving the
builder's
notice, give the
builder
a written notice:
(a) disputing the extension of time; and
(b) detailing the reasons why the extension of time is disputed.
The builder is
entitled to extra costs
where the owner is
responsible for a
delay.
19.4
For every day the subject of an extension of time caused by an act, default
or omission of the
owner
, delay damages, being the total of the actual
increase in cost to the
builder
to carry out the
building works
plus the
builder's margin
applied to that cost is due and payable to the
builder
on
demand.
Clause 20. Prime Cost and Provisional Sum Items
Refer to Schedule 7
or other contract
documents for prime
cost items.
20.1
The
owner
must give the
builder
written notice of the
owner's
selection
of a
prime cost item
within 5
working days
after the
builder's
request to
do so.
20.2
If a
prime cost item
selected by the
owner
is unavailable, the
owner
must give the
builder
written notice of an alternative selection within 5
working days
of the
builder
advising that the item selected is unavailable.
20.3
If the
owner
fails to give written notice under sub-clause 20.2, the
builder
may select an alternative item that is similar in quality to the unavailable
item.
20.4
Each
prime cost item
must have an allowance stated next to it. The
allowance is the estimated price to supply the item and does not include an
amount for the
builder's margin
.
Refer to Schedule 7
or other contract
documents for
provisional sum
items.
20.5
Each
provisional sum item
must have an allowance stated next to it. The
allowance is the estimated price of providing the work and does not include
an amount for the
builder's margin
.
This may change the
contract price.
20.6
In relation to each
prime cost item
and
provisional sum item
, if the
actual price is:
(a) less than the allowance, the difference is deducted from the
contract price
;
(b) more than the allowance, the total of the difference and the
builder's margin
applied to that difference is added to the
contract
price
.
20.7
Any adjustment to the
contract price
for a
prime cost item
or a
provisional sum item
is due and payable with, or deductible from, the
next progress payment, unless a different time is agreed in writing. The
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builder
is to provide to the
owner
such invoices, receipts or other
documents as may reasonably be expected to evidence the actual price of
a
prime cost item
or
provisional sum item
.
Clause 21. Practical Completion
Refer to the
definition of practical
completion in
Clause 1.
21.1
The
builder
must give the
owner
a
notice of practical completion
at
least 5
working days
prior to
practical completion
being reached.
21.2
The
notice of practical completion
is to:
(a) state the
builder's
assessment of the
date of practical
completion
;
(b) state the date and time for the
owner
to meet the
builder
on the
site
to carry out an inspection of the
building works
; and
(c) have attached the
builder's
final progress claim.
21.3
The
owner
must meet the
builder
on the
site
for the inspection at the
date and time stated by the
builder
in the
notice of practical
completion
or at a date and time otherwise agreed with the
builder
and
either:
(a) pay the amount of the final progress claim; or
(b) if the
owner
believes that the
building works
have not reached
practical completion
give the
builder
a written notice detailing
anything to be done to reach
practical completion
.
The owner is
responsible to insure
the building works
from the date of
practical completion.
See Clause 38.7
21.4
If the
owner
pays the amount of the final progress claim under sub-clause
21.3(a) the
date of practical completion
stated in the
notice of
practical completion
is deemed to be the
date of practical completion
.
For dispute
resolution refer to
Clause 35.
21.5
If the
owner
gives the
builder
a notice under sub-clause 21.3(b) of work
to be completed:
(a) the
builder
must carry out any work required for
practical
completion
and give the
owner
a further
notice of practical
completion
;
(b) if the
builder
does not agree that there is any further work to be
carried out to reach
practical completion
the
builder
:
(i) must give the
owner
written notice rejecting the
owner's
notice. In this case, such a notice will also serve as notice of the
matters in dispute for the purposes of Clause 35;
(ii) is not obliged to carry out any further work on the
site
while
the dispute remains unresolved.
21.6
If the
owner
does not pay the amount of the final progress claim under sub
-clause 21.3(a) or give the
builder
a notice under sub-clause 21.3(b);
(a) the amount of the final progress claim is deemed to be a debt due
and owing from the
owner
to the
builder
;
(b) the
date of practical completion
stated in the
notice of
practical completion
is deemed to be the
date of practical
completion
; and
(c) the
owner
acknowledges the
building works
have reached
practical completion
.
21.7
On the
owner
paying the final progress claim, the
builder
must give the
keys, certificates, warranty documentation and other documents pertaining
to the
building works
to the
owner
.
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Clause 22. Final Certificate
22.1
The
builder
is not required to obtain any certificate of occupancy or final
inspection certificate relating to the
building works
.
Clause 23. Notices
23.1
Unless otherwise stated in this
contract
, a notice given under this
contract
must be in writing and in English.
23.2 Notices may be given:
(a) personally;
(b) by sending it by prepaid post to the party's address shown in Item 3
or Item 4 of Schedule 1 or the address that is last notified in writing;
(c) by sending it by facsimile to the party's facsimile number shown in
Item 3 or Item 4 of Schedule 1 or the facsimile number that is last
notified in writing; or
(d) by sending it by email to the party's email address shown in Item 3
or Item 4 of Schedule 1 or the email address that is last notified in
writing.
23.3
Notice is deemed to be received:
(a) if given personally, by handing it to the other party;
(b) if sent by prepaid post, 5
working days
after posting;
(c) if sent by facsimile, at the time and on the day shown in the
sender's transmission report;
(d) if sent by email, at the time of transmission unless the sender's
server or email indicates a malfunction or error in transmission or the
recipient immediately notifies the sender of an incomplete or illegible
transmission.
23.4
If the notice is deemed to be received on a day which is not a
working day
or after 5pm, it is deemed to be received at 9am on the next
working day
.
23.5
If two or more people comprise a party, notice to one is effective notice to
all.
Clause 24. Defects Liability Period
24.1
The defects liability period is a period of 13 weeks commencing on and
including the
date of practical completion
.
Refer also to the
Statutory Warranties
set out in Clause 39.
24.2
The
owner
may, before the end of the defects liability period, give the
builder
one list of defects in the
building works
that appear after the
date of practical completion
.
24.3
The
builder
must rectify defects that are the
builder's
responsibility and
which are notified to the
builder
during the defects liability period.
24.4
The
owner
must provide the
builder
with reasonable access to carry out
rectification works.
Clause 25. Suspension
The builder may
suspend without
ending this contract.
25.1
If the
owner
is in breach of this
contract
the
builder
may suspend the
carrying out of the
building works
.
25.2
The
builder
must give to the
owner
written notice of the suspension and
details of the breach.
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The builder must
claim an extension of
time under Clause
19.
25.3
The
builder
must recommence the carrying out of the
building works
within a reasonable time after the
owner
remedies the breach and gives
the
builder
written notice of that fact.
25.4
The
builder's
exercise of the right of suspension does not prevent the
builder
from exercising any right to end this
contract
under Clause 27 in
regard to the same occurrence.
Clause 26. Early Possession
If this Clause applies
the owner is in
substantial breach of
this contract.
26.1
If the
owner
:
(a) enters into occupation of the
site
or any part of the
site
;
(b) takes control of the
building works
or the
site
; or
(c) prevents or inhibits the
builder
from carrying out the
building
work
, without the
builder's
written consent, the
owner
commits a
substantial breach of this contract entitling the
builder
to elect to
either:
(i) treat the
owner's
actions as a repudiation of this
contract
and
accept that repudiation; or
(ii) do either or both of the following:
(i) suspend the carrying out of the
building works
under
Clause 25;
(ii) give the
owner
a notice of default under Clause 27.
Clause 27. Ending the Contract - Breach
If there is a dispute
consider dispute
resolution. Refer to
Clause 35.
27.1
A substantial breach of this
contract
by the
builder
includes but is not
limited to if the
builder
:
(a) has its licence cancelled;
(b) suspends the carrying out of the
building works
other than under
Clause 25.
27.2
A substantial breach of this
contract
by the
owner
includes but is not
limited to if the
owner
:
(a) fails to pay any amount by the due date;
(b) fails to give evidence of ability to pay as requested;
(c) fails to establish and maintain a
security account
if requested;
(d) interferes with or obstructs the progress of the
building works
;
(e) fails to give or interferes with the
builder's
possession of the
site
;
or
(f) fails to give an instruction or direction required within the time
specified.
27.3
If a party is in substantial breach of this
contract
the other party may give
the party in breach a written notice stating:
(a) details of the breach; and
(b) that, if the breach is not remedied within 10
working days
, that
party is entitled to end this
contract
.
27.4
If 10
working days
have passed since the notice of default is given and
the breach is not remedied then the party giving the notice of default may
end this
contract
by giving a further written notice to that effect.
27.5
All notices to be given under this Clause must be given by registered post
or personally.
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Clause 28. Ending the Contract - Insolvency
28.1
Either party may end this
contract
by giving the other party written notice
by certified mail or personal service if the other party:
(a) being a person, is or becomes bankrupt; or
(b) being a corporation, is in or goes into liquidation.
Clause 29. Effect of the Builder Ending the Contract
29.1
If the
builder
ends this
contract
under Clause 14, Clause 26, Clause 27
or Clause 28, then at the election of the
builder
, the
owner
must pay as a
debt due and payable either:
(a) the greater of the cost of or the market value of the
building
works
to date including the cost of any materials on the
site
or
already ordered from suppliers and the cost of quitting the
site
less
the amount already paid by the
owner
; or
(b) damages.
Clause 30. Effect of the Owner Ending the Contract
30.1
If the
owner
ends this
contract
under Clause 27 the
owner
must
complete the
building works
and keep records of the cost incurred.
The owner is under a
duty to mitigate any
loss.
30.2
The
owner
must take all reasonable steps to minimise the cost of
completing the
building works
.
30.3
The
owner
must, within 5
working days
of the
building works
reaching
practical completion
, give the
builder
a written detailed statement of the
costs incurred (including copies of all invoices and receipts) and notice of
the date when
practical completion
was reached.
30.4
If the costs incurred by the
owner
are:
(a) more than the unpaid balance of the
contract price
the
builder
must pay the difference to the
owner
within 7
working days
of
receiving the notice from the
owner
; or
(b) less than the unpaid balance of the
contract price
the
owner
must pay the difference when giving the notice as a debt due and
payable.
Clause 31. Charge on the Site
31.1
The
owner
charges the
site
with the due payment to the
builder
of all
moneys that are or may become payable under this
contract
to the extent
that a court or tribunal has made an order that the
owner
pays that
amount to the
builder
.
Clause 32. Liquidated Damages
32.1
If the
building works
do not reach
practical completion
by the end of
the
building period
the
owner
is entitled to liquidated damages in the
sum specified in Item 11 of Schedule 1 for each
working day
after the end
of the
building period
to and including the earlier of:
(a) the date of
practical completion
;
(b) the date this
contract
is ended; or
(c) the date the
owner
takes possession of the
site
or any part of the
site
.
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Clause 33. Interest on Late Payments
Interest can be
charged on any
amount to be paid by
the owner to the
builder.
33.1
The
builder
may charge the
owner
interest at the rate stated in Item 12 of
Schedule 1 from the day on which an amount falls due to be paid to the
builder
up to and including the day that amount is paid.
Clause 34. Debt Collection Costs
34.1
The
owner
must pay to the
builder
any debt collection costs, including
any legal fees and costs associated with recovering or attempted recovery
of an amount under this
contract
.
Clause 35. Dispute Resolution
35.1
If a dispute arises then a party must give written notice to the other party
setting out the matter in dispute.
35.2
The
builder
and the
owner
must meet within 10
working days
of the
giving of the notice to attempt to resolve the dispute or to agree on
methods of so doing.
35.3
If the dispute is resolved the parties must write down the resolution and sign
it.
35.4
The parties agree that anything done or said in the negotiation cannot be
revealed in any other proceeding.
Clause 36. Risk
36.1
While carrying out the
building works
to and including the
date of
practical completion
, the
builder
is responsible for loss or damage to
the
building works
except to the extent that it is caused or contributed to
by an act or omission of the
owner
.
36.2
The
builder
is not responsible for loss or damage to the
owner's
property
or property for which the
owner
is responsible that is left on the
site
.
36.3
The
builder
is not responsible for personal injury, death, property loss or
damage caused by war or terrorism. The
owner
is responsible for such
injury, death, damage or loss.
36.4
The
builder
is not responsible for any loss and damage that the
owner
may incur arising from the
owner
taking early possession in breach of
Clause 26.1.
To mitigate is to take
steps to reduce or
limit the loss or
damage.
36.5
The
builder
must take all reasonable steps to mitigate any loss or damage
to the
building works
caused or contributed to by an act or omission of
the
owner
.
Clause 37. Indemnity
Indemnity is a legal
concept by which a
person is to
reimburse the other
person for costs
incurred.
37.1
Except to the extent limited by another provision of this
contract
, each
party indemnifies the other against:
(a) loss or damage to property (other than the
building works
); and
(b) claims in respect of personal injury or death,
arising out of or as a consequence of a cause or event at that party's risk.
Clause 38. Insurances
38.1
The
builder
must insure against:
(a) loss or damage to the
building works
and any goods and
materials on the
site
relating to the
building works
against theft, fire,
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explosion, lightning, hail, storm and tempest, vandalism, civil
commotion and earthquake; and
(b) public liability for an amount of $10,000,000 for any one claim.
38.2
The above insurance policies must be in place before the
builder
commences the
building works
and must be maintained:
(a) in the case of the
building works
policy, to and including the
date
of practical completion
; and
(b) in the case of public liability policy, for the duration of the
contract
.
38.3
If the
owner
asks, the above insurances must note the names of the
owner
and the
lending body
as being in the class of the insureds under
the above insurance policies.
38.4
The
builder
must comply with all obligations under workers compensation
legislation.
38.5
If the
owner
asks for proof of any of the above insurance policies being in
place the
builder
must give the
owner
a copy of the certificate of currency
relating to the relevant insurance policy.
38.6
On the settlement of any claim under the
building works
policy the
builder
is to:
(a) immediately be paid any part of the settlement moneys relating to
loss suffered by the
builder
relating to any work that is the subject of
the claim but for which the
owner
has not paid the
builder
; and
(b) carry out the reinstatement of the
building works
and be paid the
balance of the settlement moneys for the reinstatement works.
38.7
The
owner
must ensure that the
building works
are insured from the
date of practical completion
.
Clause 39. Statutory Warranties
These are the
warranties that are
set out in the Home
Building Act.
39.1
To the extent required by the Home Building Act, the
builder
warrants that:
(a) the
building works
will be done with due care and skill and in
accordance with the plans and the specifications attached to this
contract
;
(b) all materials supplied by the
builder
will be good and suitable for
the purpose for which they are used and that, unless otherwise stated
in this
contract
, those materials will be new;
(c) the
building works
will be done in accordance with, and will
comply with, the Home Building Act or any other law;
(d) the
building works
will be done with due diligence and within the
time stipulated in this
contract
, or if no time is stipulated, within a
reasonable time;
(e) if the
building works
consists of the construction of a dwelling, the
making of alterations or additions to a dwelling or the repairing,
renovation, decoration or protective treatment of a dwelling, the
building works
will result, to the extent of the
building works
conducted, in a dwelling that is reasonably fit for occupation as a
dwelling; and
(f) the
building works
and any materials used in doing the
building
works
will be reasonably fit for the specified purpose or result, if the
owner
expressly makes known to the
builder
, or other person with
express or apparent authority to enter into or vary contractual
arrangements on behalf of the
builder
, the particular purpose for
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which the
building works
are required or the result that the
owner
desires to be achieved, so as to show that the
owner
relies on the
builder's
skill and judgment.
Clause 40. Mandatory Conditions
40.1
To the extent required by the Home Building Act and subject to sub-
clause 40.2, the
building works
will comply with:
(a) the Building Code of Australia (to the extent required under the
Environmental Planning and Assessment Act 1979
(NSW)
(Environmental Planning and Assessment Act), including any
regulation or other instrument made under that Act);
(b) all other relevant codes, standards and specifications that the
building works
are required to comply with under any law; and
(c) the conditions of any relevant development consent or complying
development certificate.
40.2
The
builder
is not liable if the
building works
do not comply with the
requirements of sub-clause 40.1 if the failure relates solely to:
(a) a design or specification prepared by or on behalf of the
owner
(but not by or on behalf of the
builder
); or
(b) a design or specification required by the
owner
, if the
builder
has
advised the
owner
in writing that the design or specification
contravenes sub-clause 40.1.
40.3
To the extent required by the Home Building Act:
(a) all plans and specifications for the
building works
including any
variations to those plans and specifications form part of this
contract
;
(b) any agreement to vary this
contract
, or to vary the plans and
specifications for the
building works
, must be in writing and signed
by the parties;
(c) the
builder
will notify the
owner
if a registered certifier is required
with respect to particular work done under this contract;
(d) the selection of a registered certifier is the sole responsibility of the
owner
(subject to section 6.6(4A) or 6.12(4A) of the Environmental
Planning and Assessment Act;
(e) the
builder
will not object to the selection by the
owner
of any
particular registered certifier.
Refer to Clause 27.
40.4
This
contract
may be terminated in circumstances provided by common
law. This does not limit the circumstances in which the
contract
may be
terminated.
Clause 41. Assignment and Subcontracting
41.1
Neither party may assign this
contract
or any of their rights, benefits or
obligations under this
contract
without the prior written consent of the
other party.
41.2
The
builder
may subcontract any part of the
building works
but remains
responsible for all of the
building works
.
Clause 42. No Waiver
42.1
Except as provided at law or in equity or elsewhere in this
contract
, none
of the provisions of this
contract
may be varied, waived, discharged or
released, except with the prior written consent of the parties.
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Clause 43. Severance
43.1
Any provision in this
contract
which is illegal, void or unenforceable will be
ineffective to the extent only of such illegality, voidness or unenforceability
and will not invalidate any other provision of this
contract
.
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Representation by Agent
THIS ONLY APPLIES WHEN ALL PARTIES HAVE COMPLETED AND SIGNED
THIS PAGE
The
owner
and the
builder
agree that:
_________________________________________________________________________
(name)
of
_________________________________________________________________________
(company)
is appointed as agent for the owner.
The agent must provide instructions to the
builder
on behalf of the
owner
as required by this
contract
.
Dated:
___________________________________________________________________
Signed:
Owner
Builder
Agent
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Approved form under: Home Building Regulation 2014 (NSW) (clause 8)
Page
1
of
2
Attachment A
Checklist for owners entering into contracts for residential building
work worth more than $20,000
Checklist
1.
Have you checked that contractor holds a current contractor licence?
Yes
☐
No
☐
2.
Does the licence cover the type of work included in the contract?
Yes
☐
No
☐
3.
Is the name and number on the contractor’s licence the same as on
the contract?
Yes
☐
No
☐
4.
Is the work to be undertaken covered in the contract, drawings or
specifications?
Yes
☐
No
☐
5.
Does the contract clearly state a contract price or contain a warning
that the contract price is not known?
Yes
☐
No
☐
6.
If the contract price may be varied, is there a warning and an
explanation about how it may be varied?
Yes
☐
No
☐
7.
Are you aware of the cooling-off provisions relating to the contract?
Yes
☐
No
☐
8.
Is the deposit within the legal limit of 10%?
Yes
☐
No
☐
9.
Does the contract include details of the progress payments payable
under the contract?
Yes
☐
No
☐
10.
Do you understand the procedure to make a variation to the contract?
Yes
☐
No
☐
11.
Are you aware of who is to obtain any council or other approval for the
work?
Yes
☐
No
☐
12.
Do you understand that any registered certifier required to certify work
under the contract is to be selected by you and the contractor cannot
object to your selection?
Yes
☐
No
☐
13.
Do you understand that you are not required to pay the contractor a
deposit or any progress payments until the contractor has given you a
certificate of insurance under Part 6 or Part 6B of the
Home Building
Act 1989
(except where the work is of a kind that does not require
insurance)?
Yes
☐
No
☐
14.
Does the contract include either of the following:
(a) the cost of the insurance under Part 6 of the
Home Building Act
1989
,
(b) the cost of the alternative indemnity product under Part 6B of
the
Home Building Act 1989
?
Yes
☐
No
☐
15.
Has the contractor given you a copy of the Consumer Building Guide,
which provides key information about your rights and responsibilities
under NSW’s home building laws and where to get more information?
Yes
☐
No
☐
16.
Does the contract include a statement about the circumstances in
which the contract may be terminated?
Yes
☐
No
☐
17.
Does the contract include the Security of Payment Guide which provides
key information about your rights and responsibilities under the
Building
and Construction Industry Security of Payment Act 1999
and the Building
and Construction Industry Security of Payment Regulation 2020?
Yes
☐
No
☐
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Approved form under: Home Building Regulation 2014 (NSW) (clause 8)
Page
2
of
2
Signatures
Do not sign the contract unless you have read and understand the clauses as well as the
notes and explanations contained in the contract and this document.
If you have answered “no” to any question in
the checklist, you may not be ready to sign the
contract.
Both the contractor and the owner should retain an identical signed copy of the contract
including the drawings, specifications and other attached documents. Make sure that you
initial all attached documents and any amendments or deletions to the contract.
