Overview and Revision
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| Definitions – Clause 2 | show 🗑
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| show | Cash retention or bank guarantee or insurance bond etc
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| Security – Clause 5 - Limits only apply to ‘building work’ under QBCC Act | show 🗑
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| Security – Clause 5 - Limits only apply to ‘building work’ under QBCC Act | show 🗑
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| show | e.g. 2% BG plus 3% cash retention, not 5% BG plus 5% cash retention
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| Security – Clause 5 - Subcontractor can replace cash retention with other form of security | show 🗑
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| Security – Clause 5 - Recourse to security | show 🗑
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| Security – Clause 5 - Release of security | show 🗑
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| show | Super directs how to resolve it and possible variation if cost more / less than what contractor could reasonably have anticipated at time of tendering if it is in a principal supplied document
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| show | Both principal and contractor must supply one electronic copy of its documents unless contract says otherwise
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| Contract Documentation – Clause 8 - Must understand all documents that form part of the Contract | show 🗑
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| Assignment & Subcontracting (cl 9) - Requirements and obligations on both parties | show 🗑
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| show | check the contract
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| show | ‘building work’ and check ABN to confirm legal entity being contracted
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| Assignment & Subcontracting (cl 9) - Understand that head contractor is always liable for actions of all subbies | show 🗑
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| Assignment & Subcontracting (cl 9,10) - Understand difference between nominated subcontractor and selected subcontractor and how it affects the contract | show 🗑
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| show | - BUT principal is not responsible for actions of subcontractors even if nominated or selected subcontractor
- Understand rights of subcontractors if not paid by head contractor
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| Provisional Sums – Clause 11 - What is a provisional sum? | show 🗑
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| show | - priced under cl 40.5
- includes P&OH on provisional sum work
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| Provisional Sums – Clause 11 - Why use a provisional sum? | show 🗑
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| show | Physical condition that could not be reasonably have been anticipated at time of tender/contract despite examination and inspection
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| Site Conditions – Clause 12 - What is a latent condition? - Doesn’t cover change in design – only a change to something physical like rock underground if soil test didn’t encounter | show 🗑
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| show | Not a weather condition or physical condition that is a consequence of a weather condition
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| Site Conditions – Clause 12 - Requirements and obligations of both parties - Contractor must notify with “Early Warning” Notice as soon as possible but no later than 1 BD of becoming aware of LC and, where possible, before disturbing LC – | show 🗑
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| show | - Superintendent must direct what to do
- Entitled to variation if incur extra costs due to LC
- Entitled to EOT if cl 35.3 permits it
- not entitled to costs incurred more than 5 BD before notifying super of LC
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| Site – Clause 27 - Possession of Site | show 🗑
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| show | Contractor has possession of site but must allow reasonable access for principal and other contractors of the principal
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| Site – Clause 27 - Discovery of items of value | show 🗑
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| show | Site can only be used for purposes of carrying out the WUC
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| Materials & Work – Clause 30 - Quality of Works | show 🗑
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| Materials & Work – Clause 30 - Defective Works (1) | show 🗑
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| show | Principal can engage another contractor to rectify and recover cost from contractor if contractor fails to rectify as soon as practicable. Cannot happen without prior written notice of this possible action and at least 10 BD have passed from notice
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| show | Contractor may request principal to accept defective work – contract sum adjusted to reflect change in value of the Works and any loss suffered by P
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| Progress & Programming – Clause 33 - Construction program (1) | show 🗑
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| show | - Contractor must revise program to reflect actuals and critical path
- used for EOT claims i.e. delay must be a delay on critical path on program (cl 35.3(a)(iii))
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| Progress & Programming – Clause 33 - Rate of progress | show 🗑
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| Progress & Programming – Clause 33 - Acceleration - Super may notify contractor of proposal to accelerate WUC - Contractor must provide info in cl 40.2(a) for proposed variation | show 🗑
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| Suspension – Clause 34 (1) | show 🗑
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| Suspension – Clause 34 (2) | show 🗑
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| Times for Commencement and PC – cl 35 - Understand different contractual milestones | show 🗑
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| Times for Commencement and PC – cl 35 - Commencement | show 🗑
