QBCC PERIOD MINOR WORKS SUBCONTRACT

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1 Build better. QBCC PERIOD MINOR WORKS SUBCONTRACT The General Conditions of the QBCC Period Minor Works Subcontract may not be suitable for all work and the QBCC does not make any representation as to the suitability of the general conditions. Users of the general conditions must make their own assessment or seek professional advice as to the appropriateness of these general conditions for any work or any changes that may be needed to these general conditions. APRIL 2016

2 QBCC PERIOD MINOR WORKS SUBCONTRACT AGREEMENT GUIDE This QBCC Period Minor Works Subcontract Agreement Guide is designed to assist the parties to complete the first page of the QBCC Period Minor Works Subcontract Agreement. You should read this guide before entering into a QBCC Period Minor Works Subcontract Agreement. Please note that the QBCC Period Minor Works Subcontract Agreement does not form an agreement for the carrying out of subcontract works by itself. The QBCC Period Minor Works Subcontract Agreement is intended to be used with the QBCC Minor Works Subcontract Work Order. This guide is not legal advice on the meaning or effect of the QBCC Period Minor Works Subcontract Agreement. If you have any questions about this meaning of the QBCC Period Minor Works Subcontract Agreement, you should seek independent legal advice. Completing the QBCC Period Minor Works Subcontract Agreement THE CONTRACTOR: Insert the name, licence number, license class and contact details of the contractor for whom the work is being performed. THE SUBCONTRACTOR: Insert the name, licence number, licence class and contact details of the subcontractor who is performing the work. In addition, the GST registration details and insurance requirements need to be completed for the subcontractor. CLAUSE 1: Complete the number of months for which this QBCC Period Minor Works Subcontract Agreement is to operate in respect of work orders. Please note that the details of any particular subcontract are to be completed in a QBCC Minor Works Subcontract Work Order. For more information you should also refer to the QBCC Period Minor Works Subcontract Agreement Q & A. 2 QBCC PERIOD MINOR WORKS SUBCONTRACT APRIL 2016

3 PERIOD MINOR WORKS SUBCONTRACT AGREEMENT This Period Minor Works Subcontract Agreement is dated: / / 20 Between: CONTRACTOR: ABN/ACN: Address: Telephone: Fax: and SUBCONTRACTOR: ABN/ACN: Address: Telephone: Fax: QBCC licence no: QBCC licence class: GST registered? Yes/No Public Liability Insurance: Yes/No Policy no: Current to: Workers Compensation Insurance: Yes/No Policy no: Current to: Personal sickness: Yes/No Policy no: Current to: Accident insurance: Yes/No Policy no: Current to: 1. For months from the date of this Agreement, the Subcontractor agrees to negotiate a Work Order, as and when requested by the Contractor, on the basis that: a. a Subcontract is formed by the acceptance of the Work Order by the relevant party; and b. the Period Minor Works Subcontract Agreement Terms and Conditions inschedule 1 of this Agreement form part of each Subcontract. 2. Each Work Order will set out the scope of the Works, date of Commencement, date of Substantial Completion, the Defects Liability Period for the Works, the price of the Works and any liquidated damages. 3. The Subcontractor must have and maintain the insurance policies, detailed above, at all times during the period set out in item 1 and in relation to each Subcontract. 4. The obligation to carry out work only arises on the formation of each Subcontract. 5. The Subcontractor does not have any expectation as to the availability of work or the number of Work Orders that will be requested by the Contractor during the period set out in Item The parties agree that the Period Minor Works Subcontract Agreement Conditions referred to above are those that appear in Schedule 1 to this Agreement. 7. Terms used in this Agreement have the same meaning as in the Period Minor Works Subcontract Agreement Conditions. / / Contractor date Subcontractor date The terms and conditions of the QBCC Period Minor Works Subcontract Agreement Conditions may not be suitable for all work and the QBCC does not make any representations as to the suitability of the terms and conditions. Users of the terms and conditions must make their own assessment or seek professional advice as to the appropriateness of these terms and conditions for any work or any changes that may need to be made to these terms and conditions. QBCC PERIOD MINOR WORKS SUBCONTRACT APRIL