Signed copy of contract
Under the
Home Building Act 1989
a signed copy of the contract must be given to the
owner within 5 working days after the contract is entered into.
Insurance under Part 6 or Part 6B of the
Home Building Act 1989
The contractor must provide you with a certificate of insurance under Part 6 or Part 6B of
the
Home Building Act 1989
before the contractor commences work and before the
contractor can request or receive any payment.
Acknowledgement of owners
☐
I/We have been given a copy of the Consumer Building Guide and I/we have read
and understand it.
☐
I/We have completed the checklist and answered “
Yes
” to all items on it.
Note
Where the owner is a company or partnership or the contract is to be signed by an
authorised agent of the owner, the capacity of the person signing the contract, eg director,
must be inserted.
Signatures
X
X
Name
(print):
Name
(print):
Capacity
(print):
Capacity
(print):
Date
Date
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July 2020
Consumer Building Guide
Mandatory information for consumers
Builders and tradespeople must give you a copy of
this guide
before entering into a contract for residential
building work that costs more than $5,000. Read this
guide to help protect your rights, carry out your
responsibilities and support your building project.
Protecting consumers under home
building laws
NSW Fair Trading is the NSW Government
agency regulating residential building work (including
building or trade work on single dwellings, villas, houses
and home units) under the
Home Building Act 1989
.
What to consider before work starts
Licensing
Licensing requirements include:
●
tradespeople and builders carrying out residential
building work valued at more than $5,000 must be
licensed by NSW Fair Trading (check a
licence on the Fair Trading website or by calling 13
32 20)
●
regardless of the work's cost, a licence is always
required for specialist work (like plumbing, air
conditioning and refrigeration, electrical work
and gasfitting)
●
if the work requires more than one tradesperson,
you need a builder to manage the building project
and
co-ordinate the tradespeople, such as plumbers,
painters and carpenters.
Home Building Compensation Scheme
The State Insurance Regulatory Authority (SIRA)
regulates home building compensation (HBC) cover in
NSW. HBC cover is required where work is worth more
than $20,000 (including labour and materials). The
builder or tradesperson must give you evidence of HBC
cover before they start work on your project or you pay
them any money, including a deposit. For more
information or to check the validity of your
cover, visit sira.nsw.gov.au or call 13 10 50.
Approvals
To help your building project go smoothly:
●
check with your local council or an accredited private
certifier on approvals your building work needs
●
engage a building certifier. This is your responsibility,
not the builder´s.
Contracts and payments
All contracts must be in writing
. The two main
contract types are:
●
fixed price or lump sum
- where the builder or
tradesperson agrees upfront to a fixed amount for
the whole job. Unforeseen changes during
construction may affect the final cost
●
cost plus contract
- there is no guaranteed final
cost for the job (often this contract is used
where the project's nature prevents the final cost
from being calculated). The consumer repays the
builder for verified direct and indirect costs and fees
at regular intervals. It is good practice for the builder
to give a non-binding estimate before starting, and
track costs with you against the project's budgeted
estimate.
Residential building work
worth less than $20,000
must
be done under a 'small jobs' contract. The written
contract must be dated and signed by, or on behalf of,
each party. It may specify that work be paid for at regular
intervals. It must contain:
●
the parties' names, including the name of the holder
of the contractor licence as shown on the contractor
licence
●
the number of the contractor licence
●
a description of the work
●
any plans or specifications for the work, and
●
the contract price, if known.
Residential building contracts and contracts for specialist
work valued at more than $5,000, which require a certifier,
must (unless you are a developer) include terms about your
freedom to choose your own certifier. The contractor must
Attachment B
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July 2020
also give you prescribed information about certifiers,
published by Fair Trading, before entering into a contract.
It is an offence for a contractor to unduly influence your
choice of a certifier or object to your choice. Examples of
undue influence include:
making it a requirement of the contract that a
specified certifier or class of certifier is or isn’t
appointed
offering to change the contract price if a specified
certifier or class of certifier is or isn’t appointed
refusing to carry out work under the contract if a
specified certifier or class of certifier is or isn’t
appointed.
Residential building contracts regarding work
worth more than $20,000
requires a full home
building contract. As well as all of the requirements
of the 'small jobs' contract, it must include other
comprehensive information such as the details of
the statutory warranties the builder must provide,
the cost of any applicable HBC cover and the
contract price or warning that the contract price is
not known. The contract must also include a
checklist prescribed by Fair Trading. Find a
complete list of contract requirements
on our
website.
All contracts over $20,000 in value must have a
progress payment schedule. Progress payments must
match the work carried out and, for cost plus contracts,
be supported by receipts or other verifying documents.
Any change you need to make to a contract is a
'
variation
'. Variations must be in writing and be signed
by both parties to the contract. Almost all will impact the
contract price.
The
maximum deposit
you can be asked to pay
before work starts is 10%.
Common traps and tricks
Beware of:
●
an extremely low quote compared with others. This
may indicate the job's quality is being compromised,
or that the builder may not fully understand what is
required
●
`sales pitches´ putting pressure on you to sign
a contract quickly to avoid a price increase
●
a builder who recommends you get an owner-builder
permit while they organise all the building work. The
builder may be trying to avoid responsibility and may
not have the right kind of licence or HBC cover.
When things go wrong
Statutory warranties
Builders and tradespeople must guarantee that their work is
fit-for-purpose, performed diligently and delivered in a
reasonable timeframe, in line with the contract. Unless
otherwise specified, materials should be new and
appropriately used. These warranties are time-limited: legal
proceedings to enforce them must be
commenced within 6 years for major defects and 2 years
for all other defects. There is another 6 months for both
warranty periods if the defect only became apparent after 18
months or 5 and a half years. Find out more about these
warranties on the Fair Trading website.
Resolving a dispute with your builder or
tradesperson
These steps can help you resolve a dispute:
●
you must notify your builder or tradesperson
and
discuss concerns as soon as you become aware of a
problem. Follow up with an email or letter
●
understand acceptable work standards
by
downloading the
Guide to Standards and
Tolerances
from our website
●
contact Fair Trading for
free dispute resolution
if
you and your builder or tradesperson are unable to
resolve the dispute
●
lodge a claim with the
NSW Civil and
Administrative Tribunal (NCAT)
if you remain
unsatisfied with the dispute resolution outcome
●
protect your rights under the
HBC Scheme
: contact
your insurer or provider as soon as you become
aware of defective or incomplete work.
Home building compensation disputes
For help resolving disputes with a HBC insurer or
provider, visit the SIRA website sira.nsw.gov.au or call 13
10 50.
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July 2020
More information
Visit the Fair Trading website to:
●
learn more on your rights and responsibilities and
the statutory warranties
●
do an online licence check to verify a builder or
tradesperson´s licence details
●
find out about dispute resolution
●
download free home building contracts
●
subscribe to enews.
www.fairtrading.nsw.gov.au
Fair Trading enquiries 13 32 20
TTY 1300 723 404
Language assistance 13 14 50
This fact sheet must not be relied on as
legal advice. For more information about
this
topic,
refer
to
the
appropriate
legislation.
© State of New South Wales through NSW Fair Trading
We encourage the reuse of this information under the Creative Commons Attribution 4.0
licence. See NSW Fair Trading's copyright policy at www.fairtrading.nsw.gov.au or email
publications@finance.nsw.gov.au
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PO Box 972
Parramatta NSW 2124
Tel: 02 9895 0111 TTY: 1300 723 404
ABN 81 913 830 179
www.fairtrading.nsw.gov.au
Home Building Act 1989
Important: this is a summary document only.
This is the form of information about the role of a registered certifier, approved by the Secretary
for the holder of a contractor licence to give to the other party to a contract. It is an offence
under section 11B of the
Home Building Act 1989
if the licence holder does not provide this
document to the other party before entering into a contract.
This requirement applies to a contract under which the licence holder undertakes:
•
to do, in person, or by others, any residential building work or any specialist work, or
•
to vary any such undertaking to do residential building work or any specialist work or
the way in which any such work is to be done,
but only if a registered certifier will be required with respect to some/all of the work.
This requirement does not apply to:
•
a contract to do residential building work entered into between the holder of a
contractor licence and a developer with respect to the work,
•
a contract for which the contract price does not exceed $5,000 or (if the contract
price is not known) the reasonable market cost of the labour and materials involved
does not exceed $5,000,
•
a contract of a class prescribed by the
Home Building Regulation 2014
1
.
A registered certifier is a public official, independent of the contractor
Registered certifiers are public officials who do not work for builders, contractors, developers or
property owners. A certifier can be from the private sector or your local council.
A certifier’s role is to make an independent assessment to determine if relevant requirements of
the
Environmental Planning and Assessment Act 1979
have been met to warrant the issuing of
a construction certificate, complying development certificate or occupation certificate.
Certifiers do not supervise or manage builders, contractors or building sites.
1
None are currently prescribed by the Regulation.
Attachment C
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Information about registered certifiers –
Home Building Act 1989
– June 2020
What are a certifier’s responsibilities at each stage?
Before construction starts, a certifier’s responsibilities include to:
•
check whether the proposed work will meet legislative requirements if built in
accordance with the approved plans and specifications
•
advise which inspections will be mandatory as the work progresses
•
notify the council of their appointment as the principal certifier
•
check your builder or contractor is licensed and insured under the
Home Building Act
1989
•
check whether any applicable conditions of your consent or approval are met
•
check whether any applicable fees are paid, such as the long service levy
•
install a sign on the building site, showing the certifier’s details
•
inspect the building site (if required).
During construction, a certifier’s responsibilities include to:
•
inspect the work in person, at each required stage
•
if a non-compliance is identified, issue a direction to you and/or the builder requiring
certain action to be taken, and notify the council if the required action isn’t taken
•
respond appropriately to any complaints about the development, including informing
the council if needed.
After construction is finished, a certifier may issue an occupation certificate if:
•
all relevant conditions of your consent are met, and you have applied for the
occupation certificate, and
•
all inspections have been carried out and the work is found to be satisfactory, unless
an inspection (other than the final inspection) was missed under circumstances
deemed unavoidable by the certifier (and evidence of suitability of the work is
provided), and
•
the work is ‘suitable for occupation’ in accordance with the Building Code of
Australia. Important: this is a minimum standard of compliance that must be met. It
does not guarantee that all the work has been completed. For example, a house or
apartment may be suitable for occupation while painting or landscaping is still being
completed.
An occupation certificate does not certify that the conditions of your contract with the builder
have been met. The contract with your builder is a different contract to the contract with your
certifier and must be considered separately.
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Information about registered certifiers –
Home Building Act 1989
– June 2020
Your obligations
Appoint and enter into a contract with your chosen certifier. The choice and appointment of a
certifier is yours – your builder may recommend a certifier but cannot appoint the certifier for
you, cannot offer to change the contract price, and cannot refuse to carry out work if a particular
certifier is not appointed.
You must communicate with your builder, who will notify the certifier of each stage of work so
the certifier can inspect it. If an inspection is missed, the certifier may have to refuse to issue an
occupation certificate. You can request that the certifier and builder copy you into all
correspondence between them.
Finding more information on certifiers
Details of the class of registration each certifier holds, their period of registration, professional
indemnity insurance and disciplinary history can be found at
www.fairtrading.nsw.gov.au
:
•
Details of registered certifiers
(or search ‘appointing a certifier’ from the homepage)
•
Disciplinary actions against certifiers
(or search ‘certifier disciplinary register’ from the
homepage).
Questions?
The Fair Trading website
www.fairtrading.nsw.gov.au
has information about certifiers,
enforcement powers, how to replace a certifier and resolving concerns about a certifier:
•
Search ‘
what certifiers do
’ for information about a certifier’s role and responsibilities.
•
Search ‘
concerns with development
’ for information about enforcement powers of
certifiers, councils and Fair Trading, and how to resolve concerns about a certifier.
© State of New South Wales through Department of Customer Service 2020.
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Fair Trading Security of Payment Guide | February 2021
Security of Payment Guide
Understanding progress payments in the building and construction industry
The Security of Payment laws
In NSW, people who carry out construction work
or supply related goods and services under a
construction contract are entitled to receive
progress payments for the work or supply of
those goods and services.
This is regulated by the
Building and
Construction Industry Security of Payment Act
1999
(NSW) and Building and Construction
Industry Security of Payment Regulation 2020
(NSW) (“Security of Payment laws”).
The Security of Payment laws are relevant to
those involved in contracts within the building
and construction industry such as builders,
tradies, subcontractors, consultants and
suppliers.
The purpose of the Security of Payment laws is
to reduce the risk of insolvency in the building
and construction industry in NSW by ensuring
members of the contractual chain are paid for
the work or services they provide.
What do the Security of Payment laws
apply to?
Any construction contract.
A construction contract that is written or oral.
A construction contract that is partly written
and partly oral.
A construction contract that says it is to be
governed by a law of a State or Territory
outside of NSW but the work is carried out
in NSW.
On and from 1 March 2021, owner occupier
construction contracts.
What are owner occupier construction
contracts?
Owner occupier construction contracts are
construction contracts for residential building
work on any premises or part of the premises
where the contracting party resides or proposes
to reside in. For example, an home owner
engaging a builder to build their home.
What’s not covered under Security of
Payment laws?
x
A construction contract where the work is
performed outside of NSW.
x
A construction contract for goods and
services supplied in respect of construction
work outside of NSW.
x
A construction contract that regulates an
employer/employee relationship.
x
A construction contract that relates to a
financial loan.
What is a progress payment?
A progress payment includes:
• The final payment for construction work
carried out or the supply of the goods/
services under the construction contract, or
• A single or one-off payment for carrying out
construction work or the supply of goods/
services under the construction contract, or
• A payment based on an event or date
(“milestone payment”).
This does not prevent the building contractor
making one payment claim for a progress
payment in any particular month for construction
work carried out or for related goods and
services supplied in that month.
How is a progress payment amount
determined?
The progress payment amount is usually set out
in the construction contract.
If the progress payment amount is not set out in
the construction contract, the amount will be
calculated based on the value of the construction
work undertaken or the goods/service provided.
When is a progress payment due for
payment?
A progress payment should be made in
accordance with the terms of the applicable
construction contract.
Page 1 of 4
Attachment D
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Fair Trading Security of Payment Guide | February 2021
Due date for payment
A person entitled to a progress payment (the
claimant) may serve a payment claim on the
person who, under the construction contract
concerned, is or may be liable to make the
payment.
There are specific maximum deadlines for
payment depending on the nature of the
contract.
If the construction contract under which the
payment claim is made is
not
an owner occupier
construction contract as defined by the Act, the
following will apply:
Where a head contractor
makes a payment
claim to a principal, the payment claim becomes
due and payable by the principal:
• 15 business days after the payment claim is
served on the principal, or
•
an earlier date if the construction contract
between the principal and head contractor
specifies this.
A progress payment to be made to a
subcontractor
becomes due and payable:
• 20 business days after the payment claim is
served on the head contractor, or
• an earlier date if the construction contract
between the parties specifies this.
Where a party to an
owner occupier
construction contract
makes a payment claim,
the claim becomes due and payable:
•
in accordance with the terms of the contract,
or
•
if the contract makes no express provision
with respect to the matter, on the date
occurring 10 business days after a payment
claim is served on the person liable to make
the payment.
Procedure for recovering progress
payments
A claimant can serve one payment claim in
any month under each contract (can be on
last day of one month and first day of next
month) or on or from an earlier date if the
contract provides this.
If the construction contract has been
terminated, a payment claim can be made
from the date of termination.
A payment claim must identify the goods or
services the claim relates to, the claimed
amount, and clearly state it is a payment claim
made under the Security of Payment laws.
A claimant can only make a claim within the
period determined in the contract or
12 months after the work was carried out
(whichever is later).
A head contractor claimant must fill out and
attach a supporting statement form to their
claim.
Replying to a payment claim: payment
schedules
A party who has been served a payment claim
(“the respondent”), may reply by providing a
payment schedule
to the claimant.
There are strict timeframes for a respondent to
provide a payment schedule to a claimant. These
are:
•
within the time outlined in the construction
contract, or
•
within 10 business days after the payment
claim is served (whichever is earlier).
If a respondent does not provide a payment
schedule to the claimant within the timeframe
required, they are liable to pay the amount
requested by the claimant in the payment claim.
A payment schedule must identify:
•
the payment claim it is for
•
the amount of payment (if any) that will be
paid (the “scheduled amount”)
•
if the scheduled amount is less than the
claimed amount, why the scheduled amount
is less
•
if it is less because the respondent is
withholding payment for any reason, the
respondent’s reasons for withholding
payment.
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Important facts
• Interest is payable on the unpaid amount of a
progress payment that has become due and
payable.
• If a progress payment is due and payable, a
claimant can exercise a legal right (called a
lien) to legally possess any unfixed plant or
materials they have supplied to the respondent,
until the progress payment is paid.
What if a progress payment is not paid?
If the claimant has made a payment claim, and
the respondent does not accept the payment
claim, a claimant can apply to have the matter
dealt with by an adjudicator or a court.
A claimant can make a claim in court or make an
application for the matter to be heard by an
adjudicator, if:
• the respondent does not provide a payment
schedule, or
• the scheduled amount indicated in the
payment schedule is less than the claimed
amount indicated in the payment claim, or
• the respondent does not pay the claimant in
accordance with the payment schedule.
A claimant can serve a payment withholding
request on a principal contractor to retain
sufficient money to cover the claim out of money
that is, or becomes payable by the principal
contractor to the respondent.
Adjudication
A claimant may apply for adjudication of a
payment claim where the respondent provides a
payment schedule but:
• the scheduled amount indicated in the
payment schedule is less than the claimed
amount, or
• the respondent fails to pay the whole or any
part of the scheduled amount to the claimant
by the due date for payment of the amount.
The claimant may also apply for adjudication of a
payment claim if the respondent fails to provide
a payment schedule at all to the claimant and
also fails to pay the whole or any part of the
claimed amount by the due date for payment of
the amount.
Information relating to the adjudication of
payment claims is outlined in
Division 2, Part 3
of the Act.
Key points: Adjudication
• The Security of Payment laws provide rules
relating to an adjudication application, such
as the number of days an application must be
made within. For more details see
section 17
of the Act.
• A claimant may withdraw an adjudication
application at any time before an adjudicator
has been appointed or before the application
is determined.
• Authorised nominating authorities
(organisations authorised by the Minister)
refer adjudication applications to an eligible
adjudicator. The eligibility criteria for
adjudicators is detailed in clause
19 of the
Regulation
.
Trust account requirements
If a head contractor has a construction contract
with a principal that has a value of at least
$20
million
, the head contractor has an obligation to:
Hold
retention money
in trust for the
subcontractors entitled to the money.
Ensure that the money is paid into and
retained in a trust account established with
an authorised deposit-taking institution (ADI)
approved under
section 87 of the Property
and Stock Agents Act 2002.
Ensure the retention money is paid into the
trust account no later than 5 business days
after the head contractor is required to retain
the retention money.
What is retention money?
Retention money means money that is retained
by a head contractor out of money that the head
contractor is required to pay to a subcontractor
under a construction contract as security for the
performance of obligations of the subcontractor
under the contract.
For example, 5% of the contract’s value may be
held as the retention money, or there could be an
arrangement where there will be a 10% deduction
from each of the subcontractor’s progress
payments which is kept as the retention money
component. Each construction contract may
contain different terms and can be negotiated.
Fair Trading Security of Payment Guide fact sheet | July 2021
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Establishing a trust account
When establishing a trust account for retention
money, there are certain requirements, such as
notifying the Secretary of the account’s details
and notifying the ADI that it is an account
opened for the purposes of the Security of
Payment laws.
For more information on the requirements when
opening a trust account see
clause 9 of the
Regulation.
Withdrawals from a trust account
A head contractor must not withdraw retention
money from a retention money trust account
except for 1 of these 4 reasons:
Payment of money in accordance with the
terms of the construction contract under
which the money was retained by the head
contractor.
If the head contractor and subcontractor
make an agreement in writing.
To pay an amount that an adjudicator has
determined the respondent must pay to the
claimant.
In accordance with an order of a court or
tribunal.
x
It cannot be used by the head contractor to
pay their own debts.
Record keeping
A head contractor must keep records in the form
of a ledger to keep track of things such as the
amounts deposited into or withdrawn from the
account. The ledger is to be provided to the
subcontractor at least once every 3 months, or as
often as may be agreed in writing by the head
contractor and the subcontractor (but at least
once every 6 months).
More information
Visit
fairtrading.nsw.gov
and search for “security
of payment or email
securityofpayment@custom-
erservice.nsw.gov.au
For further help call 13 32 20. If you’re deaf, hard
of hearing, or speech-impaired, contact us through
the
National Relay Service
. If you speak a language
other than English, call our Telephone Interpreter
Service on 13 14 50.
Definitions: key terms
Principal
means the person for whom
construction work is to be carried out or related
goods and services supplied under a
construction contract (the main contract) and
who is not themselves engaged under a
construction contract to carry out construction
work or supply related goods and services as
part of or incidental to the work or goods and
services carried out or supplied under the main
contract.
Head contractor
means the person who is to
carry out construction work or supply related
goods and services for the principal under a
construction contract (the main contract) and for
whom construction work is to be carried out or
related goods and services supplied under a
construction contract as part of or incidental to
the work or goods and services carried out or
supplied under the main contract.
