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ARTICLE · 29 AUGUST 2022

Buildability Clauses And The End Of Construct-Only Contracts

Vincent Young
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A new trend has emerged in the drafting of construct-only construction contracts which places unexpected design risks on Contractors. Contractors should pay close attention to any clause...

AustraliaReal Estate and Construction
Brett Vincent
Brett Vincent

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A new trend has emerged in the drafting of construct-only construction contracts which places unexpected design risks on Contractors. Contractors should pay close attention to any clause containing the terms buildability or constructability, which may entail broad design obligations, even where the contract is otherwise a construct-only variety such as AS4000.

Construct-only projects with harsh buildability or constructability clauses or provisions may cause Contractors to under-quote or fail to engage the necessary consultants, as Contractors are unprepared for the hidden liabilities and obligations these new provisions entail. Specifically, contracts may include broad warranties and indemnities with respect to design defects which are usually only found in design and construct contracts. The result is that the Contractor must engage design consultants to validate the Principal's designs; these ostensibly construct-only contracts reveal themselves to be design

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