4 SCHEDULE 1 - PERIOD MINOR WORKS SUBCONTRACT TERMS AND CONDITIONS 1. Definitions Agreement means the Period Minor Works Subcontract Agreement. Business Day means a day that is not: a Saturday or a Sunday; or (ii) a public holiday, special holiday or bank holiday in the local government locality where the Site is located. Commencement means the date for commencement of the Works, as set out in the Subcontract. Defects Liability Period means the period stated in the Subcontract which commences on the date of practical completion under the Head Contract. Head Contract means the contract between the Principal and the Contractor for the execution of the Project. Project means the whole of the work to be carried out under the Head Contract. QBCC Act means the Queensland Building and Construction Commission Act 1991 (Qld). Site means the address of the Project in the Subcontract. Subcontract means the contract that forms immediately on the acceptance of the Work Order by the relevant party. Subcontract Price means the amount payable to the Subcontractor by the Contractor, as adjusted under the Subcontract, as set out in the Subcontract. Substantial Completion means the stage when the Works are complete except for minor defects and/or omissions that do not prevent the Works from being used for their usual purpose. Variation means to vary the Works by changing the scope of work as described in the Work Order or otherwise adding to or omitting from the scope of works. Work Order means: a quote from the Subcontractor; or (ii) a work order issued by the Contractor; or (iii) any other written agreement signed by the parties. Works means the whole of the work to be carried out by the Subcontractor, as described in the Subcontract, subject to Variations. 2. Subcontractor to Complete Works (a) The Subcontractor must carry out and complete the Works: in a proper and tradesperson-like manner; (ii) in accordance with the Subcontract and the Contractor s directions; (iii) in accordance with all legislative requirements, including any relevant Australian Standards applicable to the Works; (iv) using materials that are new and free of defects; and (v) by the date for Substantial Completion. (b) The Subcontractor must: attend all site meetings as requested by the Contractor; (ii) co-operate with all other workers and contractors on the Site; and (iii) satisfy itself that the site is suitable. (c) The Subcontractor is responsible for: any damage caused by the Subcontractor and its agents and employees; (ii) keeping the Subcontractor s area clear at all times; and (iii) carrying out of the Works safely. 3. Directions (a) The Contractor may issue a direction to the Subcontractor regarding carrying out the Works, and the Subcontractor must comply with the Contractor s reasonable directions. (b) A direction may be given orally, however, where a direction is given orally, the Contractor must give the Subcontractor written confirmation of the direction within 3 Business Days. (c) The Subcontractor does not have to comply with a direction until it is given in writing. 4. Variations (a) The Subcontractor must not vary the Works unless in accordance with a written direction from the Contractor. (b) The price of a Variation is to be agreed by the parties. Failing agreement, the price will be reasonably decided by the Contractor. If the Subcontractor disagrees with the Contractor s price the Subcontractor may refer the issue to dispute resolution within 10 Business Days of receiving written notice of the Contractor s price. 5. Indemnity and Insurance (a) The Subcontractor indemnifies the Contractor against: loss or damage to property; and (ii) claims in respect of personal injury, death, or loss or damage to any property, arising out of, in connection with, or as a consequence of, the Subcontractor: (A) carrying out or failing to carry out the Works; or (B) breaching the Subcontract. (b) The Subcontractor must have and maintain the insurance policies specified in this Agreement, and each policy of insurance is to be on terms satisfactory to the Contractor. (c) When the Contractor requests, the Subcontractor must prove to the Contractor that the policies of insurance are current. 6. Time and Progress (a) The Subcontractor is entitled to an extension of time to complete the Works as the Contractor reasonably decides if: the works are delayed by any cause outside the control of a competent subcontractor; and 4 QBCC PERIOD MINOR WORKS SUBCONTRACT APRIL 2016

