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Loumain Construction Australia Blog058

There are many standard form General Conditions of Contract available for use on construction projects in Australia. In this article we explore the most common types and the key issues to consider...

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The six-step checklist below provides a basis for conducting an evaluation of the contract.

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One of the more commonly misplaced and underestimated record of construction process is correspondence.

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The Building Contractor’s obligation is to bring the Works to practical completion by the Date for Practical Completion. A failure to bring the Works to practical completion by that date will usually expose the Contractor to a claim for damages (usually “liquidated damages”) by the Principal.

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The timely treatment of variations is important. The time periods for responses by the Superintendent and the Contractor are a critical part of managing variations. The timeframes are set out in a Variation Checklist.

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(KPI) Key performance indicators are the clear indicator of a specific measurable activity or result that may be used to assess project performance. Targets or ranges of performance may be attributed to KPIs.

(KRA) Key Result Areas are used to provide meaning to the KPI value. KRA is an area of project operation in which the performance is of significant interest to the Contractor, Main Roads and/or other stakeholders.

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Following is a list of documents that should be provided to tenderers and the order in which these documents would normally be arranged. The building contract may include requirements for the ‘order of precedence of documents’. 
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Contract tendering has the potential to bring or win significant business for a construction business, it is also an opportunity for a client to carefully consider and select the right contractor for the project.
Both parties need to wade through complex documents and produce a persuasive and effective tender submission, generally under tight time constraints.

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