Contractor Terms and Conditions STRATA WORKS AGREEMENT

CONDITIONS OF WORK

1. Standard of work
The contractor must carry out the work:
• in a good and workman like manner;
• by supplying the materials in the contract documents;
• in compliance with all relevant Australian standards; and
• in compliance with all requirements of statutory authorities relating to the work.

2. Standard of materials
The contractor must use materials and components:
• of good quality;
• that are suitable for the purpose intended; and
• unless otherwise specified, that are new.

3. Payment by owner
The owner must pay the Contract Price as specified in the Payment
Schedule on satisfactory completion of the work, or each stage of the
work (if applicable), within 14 working days of receipt of written notice
from the contractor.
The Contract Price includes all incidental matters that are reasonably
necessary for the completion of the work.

4. Completion of work
The work will be complete when:
• it is finished in accordance with the contract;
• it is free of apparent defects; and
• all rubbish and surplus material are removed from the site.

5. Time for completion
The contractor must complete the work within the Completion Time which
runs from the date of this contract or, if any approval for the work is to be
obtained, from the date of written notification of that approval (whichever
is later).
The contractor and owner must take all reasonable steps to minimise any
delay to the work.
The contractor will be entitled to a reasonable extension of time in the event
of delays to the work where the cause of the delay is beyond the
contractor’s control and a claim for an extension of time is notified in
writing to the owner.

6. Approval
Unless otherwise specified, the contractor must apply for and obtain all
approvals of local councils or other statutory authorities necessary to carry
out the work and must pay all fees for such approval.

7. Variations to work and agreement
This contract or the work (including materials) may be varied by written
agreement between the owner and the contractor in the following way.
A notice describing the variation, any variation in the cost of the work and
any change to the Completion Time must be provided to the owner by
the contractor and the notice must then be signed and dated by both
parties to constitute acceptance.
The Contract Price will be varied (up or down) according to the signed
notice.

8. Access for contractors
The owner must provide access to the common property and any lot
comprised in the site for the contractor and any employee or
subcontractor of the contractor to carry out the work as required during
work hours allowed by relevant statutory authorities.

9. Cleaning up
On completion the contractor must remove form the site all plant and
equipment and all rubbish and surplus material relating to the work.
All demolished and surplus material will be the property of the contractor
unless otherwise specified in the description of work.

10. Damage to property
The contractor must make good any loss or damage to the work or
property of the owner (or its members) caused by the contractor or the
contractor’s employees, agents or subcontractors.

11. Insurance of work and personal injury
The contractor must have current insurance cover for:
• public liability insurance to cover liabilities to third parties for death or
personal injury or damage to property for an amount not less than
$10 million.
• employer’s liability and workers’ compensation insurance to cover any
employees.
• if the price of the work exceeds $5,000 the insurance required under
the Home Building Act 1989.
The contractor must provide details and proof of all such insurances to
the owner.

12. Defects
The contractor must make good any omissions or defects in the work or
materials at the contractor’s own expense which become apparent within
the period of 13 weeks from the date work is completed.
The owner must notify the contractor in writing of any work or materials
to be rectified or replaced within the 13 weeks period.

13. Disputes
If the owner or contractor considers a dispute has arisen in relation to
any matter covered by this contract, that party must give the other party
written notice of the items of dispute.
If the dispute cannot be resolved with the help of a mutually
agreed third party either party may refer the matter to the Building
Disputes Tribunal.

14. Ending contract
If the contractor:
• becomes bankrupt or goes into liquidation; or
• fails to complete the work within the agreed time, or if no time is given,
within a reasonable time; or
• fails to remedy defective work or replace faulty or unsuitable materials;
or if the owner:
• is terminated by order of the Supreme Court or action of Registrar
General; or
• fails to make payments due under the contract; or
• denies access to the site to the contractor to prevent the work from
proceeding;
then the other party may:
• where such default can be remedied, issue a written notice requiring
the other to remedy the default within 10 working days; and/or
• if the default is not remedied, or is not capable of being remedied,
terminate the contract by written notice.


STATUTORY WARRANTIES

The Contractor warrants that:

a) the work will be performed in a proper and workmanlike manner
and in accordance with the plans and specifications;

b) all materials supplied by the contractor will be good and suitable for
the purpose for which they are used and, unless otherwise stated in
the contract, those materials will be new.

c) the work will be done in accordance with, and will comply with, the
Home building Act or any other law;

d) the work will be done with due diligence and within the time stipulated
in the contract, or if no time is stipulated, within reasonable time;

e) if the work, consists of the making of alterations or additions to
a dwelling or the repairing, renovation, decoration or protective
treatment of a dwelling, the work will result, to the extent of the work
conducted, in a dwelling that is reasonably fit for occupation as
a dwelling;

f) the work and any materials used in doing the work will be reasonably
fit for the specified purpose or result, if the owner expressly makes
known to the contractor or another person with express or apparent
authority to enter into or vary contractual arrangements on behalf
of the contractor, the particular purpose of which the work is required
or the result that the owner desires the work to achieve, so as to
show that the owner relies on the contractor’s skill and judgement.
Proceedings for a breach of a statutory warranty must be
commenced within 7 years after:

(i) the completion of the work or
(ii) if the work is not completed:
(a) the date for completion of the work specified or determined in
accordance with the contract; or
(b) if there is no such date, the date of contract.

These warranties do not in any way reduce or limit the contractor’s
obligations in relation to workmanship, materials, completion or other
matters specified in this contract;
No provision of this contract can reduce, restrict or remove these
statutory warranties.

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