5 (ii) the Subcontractor gives the Contractor written notice claiming the extension of time within 2 Business Days of when the Subcontractor becomes, or should have become, aware of the delay. 7. Defects (a) As soon as possible after the Date of Substantial Completion, the Subcontractor shall rectify all defects existing at the date of Substantial Completion. (b) At any time prior to the expiry of the Defects Liability Period, the Contractor may give to the Subcontractor a written direction to remedy the defects. If the Subcontractor fails to comply with the written direction, the Contractor may have the defects remedied by others, and will be entitled to the costs it incurred in having the defects remedied. (c) Notwithstanding the expiry of the Defects Liability Period the Subcontractor must rectify any part of the works which is the subject of a direction to rectify issued under section 72 of the QBCC Act. This obligation does not merge on the completion of the Subcontract. 8. Liquidated Damages If the Works do not reach Substantial Completion by the date for Substantial Completion, the Contractor is entitled to liquidated damages as specified in the Subcontract as a debt due and payable to the Contractor. 9. Payment (a) The Subcontractor is entitled to make a progress claim as stated in the Subcontract and on termination of the Subcontract on any basis including under the Subcontract at law or in equity. (b) All progress claims, including a final progress claim, must: contain details of the actual cost of work carried out by the Subcontractor up to and including the date of the claim; (ii) provide copies of tax invoices for any outlays claimed. (c) On receipt of a progress claim, the Contractor will: within 10 Business Days, decide the amount owing and give the Subcontractor written payment notice; and (ii) pay that amount to the Subcontractor within 25 Business Days of receipt of the progress claim. (d) Any payment other than the final payment is a payment on account only. (e) If the Contractor does not pay the Subcontractor by the due date, interest accrues at the rate stated in section 67P of the QBCC Act. 10. Compliance with Statutes (a) The Subcontractor must comply with all legislative requirements relating to the Works, including any direction from a local authority or other body having jurisdiction over the carrying out of the Works. (b) The Subcontract is subject to the provisions of the QBCC Act and the Building and Construction Industry Payments Act 2004 (BCIPA). (c) The Subcontractor warrants it holds and will retain all licences required under the QBCC Act to carry out the Works. 11. Default and Termination (a) If either party: being a company, suffers the appointment of an administrator, liquidator or provisional liquidator in respect of it because it is or may be insolvent; or (ii) being an individual, becomes an insolvent under administration as defined in Section 9 of the Corporations Law, then: the other party may, by giving a written notice, terminate the Subcontract. (b) If either party commits a substantial breach of the Subcontract, the other party may issue a notice to show cause to the party in breach requiring that party to rectify the breach. If that party fails to rectify the breach set out in the show cause notice within 7 Business Days of receipt of the notice, the other party may terminate the Subcontract by giving a further written notice. (c) If the Head Contract is terminated for any reason, the Contractor may terminate the Subcontract. The Subcontractor is entitled to claim loss of profit and overheads unless the termination is due to the Principal s default. 12. Suspension (a) If work under the Head Contract has been suspended, the Contractor may suspend the Works. (b) If the Contractor fails to make a payment by the due date, the Subcontractor may suspend the Works on giving 3 Business Days prior notice. 13. Documents (a) Documents provided by the Contractor to the Subcontractor under the Subcontract remain the Contractor s property and shall be returned to the Contractor on written demand. (b) The Subcontractor must not use, copy or reproduce documents provided by the Contractor for any other purpose other than the Works. 14. Dispute Resolution (a) If a dispute arises out of or in connection with the Subcontract, the aggrieved party shall, within 2 Business Days of this dispute arising, give to the other party a written notice of the dispute stating the details of the dispute. (b) The parties shall meet within 5 Business Days of the notice of dispute being received by the other party and make reasonable endeavours to resolve the dispute. (c) Nothing in this clause prevents a party from seeking urgent injunctive, or declaratory, relief. QBCC PERIOD MINOR WORKS SUBCONTRACT APRIL

