Commercial contracts
If you carry out commercial building work in Queensland, you must comply with the Queensland Building Services Authority Act 1991.
The Act requires that contracts for building work must be in writing. This includes head contracts, subcontracts and sub-subcontracts. For projects valued at more than $10,000, a written contract must be signed before building work commences, and for projects valued at $10,000 or less, a contract must be signed before the building work is finished.
The type of contract you use for your building work will depend on the size and complexity of the project. The contract you use must comply with requirements set out in the Act. We strongly recommend using a standard form contract, such as one of Master Builders contracts.
Master Builders wide range of commercial contracts have been specifically tailored for the building and construction industry. Each contract allocates risk fairly, clearly outlines obligations in detail, and complies with the law.
Visit the Master Builders eShop to purchase commercial contracts online (available to members only) or download the contract order form. You can also visit your local Master Builders office to purchase contracts over the counter.
This section of the website provides a basic summary of Master Builders commercial contracts, and should be used as a guide only. For more detailed advice and contract support, contact Master Builders.
Commercial Building Contract
A Commercial Building Contract is a lump sum contract for major commercial work, to be used where there is no architect administering the contract. (A special condition may be included where a superintendant/architect is administering the contract.) It is a contract between a contractor and the owner.
Download a sample Commercial Building Contract or purchase the Commercial Building Contract from the eShop.
Minor Works Contract
The Minor Works Contract is a lump sum contract for minor commercial work up to the value of $100,000; 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 contractors when contracting directly with the owner.
Download a sample Minor Works Contract or purchase the Minor Works Contract from the eShop.
Cost Plus Contract
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 agreed percentage or fixed sum.
Under the Cost Plus Contract, the contractor is paid the actual cost of the works plus an allowance for the supervision and/or profit/overheads (fixed fee or a fixed percentage).
It is 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.
You should phone Master Builders for advice, before using a Cost Plus Contract.
Download a sample Cost Plus Contract or purchase the Cost Plus Contract from the eShop
