Design and Construct Contract as 4902: Everything You Need to Know
If you are a construction professional who wants to gain a comprehensive understanding of the Design and Construct Contract as 4902, then you have come to the right place. This article will provide you with all the essential information you need to know about this important document.
What is the Design and Construct Contract as 4902?
The Design and Construct Contract as 4902 is a standard form contract that is widely used in the construction industry for projects that require the contractor to carry out both the design and construction of a building or structure. It was developed by the Australian Institute of Architects and the Master Builders Association of Australia in 2002.
The contract is suitable for a range of building and construction projects, including residential, commercial, and industrial projects. It can be used for new construction, renovation, and refurbishment projects.
The Design and Construct Contract as 4902 is a lump-sum contract, which means that the contractor is paid a fixed sum of money for completing the project. This type of contract is commonly used in construction projects where the scope of work is well-defined and the risks are relatively low.
Key features of the Design and Construct Contract as 4902
1. Design and construction responsibilities
One of the key features of the Design and Construct Contract as 4902 is that it sets out the responsibilities of the contractor for both the design and construction aspects of the project. This means that the contractor is responsible for ensuring that the design is fit for purpose and meets the specified requirements. They are also responsible for ensuring that the construction is carried out in accordance with the design and meets the specified quality standards.
2. Liability
The contract also sets out the liability of each party for defects or damages that occur during the construction phase or after handover. The contractor is liable for defects that arise during the defects liability period, while the principal is responsible for defects that occur after the defects liability period has expired.
3. Progress payments
The Design and Construct Contract as 4902 also includes provisions for progress payments. The contractor is entitled to receive progress payments at specified intervals throughout the project, based on the value of the work completed to date.
4. Contract duration
The contract sets out the duration of the construction period, including any extensions of time that may be granted. It also specifies the date for practical completion, which is the point at which the project is considered complete, except for minor defects.
5. Dispute resolution
The contract includes provisions for dispute resolution, including the appointment of an independent expert to resolve disputes over technical matters. It also allows for the use of alternative dispute resolution methods, such as mediation and arbitration, to resolve disputes between the parties.
Conclusion
In conclusion, the Design and Construct Contract as 4902 is an important document for construction professionals who are involved in projects that require the contractor to carry out both the design and construction aspects of the project. It sets out the responsibilities of each party, including liability for defects and damages, progress payments, contract duration, and dispute resolution. By using this standard form contract, contractors and principals can ensure that their rights and obligations are clearly defined, which can help to minimize the risks associated with construction projects.