6 QBCC PERIOD MINOR WORKS SUBCONTRACT AGREEMENT - Q&A These questions and answers contain information of a general nature. You should not rely upon these questions and answers as providing specific legal advice. For specific advice on particular circumstances, especially contractual matters, you should seek independent legal advice. WHAT IS THE QBCC PERIOD MINOR WORKS SUBCONTRACT AGREEMENT? The QBCC Period Minor Works Subcontract Agreement (the Agreement ) is designed to be used by a Contractor and Subcontractor for a period of time chosen by the parties (the nominated time ). The Agreement sets out the terms and conditions that will apply to each Subcontract the parties form within the nominated time. Each time a Subcontract is formed by the parties within the nominated time, the parties are bound by the terms and conditions set out in the Agreement. For example, the Agreement sets out terms and conditions as to: (a) variations (b) indemnity and insurance (c) default and termination (d) suspension (e) dispute resolution. HOW DOES THE AGREEMENT WORK? Using the Agreement is a 2 step process. Firstly, the Contractor and Subcontractor complete and sign the Agreement for a nominated time. Each time the parties form a Subcontract during the nominated time, the terms and conditions in Schedule 1 of the Agreement apply to the Subcontract. Secondly, the Contractor and Subcontractor enter into a QBCC Minor Works Period Subcontract Work Order ( QBCC Work Order ) each time any building work needs to be carried out. Once the QBCC Work Order is accepted by the other party, it forms the basis of the Subcontract. In this way, parties can fill out: the QBCC Work Order; or a different work order, quote or written agreement with the same details, and still have a comprehensive agreement that complies with the QBCC Act. SHOULD I FILL OUT THE AGREEMENT FIRST? Yes. The Agreement sets out the terms and conditions that will apply to every Subcontract you enter into over the nominated time and must be completed before a QBCC Work Order. WHAT ARE THE TERMS AND CONDITIONS? The terms and conditions include the detailed clauses which govern your rights and obligations set out in Schedule 1 of the Agreement. The terms and conditions in Schedule 1 of the Agreement apply as if attached to every Subcontract entered into over the nominated time. For larger jobs or more complex jobs you should consider using the QBCC Subcontract. HOW DO I FILL IN THE AGREEMENT? Both parties to the Agreement should fill in the nominated time for the Agreement on the front page. The nominated time is the time that the parties agree the Agreement will be in place. HOW DO I SIGN THE AGREEMENT? Both parties to the Agreement should initial the terms and conditions set out in Schedule 1 of the Agreement on the back page and sign the signing panel on the front page. WHAT DOES SIGNING THE AGREEMENT MEAN? Once the Agreement is signed, there is no Subcontract in place. The Agreement does not, by itself, commit anyone to carry out any work. The Agreement also states that there is no expectation that Subcontracts to actually carry out work will be formed. To form a Subcontract, which is needed for an agreement to actually carry out work, the QBCC Work Order or similar, that is accepted by the other party, is needed. Refer to How does the Agreement work? 6 QBCC PERIOD MINOR WORKS SUBCONTRACT APRIL 2016

7 HOW IS A SUBCONTRACT FORMED UNDER THE AGREEMENT? Under the Agreement, a Subcontract is formed by: (a) a Subcontractor accepting a work order from the Contractor; (b) a Contractor accepting a quote from a Subcontractor; or (c) a written agreement for work that is signed by the parties. For more information refer to How does the Agreement work? CAN I SIGN THE AGREEMENT WITHOUT FILLING OUT ALL SECTIONS? You should not sign the Agreement until all sections of the front page are considered and completed and you understand the terms and conditions in the Agreement. CAN I ONLY RELY ON THE AGREEMENT? No. The Agreement contains only general terms and conditions. On its own, the Agreement does not comply with the QBCC Act. The Contractor and Subcontractor must enter into a Subcontract each time new building work is to be carried out. DO I NEED TO RENEW THE AGREEMENT? Yes. The Agreement will come to an end after the nominated term. It is designed to be reviewed by the parties on a regular basis. WILL A SUBCONTRACTOR BECOME AN EMPLOYEE IF A AGREEMENT IS USED? Not by itself. The Contractor is under no obligation to provide the Subcontractor with any work over the term of the Agreement. However, if the Subcontractor is engaged consistently by the Contractor it will be a question of reviewing the relationship as a whole to determine if an employment relationship had arisen. Using proper contract arrangements makes it less likely that a Subcontractor will be considered an employee. If in doubt, you should seek professional legal advice. MUST THE OTHER PARTY S QBCC LICENCE NUMBER SHOWN ON THE AGREEMENT? Yes. If the other party s QBCC licence number is not shown you should confirm that they are in fact licensed and insert these details before the Agreement is signed. There are different licence classes for different types of building work. Refer to QBCC s website, au to conduct a free Online Licence Search or phone QBCC on The Online Licence Search allows you to download a free report on the other party s licence history and past performance, including details of past projects and disputes. ARE RETENTIONS COVERED BY THE AGREEMENT? No. The Agreement is designed only for minor works or where retentions are not usual. If the parties do agree to a retention or performance securities, extra terms will need to be expressly written as special conditions to the Subcontract. WHAT IS A REASONABLE RETENTION? Under the QBCC Act, it is against the law if the: (a) total of retentions and securities exceed 5% of the total Subcontract price; or (b) amount retained from a single progress payment exceeds 10% of the progress payment amount; or (c) total of retentions and securities held after practical completion exceed 2.5% of the total Subcontract price. By law, contractors are not able to withhold more than these sums, regardless of the Subcontract terms. QBCC PERIOD MINOR WORKS SUBCONTRACT APRIL

