11 October 2024
Master Builders has released a new free design and construct for commercial projects for eligible members* in eDocs.
The Design and Construct – Commercial Building Contract (DC-CBC) is a lump sum contract developed to be used for the design and construction of commercial building work in Queensland.
In addition to constructing the works, the contractor is responsible for carrying out the design requirements for the works to meet the principal’s project requirements. The parties can also include agreed tender clarifications which will take precedence over the principal’s project requirements.
While the DC-CBC uses the Master Builders’ Commercial Building Contract as a foundation (which is also available for free to eligible members on eDocs), the DC-CBC includes several new features so that it can be used a variety of different sized projects.
The appointment of a superintendent
The parties can agree that a superintendent will administer the contract, and that the superintendent will act as an agent for the principal in respect of receiving payment claims, and giving payment schedules, on behalf of the principal under the Building Industry Fairness (Security of Payment) Act 2017 (Qld) (“the BIFA”).
The principal will be responsible for ensuring that the superintendent:
- Is appropriately qualified and competent to administer the contract given the nature and size of the works, and
- Acts honestly, independently, reasonably, and in good faith in the performance of their roles and functions under the contract.
The principal will be in breach of the contract if it fails to ensure the superintendent complies with these requirements.
Separable portions
The parties can agree with breakdown the works into separable portions, each with its own agreed:
- Scope of work
- Date for practical completion
- Amount for security
- Rate for liquidated damages
- Limit for liquidated damages, and
- Rate for delays costs.
The parties can agree that parts of the project works can be handed over to the principal before the entire project is completed.
Project trust accounts
Where the contract is subject to the project trust account requirements under Chapter 2 of the BIFA, the parties agree that:
- Payments by the principal must be made into the project trust account, and
- Retentions withheld by the principal must be held in a retention trust account.
These requirements will only apply when the project falls within the bounds of Chapter 2 of the BIFA.
Limitation of Contractor’s liability
In addition to the usual releases included in the Commercial Building Contact, to the maximum extent permissible at law, the parties to the DC-CBC can also agree to cap the contractor’s liability to a pre-agreed amount. For example, the parties may agree that the contractor’s liability is capped at 50 per cent of the contract price.
However, the limit will not apply where the law otherwise prohibits such a cap, and also does not apply to claims brought against the principal for personal injury or death.
Want more information? It's free for members to contact Members Legal with questions about the new DC-CBC.
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