Choosing contracts

A Commercial Building Contract is a lump sum contract to be used for the construction only of commercial building work with or without a Principal's agent.

Purchase the Commercial Building Contract from the eShop, visit your local Master Builders office to purchase contracts over the counter or complete your contracts online via eDocs.

Special conditions addendum

A Special Conditions addendum for the Commercial Building Contract is now available to take care of the changes required for contracts you sign from 1 July 2018 onwards.

If you’ve purchased a hardcopy Commercial Building Contract from us that doesn't contain the Special Conditions addendum, download a copy of the relevant Special Conditions addendum. In the ‘Special Conditions’ item of your contract, you’ll also need to include the following wording: ‘Refer to Addendum - Special Conditions, for details of SC1 to SC2’ etc.

The Minor Works Contract is a lump sum contract for minor commercial work up to the value of approximately $100,000 (including GST); however, it can be used on projects of a greater value where the work is simple and does not include many trades. It can be used by trade contractors when contracting directly with a commercial owner.

Purchase the Minor Works Contract online via eDocs.

The Commercial Cost Plus Contract is for use on commercial projects where the contract price cannot be reasonably estimated at the time the contract is being entered into. For example, on major alterations or extensions, where the cost of a substantial part of the work cannot reasonably be calculated without some of the work actually being carried out. In this case, a Cost Plus Contract can be used to give a fair and reasonable estimate, and payment is based on the actual cost of the project plus  an allowance for the supervision and/or profit/overheads (fixed fee or a fixed percentage).

It's important to note that this type of contract can be more adversarial in nature, as trade and supply progress claims may be scrutinised by the owner. Under a Cost Plus Contract, the owner is entitled to receive copies of all invoices in relation to expenditure on the project; so, when entering into a Cost Plus Contract, it is important to maintain a very high standard of contract administration. There are other significant differences between a Cost Plus Contract and a lump sum contract.

You should phone Master Builders for advice, before using a Cost Plus Contract.

Purchase the Cost Plus Contract online via eDocs.

Special conditions addendum

A Special Conditions addendum for the Commercial Cost Plus Contract is now available to take care of the changes required for contracts you sign from 1 July 2018 onwards.

If you’ve purchased a hardcopy Commercial Cost Plus Contract from us that doesn't contain the Special Conditions addendum, download a copy of the relevant Special Conditions addendum. In the ‘Special Conditions’ item of your contract, you’ll also need to include the following wording: ‘Refer to Addendum - Special Conditions, for details of SC1 to SC2’.

Throughout the construction period, a range of documents must be used to support the head contract agreement.

Before you sign a contract, you may choose to use a Director’s Guarantee to provide some protection should your client fail to pay where your client is a company.

Once a contract is in place and work has begun, it is important to document (in writing) any changes to the contract, no matter how minor, including variations, extensions of time and requests for information.

Director’s Guarantee

A Director’s Guarantee is a secondary agreement that provides additional risk management for contractors in circumstances where the owner's capacity to pay is uncertain and the ‘owner’ is a company. Under a Director’s Guarantee, an individual (usually the Director of the company) assumes responsibility for the debts of the company in the event of payment default.

Confirmation of Variation/Instruction

A variation is a change to the contract, such as an addition to or reduction in the scope of work that may result in an increase or decrease in the contract value.

While the Queensland Building and Construction Commission Act 1991 doesn't require that variations to commercial contracts are put in writing, Master Builders strongly recommends that the contractor has a signed variation in place before the work commences. However, the QBCC Act does require all verbal directions that can be given without the other party’s agreement, to be confirmed in writing within three business days.

Failure to fully and accurately document variations to the original contract in writing is a frequent cause of disputes.

Master Builders Confirmation of Variation/Instruction is used to confirm variations or instructions that affect the scope of work.

Extension of time

The Extension of Time form should be used to confirm any extensions of time that will affect the project completion date, due to a delay as allowed for in the contract.

It may be useful to refer to Master Builders extension of time construction period calendar, when calculating the revised completion date.

Request for information

As the name suggests, a request for information should be used to request information from the owner, for example where there is a discrepancy in the documentation or specific information is required.

The Residential Building Contract is a level 2 regulated contract to be used for the erection or construction of a detached dwelling (including a duplex), or removal or re-siting work for a detached dwelling, where the Contract Price is $20,000.00 or more (GST inclusive). It is a construct only contract. An architect or other person can be appointed to act as agent of the Owner.

