HIA_Contract_unit_1 (4)

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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
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 DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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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 DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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. Page 1 of 29 DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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. Page 2 of 29 DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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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. Page 3 of 29 DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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. Page 4 of 29 DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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. Page 5 of 29 DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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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. Page 6 of 29 DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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) Page 7 of 29 DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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) Page 8 of 29 DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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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/ Page 9 of 29 DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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. Page 10 of 29 DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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. Page 11 of 29 DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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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 Page 12 of 29 DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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 Page 13 of 29 DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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 Page 14 of 29 DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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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. Page 15 of 29 DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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, Page 16 of 29 DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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. Page 17 of 29 DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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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 . Page 18 of 29 DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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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. Page 19 of 29 DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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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; Page 20 of 29 DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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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 Page 21 of 29 DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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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 . Page 22 of 29 DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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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. Page 23 of 29 DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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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. Page 24 of 29 DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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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 . Page 25 of 29 DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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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, Page 26 of 29 DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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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 Page 27 of 29 DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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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. Page 28 of 29 DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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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 . Page 29 of 29 DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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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 DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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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 DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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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 DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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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 DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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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. DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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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 DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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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 DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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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. DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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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. DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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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 DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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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. Page 2 of 4 DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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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 Page 3 of 4 DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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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 Page 4 of 4 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 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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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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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 DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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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 DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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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. Page 1 of 29 DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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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. Page 2 of 29 DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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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. Page 3 of 29 DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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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. Page 4 of 29 DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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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. Page 5 of 29 DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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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. Page 6 of 29 DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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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) Page 7 of 29 DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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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) Page 8 of 29 DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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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/ Page 9 of 29 DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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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. Page 10 of 29 DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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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. Page 11 of 29 DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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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 Page 12 of 29 DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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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 Page 13 of 29 DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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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 Page 14 of 29 DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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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. Page 15 of 29 DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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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, Page 16 of 29 DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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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. Page 17 of 29 DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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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 . Page 18 of 29 DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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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. Page 19 of 29 DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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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; Page 20 of 29 DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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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 Page 21 of 29 DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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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 . Page 22 of 29 DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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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. Page 23 of 29 DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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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. Page 24 of 29 DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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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 . Page 25 of 29 DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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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, Page 26 of 29 DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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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 Page 27 of 29 DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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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. Page 28 of 29 DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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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 . Page 29 of 29 DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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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 DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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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 DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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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 DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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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 DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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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. DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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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 DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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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 DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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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. DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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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. DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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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 DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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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. Page 2 of 4 DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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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 Page 3 of 4 DocuSign Envelope ID: BC2A1326-F575-4897-8DF1-275C49F872A0
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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 Page 4 of 4 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 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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