You may not be aware of the type of construction contract you have...
... and what its consequences are
Contracts
My background and experience
I am very experienced.
Let me help you.
I have served everyone from ASX100 clients to mums and dads.
Contract is all about risk allocation, and allocation of obligations and consequences.
I’ve owned and operated businesses in construction.
I’ve employed everyone from the ground up to engineers and accountants in my construction business.
I understand intimately, the practicalities of day today contracting including administration scheduling and dispute resolution.
I have been recognised as an expert at contract preparation and negotiation.
I'm also well practised in dispute resolution in all its forms.
I was hired by the prestigious international consultancy Clariden Global to prepare and present a series of seminars and tutorials to its ASX100 clients on contract preparation and negotiation in four states.
Construction contracts
Civil, built environment, major projects, infrastructure, residential, commercial.
Virtually any agreement to supply construction work or related goods and services will be a construction contract in Australia.
I’m very experienced.
Let me help you.
Review or drafting any contract
I’ve owned and operated businesses in construction.
I’ve worked on the tools in mud and concrete and employed everyone from the ground up to engineers and accountants in my construction business.
I understand intimately, the practicalities of day today contracting including administration scheduling and dispute resolution.
I have served everyone from ASX100 clients to mums and dads.
Contract is all about risk allocation, and allocation of obligations and consequences.
I have been recognised as an expert in contract preparation and negotiation.
I'm also well practiced in dispute resolution in all its forms.
I was hired by the prestigious international consultancy Clariden Global to prepare and present a series of seminars and tutorials to its ASX 100 clients on contract preparation and negotiation in four states.
Types of Construction Contracts and their Comparison
A construction contract is an agreement between two or more parties to supply construction work and/or related goods and services per certain terms and conditions.
Types of Construction Contracts
There are several different types of construction contracts, and for each of those types there are several subspecies.
You may not even be aware of the type of construction contract which you have, and what its consequences are…
Let me give you an example… A lump sum contract can be either a pure lump sum contract, a schedule of rates lump sum contract, a guaranteed maximum price lump sum contract, and there are still more types!
Every contract has its specific issues.
Below are the basic types of construction contract.
1. Lump Sum Construction Contract
In this type of contract a contractor provides a single fixed price for the activities in the project scope. The contractor is responsible for estimating costs from drawings and adds overhead and his profit to determine the price of the project. All risks are typically assigned to the contractor, not the owner. There maybe incentives in this contract as for early finish and there maybe penalties for late completion. This
2. Unit Price Construction Contract or schedule of rates contract
The total price of a project in a unit price schedule of rates contract is based on the price of each item's unit and quantity. The contractor is paid as per the rates of items specified in a bill of quantities. In this type of contract the risk is shared between the contractor and the owner. This type of contract has more flexibility for design change than a lump sum contract. Construction of the project can be started before the design drawing for construction are completed, and the total cost of the project will be uncertain at the early stages of the project.
3. Cost Plus Construction Contract
This type of contract is used where it is impossible to estimate the cost of the project before the construction has been finished. In this scenario the contractor is paid the actual cost of a project including direct and indirect costs plus specific fee, which might be expressed as a percentage or a stipulated figure. All risks are assigned to the owner and Because of that the owner will frequently be directly involved with the contractor in the management of the project. The contractor typically bears no risk for increasing project costs, but there won’t be any incentive for early completion either. This type of contract is ideal where project scope is uncertain in the early stages of the project, and allows the contractor to start the the project before the design is completed.
4. Target Cost Construction Contract
This type of contract is incentive based. A target cost contract exhibits mutual features of the lump sum and cost plus contracts. A contractor is paid based on the actual costs of the project plus a either a fixed fee or percentage of total cost which may be expressed on a sliding scale of return in based on a certain target cost specified by the owner. The contractor carry’s risk of any increased cost in the construction project. The contractor is also rewarded a percentage of any savings between target and actual cost.
What I can do for you
I have been internationally recognised for my expertise in providing advice on a range of matters including:
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Strategic project planning and structuring
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Procurement advice
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Tender preparation and review
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Early quantification of claims and damages
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Variation and latent condition claims and defences
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Management of breach, termination and rescission issues
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Assisted prolongation, acceleration and time extension claims and defences
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Management of disputes including - facilitation, submissions, arbitration, expert determination, conciliation, mediation, commercial negotiation, report and compliance functions
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Contract drafting and review
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Contract administration
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Risk management and minimisation
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Insurance advice, claim preparation and dispute resolution
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Security of payment advice, claim preparation and dispute resolution.
Commercial Contracts
If it’s a contract no matter how large or small. - I can help you.
It doesn’t matter if your contract is a procurement contract, supply chain contract, a contract for services, a contract of employment, a construction contract, and insurance contract, an IT contract… I can help you.
You have to think of contracts broadly.
Every single human endeavour for reward is likely to involve a contract.
Contracts are not only written, they can be oral or partly written.
Sometimes contracts are very complex and complicated, either by design will because even 100 documents together can evidence a deal struck, but what are the terms and conditions?
I focus on practical and commercial realities and the legal issues specific to your sector, to deliver the right solution
My experience in relation to contracts extends beyond construction to emergent technologies, smart contracts and property and insurance. In short I consider myself a contract specialist and contracts underpinned every deal that we do.
I understand that thorough and robust commercial contracts with suppliers, vendors, customers, financiers and distributors underpin effective supply chains and manage risk in your business operations.
From stand-alones, to global corporates and public sector organisations, I can help you negotiate documents and implement the full spectrum of your business transactions, focusing on practical and commercial realities and the legal issues specific to your sector, to deliver the right solution.
I provide solutions across the full risk spectrum and the full lifecycle of commercial contracts and procurement, including:
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Commercial negotiations
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Contracts, including development, negotiation, drafting, finalisation, guarantees and indemnities, ongoing management, performance evaluation and variations
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Procurement and resourcing strategies, including project appraisal, pre-qualification, tender assessment and negotiation, and post-contract awards
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Addressing regulatory and legislative requirements and changes
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Dispute resolution and management.
I can also help you understand new and disruptive technologies and negotiate and document your next generation products and services, such as smart contracts, as well as use different approaches (such as agile contracting), and help you achieve different contractual outcomes and arrangements (whether for timescales, deliverables or risk allocations).
Domestic Contracts
Contract Drafting and Contract Administration – let me help you
I can assist with drafting or reviewing and administering your domestic building contracts including special conditions required to meet your business or personal needs.
I have a deeply rooted knowledge of the domestic building contract provisions in schedule 1B of the Queensland Building and Construction Commission Act 1991 (QBCC Act) and regulations and routinely advise homeowners and builders on their rights and obligations under that legislation.
I am experienced in drafting entire suites of contract documents fully compliant with the QBCC Act. I regularly assist builders in the preparation and review of contract related documents such as quotes, memorandums and preliminary agreements, claims, variations, delay and extension of time notices and subcontracts.
I also offer assistance to my clients to administer their contracts to ensure compliance with regulatory and contractual obligations and to avoid contractual disputes.
I has extensive experience in providing advice to both contractors and homeowners on their rights and obligations under all the industry forms of domestic building contracts, including:
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Master Builders Queensland (MBQ)
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Housing Industry Association (HIA)
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Queensland Building and Construction Commission (QBCC)
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Landscape Queensland (LQ)
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Swimming Pool & Spa Association (SPASA)
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Australian Building Industry Contracts (ABIC)