KITCHEN CONTRACT FOR WORK OVER $5000 COMPANY NAME: ADDRESS: DATE: CONTRACT PRICE: Please read all attached information and terms. Page 1 of 14
OWNER CHECKLIST (To be completed by the owner prior to signing the contract) 1. OWNER CHECKLIST A. Does the hold a current contractor licence? B. Does the licence cover the type of work included in the contract? C. Is the name and number on the contractor s licence the same as on the contract? D. Is the work to be undertaken covered in the contract, drawings or specifications? E. Does the contract clearly state a contract price or contain a warning that the contract price is not known? F. If the contract price may be varied, is there a warning and an explanation about how it may be varied? G. Are you aware of the cooling- off provisions relating to the contract? H. Is the deposit within the legal limit? The limit is 10% for work costing $20,000 or less, or 5% for work costing more than $20,000. I. Is the procedure for variations understood? J. Are you aware of who is to obtain any council or other approval for the work? K. Do you understand that the contractor must have a policy of home warranty insurance under the Home Building Act 1989 and provide you with a certificate of insurance before receiving any money under the contract (including a deposit) or before doing any work for more than $20,000? L. Has the contractor given you a document that explains the operation of the Home Building Act 1989 and the procedures for resolution of contract and insurance disputes? 2. SIGNATURES Do not sign this contract unless you have read and understand the clauses as well as the notes and explanations contained in this document. If you have answered to any items in the checklist, you may not be ready to sign the contract. Both the contractor and the owner should retain an identical signed copy of this contract including the drawings, specifications and other attached documents. Make sure that you initial all attached documents and any amendments or deletions to the contract. 3. SIGNED COPY OF CONTRACT Under the Home Building Act 1989 the owner must be provided with a signed copy of the contract within 5 working days after the contract is entered into. 4. HOME WARRANTY INSURANCE The contractor must provide the owner with a certificate of home warranty insurance (for work over $20,000) before commencement of work and before demanding or receiving any payment. 5. OWNER S ACKNOWLEDGEMENT I/We have been given a copy of the Consumer Building Guide and I/We have read and understood it. I/We have completed the checklist and answered to all items on it. NOTE: Where the owner is a company or partnership or the contract is to be signed by an authorised agent of the owner, the capacity of the person signing the contract, e.g. director, must be inserted. Signature: Signature: Name [print]: Name [print]: Page 2 of 14
9. PROGRESS SCHEDULE a. Check Measure b. Commencement Date c. Installation Date d. Completion Date NOTE: Dates specified in the Progress Schedule may be subject to change in accordance with the Conditions of Contract. The reasons for possible changes include Variations and delays. 10. PAYMENT SCHEDULE (Amounts in Words) a. Deposit Due on signing of Contract % $ b. 1 st Progress Payment Due on commencement Date % $ c. 2 nd Progress Payment Due before delivery % $ d. Final Payment Due on Completion Date % $ NOTE: By law; (a) if the Contract Price is $20,000 or less, the deposit cannot exceed 10% of the Contract Price; (b) if the Contract Price is more than $20,000, the deposit cannot exceed 5% of the Contract Price. 11. HOME WARRANTY INSURANCE (Only applicable if the contract price is over $20,000) If the Contract Price exceeds $20,000 the will not commence work under this Contract or demand or receive any part of the Contract Price until home warranty insurance has been obtained and the has been provided with the certificate of insurance. A copy of the certificate of insurance is attached to this Contract N / A 12. COOLING OFF PERIOD (Only applicable if the contract price is over $20,000) If the Contract Price exceeds $20,000, the is entitled to a cooling off period of 5 clear business days during which the may rescind this Contract by giving the notice in writing. Under the Home Building Act the owner may, by notice in writing, rescind the contract. The contract may be rescinded even if work has commenced under the contract. The notice of rescission must be given to the contractor: (a) where the owner has been given a copy of the signed contract within five (5) clear business days after being given a copy of the signed contract, or (b) where the owner has not been given a copy of the signed contract within five (5) days after the contract was signed within five (5) clear business days after the owner becomes aware of being entitled to be given a copy of the signed contract. The notice of rescission must state that the owner rescinds the contract, and must be given to the contractor by leaving it at the address shown as the contractor s address, or by any method of service provided by clause 28 of this contract. If a notice of rescission is given to the contractor: (a) the contract is taken to be rescinded from the time it was signed, subject to (b), (c), (d) and (e) below (b) the contractor may retain out of any money already paid to the contractor the amount of any reasonable out of pocket expenses that the contractor incurred before the rescission Page 7 of 14