Note
—There is
no head contractor when the principal contracts
directly with subcontractors.
Subcontractor
means a person who is to carry
out construction work or supply related goods
and services under a construction contract
otherwise than as head contractor.
Claimant
means a person by whom a payment
claim is served.
Respondent
means a person on whom a
payment claim is served.
This fact sheet must not be relied on as legal advice.±
For more information about this topic, refer to the appropriate±
legislation. © State of New South Wales (NSW Fair Trading)
. ±
See NSW Fair Trading’s copyright policy at fairtrading.nsw.gov.au±
or email
publications@fnance.nsw.gov.au±
Approved form under: Home Building Regulation 2014 (clause 8)±
fairtrading.nsw.gov.au
13 32 20
Fair Trading Security of Payment Guide | February 2021
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DocuSign Envelope ID: 62D05041-6824-4895-9224-23CADB337E5D
SandTech Property Group Pty Ltd
Design-Build-Handover
ABN:63621525193
Builder’s Licence: 332412C
Address: 32 Somerset St, Stanhope Gardens, nsw-2768
Email:
info@sandtech.com.au
M: 0402171503
SandTech Smart Specification: STS 010
Client: MD Abdus Sayek Khan
Umme Safura
Aliya Khan
Site Address: 70 Portico Parade, Toongabbie Unit 1 ,2146 NSW
Dear Concern,
Thank you for expressing your interest about quotation of building your new
dream home with SandTech Property Group Pty Ltd.
SandTech skilled personnel blend your expectation with your dream to build
up your smart living.
SandTech Team are pleased to submit this tender for your project.
This tender is based on the following proposals listed below. Any update with
plan and specification is rendered as variation.
Tender:
❖
Standard Fixed price Contract
❖
Construction Period:
54weeks after Bank commencement letter or DA/CC/CDC
approval whichever comes later.
Building Type & Size:
❖
180.56sqm 3 bedrooms double storey house with 3 toilets, BBQ provision at alfresco,
single garage and façade and OSD as per plan.
Tender’s Preliminary:
❖
Architectural, structural drawings, stormwater and other related documents with
CDC (or DA with CC) approval by the client.
❖
Home warranty and public liability insurance by the builder.
DocuSign Envelope ID: 7409AEB2-0FCF-4CBF-AD0C-E4AF663CFC14
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DocuSign Envelope ID: 62D05041-6824-4895-9224-23CADB337E5D
SandTech Property Group Pty Ltd
Design-Build-Handover
ABN:63621525193
Builder’s Licence: 332412C
Address: 32 Somerset St, Stanhope Gardens, nsw-2768
Email:
info@sandtech.com.au
M: 0402171503
Tender Price including GST: $451,400.00
{As per Standard Inclusion list}
This
Tender is valid for 30 days from the day of issue.
SandTech Smart Specification: STS 010
Client: MD Abdus Sayek Khan
Umme Safura Aliya Khan
Site Address: 70 Portico Parade,Unit 1, Toongabbie 2146 NSW
Inclusion lists for each house:
1.
Site costs and Statutory requirements:
❖
Temporary fence and toilet
❖
Sediment control measures
❖
Scaffolding and safety rails as per Work Cover requirement.
❖
Telstra/NBN connection outlet. The owner needs to arrange service provider.
❖
Provide sewer, gas, electricity and water connection to near junction within
boundary
2.
External:
❖
Underground power connection to suit Single/Three phase metering.
❖
Builder
range concrete roof tiles (skylight will be variation. Owner has to purchase).
❖
Fascia and gutters as per standard colour selection from colour bond.
❖
PVC downpipes
❖
Front & rear garden taps (2) (150$ for extra each).
❖
Brick veneer wall.
❖
Face brick from SandTech standard range. Allowance: $900/1000 bricks
❖
Rainwater Tank and hot water system as per plan
❖
1 sensor light in front of garage, 4 external wall lights and 2 column lights.
❖
Front
façade wall with cement render and paint finished (as per plan).
❖
Residential
grade aluminium frame key locked window with fly screen as per window schedule.
(Blinds not included)
❖
sliding door. ( Stacker door or bi-fold door will be variation)
❖
Gas hot and
coldwater provision at alfresco.
DocuSign Envelope ID: 7409AEB2-0FCF-4CBF-AD0C-E4AF663CFC14
DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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DocuSign Envelope ID: 62D05041-6824-4895-9224-23CADB337E5D
SandTech Property Group Pty Ltd
Design-Build-Handover
ABN:63621525193
Builder’s Licence: 332412C
Address: 32 Somerset St, Stanhope Gardens, nsw-2768
Email:
info@sandtech.com.au
❖
3.
Pier, slab, Footing and Drop edge Beam
❖
Cut and fill upto 1m. Waffle pod slab as per structural plan.
M: 0402171503
❖
SandTech will provide upto 3 LM drop edge beam. Any additional will be charged
$450/LM. Customer will be informed for confirmation prior to commencement.
❖
Termite protection
SandTech Smart Specification: STS 002
Client: MD Abdus Sayek Khan
Umme Safura Aliya Khan
Site Address: 70 Portico Parade,Unit 1, Toongabbie 2146 NSW
4.
Frame and Truss:
❖
Frame & truss as per BCA AS1684.4 2010 guideline.
❖
90 mm external & internal wall frames.
❖
LVL or steel beam as per engineering drawing.
5.
Internal:
❖
Ceiling height 2.7m
as per plan.
❖
Wall and ceiling with 10mm plasterboard
❖
Kitchen and laundry area with WR 10mm plasterboard.
❖
Internal wall wet area to be 6mm villa board.
❖
90 mm cove cornices
❖
Entrance door from Corinthian or Hume doors. Allowance: $750
❖
Hollow core internal doors with gloss finished paint
❖
Main door with entrance lock and internal door with privacy lock.
❖
67 mm architraves and skiting.
❖
Porch and alfresco area will be constructed with Tiles and it is $27 per square metre.
❖
All meals, kitchen, family, living and laundry will be covered by tiles$27/sqm.
DocuSign Envelope ID: 7409AEB2-0FCF-4CBF-AD0C-E4AF663CFC14
DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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DocuSign Envelope ID: 62D05041-6824-4895-9224-23CADB337E5D
SandTech Property Group Pty Ltd
Design-Build-Handover
ABN:63621525193
Builder’s Licence: 332412C
Address: 32 Somerset St, Stanhope Gardens, nsw-2768
Email:
info@sandtech.com.au
❖
Laminating Timber flooring will be used to covered in
all bedrooms. Allowance:
$45/sqm incl supply and installation.
❖
Any drop ceiling will be variation
❖
As per plan staircase will be MDF( staircase area and void area will be covered by
timber railing)
DocuSign Envelope ID: 7409AEB2-0FCF-4CBF-AD0C-E4AF663CFC14
DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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DocuSign Envelope ID: 62D05041-6824-4895-9224-23CADB337E5D
SandTech Property Group Pty Ltd
Design-Build-Handover
ABN:63621525193
Builder’s Licence:
332412C
Address: 32 Somerset St, Stanhope Gardens, nsw-2768
Email:
info@sandtech.com.au
M: 0402171503
6.
Painting:
❖
High quality residential grade 3 coats SandTech range paint throughout to wall
and ceiling.
❖
High gloss oil-based paint to all architraves, skirting and internal doors with jam.
❖
Stain or high gloss enamel paint finished main entrance door.
❖
Feature wall: SandTech has allowance for two feature walls except 3D effect paint.
DocuSign Envelope ID: 7409AEB2-0FCF-4CBF-AD0C-E4AF663CFC14
DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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DocuSign Envelope ID: 62D05041-6824-4895-9224-23CADB337E5D
❖
7.
Insulation:
❖
Insulation as per BASIX but not less than R2.2 for external wall and R4.0 for ceiling
except garage ceiling.
8.
Electrical:
SandTech Property Group Pty Ltd
Design-Build-Handover
ABN:63621525193
Builder’s Licence: 332412C
Address: 32 Somerset St, Stanhope Gardens, nsw-2768
Email:
info@sandtech.com.au
M: 0402171503
SandTech Smart Specification: STS 002
Client: MD Abdus Sayek Khan
Umme Safura Aliya Khan
Site Address: 70 Portico Parade, Unit 1 Toongabbie 2146 NSW
❖
50 down lights from
builder’s range (extra down lights will be variation of 100$
each)
❖
1x 1m fluorescent light to garage.
❖
3 in 1 (IXL) light, heater and fan to each bathroom.
❖
25 double power points throughout the house from builder’s range. (Extra power
points will be variation of 100$ each)
❖
3 weatherproof external power points.
❖
3xTV, 3xData and 2x Telephone points. Extra points will be variation of 120$ each.
❖
1xvideo intercom with single screen.
❖
1xDigital TV Antenna.
❖
2-way switches where applicable (only 2 allowed). Extra will be 150$
❖
Smoke
detector as per plan.
❖
Security alarm up to 5 sensors (with remote tuned with garage motor will be
variation 1,200$ for 2 remote).
❖
Supply and install 1 sensor light Infront of garage and 4 others around the house.
Extra will be 120$ each.
❖
2 column lights at the front façade.
Owner will provide the lights
.
❖
CCTV camera is an extra choice at $2,500 for 8 cameras.
❖
Pendant lights will be supplied by the owner and installed by the builder.
❖
Chandelier and spot light is an extra choice. Position can be replaced with batten
holder on builders’ cost. But if the owner supplies the lights then $ 130/ lights will be
charged for installation cost.
❖
26L Rinnai continuous flow hot water system.
DocuSign Envelope ID: 7409AEB2-0FCF-4CBF-AD0C-E4AF663CFC14
DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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DocuSign Envelope ID: 62D05041-6824-4895-9224-23CADB337E5D
9.
Bathroom:
Ceramic modern toilet.
❖
Wall mounted vanity with ceramic top.
❖
As per plan all wall
mounedt vanity in master bed ensuite. Vanity: $600 each (single
bowl with stone), $900 each (Double). (Black colour vanity bowl will be variation of
225$ each)
❖
Bevel edged frameless mirror to the length of the vanity.
❖
Aluminium semi frame shower screen with safety glass.
❖
1 deep niche on the hall way behind the fridge.
❖
Shower head with mixer and handsets (black colour will be 100$ variation each).
❖
SandTech builder’s range free standi
ng bathtub. Allowance: $750 each
❖
Ceramic
or porcelain floor tiles to bathroom and ensuite. Allowance: $2/sqm
SandTech Property Group Pty Ltd
Design-Build-Handover
ABN:63621525193
Builder’s Licence: 332412C
Address: 32 Somerset St, Stanhope Gardens, nsw-2768
Email:
info@sandtech.com.au
M: 0402171503
SandTech Smart Specification: STS 010
Client: MD Abdus Sayek Khan
Umme Safura Aliya Khan
Site Address: 70 Portico Parade, Toongabbie Unit 1, 2146 NSW
❖
Ceramic or porcelain wall tiles up to ceiling of each bathroom and ensuite.
Allowance: $27/sqm.
❖
Toilet paper holder& towel rails to all bathrooms and ensuite.
❖
Chrome finished basin mixer and floor wastes. Tapware allowance: $80 each. (Black
colour will be variation about 30$ each)
❖
Waterproofing to BCA standard.
10.
Built-in, WIR and Linen:
❖
Built-in robes with standard mirror sliding doors, 3 drawers, 3 shelves in white
melamine and 2 hanging rails. Variation will be applicable if owner include more
shelves or drawers.
❖
Linen with 3 shelves in white melamine
❖
WIR: 3 drawers, 3 shelves in white melamine and 2 hanging rails.
❖
Walk in pantry with 3 shelves in white melamine.
DocuSign Envelope ID: 7409AEB2-0FCF-4CBF-AD0C-E4AF663CFC14
DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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DocuSign Envelope ID: 62D05041-6824-4895-9224-23CADB337E5D
❖
11.
Kitchen:
❖
Custom made kitchen as per plan with in-build bins (double bin) and integrated
double door fridge cabinet. (integrated double door fridge can be supplied and
installed for 2500$ extra)
DocuSign Envelope ID: 7409AEB2-0FCF-4CBF-AD0C-E4AF663CFC14
DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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DocuSign Envelope ID: 62D05041-6824-4895-9224-23CADB337E5D
❖
Soft close poly-tec kitchen cabinet with sheen or matt finished.
❖
40 mm quantum quartz edge stone in kitchen and island benchtop with no waterfall.
❖
Stainless steel double bowl top mount kitchen sink with modern mixer from
builder’s range. (undermount will
be variation)
❖
Laminated kick board to match
doors.
❖
Tiles or glass splash back underside of overhead cupboards.
❖
Dishwasher and microwave provision will be kept on the kitchen. (supply of
dishwasher will be variation)
❖
For Main Kitchen, SandTech builder
’s range is 90cm (5 burner) gas cooktop, 90cm
electric oven and 90 cm integrated range hood.
12.
Laundry:
❖
45L Laundry tub with cabinet and rinse by-pass and tapware.
.
SandTech Property Group Pty Ltd
Design-Build-Handover
ABN:63621525193
Builder’s Lice
nce: 332412C
Address: 32 Somerset St, Stanhope Gardens, nsw-2768
Email:
info@sandtech.com.au
M: 0402171503
SandTech Smart Specification: STS 010
Client: MD Abdus Sayek Khan
Umme Safura Aliya Khan
Site Address: 70 Portico Parade, Toongabbie Unit 1, 2146 NSW
❖
Waterproofing to BCA standard
❖
Tiles splash back over the tub.
❖
Plumbing provision for Washing Machine.
❖
Dryer can be provided and installed for additional cost of 700$
(Westinghouse
dryer).
13.
Driveway, Landscaping, Letter Box and Cloth liner
:
❖
Plain Colour concrete driveway as per plan. Allowance area: 50sqm. Any extra
concrete cover will be variation (120$ per linear meter). Stencil driveway will be 30$
extra per sqm.
❖
Sandtech builder range letter box (allowance: $100) and cloth liner. Allowance
for
basic landscaping. (variation for landscaping will be 8000$)
DocuSign Envelope ID: 7409AEB2-0FCF-4CBF-AD0C-E4AF663CFC14
DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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DocuSign Envelope ID: 62D05041-6824-4895-9224-23CADB337E5D
❖
14.
Ducted or Split System Air Conditioning:
Samsung Ducted air condition with 5zones and 1 controller.
15.
Completion:
❖
6 years structural warranty
❖
90 days maintenance period from the day of the hand over.
❖
Occupational certific
ate.
❖
House will be professionally cleaned before handover.
SandTech Property Group Pty Ltd
Design-Build-Handover
ABN:63621525193
Builder’s Licence: 332412C
Address: 32 Somerset St, Stanhope Gardens, nsw-2768
Email:
info@sandtech.com.au
M: 0402171503
SandTech Smart Specification: STS 010
Client: MD Abdus Sayek Khan
Umme Safura Aliya Khan
Site Address: 70 Portico Parade, Toongabbie Unit 1, 2146 NSW
16. EXCLUSIONS:
Note:
SandTech Property Group Pty Ltd have made no allowance in the Tender for the
following and if required will be charged as an additional cost-
❖
Demolition, removal of trees and undergrowth from the site or any existing structure
❖
Any easement related work.
❖
Outdoor shower
❖
Rock excavation
❖
Fencing and retaining wall unless mention otherwise
❖
Asbestos removal or any other contaminated soil removal
❖
Driveway inspection fee
❖
Sydney water approval fees and section 94 contribution
❖
Traffic control fees if required
❖
Removal of more than 1 boggy (12 tonnes) load of excess dirt or excess soil as a
result of excavation
❖
Any demolition work at site, it will be variation
❖
Road opening fees
❖
Gas bottle provision
DocuSign Envelope ID: 7409AEB2-0FCF-4CBF-AD0C-E4AF663CFC14
DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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DocuSign Envelope ID: 62D05041-6824-4895-9224-23CADB337E5D
❖
❖
Long service levy
❖
Bush fire zone requirement
❖
Special window glazing to accommodate bush zone area or any acoustic glazing for
traffic area.
❖
Blinds
Generally anything outside the scope of the work specified above
SandTech Property Group Pty Ltd
Design-Build-Handover
ABN:63621525193
Builder’s Licen
ce: 332412C
Address: 32 Somerset St, Stanhope Gardens, nsw-2768
Email:
info@sandtech.com.au
M: 0402171503
SandTech Smart Specification: STS 010
Client: MD Abdus Sayek Khan
Umme Safura Aliya Khan
Site Address: 70 Portico Parade, Toongabbie Unit 1 2146 NSW
Items Allowance:
Serial
Item Price
1
Toilet Set $220.00
2
Vanity $600.00 each
3
3 in 1 System $160.00 each
4
Kitchen Sink $220.00
5
Tapware $85.00 each
6
Westinghouse 90cm cooktop with oven $1500.00
7
Westinghouse 90cm Integrated Range Hood $400.00
DocuSign Envelope ID: 7409AEB2-0FCF-4CBF-AD0C-E4AF663CFC14
DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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DocuSign Envelope ID: 62D05041-6824-4895-9224-23CADB337E5D
❖
8
Wet area tiles $24.00 per sqm.
DocuSign Envelope ID: 7409AEB2-0FCF-4CBF-AD0C-E4AF663CFC14
DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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DocuSign Envelope ID: 62D05041-6824-4895-9224-23CADB337E5D
9
10
11
12
13
14
15
16
17
18
19
Laminated timber floor $40.00 per sqm incl installation Down light
$110.00/light incl installation
Oyster light $110.00/light incl installation
Interior
power points $110.00/light incl installation
Exterior power point $110.00/light incl installation
TV, Telephone and data point $110.00/light incl installation Mirror $50.00each
Shower Head $160.00each
Towel Rail $40.00each
Tissue Holder $30.00each
Laundry Tub $250.00
20.
Garage Door $2000.00
21
Main Entrance Door $700.00
22
Any external door (except main door) $180.00 each
23
Internal Hollow Door $40.00 each
24
Face Brick $900.00/1000 bricks
SandTech Property Group Pty Ltd
Design-Build-Handover
ABN:63621525193
Builder’s Licence: 332412C
Address: 32 Somerset St, Stanhope Gardens, nsw-2768
Email:
info@sandtech.com.au
M: 0402171503
SandTech Smart Specification: STS 010
Client: MD Abdus Sayek Khan
Umme Safura Aliya Khan
Site Address: 70 Portico Parade, Toongabbie Unit 1, 2146 NSW
Important Note:
DocuSign Envelope ID: 7409AEB2-0FCF-4CBF-AD0C-E4AF663CFC14
DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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DocuSign Envelope ID: 62D05041-6824-4895-9224-23CADB337E5D
-
Quotation is subject to reviewing the 149(2) & (5) certificate, sewer diagram and
thetitle search.
-
SandTech Property Group Pty Ltd will remove only 1 boggy of excess soil or
constructiondirt if required and excess soil
or dirt will be removed at client’s cost.
-
SandTech Property Group Pty Ltd will remove any concrete obstructing the connection
of sewer, stormwater and electricity services. However, will not reinstate the concrete,
and recommends this is done along with the landscaping.
-
If we are building within the zone of influence to a sewer, peg out will requested with
additional cost of $1,500 including GST. Additional charge will be imposed if extra
piering needed apart from structural engineering plan.
-
Owner is to provide electricity and water during the construction of the house. If these
services can’t be provided, SandTech will arrange to install temporary service at the
cost of the client.
-
SandTech will not be liable for any damage caused on existing driveway or over
anexisting kerb due to gain reasonable access during the construction.
-
Any pre-existing damage to surface objects such as concrete path/driveway etc on
theproperty, is not SandTech’s responsibility.
-
PC items must be selected from SandTech preferred supplier within the specified range
in this quotation. If no allowance is given in the quotation for any item, “
Builder’s
Range”
will be applicable. If client wish to bring any PC items, then SandTech will credit
allowance money minus 20% margin on that item to cover the cost of installation and
management cost. Rise and fall clauses can be used
if inflation arise.
-
Sandtech will not be liable on any warranty and maintenance issue for any
itemssupplied by the client.
SandTech Property Group Pty Ltd
Design-Build-Handover
ABN:63621525193
Builder’s Licence: 332412C
Address: 32 Somerset St, Stanhope Gardens, nsw-2768
Email:
info@sandtech.com.au
M: 0402171503
SandTech Smart Specification: STS 010
Client: MD Abdus Sayek Khan
Umme Safura Aliya Khan
Site Address: 70 Portico Parade, Toongabbie Unit 1, 2146 NSW
SandTech
Guidelines:
-
Any update in this quotation should be treated as
variation.
DocuSign Envelope ID: 7409AEB2-0FCF-4CBF-AD0C-E4AF663CFC14
DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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DocuSign Envelope ID: 62D05041-6824-4895-9224-23CADB337E5D
-
Any update before the contract signed needs to be approved by the client and the
costof update will be added to the standard contract price.
-
Any update after the contract signed needs to be confirm by the client by email and
istreated as
additional variation
.
-
50% cost of any additional variation is payable to next applicable progress claim.
-
Important considerations when incorporating rise and fall clauses into
standardcontracts.