You can purchase the contract from the eShop, visit your local Master Builders office to purchase contracts over the counter or complete your contracts online via eDocs.

The Residential Renovation Contract is a lump sum contract to be used for large residential renovation or alteration works with a contract price of $20,000 (including GST) or more. It is a contract between a contractor and residential owner. The Residential Renovation Contract allows for owners to remain in residence during the project but also covers the situation where the contractor has full possession of the site.

You can purchase the contract from the eShop, visit your local Master Builders office to purchase contracts over the counter or complete your contracts online via eDocs.

Special conditions addendum

A Special Conditions addendum for the Residential Renovation Contract is now available to take care of the changes required for contracts you sign from 1 July 2018 onwards.

If you’ve purchased a hardcopy Residential Renovation Contract  from us in the past 12 months, download a copy of the relevant Special Conditions addendum. In the ‘Special Conditions’ item of your contract, you’ll also need to include the following wording: ‘Refer to Addendum - Special Conditions, for details of SC1 to SC2’.

The Minor Works - Level 1 Residential Contract is a lump sum contract to be used for small residential renovation projects such as renovation or alteration works or a new shed, with a contract price of less than $20,000 (including GST). It's a contract between a contractor and residential owner.

Purchase the contract online via eDocs.

Special conditions addendum

A Special Conditions addendum for the Minor Works - Level 1 Residential Contract is now available to take care of the changes required for contracts you sign from 1 July 2018 onwards.

If you’ve purchased a hardcopy Minor Works - Level 1 Residential Contract from us in the past 12 months, download a copy of the relevant Special Conditions addendum. In the ‘Special Conditions’ item of your contract, you’ll also need to include the following wording: ‘Refer to Addendum - Special Conditions, for details of SC1 to SC2’.

The Trade Contract is a lump sum Level 2 regulated contract for use by a trade contractor when contracting directly with a residential owner. The Trade Contract is recommended for use by trade contractors when undertaking a specific trade (i.e. bricklaying, landscaping, concreting or plumbing) for an owner rather than a builder.

It can be used for projects with an initial contract price of less than $20,000 but that may increase to $20,000 (including GST) or more i.e. a Level 1 regulated contract would be required initially but if a variation resulted in a contract price of $20,000 (including GST) or more, the parties would be required to adjust the contract to become a Level 2 regulated contract. The use of the Basic Works Contract avoids the need to change the contract part way through the project for projects that are close to the threshold.

A Trade Contract shouldn't be used in place of a subcontract.

Purchase the contract online via eDocs.

The Basic Works Contract is a lump sum Level 2 regulated contract to be used for work performed on a detached dwelling, including a duplex, or the renovation, alteration, extension or repair of a home, or removal or re-siting work for a detached dwelling where the contract price is up to $80,000 (including GST). It is a contract between a contractor and residential owner.

It can be used for projects with an initial contract price of less than $20,000 but that may increase to $20,000 (including GST) or more i.e. a Level 1 regulated contract would be required initially but if a variation resulted in a contract price of $20,000 (including GST) or more, the parties would be required to adjust the contract to become a Level 2 regulated contract. The use of the Basic Works Contract avoids the need to change the contract part way through the project for projects that are close to the threshold.

You can purchase the contract from the eShop, visit your local Master Builders office to purchase contracts over the counter or complete your contracts online via eDocs.

Special conditions addendum

A Special Conditions addendum for the Basic Works Contract is now available to take care of the changes required for contracts you sign from 1 July 2018 onwards.

If you’ve purchased a hardcopy Basic Works Contract from us in the past 12 months, download a copy of the relevant Special Conditions addendum. In the ‘Special Conditions’ item of your contract, you’ll also need to include the following wording: ‘Refer to Addendum - Special Conditions, for details of SC1 to SC2’.

If the cost of building work exceeds $3,300 (including GST), it must be covered by a regulated building contract. However, irrespective of the value of work, a written contract is always preferred to a verbal agreement.

The Simple Works Contract is a one page contract for use when dealing direct with a client for residential building work where the contract price is less than $3,300 (including GST).

Purchase the contract online via eDocs.

The Pool Building Contract is a lump sum contract for use in the construction of a swimming pool or spa, with a contract price of $20,000 (including GST) or more and when contracting directly with a residential owner.

