It is recommended for use on building works of a major nature ($250,000 to $25million) where an architect is engaged to administer the contract.
[opinion] A maximum percentage for the Contractor's overheads and profit is nominated in Schedule 1 of the contract and is applied to the value of variations (additions and omissions) A percentage nominated in Schedule 1 of the contract is applied to the difference between the provisional sum and the cost of performance of the work.
Where the performance of the work cost is less than the provisional, the difference is deducted from the contract sum The rate of interest to be applied to contractually outstanding payments is nominated in Schedule 1.
This provision therefore provides reimbursement to the builder even though the cause of delay was not a breach of contract on the part of the proprietor.
Where the delay is caused by breach on the part of the proprietor, the builder is entitled to recover damages sustained and incurred.
No reimbursement is allowed unless the cause of the delay was due to any breach of the provisions of the contract by or any other act or omission on the part of the Principal, etc.
Reimbursement applies to compensable causes which are stated and can be expanded by completing the appropriate item in the Appendix.
Variations are valued in accordance with rates and prices nominated in a schedule, and these amounts should be inclusive of all profit, overheads, etc.
Reimbursement applies to time extensions resulting from delay or disruption caused by Principal, Superintendent and their employees etc.
Reimbursement applies to time extensions resulting from delay or disruption caused by Principal, Superintendent and their employees etc.
This agreement is for use where no head contractor exists and the owner pays to the manager a fee for his services.
Each set of contract conditions contains in its Annexure of Schedule a space for inserting a rate for liquidated damages.
Once contractually accepted the rate will apply whether the actual damages are higher or lower than the pre-estimate.
It is normal for Australian construction contractors to seek liability relief by trying to introduce a cap on Liquidated Damages, typically 10% of the contract sum.