THE CLIENT OR ANY ASSOCIATED PARTY ACCESS TO THE BUILDING SITE:
The SandTech follows WHS Act 2011 seriously. Due to Section-8 WHS Act-2011, the builder
needs to ensure the safety of all personals entering the job site who could be adversely
affected by the building activity. To keep the site free of injury and risks of all parties,
SandTech limited the building site access. Since we are liable for any incident on the site, so
the client or associate party is only allowed when accompanied by the Nominated
SandTech
Supervisor.
Client Communication:
During construction, all communications between the client and
builder would be done by email (to:
taj02_in@yahoo.com
; cc: sandtechpa@gmail.com)
We are committed to provide you customised service to fulfill your expectation. We look
forward to hear your valuable feedback.
Yours Faithfully
Mohammad Tajuddin (Director)
SandTech Property Group Pty Ltd
SandTech Property Group Pty Ltd
Design-Build-Handover
ABN:63621525193
Builder’s Licence: 332412C
Address: 32 Somerset St, Stanhope Gardens, nsw-2768
Email:
info@sandtech.com.au
M: 0402171503
SandTech Smart Specification: STS 010
Client: MD Abdus Sayek Khan
Umme Safura Aliya Khan
DocuSign Envelope ID: 7409AEB2-0FCF-4CBF-AD0C-E4AF663CFC14
DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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DocuSign Envelope ID: 62D05041-6824-4895-9224-23CADB337E5D
Site Address: 70 Portico Parade, Toongabbie Unit 1, 2146 NSW
Tender Acceptance Form
I
/We hereby accept this tender with all inclusion lists with allowance listed on the SandTech
Property Group Pty Ltd’s tender. I/ We confirm our responsibility to pay all costs as
described in the attached progress schedule. I/We acknowledge that I/We accept all terms
and conditions listed on the tender.
Client 1(Print Name):
Signature: Date:
Client 2(Print Name):
Signature: Date:
Client 3(Print Name):
Signature: Date:
DocuSign Envelope ID: 7409AEB2-0FCF-4CBF-AD0C-E4AF663CFC14
DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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OWNERS:
MD Abdus Sayek Khan
Umme Safura Aliya Khan
JOB:
STD001
LOT:
60
SITE:
unit 1 70 Portico Parade
Toongabbie
NSW 2146
NSW Residential Building Contract for
New Dwellings
To verify your builder is a HIA member email enquiry@hia.com.au
© HIA Contracts Online (Revised May 2021.v2)
All rights reserved. No part of this document may be reproduced, stored, copied,
distributed or transmitted in any form or by any means without the prior written
consent of HIA.
DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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Schedule 1. Particulars of Contract
1
Date
1
Contract price
1
Owners
1
Builder
2
The Land
2
Building period
2
Initial Period
2
Encumbrances, covenants and easements
3
Sources of funds
3
Development application and complying development certificate
3
Liquidated damages
3
Interest
3
Builder's margin
3
Guarantors
3
Schedule 2. Progress Payments
4
Schedule 3. Excluded Items (Clause 9)
5
Schedule 4. Description of Work
5
Schedule 5. Other Contract Documents
6
Schedule 6. Warranty Insurance
6
Schedule 7. Prime Cost and Provisional Sum Items (Clause 20)
7
Special Conditions
8
Signatures
9
Deed of guarantee and indemnity
11
General Conditions
13
Clause 1. Interpretation
13
Clause 2. Builder's Obligations
14
Clause 3. Owner's Obligations
14
Clause 4. Essential Matters
14
Clause 5. Planning and Building Approvals
15
Clause 6. Survey of the Site
15
Clause 7. Security Account and Ability to Pay
16
Clause 8. Accuracy of Contract Documents
16
Clause 9. Excluded Items
17
Clause 10. Specified Materials
17
Clause 11. Materials Supplied by Owner
17
Clause 12. Commencing the Building Works
17
Clause 13. Site Possession and Access
17
Clause 14. Hidden Site Conditions
18
Clause 15. Other Costs
19
Clause 16. Contract Price Adjustments
19
Clause 17. Progress Payments
19
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Clause 18. Variations
20
Clause 19. Delays and Extensions of Time
20
Clause 20. Prime Cost and Provisional Sum Items
21
Clause 21. Practical Completion
22
Clause 22. Final Certificate
23
Clause 23. Notices
23
Clause 24. Defects Liability Period
23
Clause 25. Suspension
23
Clause 26. Early Possession
24
Clause 27. Ending the Contract - Breach
24
Clause 28. Ending the Contract -
Insolvency
25
Clause 29. Effect of the Builder Ending the Contract
25
Clause 30. Effect of the Owner Ending the Contract
25
Clause 31. Charge on the Site
25
Clause 32. Liquidated Damages
25
Clause 33. Interest on Late Payments
26
Clause 34. Debt Collection Costs
26
Clause 35. Dispute Resolution
26
Clause 36. Risk
26
Clause 37. Indemnity
26
Clause 38. Insurances
26
Clause 39. Statutory Warranties
27
Clause 40. Mandatory Conditions
28
Clause 41. Assignment and Subcontracting
28
Clause 42. No Waiver
28
Clause 43. Severance
29
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Date
This contract is dated the:
(a)
Contract price
PRICE EXCLUDING GST:
$406,260.00
GST ON THE ABOVE AMOUNT:
$45,140.00
THE CONTRACT PRICE IS:
$451,400.00
The contract price is GST inclusive
WARNING
-
The contract price
may vary under this
contract
. The reasons for variations to the
contract price
may include:
Clause 5 - planning and building approvals;
Clause 6 - a survey being required;
Clause 14 - a consultant being engaged to report on the
site
conditions;
Clause 15 - an increase in a tax, charge or levy after this
contract
is signed;
Clause 18 -
variations
to the
building works
;
Clause 20 - an adjustment for
prime cost items
and
provisional sum items
.
The
contract price
does not include the costs that the
owner
will have to pay to a third party for
conveying services to the
site
or connecting or installing services for use at the
site
.
Note: The
builder
cannot demand or receive any of the
contract price
(including the deposit) until
warranty insurance is in force and the
owner
is provided with a certificate of insurance.
(b)
Deposit
(Clause 17.1)
THE DEPOSIT IS:
$45,140.00
(The deposit must not exceed 10% of the contract price)
Owners
Owner 1
NAME
MD Abdus Sayek Khan
ADDRESS
26 Telfer Road
SUBURB
Castle Hill
STATE
NSW
POSTCODE
2154
ABN/ACN
WORK
HOME
MOBILE
EMAIL
Sayekkhan@yahoo.com.au
Schedule 1. Particulars of Contract
Item
1.
2.
3.
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Owner 2
NAME
Umme Safura Aliya Khan
ADDRESS
26 Telfer Road
SUBURB
castle hill
STATE
NSW
POSTCODE
2154
ABN/ACN
WORK
HOME
MOBILE
EMAIL
Builder
NAME
sandtech Property group
ADDRESS
32 somerset street
SUBURB
Stanhope Gardens
STATE
NSW
POSTCODE
2768
ABN/ACN
63621525193
WORK
HOME
MOBILE
0402171503
EMAIL
Sandtechpa@gmail.com
HIA MEMBER NUMBER
1230128
HIA MEMBERSHIP EXPIRY
31/01/2023
BUILDER'S LICENCE NUMBER
332412C
The Land
THE LAND IS:
LOT
60
DP NO
1255595
CERTIFICATE OF TITLE
STREET ADDRESS:
unit 1 70 Portico Parade
SUBURB
Toongabbie
STATE
NSW
POSTCODE
2146
Mortgage 1
LENDING BODY
NAB
AMOUNT
BRANCH
Sydney 2000
CONTACT NAME
0436637882
Building period
(Clause 12)
The
building works
must reach the stage of
practical completion
no more than 52
weeks after
the
building period
commences, subject to Clause 19.
Initial Period
The
owner
must satisfy the essential matters in Clause 4 within the
initial period
being a period of
working days
(If nothing stated then 15 working days from date of contract)
Note: The builder does not need to commence on
site
until the essential matters are satisfied and
may terminate the contract if the essential matters are not satisfied.
4.
5.
6.
7.
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Encumbrances, covenants and easements
(Clause 4)
The
site
is affected by the following encumbrances, covenants, easements and caveats. Please
specify the substance of each encumbrance, covenant, easement and caveat and give details of any
registrations where registered at the Titles Office.
Sources of funds
(Clauses 4 and 7)
The
contract price
will be funded by:
TOTAL FUNDS
Note: The total funds are to equal the
contract price
.
Lending Body 1
LENDING BODY
BRANCH
CONTACT NAME
Development application and complying development
certificate
(Clause 5)
The person to make and pay for all applications for development consent and/or a complying
development certificate is: Owner
(If no person stated then the owner)
Liquidated damages
(Clause 32)
per
working day
calculated on a daily basis.
(If nothing stated, then $1)
Interest
(Clause 33)
Interest on late payments is:
19.00%
(If nothing stated then the post judgement interest rate applicable to judgements in the NSW Supreme Court from time to time.)
Builder's margin
The builder's margin is:
10.00%
(If nothing stated then 20%)
Guarantors
(refer to Deed of Guarantee and Indemnity)
NAME
ADDRESS
SUBURB
STATE
POSTCODE
8.
9.
10.
11.
12.
13.
14.
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Schedule 2. Progress Payments
Stage
Percent
Amount
Deposit
Home owners insurance and other preliminary items.
10.00%
$45,140.00
Floor slab Complete
Footing poured, internal and external drainage complete. Electrical, Gas and plumbing
rough in below the floor complete. Concrete floor slab complete.
20.00%
$90,280.00
Frame and Truss complete
Wall frame and truss complete and braced. Window frame installed. All structural supports
installed. Framing inspection complete
20.00%
$90,280.00
Lock up stage complete
Windows and doors installed. All frames straightened. Electrical, Gas and Plumbing rough
in Completed. Roofing, brickwork and insulation completed.
20.00%
$90,280.00
Fixing complete
Plasterboard fixed, sanded and cornices finished. All tiling and floor cover complete. All
internal architraves, skirting and doors installed. Painting finished
20.00%
$90,280.00
Practical Completion
All kitchen cupboards, pantry and detailed joinery installed. All appliances, bathroom, toilet
installed, laundry fittings, tiling, Driveway and final house clean complete, excess items from
the site removed.
10.00%
$45,140.00
Total
100.00% $451,400.00
Note:
•
The total amount must be the same as the
contract price
.
•
The deposit is brought to account in the first progress payment.
•
Progress stages must be stated in clear and plain language.
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Schedule 3. Excluded Items (Clause 9)
The
owner
acknowledges that the
builder
is not responsible for the supply and installation of materials,
goods or the provision of services that are listed below:
❖
Any easement related work.
❖
Outdoor shower
❖
Rock excavation
❖
Payment of fees, charge and section 94A contributions by client as per clause 8 of
the Development Consent.
❖
Payment of Fees in associate with Environmental Service charge clause 8 & 9,
Infrastructure and restoration fee clause 10 and security bond clause 11 to be paid
by client.
❖
Payments of all fees and charges in relation to Sydney Water section 73 approval and
notice of requirements will be responsible of the client including all subdivision
costs. It will be facilitated by the builder.
❖
Traffic control fees if required (by builder)
❖
Removal of more than 1 Truck and boggy (30 tonnes) loads of excess dirt or excess
soil as a result of excavation
❖
Gas bottle provision
❖
Bush fire zone requirement
❖
Special window glazing to accommodate bush zone area or any acoustic glazing for
traffic area.
❖
Generally anything outside the scope of the work, approved plan and client’s general
inclusions specified above
Schedule 4. Description of Work
Insert brief description of the
building works
:
180.56sqm 3 bedrooms double storey house with 3 toilets, BBQ provision at alfresco, single garage and
façade and OSD as per plan.
The
building works
are described in detail in the plans and specifications.
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Schedule 5. Other Contract Documents
In addition to these general conditions, any special conditions, the plan and specifications, the following
documents form part of this contract.
1. Inclusion List is mentioned in the SandTech Smart Specification: STD001 (attached in the appendix).
Schedule 6. Warranty Insurance
NOTE:
The
builder
must not carry out any
building work
or demand or receive any part of the
contract
price
until warranty insurance is in force and the
owner
is provided with the certificate of insurance.
INSURER
ICARE
Cost of insurance under Part 6 of the
Home Building Act 1989
(NSW) (Home Building Act) (or alternative
indemnity product under Part 6B of the Home Building Act) is $
CERTIFICATE ATTACHED.
Except for the
builder's
interest in this
contract
and the legal requirement for warranty insurance to be
arranged in respect of the
building works
, the
builder
receives no benefit in relation to arranging such
insurance.
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Prime cost items
Detailed description of the Item
Estimated
quantity
allowed for
Estimated $
per item
Allowance $
Builder Range 90cm,5 burner cook top
2
$500.00
$1,000.00
Builder Range 90cm Built in oven
2
$1,000.00
$2,000.00
Builder Range 90cm Rangehood
2
$350.00
$700.00
Main floor Tiles per sqm
1
$27.00
$27.00
Shower screen
6
$500.00
$3,000.00
Toilet
6
$220.00
$1,320.00
Vanity
6
$600.00
$3,600.00
shower Head
6
$500.00
$3,000.00
Water tap
6
$85.00
$510.00
LED light each
70
$10.00
$700.00
main entrance door
2
$650.00
$1,300.00
Internal Hollow Door
1
$40.00
$40.00
Timber floor per sqm(incl installation)
1
$45.00
$45.00
Kitchen sink
2
$220.00
$440.00
Kitchen sink mixers
2
$80.00
$160.00
bathroom tile per sqm
1
$27.00
$27.00
Provisional sum items
Detailed description of the Item
Estimated
quantity
allowed for
Estimated $
per item
Allowance $
Schedule 7. Prime Cost and Provisional Sum Items
(Clause 20)
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Special Conditions
Important Note: Quotation is subject to reviewing the 149(2) & (5) certificate, sewer diagram and the title
search. SandTech Property Group Pty Ltd will remove only 1 boggy of excess soil or construction dirt if
required and excess soil or dirt will be removed at client’s cost. SandTech Property Group Pty Ltd will
remove any concrete obstructing the connection of sewer, stormwater and electricity services. However, will
not reinstate the concrete, and recommends this is done along with the landscaping. If we are building within
the zone of influence to a sewer, peg out will requested with additional cost of $1,500 including GST.
Additional charge will be imposed if extra piering needed apart from structural engineering plan. Owner is to
provide electricity and water during the construction of the house. If these services can’t be provided,
SandTech will arrange to install temporary service at the cost of the client. SandTech will be liable for any
damage caused on existing driveway or over an existing kerb due to gain reasonable access during the
construction. Any pre-existing damage to surface objects such as concrete path/driveway etc on the
property, is SandTech’s responsibility. PC items must be selected from SandTech preferred supplier within
the specified range in this quotation. If no allowance is given in the quotation for any item, “Builder’s Range”
will be applicable. If client wish to bring any PC items, then SandTech will credit allowance money on that
item. Sandtech will not be liable on any warranty and maintenance issue for any items supplied by the client.
Site access for the owner can be allowed prior to 24hours of notice to Sandtech. But all the periodical
meetings can be conducted on site. SandTech Guidelines: Any update in this quotation should be treated
as variation. No credits will be provided, if client wants to obsolete any items (listed in the inclusion) after
signing the tender. Any update before the contract signed needs to be approved by the client and the cost
of update will be added to the standard contract price. Any update after the contract signed needs to be
confirm by the client by email and is treated as additional variation. 50% cost of any additional variation is
payable to next applicable progress claim.
THE CLIENT OR ANY ASSOCIATED PARTY ACCESS TO THE BUILDING SITE: The SandTech follows WHS
Act 2011 seriously. Due to Section-8 WHS Act-2011, the builder needs to ensure the safety of all personals
entering the job site who could be adversely affected by the building activity. To keep the site free of injury
and risks of all parties, SandTech limited the building site access. Since we are liable for any incident on the
site, so the client or associate party is only allowed when accompanied by the Page 8 of 30 Nominated
SandTech Supervisor.
Client Communication: During construction, all communications between the client and builder would be
done by email (to: taj02_in@yahoo.com ; cc: sandtechpa@gmail.com)
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Owner 1
Owner 2
Signatures
This
contract
is made between the
Owner
and the
Builder
.
The
schedules
form part of this
contract
.
The Consumer Building Guide in Attachment B, Role of registered certifier information in Attachment C and
the Security of Payment Guide in Attachment D do not form part of this
contract
.
The parties have signed this
contract
on the date stated in Item 1 of Schedule 1.
The
Owner
has received the Checklist in Attachment A, the Consumer Building Guide in Attachment B, the
Role of registered certifiers information in Attachment C and the Security of Payment Guide in Attachment D
before signing this
contract
.
The
Owner
has read and understood this
contract
.
NAME
MD Abdus Sayek Khan
SIGNATURE
/s1/\\signer1_sig
WITNESS'S
SIGNATURE
/na/
WITNESS'S NAME AND ADDRESS
/na/
/na/
/na/
NAME
Umme Safura Aliya Khan
SIGNATURE
/s2/\\signer2_sig
WITNESS'S
SIGNATURE
/na/
WITNESS'S NAME AND ADDRESS
/na/
/na/
/na/
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Builder
NAME
SIGNATURE
/bs1/
Signed for and on behalf of:sandtech Property group
WITNESS'S
SIGNATURE
/na/
WITNESS'S NAME AND ADDRESS
/na/
/na/
/na/
Please note
1.
Where a company is signing: 'by A. Smith, Director' or 'Signed for and on behalf of XYZ Pty Ltd'.
2.
Where a partnership is signing: 'Enterprises by Andrew Smith, Partner. Signed for and on behalf of
Andrew Smith and Jane Smith.'
STATEMENT SETTING OUT THE OWNER'S RIGHT TO WITHDRAW FROM THIS CONTRACT
UNDER SECTION 7BA OF THE HOME BUILDING ACT
This
contract
may be subject to a
cooling off period
that entitles the owner to rescind this contract by giving a
notice in writing as required by Section 7BA of the Home Building Act:
(a) If the
owner
has been given a copy of the signed
contract
– at any time before the expiration of 5 clear
business days after the
owner
is given a copy of the signed
contract
; or;
(b) If the
owner
has not been given a copy of the signed
contract
within 5 days after the
contract
has been
signed – at any time before the expiration of 5 clear business days after the
owner
becomes aware that the
owner
is entitled to be given a copy of the signed
contract
If the
owner
exercises the right to cool off then this
contract
is rescinded and the
builder
is entitled to a
reasonable price for the work carried out under the
contract
until the date the
contract
is rescinded.
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Interpretation
Background
Operative
Deed of guarantee and indemnity
BUILDER IS
OWNER IS
Guarantors
ADDRESS LINE 1
ADDRESS LINE 2
SUBURB
STATE
POSTCODE
Contract
is that between the
Builder
and the
Owner
dated:
The
Guarantor
executed this Deed at the
Owner's
request.
The
Guarantor
is aware of the
Owner's
obligations under the
Contract
.
1.
Guarantee
The
Guarantor
guarantees to the
Builder
, the fulfilment of the
Owner's
obligations under the
Contract
including but not limited to the due payment of all moneys arising out of the subject matter of
the
Contract.
2.
Indemnity
The
Guarantor
indemnifies the
Builder
against any claim, loss or damage arising out of the subject
matter of the
contract
caused by or resulting from any non-fulfilment of the
Owner's
obligations under
the
Contract
.
3.
Principal Debtor
The
Guarantor
is deemed to be a principal debtor jointly and severally liable with the
Owner
to
discharge the
Owner's
obligations under the
Contract
.
4.
No Merger
The
Guarantor
agrees that this Deed does not merge on completion or on the ending of the
Contract
by either party and continues notwithstanding that the
Owner
, if a corporation, is placed in liquidation
or if a person, is declared bankrupt.
5.
No Release
The
Guarantor
is not discharged by:
◦
any variation to the
Contract
including a variation to the building works;
◦
any delay or claim by the
Builder
to enforce a right against the
Owner
; and
◦
any forbearance given to the
Owner
to perform the
Owner's
obligations under the
Contract
.
6.
Severability
Any provision of this Deed which is illegal, void or unenforceable will be ineffective to the extent only of
such illegality, voidness or unenforceability and will not invalidate any other provision of this Deed.
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Guarantor's Statement
7.
When More Than One Guarantor
If the
Guarantor
consists of more than one person, this guarantee and indemnity is not affected by the
failure of all persons comprising the
Guarantor
to sign this guarantee and indemnity or this Deed
being unenforceable against any of them.
8.
Waiver of Rights
The
Guarantor
waives all rights as surety inconsistent with any of the terms of this Deed or to the
detriment or disadvantage of the
Builder
.
I/we understand the nature, terms and extent of the guarantee and indemnity provided by me/us and further
acknowledge that I/we have obtained legal advice prior to executing this Deed.
Signed as a Deed
SIGNATURE
WITNESS'S NAME AND ADDRESS
SIGNATURE
DATE
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Clause 1. Interpretation
1.1
In this
contract
:
'
adverse weather
' means any weather condition that, in the reasonable
opinion of the
builder
, prevents work from being carried out in the usual
manner;
'
all weather access
' means access in all weather conditions as required
by the
builder
for carrying out the
building works
.