8 QBCC MINOR WORKS SUBCONTRACT WORK ORDER GUIDE This Minor Works Subcontract Work Order Guide is designed to assist the parties to complete the QBCC Minor Works Subcontract Order. You should read this guide before using the QBCC Minor Works Subcontract Work Order. The QBCC Minor Works Subcontract Work Order does not form a contract for the carrying out or subcontract works by itself. The Minor Works Subcontract Work Order is designed to be used in conjunction with the QBCC Period Minor Works Subcontract Agreement. This guide is not legal advice on the meaning or effect of the QBCC Minor Works Subcontract Work Order. If you have any questions about the meaning of the Minor Works Subcontract Work Order you should seek independent legal advice. Completing the QBCC Minor Works Subcontract Work Order ITEM 1: DATE OF WORK ORDER: Insert the date on which the Work Order is completed and issued. ITEM 2: THE CONTRACTOR: Insert the name, licence number and contact details of the contractor for whom the work is being performed. This should be the same as appearing in the QBCC Period Minor Works Subcontract Agreement. ITEM 3: THE SUBCONTRACTOR: Insert the name, licence number and contact details of the subcontractor who is performing the work. ITEM 4: SITE ADDRESS: Insert the street address of the site. ITEM 5: DATE OF COMMENCEMENT: Insert the commencement date or method for determining the start date for the commencement of the Works. ITEM 6: DATE OF SUBSTANTIAL COMPLETION: Insert the date of substantial completion or how it is to be calculated (for example, x days from the date of commencement). Substantial completion occurs when the Works are completed except for minor defects and/ or omissions that do not prevent the Works from being used for their considered purpose. (Clause 1 of the terms and conditions which form part of the subcontract in accordance with the QBCC period Minor Works Subcontract Agreement). ITEM 7: THE WORKS: It is important to describe the work in as much detail as possible as it sets out the work to be carried out. You should attach additional pages to the QBCC Minor Works Subcontract Work Order if you need more space to describe the work. ITEM 8: SUBCONTRACT PRICE: Insert the subcontract price exclusive of GST. ITEM 9: PROGRESS CLAIMS: Insert the timeframe for submission of progress claims. Each date from the breach of subcontract is entitled to give the contractor a progress claim must be at least once per month. All progress claims must include details of the value of work done up to and including the date of the claim. ITEM 10: PAYMENT OF PROGRESS CLAIMS: Insert the date by which payment of the progress claims is due. Progress claims must be paid within 25 business days of the claim being made. ITEM 11: LIQUIDATED DAMAGES: Insert the amount of liquidated damages per business day. This should be a genuine pre-estimate of the liability or loss the contractor will suffer if the works are not substantially completed on time. If the work is not substantially completed on the date of substantial completion, this is the amount per business day that the subcontractor will have to pay to the contractor to the date the work reaches substantial completion. If this item is not completed there are no liquidated damages. ITEM 12: DEFECTS LIABILITY PERIOD: Insert the weeks and months after practical completion is reached under the head contract for which the defects liability period is to operate. 8 QBCC PERIOD MINOR WORKS SUBCONTRACT APRIL 2016

9 QBCC MINOR WORKS SUBCONTRACT - WORK ORDER This Work Order is subject to the terms and conditions in the QBCC Period Minor Works Subcontract Agreement. This Work Order is to be used in conjunction with the QBCC Period Minor Works Subcontract Agreement. 1 Date of Work Order: 2 The Contractor: Licence Number: Licence class: Ph: Fax: 3 The Subcontractor: Licence number: Ph: Fax: 4 Site address: 5 Date of Commencement: 6 Date of Substantial Completion: 7 The Work Details: 8 Subcontract Price (excl GST): $ 9 Progress claims: every days * Payment must be made within 25 business days of a progress claim under section 67U of the Queensland Building and Construction Commission Act Liquidated damages rate: per business day 11 Defects liability period: weeks / months (delete one) The Subcontractor and Contractor agree: (a) By accepting this Work Order, the Subcontractor forms a Subcontract under the QBCC Period Minor Works Subcontract Agreement. (b) Terms used in this agreement have the same meaning as in the QBCC Period Minor Works Subcontract Agreement Conditions. QBCC PERIOD MINOR WORKS SUBCONTRACT APRIL