It can be used for projects with an initial contract price of less than $20,000 but that may increase to $20,000 (including GST) or more i.e. a Level 1 regulated contract would be required initially but if a variation resulted in a contract price of $20,000 (including GST) or more, the parties would be required to adjust the contract to become a Level 2 regulated contract. The use of the Pool Building Contract avoids the need to change the contract part way through the project for projects that are close to the threshold.

If a pool is being built as part of a residential project (such as a house or duplex) for a head contractor, then a subcontract should be used.

You can purchase the contract from the eShop, visit your local Master Builders office to purchase contracts over the counter or complete your contracts online via eDocs.

Special conditions addendum

A Special Conditions addendum for the Pool Building Contract is now available to take care of the changes required for contracts you sign from 1 July 2018 onwards.

If you’ve purchased a hardcopy Pool Building Contract from us in the past 12 months, download a copy of the relevant Special Conditions addendum. In the ‘Special Conditions’ item of your contract, you’ll also need to include the following wording: ‘Refer to Addendum - Special Conditions, for details of SC1 to SC2’.

The Master Builders Cost Plus Contract - Level 2 (Residential) is only available in eDocs.

Purchase the contract online via eDocs.

The Queensland Building and Construction Commission Act 1991 Schedule 1B sets out specific requirements for the administration of a domestic building contract, including a range of documents that must be used to support the contract.

Before work commences and even before you sign a contract, you may be required to perform preliminary tasks on behalf of the owner. This preliminary work should be covered by a Preliminary Agreement.

It's also important to ensure the engineer engaged to conduct soil classification and design the footings and slab system signs an Engineer Specification & Confirmation, and that the owner is supplied with a copy of the Foundation Maintenance and Footing Performance: A Homeowners Guide. This document is designed to provide some additional protection for a builder in the event that a subsidence claim is made by the owner and the engineer is potentially at fault.

Once a contract is in place and work has begun, it is important to document (in writing) any changes to the contract or administration matters, including variations, extensions of time, requests for information and progress payments.

Prior to Practical Completion, you will need to give the owner a notice of when you anticipate achieving Practical Completion and a Defects Document following the final inspection with the owner and the builder if any defects still exist at Practical Completion.

Preliminary Agreement

The Preliminary Agreement is for use when performing preliminary tasks on behalf of the owner, prior to a domestic building contract being signed, including plans, site survey, soil test and building approvals. This type of work is not considered domestic building work so does not need a regulated contract. Be aware however, that you may attract liability for the design you provide under a Preliminary Agreement. For more detailed information, contact Master Builders.

Engineer Specification & Confirmation for Residential Footing & Slab Design

This document should be provided to the engineer engaged to conduct soil classification and design the footings and slab system. We do not recommend that you sign a contract with an owner until the engineer has signed the Engineering Specification document, especially when the owner engages the engineer. However, the engineer may give a different document that achieves the same purpose as the Engineering Specification document.

The Queensland Building and Construction Commission (QBCC) requires all contractors to have written confirmation from the engineer that the engineer has complied with the QBCC Policy Specification if the builder wishes to rely on this in an action regarding subsidence – Master Builders Engineer Specification & Confirmation for Residential Footing & Slab Design ensures this.

Without this document, contractors may be exposed to the total cost of rectification in the case where a footing and slab system fails through subsidence or settlement. In other words, the Engineer Specification and confirmation ensures the no-fault provisions under QBCC’s Home Warranty Insurance Scheme are met. However, the QBCC is required by the QBCC Act to take into consideration a number of matters when determining who is responsible for defective building work and an engineer who is responsible for the design, with or without the Engineering Specification document, is a matter that the QBCC must take into consideration.

Foundation Maintenance and Footing Performance: A Homeowners Guide

Many problems relating to footing performance are caused by the subsequent actions of owners, after the construction period has ended (particularly in relation to site drainage and landscaping).

The Foundation Maintenance and Footing Performance: A Homeowners Guide describes many of the causes of problems and gives owners advice on foundation maintenance and footing performance.

You must give a copy of the guide to the owner to help them comply with the QBCC Subsidence Policy. Upon receiving the guide, the owner must sign the Declaration by Owner (BTF18).

Residential Building Specification

The Residential Building Specification is an important companion document to the Residential Building Contract. It is for use on residential projects to specify detailed information of the work to be carried out, including trade works, colour/style selection and paint.

Consumer Building Guide

The QBCC Act Schedule 1B requires that contractors performing domestic building work must give their clients a QBCC-prepared Consumer Building Guide for contracts of $20,000 (including GST) or more.