'
builder
' means the party named in Item 4 of Schedule 1 and, where
appropriate, includes a representative appointed by the
builder
;
'
builder's margin
' means the percentage stated in Item 13 of Schedule 1;
'
building period
' means the number of calendar weeks or
working days
stated in Item 6 of Schedule 1 as extended by Clause 19;
'
building works
' means the
building works
to be carried out, completed
and handed over to the
owner
in accordance with this
contract
as shown
in the
contract documents
and includes
variations
.
'
contract
' means the agreement between the
builder
and the
owner
set
out in the
contract documents
;
'
contract documents
' means these general conditions, any special
conditions, the plans, the specifications and other documents specified in
Schedule 5;
'
contract price
' means the amount stated in Item 2(a) of Schedule 1, as
changed by this
contract
;
Refer to Clause 16
for when to pay a
contract price
adjustment.
'
contract price adjustment
' means an amount that is added to or
deducted from the
contract price
under this
contract
;
Refer to Clause 21
for practical
completion.
'
date of practical completion
' means the date that is deemed to be the
date of practical completion
under Clause 21 except where the date is
determined by dispute resolution (including litigation) then it is that date;
'
initial period
' means the period stated in Item 7 of Schedule 1;
'
lending body'
means any corporation or institution that lends to the
owner
part of or the whole of the
contract price
;
'
notice of practical completion
' means the notice given by the
builder
to the
owner
under Clause 21;
'
owner
' means the party named in Item 3 of Schedule 1 and includes the
owner's
agents, employees and invitees;
Refer to Clause 21.
'
practical completion'
means when the
building works
are complete
except for minor omissions and defects that do not prevent the
building
works
from being reasonably capable of being used for their usual
purpose;
Refer to Clause 20.
'
prime cost item
' means an item (for example a fixture or fitting) that either
has not been selected or cannot be costed exactly at the time that the
contract
is entered into and for which the
builder
has made allowance in
the
contract price
;
Refer to Clause 20.
'
provisional sum item
' means an item of work (including labour and
materials) which cannot be costed exactly at the time that the
contract
is
entered into and for which the
builder
has made allowance in the
contract
price
;
'
rock
' means material, other than clay or soil, that cannot, in the
builder's
opinion, be readily removed by hand;
General Conditions
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Refer to Clauses 4
and 7.
'
security account
' means an account described in Clause 7;
'
site
' means the land described in Item 5 of Schedule 1;
'
stage
' means any of the stages described in Schedule 2;
'
statutory or other authority
' means the principal certifying authority,
Local Government, State or Federal Government, or any Government
agency that has power to affect the
building works
;
Refer to Clause 18.
'
variation
' means:
(a) an omission, addition or change to the
building works
; or
(b) a change in the manner of carrying out the
building works
;
'
warranty insurance
' means Home Building Compensation (HBC) cover as
referred to in the Home Building Act;
'
working days
' means days other than Saturdays, Sundays or public
holidays;
and like words have corresponding meanings.
1.2
In this
contract
the general notes, the table of contents, clause headings
and side notes do not form part of this
contract
and cannot be used in its
interpretation.
Clause 2. Builder's Obligations
Refer to Clause 39
for Statutory
Warranties.
Refer to Clause 40
for Mandatory
Conditions.
2.1
The
builder
must carry out and complete the
building works
in
accordance with this
contract
.
Clause 3. Owner's Obligations
3.1
The
owner
must pay the
contract price
and other money that becomes
payable under this
contract
in the manner and at the times stated in this
contract
.
3.2
If there is more than one
owner
:
(a) the obligations in this
contract
apply to each of them individually
and to all of them as a group;
(b) a quote, notice, claim or any other communication to the
owners
has only to be given to one of the
owners
; and
(c) only one of the
owners
has to sign a quote, notice, instruction,
direction or other communication to bind all of the
owners
.
Clause 4. Essential Matters
Evidence of
ownership includes a
copy of the certificate
of title to the site.
Refer to Clause 7 for
the security account.
The builder does not
have to start the
works until this
Clause is satisfied.
Refer to Clause 12.
4.1
The
owner
must, within the
initial period
, give the
builder
:
(a) written proof that the
owner
owns or is otherwise entitled to build
on the
site
;
(b) written details of any encumbrances, covenants, easements and
caveats affecting the
site
;
(c) if required written evidence that the
security account
has been
established and the amount required to be paid into the
security
account
is held in clear funds;
(d) if the
owner
is obtaining finance from a
lending body
, written
advice from the
lending body
that:
(i) the amount of finance, when added to the
owner's
own
available funds, is sufficient to pay the
contract price
; and
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(ii) the
building works
may commence;
(e) written evidence of development consent for the
building works
;
(f) if required, written proof that the
owner
has obtained any building
approvals and has satisfied any conditions imposed by a
statutory or
other authority
where required prior to commencement of work; and
(g) if required, written proof that the
owner
has appointed the
principal certifying authority and has paid any costs associated with
such appointment.
The builder may end
this contract.
4.2
If the
owner
fails to satisfy all of the above within the
initial period
the
builder
may end this
contract
, by giving the
owner
a written notice to that
effect, at any time prior to physical commencement of the
building works
.
4.3
If the
builder
so ends this
contract
, the
owner
must pay to the
builder
the price of the services provided and works carried out to the date that this
contract
is ended. The price includes the
builder's margin
applied to the
costs incurred by the
builder
which costs include the cost of materials on
site
or already ordered from suppliers that are non-returnable.
Clause 5. Planning and Building Approvals
5.1
The party named in Item 10 of Schedule 1 must obtain and pay for all
applications for development consent and/or a complying development
certificate for the
building works
.
5.2
If the
builder
is named in Item 10 of Schedule 1, the
owner
must provide a
signed statement to the effect that the
owner
consents to the
builder
making any application for development consent and/or a complying
development certificate in relation to the
building works
.
5.3
Notwithstanding that the
builder
may be named in Item 10 of Schedule 1,
unless otherwise stated in this
contract
, at all times the
owner
is
responsible for the payment of any and all additional fees, charges, taxes,
costs and levies, however described, associated with:
(a) inspections conducted by the principal certifying authority or its
agents, employees and invitees;
(b) registrations relating to title to the
site
;
(c) planning and building approvals for the
building works
;
(d) complying with the conditions of the development consent,
including but not limited to payment of infrastructure contributions.
For variations refer to
Clause 18.
5.4
If the requirements of a
statutory or other authority
necessitate a
change to the
building works
the
builder
must inform the
owner
of the
change required and ask for a
variation
for the
building works
to comply
with the requirements.
Clause 6. Survey of the Site
6.1
If, in the
builder's
opinion, the boundaries of the
site
are unclear, the
builder
must give the
owner
a written notice asking the
owner
to provide
a survey of the
site
.
6.2
If the
owner
does not provide a survey within 5
working days
of the
builder
giving notice the
builder
may, as the
owner's
agent, obtain the
survey. The
owner
must pay to the
builder
on demand the total of the
price of the survey plus the
builder's margin
applied to that price.
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Clause 7. Security Account and Ability to Pay
This is an essential
matter. Refer to
Clause 4.
7.1
The
owner
, when requested by the
builder
at any time, must deposit that
part of the
contract price
not being supplied by a
lending body
into an
account at a bank, building society or a similarly recognised financial
institution (to be known as a
security account
). The
security account
must be in the joint names of the
owner
and the
builder
with:
(a) the
owner
receiving interest, if any, on the money deposited in the
account; and
(b) the
builder
as joint signatory for any withdrawal from the account.
7.2
The
owner
must, within 2
working days
of being requested by the
builder
at any time, give the
builder
written evidence, to the
builder's
satisfaction, of the
owner's
ability to pay all money that is or may become
payable to the
builder
under this
contract
.
Clause 8. Accuracy of Contract Documents
8.1
Where the
owner
supplies any
contract document
, the
owner
warrants:
(a) that
contract document
is accurate; and
(b) the suitability of the design, materials and methods of working each
specified therein.
Notices are to be
given in the manner
set out in Clause 23.
8.2
If either party becomes aware of any error, ambiguity or inconsistency in or
between the
contract documents
, that party must, within 2
working days
of becoming aware, give the other party written notice detailing the
problem.
8.3
The
owner
must, within 2
working days
of receiving a notice or becoming
aware of a problem, give the
builder
written instructions as to how the
builder
is to proceed with the
building works
.
8.4
If the
owner
fails to give the
builder
such written instructions within
2
working days
, the
builder
may proceed with the
building works
applying the following order of precedence:
(a) any special conditions;
(b) these general conditions;
(c) the specifications;
(d) the plans, then
(e) other documents.
For variations refer to
Clause 18.
8.5
If:
(a) compliance with the
owner's
instructions or the order of
precedence, as applicable, involves more or less cost than a
reasonable builder would have anticipated on the signing of this
contract
; and
(b) the problem is caused by documents other than those provided by
the
builder
,
the
owner
is deemed to have asked the
builder
for a
variation
to carry
out that work and the procedure for
variations
in Clause 18 will apply.
8.6
In relation to a document that is:
(a) supplied by;
(b) prepared under instruction of; or
(c) prepared from sketches provided by,
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Indemnity is a legal
concept requiring the
payment to the other
party of all costs and
expenses.
a party, that party indemnifies the other party for all costs, expenses, losses
or damages that are incurred by the other party relating to or as a
consequence of any claim for breach of copyright or moral right arising
from the
builder
carrying out the
building works
in accordance with that
document.
8.7
The
builder
owns the copyright in any document prepared by the
builder
.
Clause 9. Excluded Items
9.1
The
owner
and the
builder
agree that the items set out in Schedule 3 are
excluded from this
contract
.
Clause 10. Specified Materials
For variations refer to
Clause 18.
10.1
If any material specified to be used in the
building works
is unavailable
when required by the
builder
, the
builder
may ask the
owner
for a
variation
to substitute the use of similar material.
Clause 11. Materials Supplied by Owner
These items should
be listed in a contract
document.
11.1
The goods and services to be provided by the
owner
must be:
(a) suitable for inclusion into the
building works
;
(b) supplied or completed in the time required by the
builder
; and
(c) completed to the satisfaction of the
builder
.
For variations refer to
Clause 18.
11.2
If the
owner
breaches the above condition the
builder
may elect to either:
(a) carry out the
building works
without incorporating the goods or
services; or
(b) do either or both of the following:
(i) suspend the carrying out of the
building works
under
Clause 25;
(ii) give to the
owner
a notice of default under Clause 27.
11.3
The
builder
is not responsible for the performance and suitability of goods
and services provided by the
owner
.
Clause 12. Commencing the Building Works
12.1
The
builder
is to commence the
building works
within 20
working days
after the day that:
(a) the
builder
receives all necessary building permits and planning
approvals for the
building works
to commence; or
(b) the
owner
satisfies all of the requirements of Clause 4,
whichever is later.
12.2
The
building period
commences on the date the
builder
starts
performing the
building works
on the
site
.
Clause 13. Site Possession and Access
13.1
The
owner
gives the
builder
exclusive possession of the
site
to carry out
the
building works
.
For variations refer to
Clause 18.
13.2
The
owner
must provide
all weather access
. If the
owner
does not
provide
all weather access
and the
builder
will be required to carry out
further work to achieve such access the
owner
is deemed to have asked
the
builder
for a
variation
to carry out that extra work and the procedure
for
variations
in Clause 18 applies.
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13.3
The
owner
, the
owner's
agents and officers of the
lending body
:
(a) must not hinder;
(i) the
builder's
access or possession of the
site
; or
(ii) the progress of the
building works
;
(b) must not:
(i) make inquiry of;
(ii) issue directions to; or
(iii) give instructions to,
the
builder's
workers or subcontractors. Communication must only be
with the
builder's
nominated person; and
(c) may only have access to the
building works
at reasonable times
and after giving reasonable prior notice for the purposes of inspecting
the progress of the
building works
.
13.4
The
builder's
unused materials on the
site
are the property of the
builder
.
Clause 14. Hidden Site Conditions
14.1
If:
(a) either party believes that the surface or sub-surface conditions of
the site may not support or are likely to affect the
building works
, or
(b)
rock
is found at the
site
,
the
builder
may, or must at the
owner's
written request, as the
owner's
agent, retain consultants to report on the
site
conditions and their effect on
the
building works
and the cost of every consultant is to be paid by the
owner
as a
contract price adjustment
.
For variations refer to
Clause 18.
14.2
The
builder
must promptly give the
owner
a notice detailing the details of
any extra work required and the estimated cost of that work. The
builder
must attach a copy of any report to that notice.
14.3
Subject to sub-clause 14.6, the
owner
must:
(a) within 5
working days
of receiving the notice under sub-clause
14.2, confirm in writing that the
builder
is authorised to proceed with
the extra work as detailed by the
builder
under sub-clause 14.2;
(b) pay the
builder
the sum of the total cost of all extra work plus the
builder's margin
applied to that cost at the next progress payment
after the work is carried out unless a different time is agreed.
14.4
If the
owner
does not give the
builder
written notice under sub-clause
14.3 the
builder
may do either or both of the following:
(a) suspend the carrying out of the
building works
under Clause 25;
(b) end this
contract
and Clause 29 applies.
14.5
The
builder
is only entitled to payment for such extra work if the actual
site
conditions differ from those either:
(a) disclosed or known to the
builder
prior to this
contract
being
signed; or
(b) shown in the
contract documents
,
and if the effect of that difference requires more or less work than that
which a reasonable builder would have anticiapted on the signing of this
contract
.
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The owner may end
this contract.
14.6
If the estimated price of the extra work exceeds 5% of the
contract price
,
the
owner
may end this contract by giving the
builder
a written notice to
that effect within 5
working days
of receiving the estimated cost from the
builder
under sub-clause 14.2 and sub-clause 14.7 applies.
14.7
If the
owner
so ends this
contract
, the
owner
must pay to the
builder
the
price of the works carried out to the date that this
contract
is ended. The
price includes the
builder's margin
applied to the costs incurred by the
builder
which costs include the cost of materials on
site
or already
ordered from suppliers that are non-refundable.
Clause 15. Other Costs
The contract price
may change due to
an increased cost.
For contract price
adjustments refer to
Clause 16.
15.1
If, after this
contract
is signed, a
statutory or other authority
introduces
or increases:
(a) any tax, charge, levy or other regulation; or
(b) any requirement that affects the
building works
,
that causes any cost increase in the cost of the
building works
there is a
contract price adjustment
.
For variations refer to
Clause 18.
15.2
If the
builder
is required to do more or less work to comply with a
requirement of a
statutory or other authority
the
builder
must ask for a
variation
for the change required and Clause 18 applies.
Clause 16. Contract Price Adjustments
16.1
A
contract price adjustment
is due and payable at the next progress
payment after it arises unless a different time is agreed.
16.2
When there is a deletion to the
building works
or substitution of materials
resulting in a
contract price adjustment
, the
contract price
will be
adjusted at the progress payment of the stage where the
building works
would have been carried out, unless a different time is agreed in writing.
Clause 17. Progress Payments
17.1
The
owner
must pay the deposit stated in Item 2(b) of Schedule 1 on the
later of the day that:
(a) this
contract
is signed by the
owner
; and
(b) warranty insurance described in Schedule 6 is in force and the
owner
is provided with a certificate of insurance for such insurance.
The deposit is brought to account with the first progress payment.
17.2
The
owner
must pay the
contract price
progressively as claimed by the
builder
.
17.3
The
builder
must give the
owner
a written claim for a progress payment
for the completion of each
stage
.
17.4
A progress claim is to state:
(a) the amount claimed and not paid for the
stage
completed;
(b) the amount claimed and not paid for
contract price adjustments
;
(c) the amount claimed and not paid for
variations
; and
(d) the sum of the above amounts.
Payment does not
mean that the owner
accepts the work is
done in accordance
with the contract. The
owner cannot hold
any money back on a
progress claim.
17.5
The
owner
must pay a progress claim within 5
working days
of the
builder
giving the claim.
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17.6
Other than in relation to the final progress claim:
(a) payment of a progress claim is on account only; and
(b) the
owner
has no right of set off.
Clause 18. Variations
Variations may
change the contract
price.
18.1
A
variation
must be in writing and signed by or on behalf of the
builder
and the
owner
. Either the
owner
or the
builder
may ask for a
variation
.
Refer to Clause 40
for Mandatory
Conditions.
18.2
If the
owner
asks for a
variation
, the
builder
must reply in writing as soon
as is reasonable.
The builder may ask
the owner for
evidence of ability to
pay for the variation.
See Clause 7.2.
18.3
The reply is to be either:
(a) a signed written offer to carry out the
variation
detailing:
(i) the work required to carry out the
variation
;
(ii) the price of the
variation
; and
(iii) any extension of time to the
building period
as a result of
carrying out the
variation
; or
(b) a refusal to carry out the
variation
. The
builder
does not have to
give any reasons for refusing to carry out a
variation
.
18.4
If the
owner
does not give to the
builder
signed written acceptance of the
builder's
offer within 5
working days
of the
builder
giving the reply, the
builder's
offer is deemed to be withdrawn
18.5
If the price of a
variation
is not agreed prior to it being carried out that
price includes:
(a) the deduction of the reasonable cost of all deletions from the
building works
; and
(b) the addition of the total cost of all extra work plus the
builder's
margin
applied to that cost.
18.6
The price of a
variation
is due and payable at the next progress payment
after it is carried out unless a different time is agreed.
18.7
The
owner
must not unreasonably withhold consent to any
variation
which is required for the
building works
to comply with the law or a
requirement of any
statutory or other authority
.
18.8
The
owner
acknowledges that the colour and grain of timber, granite and
other natural materials can vary. The
builder
is to use reasonable
endeavours to match the colour or grain of any sample selected by the
owner
but is under no liability if there is a difference and such difference is
not a
variation
.
Clause 19. Delays and Extensions of Time
19.1
The
builder
is entitled to a reasonable extension of the
building period
if
the
building works
are delayed by the
builder
suspending the
building
works
under Clause 25 or from a cause beyond the sole control of the
builder
including but not limited to:
(a) a
variation
or a request for a
variation
by the
owner
;
(b) an act of God, fire, explosion, earthquake or civil commotion;
(c)
adverse weather
;
(d) an industrial dispute;
(e) a dispute with adjoining or neighbouring residents or owners;
(f) anything done or not done by the
owner
;
(g) delays in getting any approvals;
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(h) a delay in the supply of materials selected by the
owner
;
(i) the need for a survey of or other report in relation to the
site
; or
(j) the industry shutdown being a 3 week period commencing on or
about 22 December in each year if construction during the Christmas
period could not have been reasonably foreseen at the date of this
contract.
19.2
The
builder
is to give the
owner
written notice of an entitlement to an
extension of time detailing both:
(a) the cause of the delay; and
(b) the extension of time,
within 10
working days
after becoming aware of both the cause and the
extent of the delay.
For dispute
resolution refer to
Clause 35.
19.3
If the
owner
wishes to dispute the
builder's
entitlement to an extension of
time the
owner
must, within 5
working days
of receiving the
builder's
notice, give the
builder
a written notice:
(a) disputing the extension of time; and
(b) detailing the reasons why the extension of time is disputed.
The builder is
entitled to extra costs
where the owner is
responsible for a
delay.
19.4
For every day the subject of an extension of time caused by an act, default
or omission of the
owner
, delay damages, being the total of the actual
increase in cost to the
builder
to carry out the
building works
plus the
builder's margin
applied to that cost is due and payable to the
builder
on
demand.
Clause 20. Prime Cost and Provisional Sum Items
Refer to Schedule 7
or other contract
documents for prime
cost items.
20.1
The
owner
must give the
builder
written notice of the
owner's
selection
of a
prime cost item
within 5
working days
after the
builder's
request to
do so.
20.2
If a
prime cost item
selected by the
owner
is unavailable, the
owner
must give the
builder
written notice of an alternative selection within 5
working days
of the
builder
advising that the item selected is unavailable.
20.3
If the
owner
fails to give written notice under sub-clause 20.2, the
builder
may select an alternative item that is similar in quality to the unavailable
item.
20.4
Each
prime cost item
must have an allowance stated next to it. The
allowance is the estimated price to supply the item and does not include an
amount for the
builder's margin
.
Refer to Schedule 7
or other contract
documents for
provisional sum
items.
20.5
Each
provisional sum item
must have an allowance stated next to it. The
allowance is the estimated price of providing the work and does not include
an amount for the
builder's margin
.
This may change the
contract price.
20.6
In relation to each
prime cost item
and
provisional sum item
, if the
actual price is:
(a) less than the allowance, the difference is deducted from the
contract price
;
(b) more than the allowance, the total of the difference and the
builder's margin
applied to that difference is added to the
contract
price
.
20.7
Any adjustment to the
contract price
for a
prime cost item
or a
provisional sum item
is due and payable with, or deductible from, the
next progress payment, unless a different time is agreed in writing. The
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builder
is to provide to the
owner
such invoices, receipts or other
documents as may reasonably be expected to evidence the actual price of
a
prime cost item
or
provisional sum item
.