10 QBCC PERIOD MINOR WORKS SUBCONTRACT WORK ORDER - Q&A WHAT IS THE QBCC MINOR WORKS ORDER? The QBCC Minor Works Subcontract Work Order ( QBCC Work Order ) is a one-page work order designed to accompany and be used with the QBCC Minor Works Period Subcontract Agreement ( Agreement ). Once a QBCC Work Order has been accepted by the other party, it forms a Subcontract to which the Agreement applies. DO I NEED TO USE A QBCC WORK ORDER? Yes, but under the Agreement, a Work Order can be: a work order, whether it is a QBCC Work Order or a different type of work order; a quote; or a written agreement signed by the parties. Once a Work Order is accepted by the other party, it becomes a Subcontract. The QBCC Work Order contains all the information that needs to be filled out for the Agreement and to comply with section 67(G)(4) Queensland Building and Construction Commission Act 1991 (QBCC Act). For this reason, the QBCC strongly recommends the parties use a QBCC Work Order with the Agreement as it has all the necessary details to be completed, is user friendly and is designed to be used specifically with the Agreement. CAN I ONLY USE A QBCC WORK ORDER? No. The QBCC Work Order is designed to be used in conjunction with the Agreement, and not on its own. If you use only a QBCC Work Order, you will not have the necessary terms and conditions you need to properly manage the work and to comply with the QBCC Act. MUST THE OTHER PARTY S QBCC LICENCE NUMBER BE SHOWN ON THE QBCC WORK ORDER? No. The Agreement is where the other party s QBCC licence number should be inserted to confirm that they are in fact licensed before a QBCC Work Order is filled out or signed. Although a licence number does not need to be stated on the QBCC Work Order, it is recommended the parties still write in their licence numbers on the QBCC Work Order. If the licence number is not completed on the face of the Agreement, it must be stated on the QBCC Work Order. WHAT DOES THE QBCC WORK ORDER CONTAIN? The QBCC Work Order sets out: (a) the address where the work will be carried out; (b) the date of commencement for the work; (c) the date of substantial completion for the work; (d) the scope of work; (e) the amount the Subcontractor will be paid; (f) the date payment is due; (g) the liquidated damages that will apply if the work is not completed on time; and (h) the defects liability period that will apply for the work. CAN I START WORK WITHOUT A WORK ORDER FILLED OUT AND ACCEPTED? Under the QBCC Act, subcontracts for work over $10,000 must be in writing before commencement. If the building work is valued at $10,000 or less, a written Subcontract must be in place before the work is completed. WHERE DO I ENTER THE DETAILS OF THE SUBCONTRACT WORK? To use the QBCC Work Order with the Agreement you insert the details of the parties to the Subcontract. (These details are your name (as Subcontractor or Contractor) and your contact details and should be the same details as filled in on the Agreement). The QBCC work order also contains the details of your particular agreement. It is essential that you consider these items and ensure they are all filled in. For more information please read and consider the QBCC Minor Works Period Subcontract Guide. Items on the QBCC Work Order must be considered and filled in before it is issued. 10 QBCC PERIOD MINOR WORKS SUBCONTRACT APRIL 2016