PART B: CONDITIONS OF CONTRACT 1.CONTRACTOR S MAIN OBLIGATIONS The will carry out and complete the Works in accordance with this Contract. 2. PAYMENT The must pay the : (a) the Contract Price in accordance with the Contract progress payments. (b) any other amount which is payable under this Contract on demand after the has carried out the work or incurred the cost. 3. OWNER S JOINT AND SEVERAL LIABILITY If there is more than one : (a) the obligations in this Contract apply to each individually and to all s collectively; (b) a quote, notice, claim or any other constitute effective service on all s; (c) if this Contract has been signed by each (whether this document or in counterpart), unless the has been notified otherwise, only one is required to sign a document (including a quote, sketch, plan, specifications, notice, instruction, direction or other communication) or to give an instruction, direction or other communication, to legally bind all of the s. 4. ACCESS TO THE SITE The must give the uninterrupted access to the Site to check measure or for installation or any other purpose to complete the contracted job. The must give the and the s workers and subcontractors adequate access to any available water, electricity, toilet and washing facilities when working or delivering to site. If the requests access to deliver the product/s and the does not give access within 7 days the can then claim payment for the delivery stage, as defined in Clause 9 of Part A or otherwise the must pay the for work performed and cost incurred up to the point of delivery. 5. CHECK MEASURING The contractor will attend the site and perform the check measure on or before the check measure date. The contractor may make minor modifications to the plans and specifications agreed to the checked measurements. The contractor will notify you of any modifications made. Any additional work necessary to comply with the modified plans and specifications is a variation and Clause 8 Part B applies. 6. OUR RIGHT TO FIX (a) If at any time the claims the product is defective, they must notify the in writing, as soon as possible. (b) If the fails to notify the of a claim within a reasonable time of becoming aware of an alleged, the will not be responsible for any damage that results from the s delay in notification. (c) If the accepts responsibility, they have the right to fix the defect. Any defects that in the s reasonable opinion may affect the safety of the works or may lead to it being damaged will be fixed as soon as practicable. You must give the access to do the in accordance with Clause 4, Part B. 7. DELAYS The shall not be responsible for any delay caused by something beyond their control, including (but not limited to) any failure by the to: (a) make a selection; (b) have the Site ready for delivery if specified in the contract; (c) notify the that the Site is ready; or (d) give the sufficient access to the Site. The delivery date will be put back and the completion date extended by whatever time is reasonable if the claims an extension of time by giving the written notice. For every day the subject of an extension of time where the is responsible for the delay the may charge the the total of the actual increase in cost to the to carry out the works plus another 20%. Page 9 of 14
8. PLANS & VARIATIONS The may claim payment for a Variation as soon as the Variation is completed. (a) All plans and specifications for the Works including any Variations to those plans and specifications form part of this contract; (b) Any agreement to vary this contract, or to vary the plans and specifications for the Works, must be in writing and signed by the parties. If the or the requests a Variation, the will give the a written quote detailing the Variation, the cost of the additional or omitted work and any changes to the Progress Schedule. If the agrees to the Variation by signing the quote/variation and returning it to the, the will carry out the Variation in the time agreed. If the price of the Variation exceeds 15% of the Contract Price, the must pay the an agreed deposit before the commences work on the Variation. The cannot unreasonably withhold consent to a variation that the requests in accordance with Clause 5 Part B. 9. UNFORESEEN CIRCUMSTANCES To the extent permitted under law, the will not be responsible or liable for work arising from factors beyond its control, unforeseen problems or which is outside the initial scope outlined in Part A. For example, the will not be responsible or liable for additional work arising from the supply of a product at the request of the and constructed to the s measurements which subsequently does not fit because the s measurements were incorrect. If any such additional work is required, the may request a Variation. Unless otherwise agreed, any such additional work required will be charged at the actual cost to the plus 20%. This clause does not limit clause 35 (statutory rights). 