Minor Works Contract
I have previously suggested that project owners should consider utilising the Suite of Facilities Contracts published by the Australian Department of Defence. The reasons for this recommendation are explained in this article
Below is a link to a precedent Minor Works Contract I have created from the Defence Minor Works Contract, so that it is suitable for use by private sector parties.
The document departs from the Defence Minor Works Contract in various respects. The main departures are:
The Defence template is a combined Request for Quotation and Minor Works Contract. The RFQ provisions have been removed.
Defence-specific clauses have been removed, together with clauses that give effect to Commonwealth procurement policy.
Commonwealth policies and guidelines have been removed from the definition of Statutory Requirements.
An additional cause of delay has been included for unforeseen events that are beyond the reasonable control of the Contractor and could not have been prevented, avoided or overcome. Such events also entitle the Contractor to delay costs.
An express right for the Contractor to suspend work and, if not remedied, terminate for non-payment, extended failure to provide site access or Owner insolvency has been included.
The right for the Owner to terminate for convenience has been deleted.
A subcap on liability for LDs for delay has been added.
The Owner can only reject design documentation submitted by the Contractor if it does not comply with the Contract
The intellectual property licence and the obligation to obtain moral rights consents have been simplified.
The Contractor can refer a dispute regarding the variation costs determined by the Contract Administrator to an independent quantity surveyor.
The HOTO (Handover/Takeover) and Estate Information obligations have been deleted.
WHS obligations have been simplified, since WHS legislation governs them in any event.
Proportionate liability legislation is excluded (where possible).
Obviously, this is a simplified form of construction contract and does not include all of the options found in longer contract forms. Users of the document should carefully consider its suitability for their needs and amend it as appropriate. Feel free to contact me if you require any assistance in this regard.