11 IF I DON T USE THE QBCC WORK ORDER, WHAT DO I USE? If you do not use a QBCC Work Order you can use your own work order, quote or agreement. However your document must contain all relevant information and details to comply with the QBCC Act. Under the QBCC Act, a subcontract must contain the following information: (a) the name and licence numbers of the contractor and subcontractor; (b) the scope of the work covered by the subcontract; (c) the address of the site where the work is to be carried out; (d) the amount of money to be paid for the work (or how the amount is to be calculated); (e) when the work is to be completed by the subcontractor; and (f) any agreement between the parties about retentions and securities. The subcontract should also contain: (a) the name and contact details of the parties involved; (b) the timing of payments for the work. CAN I USE THE AGREEMENT AND QBCC WORK ORDER AS A SUB-SUBCONTRACT? Yes. If a Subcontractor contracts the work out to another subcontractor, a written agreement must be entered into. This Agreement (and accompanying QBCC Work Order) can be used in these circumstances, with the Subcontractor becoming the contractor for the purpose of the Agreement and the Work Order. MUST THE WORKS BE CLEARLY DESCRIBED ON THE FRONT PAGE OF THE QBCC WORK ORDER? Yes. The description of the works should be as detailed as possible, particularly if there are no plans or specifications attached and described in Item 7 of the Work Order. If you need more space or need to refer to specific drawings write see attached and ensure the relevant documents are attached to the QBCC Work Order and initialled by both parties. SHOULD THE DATE FOR SUBSTANTIAL COMPLETION ON THE FRONT PAGE BE REALISTIC? Yes. You should ensure that you take into account non-working days, wet weather and any other likely delays in determining the Date for Substantial Completion. An unrealistic time frame may lead to dispute and late completion (liquidated) damages. HOW SHOULD THE DAILY AMOUNT OF LIQUIDATED DAMAGES BE CALCULATED? The liquidated damages amount should be a genuine pre-estimate of the likely loss or extra costs the Contractor will suffer if the Works are not substantially completed on time. Under Clause 8 of the terms and conditions set out in Schedule 1 of the Agreement, the Subcontractor will be required to pay the amount listed in the QBCC Work Order to the Contractor each day after the Date for Substantial Completion until the date of Substantial Completion. IS THE PRICE SHOWN ON THE FRONT PAGE? The price for work to be performed is shown in the QBCC Work Order. You should note that this price can be varied in accordance with Clause 4 of the terms and conditions set out in Schedule 1 of the Agreement. HOW DOES THE SUBCONTRACTOR GET PAID? A Subcontractor is entitled to submit a progress claim to the Contractor at the times described in Item 9 of the QBCC Work Order. A progress claim must comply with the requirements in Clause 9 of the terms and conditions set out in Schedule 1 of the Agreement. CAN THE CONTRACTOR DISPUTE THE AMOUNT THE SUBCONTRACTOR HAS CLAIMED? If the Contractor disputes the amount of the progress claim by the Subcontractor, they must give the Subcontractor a payment notice within 10 Business Days after receiving the progress certificate. The payment notice must comply with Clause 9 of the terms and conditions set out in Schedule 1 of the Agreement. QBCC PERIOD MINOR WORKS SUBCONTRACT APRIL

12 WHEN SHOULD THE SUBCONTRACTOR BE PAID? The Contractor must pay the Subcontractor no more than 25 Business Days after receipt of the progress claim. CAN THE SUBCONTRACTOR CLAIM INTEREST ON OVERDUE PAYMENTS? Yes. The Subcontractor is entitled to claim interest on late payments in accordance with Clause 9 of the terms and conditions in Schedule 1 of the Agreement. CAN WORK BE SUSPENDED? There are limited circumstances where a Subcontractor may suspend work or the Contractor may direct the Subcontractor to suspend work. The circumstances are outlined in Clause 12 of the terms and conditions set out in Schedule 1 of the Agreement. WHAT ARE THE OBLIGATIONS IN RELATION TO DEFECTS? The Subcontractor must ensure any defects are fixed prior to the expiry of the Defects Liability Period. The Defects Liability Period is the period stated in Item 11 of the QBCC Work Order and commencing on practical completion of the Head Contract. See Clause 7 of the terms and conditions in Schedule 1 of the Agreement. WHAT EFFECT DOES SUSPENSION OR TERMINATION OF THE HEAD CONTRACT HAVE? Where the Head Contract is terminated, or the work under the Head Contract is suspended, Contractor may respectively suspend or terminate the Subcontract in accordance with Clauses 11 and 12 of the terms and conditions set out in Schedule 1 of the Agreement. WHAT IF THERE IS NO HEAD CONTRACT? The Agreement and the QBCC Work Order are designed to be used as a subcontract and not as a head contract. This means that the Subcontractor is only to contract to do work with a Contractor which holds a QBCC license to do that work. WHAT ARE THE OBLIGATIONS IN RELATION TO INSURANCE? Before the Subcontractor starts work, the Subcontractor must have paid, have in place and maintain the insurance policies listed on the front page of the Agreement. The Subcontractor must maintain these policies for the duration of the Agreement. WHERE DO I GO IF THE OTHER PARTY BREACHES THE MINOR WORKS SUBCONTRACT? The parties rights and procedures to be followed where the other party is in breach of the Subcontract are set out in clauses 11 and 14 of the terms and conditions set out in Schedule 1 of the Agreement. A party may have other rights at law or under statute. You should also seek professional legal advice. MORE DETAILED INFORMATION The QBCC Period Minor Works Subcontract Agreement Guide is designed to assist the parties in completing the Agreement and the QBCC Work Order. These documents are available for free download from QBCC s website: 12 QBCC PERIOD MINOR WORKS SUBCONTRACT APRIL 2016

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14 Need more information? Visit qbcc.qld.gov.au or call us on Montague Road, West End QLD 4101 GPO Box 5099, Brisbane QLD 4001 T: F: W: qbcc.qld.gov.au