10. PRIME COST AND PROVISIONAL SUM ITEMS Except as otherwise agreed between the and the in this Contract, the is not responsible for the supply or installation of any appliances or connection to any services. Unless the and the agree otherwise, such work shall be listed as prime cost or provisional sum items. Each prime cost or provisional sum item shall be listed in Clause 6 Part A (to be attached) with a stated allowance specifying the estimated cost of supplying the item and/or providing the work. Where the actual cost of supplying the item and/or providing the work is less than the prime cost or provisional sum allowance set out in Clause 6 Part A, the Contract Price will be reduced by an amount equal to the difference. Where the actual cost of supplying the item or providing the work is more than the prime cost or provisional sum allowance set out in Clause 6 Part A, the difference plus a % surcharge will be added to the Contact Price. When required by the, the must promptly make all selections relating to prime cost or provisional sum items. The contractor must provide a copy of any relevant invoice, receipt or other document evidencing the purchase price of the item at the time payment is requested. If the contractor purchases a prime cost item, any discount for prompt payment will be allowed in favour of the contractor. All written warranties for such items must be given to the owner on completion of the work and must be enforceable by the owner. 11. MATERIALS The will make every reasonable effort to ensure that work methods and materials used correspond with sample products selected and/or provided by the. However, the will not be responsible for variations in the colour or grain of products such as timber, granite and other natural materials. Page 10 of 14
To the extent permitted under law, the will not be responsible for the suitability of material used to manufacture a product if specified by the This clause does not limit clause 35 (statutory rights). 12. SURPLUS MATERIALS Unless otherwise agreed between the and the in this Contract, surplus materials will at all times remain the property of the. 13. SECURITY INTEREST The legal title in the Product does not pass to the until all amounts payable under this Contract have been paid in full. The grants to the a security interest (and where applicable, a Purchase Money Security Interest) in the Products (including all related proceeds) supplied under this Contract as security for all or part of the amount payable by the to the under this Contract. The authorises the to register a financing statement with respect to this security interest on the PPSR and agrees to provide any information to the necessary to register this security interest. Until this security interest has been satisfied, in addition to any remedies available to the under Part 4 of the PPSA: (a) the Products must remain clearly identifiable from any other goods of the ; (b) If the fails to make a due payment in accordance with this Contract, the may enter the Site and take reasonable action to remove the Product, without being liable to the for any damage to the Site which may be caused by such removal; (c) The irrevocably authorises, permits and allows the unrestricted access to the Site to retrieve the Product in accordance with this clause; and (d) The may not sell or deal with the Products without the s prior written consent. tice requirements under sections 95, 118, 121(4), 130, 132 and 135 of the PPSA shall not apply and not place any obligations on the in favour of the. 14. WARRANTY warrants that the materials and workmanship of the Products shall be free from defects for a period of [ ] from the date the Products are installed at the Site (Warranty Period). The benefits given to the under this warranty are in addition to other rights and remedies the has under law. This warranty should be read in conjunction with any other warranties accompanying the Products. To make a claim under this Warranty, the must during the Warranty Period notify the (using the contact details provided in this Contract) and provide valid proof of purchase of the Products together with a suitable description of the defect. After the has accepted the defects claim, the may at its discretion either repair or replace the Product (or pay the cost of doing the same). The irrevocably authorises, permits and allows the unrestricted access to the Site to inspect or fix defective works in accordance with this clause. This warranty covers the Products only and does not cover: (a) appliances or materials made or provided by other parties or the ; (b) defects due to normal wear and tear, shrinkage, or changes in climate or geographic conditions which cause movement and variations in building work; (c) defects due to use of the Products which is unusual, negligent (including misuse and abuse), contrary to any other instructions supplied with the Products; or (d) defects due to factors beyond the s control. The s liability to the under this warranty is limited to repairing or replacing the Products (or the cost of doing the same). Our goods come with guarantees which cannot be excluded under the Australian Consumer Law. You are entitled to a replacement or refund for a major failure and to compensation for other reasonably foreseeable loss or damage. You are also entitled to have the goods repaired or replaced if the goods fail to be of acceptable quality and the failure does not amount to a major failure. 15. SUSPENSION If the is in breach of this Contract in any way whatsoever, the may by written notice immediately suspend the carrying out of the Works. The must recommence the carrying out of the Works within a reasonable time after the remedies the breach, and gives the written notice of that fact. Page 11 of 14