Clause 21. Practical Completion
Refer to the
definition of practical
completion in
Clause 1.
21.1
The
builder
must give the
owner
a
notice of practical completion
at
least 5
working days
prior to
practical completion
being reached.
21.2
The
notice of practical completion
is to:
(a) state the
builder's
assessment of the
date of practical
completion
;
(b) state the date and time for the
owner
to meet the
builder
on the
site
to carry out an inspection of the
building works
; and
(c) have attached the
builder's
final progress claim.
21.3
The
owner
must meet the
builder
on the
site
for the inspection at the
date and time stated by the
builder
in the
notice of practical
completion
or at a date and time otherwise agreed with the
builder
and
either:
(a) pay the amount of the final progress claim; or
(b) if the
owner
believes that the
building works
have not reached
practical completion
give the
builder
a written notice detailing
anything to be done to reach
practical completion
.
The owner is
responsible to insure
the building works
from the date of
practical completion.
See Clause 38.7
21.4
If the
owner
pays the amount of the final progress claim under sub-clause
21.3(a) the
date of practical completion
stated in the
notice of
practical completion
is deemed to be the
date of practical completion
.
For dispute
resolution refer to
Clause 35.
21.5
If the
owner
gives the
builder
a notice under sub-clause 21.3(b) of work
to be completed:
(a) the
builder
must carry out any work required for
practical
completion
and give the
owner
a further
notice of practical
completion
;
(b) if the
builder
does not agree that there is any further work to be
carried out to reach
practical completion
the
builder
:
(i) must give the
owner
written notice rejecting the
owner's
notice. In this case, such a notice will also serve as notice of the
matters in dispute for the purposes of Clause 35;
(ii) is not obliged to carry out any further work on the
site
while
the dispute remains unresolved.
21.6
If the
owner
does not pay the amount of the final progress claim under sub
-clause 21.3(a) or give the
builder
a notice under sub-clause 21.3(b);
(a) the amount of the final progress claim is deemed to be a debt due
and owing from the
owner
to the
builder
;
(b) the
date of practical completion
stated in the
notice of
practical completion
is deemed to be the
date of practical
completion
; and
(c) the
owner
acknowledges the
building works
have reached
practical completion
.
21.7
On the
owner
paying the final progress claim, the
builder
must give the
keys, certificates, warranty documentation and other documents pertaining
to the
building works
to the
owner
.
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Clause 22. Final Certificate
22.1
The
builder
is not required to obtain any certificate of occupancy or final
inspection certificate relating to the
building works
.
Clause 23. Notices
23.1
Unless otherwise stated in this
contract
, a notice given under this
contract
must be in writing and in English.
23.2 Notices may be given:
(a) personally;
(b) by sending it by prepaid post to the party's address shown in Item 3
or Item 4 of Schedule 1 or the address that is last notified in writing;
(c) by sending it by facsimile to the party's facsimile number shown in
Item 3 or Item 4 of Schedule 1 or the facsimile number that is last
notified in writing; or
(d) by sending it by email to the party's email address shown in Item 3
or Item 4 of Schedule 1 or the email address that is last notified in
writing.
23.3
Notice is deemed to be received:
(a) if given personally, by handing it to the other party;
(b) if sent by prepaid post, 5
working days
after posting;
(c) if sent by facsimile, at the time and on the day shown in the
sender's transmission report;
(d) if sent by email, at the time of transmission unless the sender's
server or email indicates a malfunction or error in transmission or the
recipient immediately notifies the sender of an incomplete or illegible
transmission.
23.4
If the notice is deemed to be received on a day which is not a
working day
or after 5pm, it is deemed to be received at 9am on the next
working day
.
23.5
If two or more people comprise a party, notice to one is effective notice to
all.
Clause 24. Defects Liability Period
24.1
The defects liability period is a period of 13 weeks commencing on and
including the
date of practical completion
.
Refer also to the
Statutory Warranties
set out in Clause 39.
24.2
The
owner
may, before the end of the defects liability period, give the
builder
one list of defects in the
building works
that appear after the
date of practical completion
.
24.3
The
builder
must rectify defects that are the
builder's
responsibility and
which are notified to the
builder
during the defects liability period.
24.4
The
owner
must provide the
builder
with reasonable access to carry out
rectification works.
Clause 25. Suspension
The builder may
suspend without
ending this contract.
25.1
If the
owner
is in breach of this
contract
the
builder
may suspend the
carrying out of the
building works
.
25.2
The
builder
must give to the
owner
written notice of the suspension and
details of the breach.
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The builder must
claim an extension of
time under Clause
19.
25.3
The
builder
must recommence the carrying out of the
building works
within a reasonable time after the
owner
remedies the breach and gives
the
builder
written notice of that fact.
25.4
The
builder's
exercise of the right of suspension does not prevent the
builder
from exercising any right to end this
contract
under Clause 27 in
regard to the same occurrence.
Clause 26. Early Possession
If this Clause applies
the owner is in
substantial breach of
this contract.
26.1
If the
owner
:
(a) enters into occupation of the
site
or any part of the
site
;
(b) takes control of the
building works
or the
site
; or
(c) prevents or inhibits the
builder
from carrying out the
building
work
, without the
builder's
written consent, the
owner
commits a
substantial breach of this contract entitling the
builder
to elect to
either:
(i) treat the
owner's
actions as a repudiation of this
contract
and
accept that repudiation; or
(ii) do either or both of the following:
(i) suspend the carrying out of the
building works
under
Clause 25;
(ii) give the
owner
a notice of default under Clause 27.
Clause 27. Ending the Contract - Breach
If there is a dispute
consider dispute
resolution. Refer to
Clause 35.
27.1
A substantial breach of this
contract
by the
builder
includes but is not
limited to if the
builder
:
(a) has its licence cancelled;
(b) suspends the carrying out of the
building works
other than under
Clause 25.
27.2
A substantial breach of this
contract
by the
owner
includes but is not
limited to if the
owner
:
(a) fails to pay any amount by the due date;
(b) fails to give evidence of ability to pay as requested;
(c) fails to establish and maintain a
security account
if requested;
(d) interferes with or obstructs the progress of the
building works
;
(e) fails to give or interferes with the
builder's
possession of the
site
;
or
(f) fails to give an instruction or direction required within the time
specified.
27.3
If a party is in substantial breach of this
contract
the other party may give
the party in breach a written notice stating:
(a) details of the breach; and
(b) that, if the breach is not remedied within 10
working days
, that
party is entitled to end this
contract
.
27.4
If 10
working days
have passed since the notice of default is given and
the breach is not remedied then the party giving the notice of default may
end this
contract
by giving a further written notice to that effect.
27.5
All notices to be given under this Clause must be given by registered post
or personally.
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Clause 28. Ending the Contract - Insolvency
28.1
Either party may end this
contract
by giving the other party written notice
by certified mail or personal service if the other party:
(a) being a person, is or becomes bankrupt; or
(b) being a corporation, is in or goes into liquidation.
Clause 29. Effect of the Builder Ending the Contract
29.1
If the
builder
ends this
contract
under Clause 14, Clause 26, Clause 27
or Clause 28, then at the election of the
builder
, the
owner
must pay as a
debt due and payable either:
(a) the greater of the cost of or the market value of the
building
works
to date including the cost of any materials on the
site
or
already ordered from suppliers and the cost of quitting the
site
less
the amount already paid by the
owner
; or
(b) damages.
Clause 30. Effect of the Owner Ending the Contract
30.1
If the
owner
ends this
contract
under Clause 27 the
owner
must
complete the
building works
and keep records of the cost incurred.
The owner is under a
duty to mitigate any
loss.
30.2
The
owner
must take all reasonable steps to minimise the cost of
completing the
building works
.
30.3
The
owner
must, within 5
working days
of the
building works
reaching
practical completion
, give the
builder
a written detailed statement of the
costs incurred (including copies of all invoices and receipts) and notice of
the date when
practical completion
was reached.
30.4
If the costs incurred by the
owner
are:
(a) more than the unpaid balance of the
contract price
the
builder
must pay the difference to the
owner
within 7
working days
of
receiving the notice from the
owner
; or
(b) less than the unpaid balance of the
contract price
the
owner
must pay the difference when giving the notice as a debt due and
payable.
Clause 31. Charge on the Site
31.1
The
owner
charges the
site
with the due payment to the
builder
of all
moneys that are or may become payable under this
contract
to the extent
that a court or tribunal has made an order that the
owner
pays that
amount to the
builder
.
Clause 32. Liquidated Damages
32.1
If the
building works
do not reach
practical completion
by the end of
the
building period
the
owner
is entitled to liquidated damages in the
sum specified in Item 11 of Schedule 1 for each
working day
after the end
of the
building period
to and including the earlier of:
(a) the date of
practical completion
;
(b) the date this
contract
is ended; or
(c) the date the
owner
takes possession of the
site
or any part of the
site
.
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Clause 33. Interest on Late Payments
Interest can be
charged on any
amount to be paid by
the owner to the
builder.
33.1
The
builder
may charge the
owner
interest at the rate stated in Item 12 of
Schedule 1 from the day on which an amount falls due to be paid to the
builder
up to and including the day that amount is paid.
Clause 34. Debt Collection Costs
34.1
The
owner
must pay to the
builder
any debt collection costs, including
any legal fees and costs associated with recovering or attempted recovery
of an amount under this
contract
.
Clause 35. Dispute Resolution
35.1
If a dispute arises then a party must give written notice to the other party
setting out the matter in dispute.
35.2
The
builder
and the
owner
must meet within 10
working days
of the
giving of the notice to attempt to resolve the dispute or to agree on
methods of so doing.
35.3
If the dispute is resolved the parties must write down the resolution and sign
it.
35.4
The parties agree that anything done or said in the negotiation cannot be
revealed in any other proceeding.
Clause 36. Risk
36.1
While carrying out the
building works
to and including the
date of
practical completion
, the
builder
is responsible for loss or damage to
the
building works
except to the extent that it is caused or contributed to
by an act or omission of the
owner
.
36.2
The
builder
is not responsible for loss or damage to the
owner's
property
or property for which the
owner
is responsible that is left on the
site
.
36.3
The
builder
is not responsible for personal injury, death, property loss or
damage caused by war or terrorism. The
owner
is responsible for such
injury, death, damage or loss.
36.4
The
builder
is not responsible for any loss and damage that the
owner
may incur arising from the
owner
taking early possession in breach of
Clause 26.1.
To mitigate is to take
steps to reduce or
limit the loss or
damage.
36.5
The
builder
must take all reasonable steps to mitigate any loss or damage
to the
building works
caused or contributed to by an act or omission of
the
owner
.
Clause 37. Indemnity
Indemnity is a legal
concept by which a
person is to
reimburse the other
person for costs
incurred.
37.1
Except to the extent limited by another provision of this
contract
, each
party indemnifies the other against:
(a) loss or damage to property (other than the
building works
); and
(b) claims in respect of personal injury or death,
arising out of or as a consequence of a cause or event at that party's risk.
Clause 38. Insurances
38.1
The
builder
must insure against:
(a) loss or damage to the
building works
and any goods and
materials on the
site
relating to the
building works
against theft, fire,
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explosion, lightning, hail, storm and tempest, vandalism, civil
commotion and earthquake; and
(b) public liability for an amount of $10,000,000 for any one claim.
38.2
The above insurance policies must be in place before the
builder
commences the
building works
and must be maintained:
(a) in the case of the
building works
policy, to and including the
date
of practical completion
; and
(b) in the case of public liability policy, for the duration of the
contract
.
38.3
If the
owner
asks, the above insurances must note the names of the
owner
and the
lending body
as being in the class of the insureds under
the above insurance policies.
38.4
The
builder
must comply with all obligations under workers compensation
legislation.
38.5
If the
owner
asks for proof of any of the above insurance policies being in
place the
builder
must give the
owner
a copy of the certificate of currency
relating to the relevant insurance policy.
38.6
On the settlement of any claim under the
building works
policy the
builder
is to:
(a) immediately be paid any part of the settlement moneys relating to
loss suffered by the
builder
relating to any work that is the subject of
the claim but for which the
owner
has not paid the
builder
; and
(b) carry out the reinstatement of the
building works
and be paid the
balance of the settlement moneys for the reinstatement works.
38.7
The
owner
must ensure that the
building works
are insured from the
date of practical completion
.
Clause 39. Statutory Warranties
These are the
warranties that are
set out in the Home
Building Act.
39.1
To the extent required by the Home Building Act, the
builder
warrants that:
(a) the
building works
will be done with due care and skill and in
accordance with the plans and the specifications attached to this
contract
;
(b) all materials supplied by the
builder
will be good and suitable for
the purpose for which they are used and that, unless otherwise stated
in this
contract
, those materials will be new;
(c) the
building works
will be done in accordance with, and will
comply with, the Home Building Act or any other law;
(d) the
building works
will be done with due diligence and within the
time stipulated in this
contract
, or if no time is stipulated, within a
reasonable time;
(e) if the
building works
consists of the construction of a dwelling, the
making of alterations or additions to a dwelling or the repairing,
renovation, decoration or protective treatment of a dwelling, the
building works
will result, to the extent of the
building works
conducted, in a dwelling that is reasonably fit for occupation as a
dwelling; and
(f) the
building works
and any materials used in doing the
building
works
will be reasonably fit for the specified purpose or result, if the
owner
expressly makes known to the
builder
, or other person with
express or apparent authority to enter into or vary contractual
arrangements on behalf of the
builder
, the particular purpose for
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which the
building works
are required or the result that the
owner
desires to be achieved, so as to show that the
owner
relies on the
builder's
skill and judgment.
Clause 40. Mandatory Conditions
40.1
To the extent required by the Home Building Act and subject to sub-
clause 40.2, the
building works
will comply with:
(a) the Building Code of Australia (to the extent required under the
Environmental Planning and Assessment Act 1979
(NSW)
(Environmental Planning and Assessment Act), including any
regulation or other instrument made under that Act);
(b) all other relevant codes, standards and specifications that the
building works
are required to comply with under any law; and
(c) the conditions of any relevant development consent or complying
development certificate.
40.2
The
builder
is not liable if the
building works
do not comply with the
requirements of sub-clause 40.1 if the failure relates solely to:
(a) a design or specification prepared by or on behalf of the
owner
(but not by or on behalf of the
builder
); or
(b) a design or specification required by the
owner
, if the
builder
has
advised the
owner
in writing that the design or specification
contravenes sub-clause 40.1.
40.3
To the extent required by the Home Building Act:
(a) all plans and specifications for the
building works
including any
variations to those plans and specifications form part of this
contract
;
(b) any agreement to vary this
contract
, or to vary the plans and
specifications for the
building works
, must be in writing and signed
by the parties;
(c) the
builder
will notify the
owner
if a registered certifier is required
with respect to particular work done under this contract;
(d) the selection of a registered certifier is the sole responsibility of the
owner
(subject to section 6.6(4A) or 6.12(4A) of the Environmental
Planning and Assessment Act;
(e) the
builder
will not object to the selection by the
owner
of any
particular registered certifier.
Refer to Clause 27.
40.4
This
contract
may be terminated in circumstances provided by common
law. This does not limit the circumstances in which the
contract
may be
terminated.
Clause 41. Assignment and Subcontracting
41.1
Neither party may assign this
contract
or any of their rights, benefits or
obligations under this
contract
without the prior written consent of the
other party.
41.2
The
builder
may subcontract any part of the
building works
but remains
responsible for all of the
building works
.
Clause 42. No Waiver
42.1
Except as provided at law or in equity or elsewhere in this
contract
, none
of the provisions of this
contract
may be varied, waived, discharged or
released, except with the prior written consent of the parties.
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Clause 43. Severance
43.1
Any provision in this
contract
which is illegal, void or unenforceable will be
ineffective to the extent only of such illegality, voidness or unenforceability
and will not invalidate any other provision of this
contract
.
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Representation by Agent
THIS ONLY APPLIES WHEN ALL PARTIES HAVE COMPLETED AND SIGNED
THIS PAGE
The
owner
and the
builder
agree that:
_________________________________________________________________________
(name)
of
_________________________________________________________________________
(company)
is appointed as agent for the owner.
The agent must provide instructions to the
builder
on behalf of the
owner
as required by this
contract
.
Dated:
___________________________________________________________________
Signed:
Owner
Builder
Agent
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Approved form under: Home Building Regulation 2014 (NSW) (clause 8)
Page
1
of
2
Attachment A
Checklist for owners entering into contracts for residential building
work worth more than $20,000
Checklist
1.
Have you checked that contractor holds a current contractor licence?
Yes
☐
No
☐
2.
Does the licence cover the type of work included in the contract?
Yes
☐
No
☐
3.
Is the name and number on the contractor’s licence the same as on
the contract?
Yes
☐
No
☐
4.
Is the work to be undertaken covered in the contract, drawings or
specifications?
Yes
☐
No
☐
5.
Does the contract clearly state a contract price or contain a warning
that the contract price is not known?
Yes
☐
No
☐
6.
If the contract price may be varied, is there a warning and an
explanation about how it may be varied?
Yes
☐
No
☐
7.
Are you aware of the cooling-off provisions relating to the contract?
Yes
☐
No
☐
8.
Is the deposit within the legal limit of 10%?
Yes
☐
No
☐
9.
Does the contract include details of the progress payments payable
under the contract?
Yes
☐
No
☐
10.
Do you understand the procedure to make a variation to the contract?
Yes
☐
No
☐
11.
Are you aware of who is to obtain any council or other approval for the
work?
Yes
☐
No
☐
12.
Do you understand that any registered certifier required to certify work
under the contract is to be selected by you and the contractor cannot
object to your selection?
Yes
☐
No
☐
13.
Do you understand that you are not required to pay the contractor a
deposit or any progress payments until the contractor has given you a
certificate of insurance under Part 6 or Part 6B of the
Home Building
Act 1989
(except where the work is of a kind that does not require
insurance)?
Yes
☐
No
☐
14.
Does the contract include either of the following:
(a) the cost of the insurance under Part 6 of the
Home Building Act
1989
,
(b) the cost of the alternative indemnity product under Part 6B of
the
Home Building Act 1989
?
Yes
☐
No
☐
15.
Has the contractor given you a copy of the Consumer Building Guide,
which provides key information about your rights and responsibilities
under NSW’s home building laws and where to get more information?
Yes
☐
No
☐
16.
Does the contract include a statement about the circumstances in
which the contract may be terminated?
Yes
☐
No
☐
17.
Does the contract include the Security of Payment Guide which provides
key information about your rights and responsibilities under the
Building
and Construction Industry Security of Payment Act 1999
and the Building
and Construction Industry Security of Payment Regulation 2020?
Yes
☐
No
☐
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Approved form under: Home Building Regulation 2014 (NSW) (clause 8)
Page
2
of
2
Signatures
Do not sign the contract unless you have read and understand the clauses as well as the
notes and explanations contained in the contract and this document.
If you have answered “no” to any question in
the checklist, you may not be ready to sign the
contract.
Both the contractor and the owner should retain an identical signed copy of the contract
including the drawings, specifications and other attached documents. Make sure that you
initial all attached documents and any amendments or deletions to the contract.
Signed copy of contract
Under the
Home Building Act 1989
a signed copy of the contract must be given to the
owner within 5 working days after the contract is entered into.
Insurance under Part 6 or Part 6B of the
Home Building Act 1989
The contractor must provide you with a certificate of insurance under Part 6 or Part 6B of
the
Home Building Act 1989
before the contractor commences work and before the
contractor can request or receive any payment.
Acknowledgement of owners
☐
I/We have been given a copy of the Consumer Building Guide and I/we have read
and understand it.
☐
I/We have completed the checklist and answered “
Yes
” to all items on it.
Note
Where the owner is a company or partnership or the contract is to be signed by an
authorised agent of the owner, the capacity of the person signing the contract, eg director,
must be inserted.
Signatures
X
X
Name
(print):
Name
(print):
Capacity
(print):
Capacity
(print):
Date
Date
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July 2020
Consumer Building Guide
Mandatory information for consumers
Builders and tradespeople must give you a copy of
this guide
before entering into a contract for residential
building work that costs more than $5,000. Read this
guide to help protect your rights, carry out your
responsibilities and support your building project.
Protecting consumers under home
building laws
NSW Fair Trading is the NSW Government
agency regulating residential building work (including
building or trade work on single dwellings, villas, houses
and home units) under the
Home Building Act 1989
.
What to consider before work starts
Licensing
Licensing requirements include:
●
tradespeople and builders carrying out residential
building work valued at more than $5,000 must be
licensed by NSW Fair Trading (check a
licence on the Fair Trading website or by calling 13
32 20)
●
regardless of the work's cost, a licence is always
required for specialist work (like plumbing, air
conditioning and refrigeration, electrical work
and gasfitting)
●
if the work requires more than one tradesperson,
you need a builder to manage the building project
and
co-ordinate the tradespeople, such as plumbers,
painters and carpenters.
Home Building Compensation Scheme
The State Insurance Regulatory Authority (SIRA)
regulates home building compensation (HBC) cover in
NSW. HBC cover is required where work is worth more
than $20,000 (including labour and materials). The
builder or tradesperson must give you evidence of HBC
cover before they start work on your project or you pay
them any money, including a deposit. For more
information or to check the validity of your
cover, visit sira.nsw.gov.au or call 13 10 50.
