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Contracts in the construction industry are very onerous and generally seek to push obligations ‘down the chain’ from developers to builders to subcontractors.
No-one really likes contracts (except maybe us lawyers), but it is a vital risk allocation document.
But before you sign the dotted line, here are some general clauses that you should really know about:
Parties
While this seems like a basic key term in your contract, sometimes it is hard to distinguish who the contracting parties should be.
To avoid future hardship, make sure you have the correct parties in the contract by checking the ABN / ACN. This will just make things easier to recover payments from the right company later on in case of a dispute.
Termination for convenience
Watch out for this clause! It basically means that a party can terminate the contract for any reason, even if the other party has done nothing wrong! Generally, once terminated, there is no entitlement to loss of profit.
We recommend negotiating to delete this clause if possible.
Entire Agreement
An entire agreement clause means that the contract constitutes the whole agreement between the parties. This means that you cannot rely on any previous negotiations, discussions or representations made prior to signing the contract!
What we can do for you
Using our industry experience and specialist legal knowledge, we can help you review your contracts before signing to ensure that you are getting the best business opportunity.