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| show | - In NCW4, NOD is a precondition to an EOT i.e. if don’t give NOD, not entitled to EOT
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| Times for Commencement and PC – cl 35 - Extensions of time claims (1) | show 🗑
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| Times for Commencement and PC – cl 35 - Extensions of time claims (2) | show 🗑
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| Times for Commencement and PC – cl 35 - Liquidated damages | show 🗑
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| show | - Only if EOT is granted
- Only for some causes of delay
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| show | Delay costs rate is determined from Annexure B Commercial Framework or if not included in Annexure B, valued by superintendent to cover reasonable additional costs but not profit, loss of profit or loss of opportunity
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| show | - Commences 4pm on date of PC
- Ends on last day of period noted in Annexure A (typically 12 mths)
- Contractor must rectify defects notified to it ASAP at its own cost
- Superintendent may direct contractor to commence and complete by specified dates
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| Defects Liability Period – cl 37 - Defects Liability Period: (2) | show 🗑
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| show | Any change whatsoever to the contract whether incurs additional cost or not
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| Variations – Clause 40 - Proposed variations | show 🗑
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| show | - Pricing of vars by cl 40.5 in order of precedence
- Entitled to P&OH if it is for additional WUC
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| Variations – Clause 40 - Variations for convenience of contractor | show 🗑
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| Variations – Clause 40 - Valuation of variations & BOQs | show 🗑
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| show | If contractor believes it received a direction for variation from super, must notify superintendent within 5 BD of receipt of direction
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| show | - May be claimed at date in the month or stages of WUC stated in Annexure A
- Must give all items listed in contract with each payment claim
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| Certificates & Payments – Clause 42 - Responding to payment claim | show 🗑
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| Certificates & Payments – Clause 42 - Times for payment | show 🗑
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| Certificates & Payments – Clause 42 - Unfixed plant and materials | show 🗑
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| show | - Payment is on account and is not evidence of value of work carried out
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| show | - contractor must give super 10 BD prior notice of when expect to reach PC.
- Super inspects the works and must give a Certificate of PC or reasons why it doesn’t within 10 BD of receipt of contractor’s notice
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| show | - standard form NCW4 requires “Final Payment Claim” at PC which is not typical. The Final Claim would typically be permitted at end of DLP
- in NCW4, Final Payment Claim must include all moneys contractor believes it is entitled to under the contract
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| show | - Must be given by super within 10 BD after receipt of Final Payment Claim
- Is conclusive evidence of final financial position under the contract except disputes
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| Certificates & Payments – Clause 42 - Certificate of Final Completion - typically evidence final position between the parties except for fraud, dishonesty, things that couldn’t be seen at end of DLP etc | show 🗑
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| Bill of Quantities - Annexure B - Different alternatives can apply | show 🗑
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| Bill of Quantities - Annexure B - Understand when to apply the limit of accuracy (to Schedule of Rates) | show 🗑
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| show | Priced BOQ must equal contract price
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| Bill of Quantities - Annexure B - Errors in BOQ | show 🗑
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| show | - Managing contractor (e.g. DEPW)
- Project management contracts (AS4915-2002)
- Construction management contracts (AS4916-2002)
- Construction management trade contracts (AS4917-2003)
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| show | - Design – Construct – Maintain (DCM)
- Engineering – Procurement – Construct (EPC)
- Engineering – Procurement – Construction Management (EPCM)
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| Relationship Contracts - Project Delivery Methods | show 🗑
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| Procurement - | show 🗑
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| show | Sets out how the tender documents are to be prepared, how the tender process is to be set up and applied, how the tenders are to be processed and how feedback is to be given to all tenderers
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| Procurement - Tendering - Tendering Code (AS4120) - What are the main objectives? | show 🗑
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| Procurement - Tendering - Tendering Code (AS4120) - Roles and responsibilities | show 🗑
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| BIF Act 2017 - Main chapters: | show 🗑
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| show | - Applies to some projects now
- Phased rollout – next phase pushed back to April 2025
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| BIF Act 2017 - Progress Payments: - Must understand: | show 🗑
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| show | - who can use it
- what happens if you give a subcontractor’s charge after a chapter 3 BIFA payment claim and vice versa
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| BIFA Payment Claims - All payment claims must: | show 🗑
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| show | Other examples: ‘claim’, ‘due date’, ‘payable now’
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| show | - ‘Claim 1’
- ‘Completion of works’