The Consumer Building Guide must be given to the owner before signing a contract, along with a copy of the contract. It gives home owners general information about the contract, such as the rights and duties of the owner and contractor, information about the cooling-off period and procedures for resolving disputes.

Confirmation of Variation/Instruction

A variation is a change to contract, such as an addition to or reduction in the scope of work that may result in an increase or decrease in the value of the work. Failure to fully and accurately document changes to the original contract in writing is a frequent cause of disputes.

The QBCC Act Schedule 1B requires that all variations, no matter how small, are put in writing and agreed to by the owner before work commences, unless the work is required urgently and it is not practical to produce a variation document before work commences. It also applies where the variation to the contract does not result in a change to the contract price.

The owner must be provided with a copy of the variation document within five business days of when the variation was agreed to. The requirements of a variation document are set out in the QBCC Act Schedule 1B.

Master Builders Variation Notice is used to confirm variations or instructions that affect the scope of work.

Extension of Time

The Extension of Time Claim form should be used to confirm any extensions of time that will affect the project completion date, due to a delay as allowed for in the contract.

It may be useful to refer to Master Builders extension of time construction period calendar, when calculating the anticipated completion date.

The QBCC Act Schedule 1B requires that all claims for an extension of time must be submitted to the owner within 10 business days of when the contractor becomes aware, or ought reasonably to have become aware, of the cause and extent of the delay. An extension of time can only be claimed in limited circumstances which are set out in the QBCC Act Schedule 1B.

Request for Information

As the name suggests, the request for information should be used to request information from the owner, for example where it is necessary to confirm the specifications or drawings, or to address an ambiguity or discrepancy within the various documents forming part of the contract.

Progress Payment Certificate

The Progress Payment Claim should be used when submitting progress claims to an owner.

Practical Completion Stage Notice

An anticipated Practical Completion Notice should be provided to an owner to notify them of when the works are anticipated to achieve Practical Completion and that the works will be ready to inspect on the nominated date.

Defects Document

It is a legislative requirement to provide the owner with a Defects Document at Practical Completion. The Defects Document is used to document minor defects or omissions. You are required to complete the defects document with the owner during the Practical Completion inspection.

According to the QBCC Act, the defects document must:

• List the minor defects and minor omissions that both you and the home owner agree to
• State the date when you will attend to those matters
• Separately list minor defects or minor omissions that only the home owner believes exist
• Be signed by the contractor to be provided by the owner at Practical Completion.

The Subcontract Agreement is a lump sum contract for use between a contractor and a subcontractor for subcontract works. This contract can be used on both commercial and residential projects.

Master Builders has two Subcontract Agreements available – the standard ‘Subcontract Agreement’ and the ‘Subcontract Agreement – Basic’.

The Subcontract Agreement is a comprehensive document that provides flexibility regarding:

• Forms of Security
• Payment reference dates and due dates for payment
• Liquidated damages – not applicable, agreed rates and/or limits applicable
• Delay damages
• Time for submission of Extension of Time claims, and
• Dispute resolution processes.

The Subcontract Agreement can be adjusted easily to align with the requirements of various forms of head contracts including Australia Standards or bespoke contracts. The obligations on both parties are clearly set out and the payment provisions address the common mistake that parties make in terms of providing for the due date for payment. This issue has serious consequences for both parties under the Building Industry Fairness (Security of Payment) Act 2017 (Qld). There is also clarity regarding retention release obligations on both parties which is impacted by the Queensland Building and Construction Commission Act 1991.

The Subcontract Agreement – Basic is a smaller and more compact subcontract that still complies with the recent legislation changes and can be amended, as needed, through special conditions to address differences in the head contract requirements. It allows for progress payments on a weekly, fortnightly or monthly basis but has no built-in flexibility for other payment arrangements. The Subcontract Agreement – Basic suits lower risk subcontracts or smaller work packages.

You can purchase both online via eDocs.

Special conditions addendums

If you have a version of the previous Subcontract Agreement in hardcopy, there are two Special Conditions addendums available to take care of legislative changes.

If you’ve purchased a hardcopy of the previous Subcontract Agreement from us in the past 18 months, download a copy of the relevant Special Conditions addendum below. Follow the instructions to insert correctly within the Special Conditions item of your contract.