Approvals
To help your building project go smoothly:
●
check with your local council or an accredited private
certifier on approvals your building work needs
●
engage a building certifier. This is your responsibility,
not the builder´s.
Contracts and payments
All contracts must be in writing
. The two main
contract types are:
●
fixed price or lump sum
- where the builder or
tradesperson agrees upfront to a fixed amount for
the whole job. Unforeseen changes during
construction may affect the final cost
●
cost plus contract
- there is no guaranteed final
cost for the job (often this contract is used
where the project's nature prevents the final cost
from being calculated). The consumer repays the
builder for verified direct and indirect costs and fees
at regular intervals. It is good practice for the builder
to give a non-binding estimate before starting, and
track costs with you against the project's budgeted
estimate.
Residential building work
worth less than $20,000
must
be done under a 'small jobs' contract. The written
contract must be dated and signed by, or on behalf of,
each party. It may specify that work be paid for at regular
intervals. It must contain:
●
the parties' names, including the name of the holder
of the contractor licence as shown on the contractor
licence
●
the number of the contractor licence
●
a description of the work
●
any plans or specifications for the work, and
●
the contract price, if known.
Residential building contracts and contracts for specialist
work valued at more than $5,000, which require a certifier,
must (unless you are a developer) include terms about your
freedom to choose your own certifier. The contractor must
Attachment B
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July 2020
also give you prescribed information about certifiers,
published by Fair Trading, before entering into a contract.
It is an offence for a contractor to unduly influence your
choice of a certifier or object to your choice. Examples of
undue influence include:
making it a requirement of the contract that a
specified certifier or class of certifier is or isn’t
appointed
offering to change the contract price if a specified
certifier or class of certifier is or isn’t appointed
refusing to carry out work under the contract if a
specified certifier or class of certifier is or isn’t
appointed.
Residential building contracts regarding work
worth more than $20,000
requires a full home
building contract. As well as all of the requirements
of the 'small jobs' contract, it must include other
comprehensive information such as the details of
the statutory warranties the builder must provide,
the cost of any applicable HBC cover and the
contract price or warning that the contract price is
not known. The contract must also include a
checklist prescribed by Fair Trading. Find a
complete list of contract requirements
on our
website.
All contracts over $20,000 in value must have a
progress payment schedule. Progress payments must
match the work carried out and, for cost plus contracts,
be supported by receipts or other verifying documents.
Any change you need to make to a contract is a
'
variation
'. Variations must be in writing and be signed
by both parties to the contract. Almost all will impact the
contract price.
The
maximum deposit
you can be asked to pay
before work starts is 10%.
Common traps and tricks
Beware of:
●
an extremely low quote compared with others. This
may indicate the job's quality is being compromised,
or that the builder may not fully understand what is
required
●
`sales pitches´ putting pressure on you to sign
a contract quickly to avoid a price increase
●
a builder who recommends you get an owner-builder
permit while they organise all the building work. The
builder may be trying to avoid responsibility and may
not have the right kind of licence or HBC cover.
When things go wrong
Statutory warranties
Builders and tradespeople must guarantee that their work is
fit-for-purpose, performed diligently and delivered in a
reasonable timeframe, in line with the contract. Unless
otherwise specified, materials should be new and
appropriately used. These warranties are time-limited: legal
proceedings to enforce them must be
commenced within 6 years for major defects and 2 years
for all other defects. There is another 6 months for both
warranty periods if the defect only became apparent after 18
months or 5 and a half years. Find out more about these
warranties on the Fair Trading website.
Resolving a dispute with your builder or
tradesperson
These steps can help you resolve a dispute:
●
you must notify your builder or tradesperson
and
discuss concerns as soon as you become aware of a
problem. Follow up with an email or letter
●
understand acceptable work standards
by
downloading the
Guide to Standards and
Tolerances
from our website
●
contact Fair Trading for
free dispute resolution
if
you and your builder or tradesperson are unable to
resolve the dispute
●
lodge a claim with the
NSW Civil and
Administrative Tribunal (NCAT)
if you remain
unsatisfied with the dispute resolution outcome
●
protect your rights under the
HBC Scheme
: contact
your insurer or provider as soon as you become
aware of defective or incomplete work.
Home building compensation disputes
For help resolving disputes with a HBC insurer or
provider, visit the SIRA website sira.nsw.gov.au or call 13
10 50.
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July 2020
More information
Visit the Fair Trading website to:
●
learn more on your rights and responsibilities and
the statutory warranties
●
do an online licence check to verify a builder or
tradesperson´s licence details
●
find out about dispute resolution
●
download free home building contracts
●
subscribe to enews.
www.fairtrading.nsw.gov.au
Fair Trading enquiries 13 32 20
TTY 1300 723 404
Language assistance 13 14 50
This fact sheet must not be relied on as
legal advice. For more information about
this
topic,
refer
to
the
appropriate
legislation.
© State of New South Wales through NSW Fair Trading
We encourage the reuse of this information under the Creative Commons Attribution 4.0
licence. See NSW Fair Trading's copyright policy at www.fairtrading.nsw.gov.au or email
publications@finance.nsw.gov.au
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PO Box 972
Parramatta NSW 2124
Tel: 02 9895 0111 TTY: 1300 723 404
ABN 81 913 830 179
www.fairtrading.nsw.gov.au
Home Building Act 1989
Important: this is a summary document only.
This is the form of information about the role of a registered certifier, approved by the Secretary
for the holder of a contractor licence to give to the other party to a contract. It is an offence
under section 11B of the
Home Building Act 1989
if the licence holder does not provide this
document to the other party before entering into a contract.
This requirement applies to a contract under which the licence holder undertakes:
•
to do, in person, or by others, any residential building work or any specialist work, or
•
to vary any such undertaking to do residential building work or any specialist work or
the way in which any such work is to be done,
but only if a registered certifier will be required with respect to some/all of the work.
This requirement does not apply to:
•
a contract to do residential building work entered into between the holder of a
contractor licence and a developer with respect to the work,
•
a contract for which the contract price does not exceed $5,000 or (if the contract
price is not known) the reasonable market cost of the labour and materials involved
does not exceed $5,000,
•
a contract of a class prescribed by the
Home Building Regulation 2014
1
.
A registered certifier is a public official, independent of the contractor
Registered certifiers are public officials who do not work for builders, contractors, developers or
property owners. A certifier can be from the private sector or your local council.
A certifier’s role is to make an independent assessment to determine if relevant requirements of
the
Environmental Planning and Assessment Act 1979
have been met to warrant the issuing of
a construction certificate, complying development certificate or occupation certificate.
Certifiers do not supervise or manage builders, contractors or building sites.
1
None are currently prescribed by the Regulation.
Attachment C
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Information about registered certifiers –
Home Building Act 1989
– June 2020
What are a certifier’s responsibilities at each stage?
Before construction starts, a certifier’s responsibilities include to:
•
check whether the proposed work will meet legislative requirements if built in
accordance with the approved plans and specifications
•
advise which inspections will be mandatory as the work progresses
•
notify the council of their appointment as the principal certifier
•
check your builder or contractor is licensed and insured under the
Home Building Act
1989
•
check whether any applicable conditions of your consent or approval are met
•
check whether any applicable fees are paid, such as the long service levy
•
install a sign on the building site, showing the certifier’s details
•
inspect the building site (if required).
During construction, a certifier’s responsibilities include to:
•
inspect the work in person, at each required stage
•
if a non-compliance is identified, issue a direction to you and/or the builder requiring
certain action to be taken, and notify the council if the required action isn’t taken
•
respond appropriately to any complaints about the development, including informing
the council if needed.
After construction is finished, a certifier may issue an occupation certificate if:
•
all relevant conditions of your consent are met, and you have applied for the
occupation certificate, and
•
all inspections have been carried out and the work is found to be satisfactory, unless
an inspection (other than the final inspection) was missed under circumstances
deemed unavoidable by the certifier (and evidence of suitability of the work is
provided), and
•
the work is ‘suitable for occupation’ in accordance with the Building Code of
Australia. Important: this is a minimum standard of compliance that must be met. It
does not guarantee that all the work has been completed. For example, a house or
apartment may be suitable for occupation while painting or landscaping is still being
completed.
An occupation certificate does not certify that the conditions of your contract with the builder
have been met. The contract with your builder is a different contract to the contract with your
certifier and must be considered separately.
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Information about registered certifiers –
Home Building Act 1989
– June 2020
Your obligations
Appoint and enter into a contract with your chosen certifier. The choice and appointment of a
certifier is yours – your builder may recommend a certifier but cannot appoint the certifier for
you, cannot offer to change the contract price, and cannot refuse to carry out work if a particular
certifier is not appointed.
You must communicate with your builder, who will notify the certifier of each stage of work so
the certifier can inspect it. If an inspection is missed, the certifier may have to refuse to issue an
occupation certificate. You can request that the certifier and builder copy you into all
correspondence between them.
Finding more information on certifiers
Details of the class of registration each certifier holds, their period of registration, professional
indemnity insurance and disciplinary history can be found at
www.fairtrading.nsw.gov.au
:
•
Details of registered certifiers
(or search ‘appointing a certifier’ from the homepage)
•
Disciplinary actions against certifiers
(or search ‘certifier disciplinary register’ from the
homepage).
Questions?
The Fair Trading website
www.fairtrading.nsw.gov.au
has information about certifiers,
enforcement powers, how to replace a certifier and resolving concerns about a certifier:
•
Search ‘
what certifiers do
’ for information about a certifier’s role and responsibilities.
•
Search ‘
concerns with development
’ for information about enforcement powers of
certifiers, councils and Fair Trading, and how to resolve concerns about a certifier.
© State of New South Wales through Department of Customer Service 2020.
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Fair Trading Security of Payment Guide | February 2021
Security of Payment Guide
Understanding progress payments in the building and construction industry
The Security of Payment laws
In NSW, people who carry out construction work
or supply related goods and services under a
construction contract are entitled to receive
progress payments for the work or supply of
those goods and services.
This is regulated by the
Building and
Construction Industry Security of Payment Act
1999
(NSW) and Building and Construction
Industry Security of Payment Regulation 2020
(NSW) (“Security of Payment laws”).
The Security of Payment laws are relevant to
those involved in contracts within the building
and construction industry such as builders,
tradies, subcontractors, consultants and
suppliers.
The purpose of the Security of Payment laws is
to reduce the risk of insolvency in the building
and construction industry in NSW by ensuring
members of the contractual chain are paid for
the work or services they provide.
What do the Security of Payment laws
apply to?
Any construction contract.
A construction contract that is written or oral.
A construction contract that is partly written
and partly oral.
A construction contract that says it is to be
governed by a law of a State or Territory
outside of NSW but the work is carried out
in NSW.
On and from 1 March 2021, owner occupier
construction contracts.
What are owner occupier construction
contracts?
Owner occupier construction contracts are
construction contracts for residential building
work on any premises or part of the premises
where the contracting party resides or proposes
to reside in. For example, an home owner
engaging a builder to build their home.
What’s not covered under Security of
Payment laws?
x
A construction contract where the work is
performed outside of NSW.
x
A construction contract for goods and
services supplied in respect of construction
work outside of NSW.
x
A construction contract that regulates an
employer/employee relationship.
x
A construction contract that relates to a
financial loan.
What is a progress payment?
A progress payment includes:
• The final payment for construction work
carried out or the supply of the goods/
services under the construction contract, or
• A single or one-off payment for carrying out
construction work or the supply of goods/
services under the construction contract, or
• A payment based on an event or date
(“milestone payment”).
This does not prevent the building contractor
making one payment claim for a progress
payment in any particular month for construction
work carried out or for related goods and
services supplied in that month.
How is a progress payment amount
determined?
The progress payment amount is usually set out
in the construction contract.
If the progress payment amount is not set out in
the construction contract, the amount will be
calculated based on the value of the construction
work undertaken or the goods/service provided.
When is a progress payment due for
payment?
A progress payment should be made in
accordance with the terms of the applicable
construction contract.
Page 1 of 4
Attachment D
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Fair Trading Security of Payment Guide | February 2021
Due date for payment
A person entitled to a progress payment (the
claimant) may serve a payment claim on the
person who, under the construction contract
concerned, is or may be liable to make the
payment.
There are specific maximum deadlines for
payment depending on the nature of the
contract.
If the construction contract under which the
payment claim is made is
not
an owner occupier
construction contract as defined by the Act, the
following will apply:
Where a head contractor
makes a payment
claim to a principal, the payment claim becomes
due and payable by the principal:
• 15 business days after the payment claim is
served on the principal, or
•
an earlier date if the construction contract
between the principal and head contractor
specifies this.
A progress payment to be made to a
subcontractor
becomes due and payable:
• 20 business days after the payment claim is
served on the head contractor, or
• an earlier date if the construction contract
between the parties specifies this.
Where a party to an
owner occupier
construction contract
makes a payment claim,
the claim becomes due and payable:
•
in accordance with the terms of the contract,
or
•
if the contract makes no express provision
with respect to the matter, on the date
occurring 10 business days after a payment
claim is served on the person liable to make
the payment.
Procedure for recovering progress
payments
A claimant can serve one payment claim in
any month under each contract (can be on
last day of one month and first day of next
month) or on or from an earlier date if the
contract provides this.
If the construction contract has been
terminated, a payment claim can be made
from the date of termination.
A payment claim must identify the goods or
services the claim relates to, the claimed
amount, and clearly state it is a payment claim
made under the Security of Payment laws.
A claimant can only make a claim within the
period determined in the contract or
12 months after the work was carried out
(whichever is later).
A head contractor claimant must fill out and
attach a supporting statement form to their
claim.
Replying to a payment claim: payment
schedules
A party who has been served a payment claim
(“the respondent”), may reply by providing a
payment schedule
to the claimant.
There are strict timeframes for a respondent to
provide a payment schedule to a claimant. These
are:
•
within the time outlined in the construction
contract, or
•
within 10 business days after the payment
claim is served (whichever is earlier).
If a respondent does not provide a payment
schedule to the claimant within the timeframe
required, they are liable to pay the amount
requested by the claimant in the payment claim.
A payment schedule must identify:
•
the payment claim it is for
•
the amount of payment (if any) that will be
paid (the “scheduled amount”)
•
if the scheduled amount is less than the
claimed amount, why the scheduled amount
is less
•
if it is less because the respondent is
withholding payment for any reason, the
respondent’s reasons for withholding
payment.
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Important facts
• Interest is payable on the unpaid amount of a
progress payment that has become due and
payable.
• If a progress payment is due and payable, a
claimant can exercise a legal right (called a
lien) to legally possess any unfixed plant or
materials they have supplied to the respondent,
until the progress payment is paid.
What if a progress payment is not paid?
If the claimant has made a payment claim, and
the respondent does not accept the payment
claim, a claimant can apply to have the matter
dealt with by an adjudicator or a court.
A claimant can make a claim in court or make an
application for the matter to be heard by an
adjudicator, if:
• the respondent does not provide a payment
schedule, or
• the scheduled amount indicated in the
payment schedule is less than the claimed
amount indicated in the payment claim, or
• the respondent does not pay the claimant in
accordance with the payment schedule.
A claimant can serve a payment withholding
request on a principal contractor to retain
sufficient money to cover the claim out of money
that is, or becomes payable by the principal
contractor to the respondent.
Adjudication
A claimant may apply for adjudication of a
payment claim where the respondent provides a
payment schedule but:
• the scheduled amount indicated in the
payment schedule is less than the claimed
amount, or
• the respondent fails to pay the whole or any
part of the scheduled amount to the claimant
by the due date for payment of the amount.
The claimant may also apply for adjudication of a
payment claim if the respondent fails to provide
a payment schedule at all to the claimant and
also fails to pay the whole or any part of the
claimed amount by the due date for payment of
the amount.
Information relating to the adjudication of
payment claims is outlined in
Division 2, Part 3
of the Act.
Key points: Adjudication
• The Security of Payment laws provide rules
relating to an adjudication application, such
as the number of days an application must be
made within. For more details see
section 17
of the Act.
• A claimant may withdraw an adjudication
application at any time before an adjudicator
has been appointed or before the application
is determined.
• Authorised nominating authorities
(organisations authorised by the Minister)
refer adjudication applications to an eligible
adjudicator. The eligibility criteria for
adjudicators is detailed in clause
19 of the
Regulation
.
Trust account requirements
If a head contractor has a construction contract
with a principal that has a value of at least
$20
million
, the head contractor has an obligation to:
Hold
retention money
in trust for the
subcontractors entitled to the money.
Ensure that the money is paid into and
retained in a trust account established with
an authorised deposit-taking institution (ADI)
approved under
section 87 of the Property
and Stock Agents Act 2002.
Ensure the retention money is paid into the
trust account no later than 5 business days
after the head contractor is required to retain
the retention money.
What is retention money?
Retention money means money that is retained
by a head contractor out of money that the head
contractor is required to pay to a subcontractor
under a construction contract as security for the
performance of obligations of the subcontractor
under the contract.
For example, 5% of the contract’s value may be
held as the retention money, or there could be an
arrangement where there will be a 10% deduction
from each of the subcontractor’s progress
payments which is kept as the retention money
component. Each construction contract may
contain different terms and can be negotiated.
Fair Trading Security of Payment Guide fact sheet | July 2021
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Establishing a trust account
When establishing a trust account for retention
money, there are certain requirements, such as
notifying the Secretary of the account’s details
and notifying the ADI that it is an account
opened for the purposes of the Security of
Payment laws.
For more information on the requirements when
opening a trust account see
clause 9 of the
Regulation.
Withdrawals from a trust account
A head contractor must not withdraw retention
money from a retention money trust account
except for 1 of these 4 reasons:
Payment of money in accordance with the
terms of the construction contract under
which the money was retained by the head
contractor.
If the head contractor and subcontractor
make an agreement in writing.
To pay an amount that an adjudicator has
determined the respondent must pay to the
claimant.
In accordance with an order of a court or
tribunal.
x
It cannot be used by the head contractor to
pay their own debts.
Record keeping
A head contractor must keep records in the form
of a ledger to keep track of things such as the
amounts deposited into or withdrawn from the
account. The ledger is to be provided to the
subcontractor at least once every 3 months, or as
often as may be agreed in writing by the head
contractor and the subcontractor (but at least
once every 6 months).
More information
Visit
fairtrading.nsw.gov
and search for “security
of payment or email
securityofpayment@custom-
erservice.nsw.gov.au
For further help call 13 32 20. If you’re deaf, hard
of hearing, or speech-impaired, contact us through
the
National Relay Service
. If you speak a language
other than English, call our Telephone Interpreter
Service on 13 14 50.
Definitions: key terms
Principal
means the person for whom
construction work is to be carried out or related
goods and services supplied under a
construction contract (the main contract) and
who is not themselves engaged under a
construction contract to carry out construction
work or supply related goods and services as
part of or incidental to the work or goods and
services carried out or supplied under the main
contract.
Head contractor
means the person who is to
carry out construction work or supply related
goods and services for the principal under a
construction contract (the main contract) and for
whom construction work is to be carried out or
related goods and services supplied under a
construction contract as part of or incidental to
the work or goods and services carried out or
supplied under the main contract.
Note
—There is
no head contractor when the principal contracts
directly with subcontractors.
Subcontractor
means a person who is to carry
out construction work or supply related goods
and services under a construction contract
otherwise than as head contractor.
Claimant
means a person by whom a payment
claim is served.
Respondent
means a person on whom a
payment claim is served.
This fact sheet must not be relied on as legal advice.±
For more information about this topic, refer to the appropriate±
legislation. © State of New South Wales (NSW Fair Trading)
. ±
See NSW Fair Trading’s copyright policy at fairtrading.nsw.gov.au±
or email
publications@fnance.nsw.gov.au±
Approved form under: Home Building Regulation 2014 (clause 8)±
fairtrading.nsw.gov.au
13 32 20
Fair Trading Security of Payment Guide | February 2021
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DocuSign Envelope ID: 62D05041-6824-4895-9224-23CADB337E5D
SandTech Property Group Pty Ltd
Design-Build-Handover
ABN:63621525193
Builder’s Licence: 332412C
Address: 32 Somerset St, Stanhope Gardens, nsw-2768
Email:
info@sandtech.com.au
M: 0402171503
SandTech Smart Specification: STS 010
Client: MD Abdus Sayek Khan
Umme Safura
Aliya Khan
Site Address: 70 Portico Parade, Toongabbie Unit 1 ,2146 NSW
Dear Concern,
Thank you for expressing your interest about quotation of building your new
dream home with SandTech Property Group Pty Ltd.
SandTech skilled personnel blend your expectation with your dream to build
up your smart living.
SandTech Team are pleased to submit this tender for your project.
This tender is based on the following proposals listed below. Any update with
plan and specification is rendered as variation.
Tender:
❖
Standard Fixed price Contract
❖
Construction Period:
54weeks after Bank commencement letter or DA/CC/CDC
approval whichever comes later.
Building Type & Size:
❖
180.56sqm 3 bedrooms double storey house with 3 toilets, BBQ provision at alfresco,
single garage and façade and OSD as per plan.