- Concrete works (possibly not enough of a description)
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| show | - ‘Completion of tiling works to building 3 ground floor’
- ‘Completion of painting works to units 3 and 4’
- ‘landscaping works’
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| Description of the works/services - Describe construction work or related goods and services: | show 🗑
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| BIFA Payment Claims - Reference Date: | show 🗑
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| BIFA Payment Claims | show 🗑
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| Reference Date - Cannot give a claim PRIOR to reference date i.e. early claim is not a valid BIFA payment claim (1) | show 🗑
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| Reference Date - Cannot give a claim PRIOR to reference date i.e. early claim is not a valid BIFA payment claim (2) | show 🗑
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| show | be given’ = not relevant to a BIFA claim but entirely relevant to a contractual claim. That provision will make an early contractual claim a valid claim but cannot make an early BIFA claim, into a valid BIFA claim
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| show | Not good because contract does not ‘state’ a date for when a payment may be claimed because contractor has the power to decide what day the claim will be submitted i.e. any time prior to 20th of each month so default reference date applies
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| show | anniversary of the first day that construction work is carried out and every month after that
- i.e. if work started on 3rd of the month, then reference date is 3rd of every month
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| show | - ‘Claims may be submitted on 25th of each month up to the Date of Practical Completion and at end of the Defects Liability Period’
- ‘Claims may be submitted on the last business day of each month in which work is carried out’
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| show | reference date (as long as it is within 6 months of when at least one part of the work was carried out)
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| Payment Claim - Can claim for work carried out up to reference date but not | show 🗑
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| Payment Claim - If claim for work after reference date, not entitled to | show 🗑
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| Payment Schedules - Payment Schedule must be given within the earlier of: | show 🗑
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| show | full payment of the amount claimed is made by the Respondent by the Due Date for Payment
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| show | - be given to the person who gave the Payment Claim;
- be in writing;
- refer to the Payment Claim;
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| Payment Schedules - Payment Schedule must: (2) | show 🗑
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| Payment Schedule Examples - ‘We refer to your payment claim 3 dated 20 May 2024 claiming $45,000 excluding GST. However, we have assessed the payment claim and will be | show 🗑
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| Due Date for Payment - Due Date for Payment is: (1) | show 🗑
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| show | - exceeds the maximum time for payment under s67U or s67W of the Queensland Building and Construction Commission Act 1991 (QBCC Act);
- is a ‘pay when paid’ clause
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| show | 10 business days after the Payment Claim was given.
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| show | - maximum time for payment of head contracts = 15 business days from receipt of payment claim (s67W)
- maximum time for payment of subcontracts = 25 business days from receipt of payment claim (s67U)
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| show | Liability to pay depends on payment by someone else e.g. you don’t get paid until I get paid
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| show | Due date for payment is dependent on due date for payment under a separate contract e.g. subcontract due date is 10 BD after head contract due date
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| show | Liability to pay or due date for payment is dependent on another contract e.g. I’ll return your retention when I get my retention back
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| show | means the amount determined and described as such in the Commercial Framework included as Annexure B, subject to adjustment in accordance with the Contract.
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| Contractor = | show 🗑
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| Date of Acceptance of Tender = means the earlier of: | show 🗑
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| show | b) where another date is determined in any dispute resolution procedure as the date upon which practical completion was reached, that other date.
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| Date for Practical Completion = means: | show 🗑
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| show | means work carried out by the Contractor for which payment is made on the basis of daily time and cost records for labour, plant, materials, services and other items as provided in clause 41.
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| Provisional Sum = | show 🗑
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| show | means the lands and other places to be made available by the Principal to the Contractor for the purpose of executing the Works.
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| show | means the person appointed by the Principal to be the Superintendent pursuant to clause 23.
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| Superintendent’s Representative = | show 🗑
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| Cash retention | show 🗑
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| show | A promise from a bank to cover losses if the contractor defaults
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| An insurance bond (also called a surety bond or contract bond) is a third-party guarantee provided by an insurance company or surety to ensure... | show 🗑
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Created by:
Asher - S