Subcontract Agreement addendum - BIF special conditions

Subcontract Agreement addendum - ipso facto special conditions

The Period Subcontract is suitable for use when engaging subcontractors who work regularly for the same contractor. It can be used for subcontractors engaged by builders, and for sub-subcontractors engaged by subcontractors. This contract can be used on both commercial and residential projects.

The Period Subcontract applies for an agreed period of time (Subcontract Period) and is an agreement to agree terms that will apply when a later contract is formed (i.e. a separate contract is formed with the Period Subcontract and each Work Order that is issued under the Period Subcontract).

The Work Order gives the parties the freedom to select either an agreed lump sum price or a price calculated using the agreed Schedule of Rates that is set out in the Period Subcontract.

The Period Subcontract is a comprehensive document that provides flexibility regarding:

• Forms of Security
• Payment reference dates and due dates for payment
• Liquidated damages – not applicable, agreed rates and/or limits applicable
• Delay damages
• Time for submission of Extension of Time claims, and
• Dispute resolution processes.

The Period Subcontract can be adjusted easily to align with the requirements of various forms of head contracts including Australia Standards or bespoke contracts. The obligations on both parties are clearly set out and the payment provisions address the common mistake that parties make in terms of providing for the due date for payment.

This issue has serious consequences for both parties under the Building Industry Fairness (Security of Payment) Act 2017 (Qld). There is also clarity regarding retention release obligations on both parties which is impacted by the Queensland Building and Construction Commission Act 1991.

You can purchase the Period Subcontract and Work Order online via eDocs.

Special conditions addendums

If you have a version of the previous Period Subcontract Agreement (prior to 15 July 2019) in hardcopy, there are two Special Conditions addendums available to take care of recent legislative changes.

If you’ve purchased a hardcopy Period Subcontract from us in the past 18 months, download a copy of the relevant Special Conditions addendum below. Follow the instructions to insert correctly within the Special Conditions item of your contract.

Period Subcontract Agreement addendum - BIF special conditions

Period Subcontract Agreement addendum - ipso facto special conditions

Throughout the construction period, a range of additional documents must be used to support the subcontract agreement.

Once a contract is in place and work has begun, it is important to document (in writing) any changes to the contract, no matter how minor, including:

Work Order

The Work Order is a companion document to the Period Subcontract to instruct specific work to be carried out. When a Period Subcontract is in place, outlining the time period and agreed rates, Work Orders are used each time agreed work is to be undertaken.

The contractor issues a Work Order to the subcontractor to advise, amongst other things, the address at which the work is to be undertaken, the extent of works and the relevant Period Subcontract to which the Work Order relates.

There are two Work Orders that can be used with the Period Subcontract:

• Work Order – Basic (WO-1)
• Work Order (WO-2).

Under Work Order – Basic (WO-1), the provisions relating to the following clauses do not apply:

• Deposit
• Retention and Security
• Inclement Weather allowance
• Delay Costs
• Prime Cost Items
• Provisional Sum Items.

The time for providing an Extension of Time is set to 5 Business Days.

If one of the above items is intended to apply to the Period Subcontract, Work Order WO-2 should be used.

Under Work Order (WO-2), flexibility is provided for the above items plus many others.  It can be adapted to suit large and small head contracts.

Confirmation of Variation/Instruction

A variation is a change to the scope of work outlined in the contract, such as an addition to or reduction in the scope of work that may result in an increase or decrease in the cost (value) of the work.

Master Builders Confirmation of Variation/Instruction is used to confirm variations or instructions that affect the scope of work.

Extension of Time

The Extension of Time form should be used to confirm any extensions of time that will affect the project completion date, due to a delay as allowed for in the contract.

It may be useful to refer to Master Builders construction period calendar, when calculating the anticipated completion date.

Request for Information

As the name suggests, the request for information should be used to request information from the contractor.

Special conditions addendums

Special Conditions addendums for the  Period Subcontract Agreement and Subcontract Agreement contracts are now available to take care of legislative changes.

If you’ve purchased a hardcopy Period Subcontract Agreement or Subcontract Agreement from us in the past 18 months, download a copy of the relevant Special Conditions addendum below. Follow the instructions to insert correctly within the Special Conditions item of your contract.

Period Subcontract Agreement addendum - BIF special conditions

Subcontract Agreement addendum - BIF special conditions

Period Subcontract Agreement addendum - ipso facto special conditions

Subcontract Agreement addendum - ipso facto special conditions