Tender’s Preliminary:
❖
Architectural, structural drawings, stormwater and other related documents with
CDC (or DA with CC) approval by the client.
❖
Home warranty and public liability insurance by the builder.
DocuSign Envelope ID: 7409AEB2-0FCF-4CBF-AD0C-E4AF663CFC14
DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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DocuSign Envelope ID: 62D05041-6824-4895-9224-23CADB337E5D
SandTech Property Group Pty Ltd
Design-Build-Handover
ABN:63621525193
Builder’s Licence: 332412C
Address: 32 Somerset St, Stanhope Gardens, nsw-2768
Email:
info@sandtech.com.au
M: 0402171503
Tender Price including GST: $451,400.00
{As per Standard Inclusion list}
This
Tender is valid for 30 days from the day of issue.
SandTech Smart Specification: STS 010
Client: MD Abdus Sayek Khan
Umme Safura Aliya Khan
Site Address: 70 Portico Parade,Unit 1, Toongabbie 2146 NSW
Inclusion lists for each house:
1.
Site costs and Statutory requirements:
❖
Temporary fence and toilet
❖
Sediment control measures
❖
Scaffolding and safety rails as per Work Cover requirement.
❖
Telstra/NBN connection outlet. The owner needs to arrange service provider.
❖
Provide sewer, gas, electricity and water connection to near junction within
boundary
2.
External:
❖
Underground power connection to suit Single/Three phase metering.
❖
Builder
range concrete roof tiles (skylight will be variation. Owner has to purchase).
❖
Fascia and gutters as per standard colour selection from colour bond.
❖
PVC downpipes
❖
Front & rear garden taps (2) (150$ for extra each).
❖
Brick veneer wall.
❖
Face brick from SandTech standard range. Allowance: $900/1000 bricks
❖
Rainwater Tank and hot water system as per plan
❖
1 sensor light in front of garage, 4 external wall lights and 2 column lights.
❖
Front
façade wall with cement render and paint finished (as per plan).
❖
Residential
grade aluminium frame key locked window with fly screen as per window schedule.
(Blinds not included)
❖
sliding door. ( Stacker door or bi-fold door will be variation)
❖
Gas hot and
coldwater provision at alfresco.
DocuSign Envelope ID: 7409AEB2-0FCF-4CBF-AD0C-E4AF663CFC14
DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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DocuSign Envelope ID: 62D05041-6824-4895-9224-23CADB337E5D
SandTech Property Group Pty Ltd
Design-Build-Handover
ABN:63621525193
Builder’s Licence: 332412C
Address: 32 Somerset St, Stanhope Gardens, nsw-2768
Email:
info@sandtech.com.au
❖
3.
Pier, slab, Footing and Drop edge Beam
❖
Cut and fill upto 1m. Waffle pod slab as per structural plan.
M: 0402171503
❖
SandTech will provide upto 3 LM drop edge beam. Any additional will be charged
$450/LM. Customer will be informed for confirmation prior to commencement.
❖
Termite protection
SandTech Smart Specification: STS 002
Client: MD Abdus Sayek Khan
Umme Safura Aliya Khan
Site Address: 70 Portico Parade,Unit 1, Toongabbie 2146 NSW
4.
Frame and Truss:
❖
Frame & truss as per BCA AS1684.4 2010 guideline.
❖
90 mm external & internal wall frames.
❖
LVL or steel beam as per engineering drawing.
5.
Internal:
❖
Ceiling height 2.7m
as per plan.
❖
Wall and ceiling with 10mm plasterboard
❖
Kitchen and laundry area with WR 10mm plasterboard.
❖
Internal wall wet area to be 6mm villa board.
❖
90 mm cove cornices
❖
Entrance door from Corinthian or Hume doors. Allowance: $750
❖
Hollow core internal doors with gloss finished paint
❖
Main door with entrance lock and internal door with privacy lock.
❖
67 mm architraves and skiting.
❖
Porch and alfresco area will be constructed with Tiles and it is $27 per square metre.
❖
All meals, kitchen, family, living and laundry will be covered by tiles$27/sqm.
DocuSign Envelope ID: 7409AEB2-0FCF-4CBF-AD0C-E4AF663CFC14
DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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DocuSign Envelope ID: 62D05041-6824-4895-9224-23CADB337E5D
SandTech Property Group Pty Ltd
Design-Build-Handover
ABN:63621525193
Builder’s Licence: 332412C
Address: 32 Somerset St, Stanhope Gardens, nsw-2768
Email:
info@sandtech.com.au
❖
Laminating Timber flooring will be used to covered in
all bedrooms. Allowance:
$45/sqm incl supply and installation.
❖
Any drop ceiling will be variation
❖
As per plan staircase will be MDF( staircase area and void area will be covered by
timber railing)
DocuSign Envelope ID: 7409AEB2-0FCF-4CBF-AD0C-E4AF663CFC14
DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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DocuSign Envelope ID: 62D05041-6824-4895-9224-23CADB337E5D
SandTech Property Group Pty Ltd
Design-Build-Handover
ABN:63621525193
Builder’s Licence:
332412C
Address: 32 Somerset St, Stanhope Gardens, nsw-2768
Email:
info@sandtech.com.au
M: 0402171503
6.
Painting:
❖
High quality residential grade 3 coats SandTech range paint throughout to wall
and ceiling.
❖
High gloss oil-based paint to all architraves, skirting and internal doors with jam.
❖
Stain or high gloss enamel paint finished main entrance door.
❖
Feature wall: SandTech has allowance for two feature walls except 3D effect paint.
DocuSign Envelope ID: 7409AEB2-0FCF-4CBF-AD0C-E4AF663CFC14
DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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DocuSign Envelope ID: 62D05041-6824-4895-9224-23CADB337E5D
❖
7.
Insulation:
❖
Insulation as per BASIX but not less than R2.2 for external wall and R4.0 for ceiling
except garage ceiling.
8.
Electrical:
SandTech Property Group Pty Ltd
Design-Build-Handover
ABN:63621525193
Builder’s Licence: 332412C
Address: 32 Somerset St, Stanhope Gardens, nsw-2768
Email:
info@sandtech.com.au
M: 0402171503
SandTech Smart Specification: STS 002
Client: MD Abdus Sayek Khan
Umme Safura Aliya Khan
Site Address: 70 Portico Parade, Unit 1 Toongabbie 2146 NSW
❖
50 down lights from
builder’s range (extra down lights will be variation of 100$
each)
❖
1x 1m fluorescent light to garage.
❖
3 in 1 (IXL) light, heater and fan to each bathroom.
❖
25 double power points throughout the house from builder’s range. (Extra power
points will be variation of 100$ each)
❖
3 weatherproof external power points.
❖
3xTV, 3xData and 2x Telephone points. Extra points will be variation of 120$ each.
❖
1xvideo intercom with single screen.
❖
1xDigital TV Antenna.
❖
2-way switches where applicable (only 2 allowed). Extra will be 150$
❖
Smoke
detector as per plan.
❖
Security alarm up to 5 sensors (with remote tuned with garage motor will be
variation 1,200$ for 2 remote).
❖
Supply and install 1 sensor light Infront of garage and 4 others around the house.
Extra will be 120$ each.
❖
2 column lights at the front façade.
Owner will provide the lights
.
❖
CCTV camera is an extra choice at $2,500 for 8 cameras.
❖
Pendant lights will be supplied by the owner and installed by the builder.
❖
Chandelier and spot light is an extra choice. Position can be replaced with batten
holder on builders’ cost. But if the owner supplies the lights then $ 130/ lights will be
charged for installation cost.
❖
26L Rinnai continuous flow hot water system.
DocuSign Envelope ID: 7409AEB2-0FCF-4CBF-AD0C-E4AF663CFC14
DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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DocuSign Envelope ID: 62D05041-6824-4895-9224-23CADB337E5D
9.
Bathroom:
Ceramic modern toilet.
❖
Wall mounted vanity with ceramic top.
❖
As per plan all wall
mounedt vanity in master bed ensuite. Vanity: $600 each (single
bowl with stone), $900 each (Double). (Black colour vanity bowl will be variation of
225$ each)
❖
Bevel edged frameless mirror to the length of the vanity.
❖
Aluminium semi frame shower screen with safety glass.
❖
1 deep niche on the hall way behind the fridge.
❖
Shower head with mixer and handsets (black colour will be 100$ variation each).
❖
SandTech builder’s range free standi
ng bathtub. Allowance: $750 each
❖
Ceramic
or porcelain floor tiles to bathroom and ensuite. Allowance: $2/sqm
SandTech Property Group Pty Ltd
Design-Build-Handover
ABN:63621525193
Builder’s Licence: 332412C
Address: 32 Somerset St, Stanhope Gardens, nsw-2768
Email:
info@sandtech.com.au
M: 0402171503
SandTech Smart Specification: STS 010
Client: MD Abdus Sayek Khan
Umme Safura Aliya Khan
Site Address: 70 Portico Parade, Toongabbie Unit 1, 2146 NSW
❖
Ceramic or porcelain wall tiles up to ceiling of each bathroom and ensuite.
Allowance: $27/sqm.
❖
Toilet paper holder& towel rails to all bathrooms and ensuite.
❖
Chrome finished basin mixer and floor wastes. Tapware allowance: $80 each. (Black
colour will be variation about 30$ each)
❖
Waterproofing to BCA standard.
10.
Built-in, WIR and Linen:
❖
Built-in robes with standard mirror sliding doors, 3 drawers, 3 shelves in white
melamine and 2 hanging rails. Variation will be applicable if owner include more
shelves or drawers.
❖
Linen with 3 shelves in white melamine
❖
WIR: 3 drawers, 3 shelves in white melamine and 2 hanging rails.
❖
Walk in pantry with 3 shelves in white melamine.
DocuSign Envelope ID: 7409AEB2-0FCF-4CBF-AD0C-E4AF663CFC14
DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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DocuSign Envelope ID: 62D05041-6824-4895-9224-23CADB337E5D
❖
11.
Kitchen:
❖
Custom made kitchen as per plan with in-build bins (double bin) and integrated
double door fridge cabinet. (integrated double door fridge can be supplied and
installed for 2500$ extra)
DocuSign Envelope ID: 7409AEB2-0FCF-4CBF-AD0C-E4AF663CFC14
DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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DocuSign Envelope ID: 62D05041-6824-4895-9224-23CADB337E5D
❖
Soft close poly-tec kitchen cabinet with sheen or matt finished.
❖
40 mm quantum quartz edge stone in kitchen and island benchtop with no waterfall.
❖
Stainless steel double bowl top mount kitchen sink with modern mixer from
builder’s range. (undermount will
be variation)
❖
Laminated kick board to match
doors.
❖
Tiles or glass splash back underside of overhead cupboards.
❖
Dishwasher and microwave provision will be kept on the kitchen. (supply of
dishwasher will be variation)
❖
For Main Kitchen, SandTech builder
’s range is 90cm (5 burner) gas cooktop, 90cm
electric oven and 90 cm integrated range hood.
12.
Laundry:
❖
45L Laundry tub with cabinet and rinse by-pass and tapware.
.
SandTech Property Group Pty Ltd
Design-Build-Handover
ABN:63621525193
Builder’s Lice
nce: 332412C
Address: 32 Somerset St, Stanhope Gardens, nsw-2768
Email:
info@sandtech.com.au
M: 0402171503
SandTech Smart Specification: STS 010
Client: MD Abdus Sayek Khan
Umme Safura Aliya Khan
Site Address: 70 Portico Parade, Toongabbie Unit 1, 2146 NSW
❖
Waterproofing to BCA standard
❖
Tiles splash back over the tub.
❖
Plumbing provision for Washing Machine.
❖
Dryer can be provided and installed for additional cost of 700$
(Westinghouse
dryer).
13.
Driveway, Landscaping, Letter Box and Cloth liner
:
❖
Plain Colour concrete driveway as per plan. Allowance area: 50sqm. Any extra
concrete cover will be variation (120$ per linear meter). Stencil driveway will be 30$
extra per sqm.
❖
Sandtech builder range letter box (allowance: $100) and cloth liner. Allowance
for
basic landscaping. (variation for landscaping will be 8000$)
DocuSign Envelope ID: 7409AEB2-0FCF-4CBF-AD0C-E4AF663CFC14
DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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DocuSign Envelope ID: 62D05041-6824-4895-9224-23CADB337E5D
❖
14.
Ducted or Split System Air Conditioning:
Samsung Ducted air condition with 5zones and 1 controller.
15.
Completion:
❖
6 years structural warranty
❖
90 days maintenance period from the day of the hand over.
❖
Occupational certific
ate.
❖
House will be professionally cleaned before handover.
SandTech Property Group Pty Ltd
Design-Build-Handover
ABN:63621525193
Builder’s Licence: 332412C
Address: 32 Somerset St, Stanhope Gardens, nsw-2768
Email:
info@sandtech.com.au
M: 0402171503
SandTech Smart Specification: STS 010
Client: MD Abdus Sayek Khan
Umme Safura Aliya Khan
Site Address: 70 Portico Parade, Toongabbie Unit 1, 2146 NSW
16. EXCLUSIONS:
Note:
SandTech Property Group Pty Ltd have made no allowance in the Tender for the
following and if required will be charged as an additional cost-
❖
Demolition, removal of trees and undergrowth from the site or any existing structure
❖
Any easement related work.
❖
Outdoor shower
❖
Rock excavation
❖
Fencing and retaining wall unless mention otherwise
❖
Asbestos removal or any other contaminated soil removal
❖
Driveway inspection fee
❖
Sydney water approval fees and section 94 contribution
❖
Traffic control fees if required
❖
Removal of more than 1 boggy (12 tonnes) load of excess dirt or excess soil as a
result of excavation
❖
Any demolition work at site, it will be variation
❖
Road opening fees
❖
Gas bottle provision
DocuSign Envelope ID: 7409AEB2-0FCF-4CBF-AD0C-E4AF663CFC14
DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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DocuSign Envelope ID: 62D05041-6824-4895-9224-23CADB337E5D
❖
❖
Long service levy
❖
Bush fire zone requirement
❖
Special window glazing to accommodate bush zone area or any acoustic glazing for
traffic area.
❖
Blinds
Generally anything outside the scope of the work specified above
SandTech Property Group Pty Ltd
Design-Build-Handover
ABN:63621525193
Builder’s Licen
ce: 332412C
Address: 32 Somerset St, Stanhope Gardens, nsw-2768
Email:
info@sandtech.com.au
M: 0402171503
SandTech Smart Specification: STS 010
Client: MD Abdus Sayek Khan
Umme Safura Aliya Khan
Site Address: 70 Portico Parade, Toongabbie Unit 1 2146 NSW
Items Allowance:
Serial
Item Price
1
Toilet Set $220.00
2
Vanity $600.00 each
3
3 in 1 System $160.00 each
4
Kitchen Sink $220.00
5
Tapware $85.00 each
6
Westinghouse 90cm cooktop with oven $1500.00
7
Westinghouse 90cm Integrated Range Hood $400.00
DocuSign Envelope ID: 7409AEB2-0FCF-4CBF-AD0C-E4AF663CFC14
DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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DocuSign Envelope ID: 62D05041-6824-4895-9224-23CADB337E5D
❖
8
Wet area tiles $24.00 per sqm.
DocuSign Envelope ID: 7409AEB2-0FCF-4CBF-AD0C-E4AF663CFC14
DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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DocuSign Envelope ID: 62D05041-6824-4895-9224-23CADB337E5D
9
10
11
12
13
14
15
16
17
18
19
Laminated timber floor $40.00 per sqm incl installation Down light
$110.00/light incl installation
Oyster light $110.00/light incl installation
Interior
power points $110.00/light incl installation
Exterior power point $110.00/light incl installation
TV, Telephone and data point $110.00/light incl installation Mirror $50.00each
Shower Head $160.00each
Towel Rail $40.00each
Tissue Holder $30.00each
Laundry Tub $250.00
20.
Garage Door $2000.00
21
Main Entrance Door $700.00
22
Any external door (except main door) $180.00 each
23
Internal Hollow Door $40.00 each
24
Face Brick $900.00/1000 bricks
SandTech Property Group Pty Ltd
Design-Build-Handover
ABN:63621525193
Builder’s Licence: 332412C
Address: 32 Somerset St, Stanhope Gardens, nsw-2768
Email:
info@sandtech.com.au
M: 0402171503
SandTech Smart Specification: STS 010
Client: MD Abdus Sayek Khan
Umme Safura Aliya Khan
Site Address: 70 Portico Parade, Toongabbie Unit 1, 2146 NSW
Important Note:
DocuSign Envelope ID: 7409AEB2-0FCF-4CBF-AD0C-E4AF663CFC14
DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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DocuSign Envelope ID: 62D05041-6824-4895-9224-23CADB337E5D
-
Quotation is subject to reviewing the 149(2) & (5) certificate, sewer diagram and
thetitle search.
-
SandTech Property Group Pty Ltd will remove only 1 boggy of excess soil or
constructiondirt if required and excess soil
or dirt will be removed at client’s cost.
-
SandTech Property Group Pty Ltd will remove any concrete obstructing the connection
of sewer, stormwater and electricity services. However, will not reinstate the concrete,
and recommends this is done along with the landscaping.
-
If we are building within the zone of influence to a sewer, peg out will requested with
additional cost of $1,500 including GST. Additional charge will be imposed if extra
piering needed apart from structural engineering plan.
-
Owner is to provide electricity and water during the construction of the house. If these
services can’t be provided, SandTech will arrange to install temporary service at the
cost of the client.
-
SandTech will not be liable for any damage caused on existing driveway or over
anexisting kerb due to gain reasonable access during the construction.
-
Any pre-existing damage to surface objects such as concrete path/driveway etc on
theproperty, is not SandTech’s responsibility.
-
PC items must be selected from SandTech preferred supplier within the specified range
in this quotation. If no allowance is given in the quotation for any item, “
Builder’s
Range”
will be applicable. If client wish to bring any PC items, then SandTech will credit
allowance money minus 20% margin on that item to cover the cost of installation and
management cost. Rise and fall clauses can be used
if inflation arise.
-
Sandtech will not be liable on any warranty and maintenance issue for any
itemssupplied by the client.
SandTech Property Group Pty Ltd
Design-Build-Handover
ABN:63621525193
Builder’s Licence: 332412C
Address: 32 Somerset St, Stanhope Gardens, nsw-2768
Email:
info@sandtech.com.au
M: 0402171503
SandTech Smart Specification: STS 010
Client: MD Abdus Sayek Khan
Umme Safura Aliya Khan
Site Address: 70 Portico Parade, Toongabbie Unit 1, 2146 NSW
SandTech
Guidelines:
-
Any update in this quotation should be treated as
variation.
DocuSign Envelope ID: 7409AEB2-0FCF-4CBF-AD0C-E4AF663CFC14
DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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DocuSign Envelope ID: 62D05041-6824-4895-9224-23CADB337E5D
-
Any update before the contract signed needs to be approved by the client and the
costof update will be added to the standard contract price.
-
Any update after the contract signed needs to be confirm by the client by email and
istreated as
additional variation
.
-
50% cost of any additional variation is payable to next applicable progress claim.
-
Important considerations when incorporating rise and fall clauses into
standardcontracts.
THE CLIENT OR ANY ASSOCIATED PARTY ACCESS TO THE BUILDING SITE:
The SandTech follows WHS Act 2011 seriously. Due to Section-8 WHS Act-2011, the builder
needs to ensure the safety of all personals entering the job site who could be adversely
affected by the building activity. To keep the site free of injury and risks of all parties,
SandTech limited the building site access. Since we are liable for any incident on the site, so
the client or associate party is only allowed when accompanied by the Nominated
SandTech
Supervisor.
Client Communication:
During construction, all communications between the client and
builder would be done by email (to:
taj02_in@yahoo.com
; cc: sandtechpa@gmail.com)
We are committed to provide you customised service to fulfill your expectation. We look
forward to hear your valuable feedback.
Yours Faithfully
Mohammad Tajuddin (Director)
SandTech Property Group Pty Ltd
SandTech Property Group Pty Ltd
Design-Build-Handover
ABN:63621525193
Builder’s Licence: 332412C
Address: 32 Somerset St, Stanhope Gardens, nsw-2768
Email:
info@sandtech.com.au
M: 0402171503
SandTech Smart Specification: STS 010
Client: MD Abdus Sayek Khan
Umme Safura Aliya Khan
DocuSign Envelope ID: 7409AEB2-0FCF-4CBF-AD0C-E4AF663CFC14
DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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DocuSign Envelope ID: 62D05041-6824-4895-9224-23CADB337E5D
Site Address: 70 Portico Parade, Toongabbie Unit 1, 2146 NSW
Tender Acceptance Form
I
/We hereby accept this tender with all inclusion lists with allowance listed on the SandTech
Property Group Pty Ltd’s tender. I/ We confirm our responsibility to pay all costs as
described in the attached progress schedule. I/We acknowledge that I/We accept all terms
and conditions listed on the tender.
Client 1(Print Name):
Signature: Date:
Client 2(Print Name):
Signature: Date:
Client 3(Print Name):
Signature: Date:
DocuSign Envelope ID: 7409AEB2-0FCF-4CBF-AD0C-E4AF663CFC14
DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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