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Scenario 1. Suitable Contracts

  • Three-Bedroom House in Garth Road (Max Jones):
  • Suitable Contract: Home Building Contract
  • Legal Requirement: Residential Building Contract Act
  • Kitchen Cabinet Replacement at Smog Street (Jim Slate):
  • Suitable Contract: Small Works Contract
  • Legal Requirement: Building and Construction Industry Security of Payment Act

Explanation of Contract Choices:

  • Three-Bedroom House in Garth Road (Max Jones):
  • A "Home Building Contract" can be referred as a suitable contract in light of this project since it revolves around the construction of a residential property, which inculcates the construction of a house. This contract is oriented for residential building projects, thereby making it quite suitable for a family residence.
  • The governing legal necessity for this contract is the "Residential Building Contract Act." This act ensures that residential construction projects are executed with precise safeguarding requirements for homeowners as well as builders.
  • Kitchen Cabinet Replacement at Smog Street (Jim Slate):
  • A "Small Works Contract" in this context fits because it revolves around smaller-scale construction work that does not exceed a certain contract value (in this given vignette, $10,000). At the outset, this sort of contract is generally ideal for meagre projects such as kitchen refurbishments and cabinet replacements.
  • The legal necessity suitable for this contract is the "Building and Construction Industry Security of Payment Act", in view of the fact that this legislation is generally employed across smaller works contracts and ensures that payments are processed promptly, thereby safeguarding the rudimentary rights of contractors.

Type of Instruction for Each Project:

1. Three-Bedroom House in Garth Road (Max Jones):

In case of the three-bedroom house project, it is imperative to intricately delineate the specifications, such as design along with predefined timeframe for construction, aside from specifications such as the usage of particular materials, quality standards that should be adhered to, and any special requirements that the Jones family have. Moreover, construction should keep the fact such as progress payments, timelines, and inspections in the hindsight to ensure the project aligns with the chosen Home Building Contract and adheres to the Residential Building Contract Act.

2. Kitchen Cabinet Replacement at Smog Street (Jim Slate):

On a similar note, for the kitchen cabinet replacement project, it is prudent to substantiate vivid instructions on the scope of work, entailing details concerning the sort of cabinets, mechanism of installation along with other specific requirements.

Scenario 2

Significance of Intention to Create a Legally Binding Contract:

First of all, a legally binding contract not only clarifies any associated expectations and responsibilities of each party, but at the same time, it lessens the feasibility of misunderstandings, thereby deescalating chances of future disputes by delineating the terms and conditions explicitly. Moreover, the notion of enforceability pertinent with a legally binding contract is act as legal remedies, which involved parties can seek if mishaps take place. Aside from accountability, it safeguards the interests of both parties.

Confirming Capacity to Form a Binding Agreement:

For the sake of confirming that Max has the capacity to form a binding agreement, the first course of action that is required is to evaluate his legal capacity, by ensuring that Max has reached the legal age of contractual capacity in the jurisdiction. Aside from ensuring that Max is of sound mind, it should be confirmed that Max is not under any form of coercion which may influence his decision. This is pertinent in lieu of the fact that Max is agreeing to an informed consent, where Max fully gains cognizance regarding the terms and implications of the contract.

Scenario 3


This Construction Contract ("Contract") is entered into this [Date], between: The project entails the construction of a three-bedroom house at Lot 70 Garth Road, hereinafter referred to as the "Project."

Scope of Work

Detailed scope of work, specifications, and project drawings are attached as Exhibit A.

Project Timeline and Milestones:

The project is expected to commence on [11/02/2024] and complete by [15/05/2024]. Milestones and timelines are detailed in Exhibit B.

Project Costs and Payments:

Total project cost is payable as per the payment schedule specified in Exhibit C.

Contract Termination:

Termination conditions and consequences are detailed in Exhibit D.

Special Conditions

Special conditions, including warranties, insurance requirements, and project-specific terms, are detailed in Exhibit E.

Governing Law

This Contract shall be governed by and construed in accordance with the State laws.

  • Exhibit A: Project Specifications and Drawings
  • Exhibit B: Project Timeline
  • Exhibit C: Payment Schedule
  • Exhibit D: Contract Termination Conditions
  • Exhibit E: Special Conditions

Scenario 4:

Subject: Clarifications on the Draft Contract - Questions Answered

Dear Max,

The prompt review of the draft contract is appreciable. Moreover, throughout the email questions raised are going to be addressed to resolve the raised concerns:

  • Inclement weather, which is more commonly referred to extreme weather conditions could inherently affect the process of construction thereby resulting in delays. That is why it is duly entailed across the contract. We will substantiate precise definitions for managing weather-related delays.
  • Throughout the plan if errors are determined, then the responsibility for addressing such errors is to intricately analyse the root causes. If under any circumstances, the error occurred due to design or oversight error, the company will bear the costs of correction. It would be mentioned in the contract.
  • Developing a shed is feasible, however it should be coordinated to ascertain that it aligns with the overall construction plan. Moreover, necessary permits should be obtained.
  • Effort would be inculcated to ensure that the project is executed on schedule, however due to unforeseen events, it will be addressed in the contract with a clear timeline and procedures.
  • Contract cancellation terms are detailed in the contract's "Termination" section. Specific circumstances leading to a contract cancellation will be outlined, which generally inculcates non-payment, force majeure events, or material breaches of contract.
  • The mechanism involved for terminating the contract will be elaborated in the "Termination" segment of the contract, thereby taking into consideration both parties' rights and responsibilities.

Scenario 5


Project Description:

  1. Party A hereby engages Party B for the supply of tiling services for the Lot 70 Garth Road project. The project includes tiling for floors and walls.

Scope of Work:

  1. Party B will provide professional tiling services as required for the project.

Hourly Rate:

  1. Party B's hourly rate for tiling work is $15, as agreed upon in previous discussions.

Project Timelines:

  1. Party B will commence work on predetermined date and complete the tiling work by scheduled date, in accordance with the HIA Construction schedule for Lot 70 Garth Road (ID3v).

Payment Terms:

  1. Payment to Party B will be made as promptly upon completion of milestones.


  1. Termination terms and conditions are as specified in the HIA Contracts Online template and related legislation.

Six steps to finalize the contract for the Lot 70 Garth Road project:

  • The first step is to meticulously review the contract that Max Jones has signed to make sure that all terms and conditions are in accordance with the agreed-upon terms.
  • Aside from that, it is necessary to ensure that the contract is in compliance with all relevant legal requirements, such as those specific to the construction industry in the jurisdiction.
  • The payment schedule and terms should be double-checked.
  • The finalized contract with Max Jones should be shared for his records and confirmation, thereby ensuring that all parties are in agreement on the final terms.
  • Safely storing a copy of the finalized contract for the records, such as ensuring it is conveniently accessible for reference throughout the project.
  • Inculcating a risk mitigation step by reviewing and confirming insurance coverage for the project is prudent since both parties are adequately protected in case of unforeseen circumstances during the course of the construction.

Scenario 7:


  1. Conditions for Completion at the Cost of the Contractor:

It is imperative for the contractor to ascertain that the project is completed as per the specifications as well as quality standards, and any deficiencies or non-compliance will be rectified at the expense of the contractor.

  1. Ousting the Contractor from the Building Site:

The principal has the right to remove the contractor from the site in cases of severe breach of contract, or in case of safety concerns where repeated failure has hindered to satisfy project milestones. This shall be carried out in consonance with the dispute resolution process delineated in this contract.

  1. Progress Payment Schedule:

Progress payments will be made in accordance with the predefined schedule, aside from that payments will be made within specified date.

  1. Process for Applying for an Extension of Time:

The contractor has the legal right to apply for an extension of time due to unforeseen delays caused by events outside their control. Such requests must be made in writing, detailing the reasons for the delay and providing supporting documentation. The principal in this context shall evaluate the request and grant an extension of time, provided if the delay is regarded to be valid.

This summary outlines key contract clauses for the Lot 70 Garth Road project, in line with AS2124 and AS4000.

Scenario 8:

Scenario 9:

  1. Max Jones as well as his wife are requesting a "variation" to the original contract> To put it in simple perspective, specifically a change in the choice of tiles for the Lot 70 Garth Road project are asked by them.
  2. As far as negotiation is concerned, whoever pays the additional cost would revolve around a discourse with Max and his wife, where the rudimentary facets of addressing the implications of the change, they are asking for would be extrapolated. The reason as to why this is significant it that it would emphasize that the original tiles were a special order, non-returnable, and replacing them would result in additional expenses, such as additional labour cost to execute the work. Additionally, the administrative costs would also be cumulated. For the sake of sharing the cost fairly, an approach would be delineated to posit a shared contribution, where both parties involved would cover a portion of the additional expenses.
  3. In order to document the variation, a formal "Variation Order" or "Change Order" should be prepared. This document should innately mention the change requested, apart from inculcating the additional costs involved, all while mentioning the agreement of all parties involved. It should be signed by Max Jones, his wife, and the contractor as a formal record of the variation and the cost-sharing arrangement.

Scenario 10:

After intricately analysing the (ID4b) HIA Construction: Procedure for contract management, specifically the section "Managing the contract" and the subcontract "Monitor and manage performance", it can be inferred that this document shed light on the mechanism of requesting extensions of time as well as managing contract performance. In a similar vein, accessing HIA Contracts Online and reviewing the construction contract in place for Lot 70 Garth Road, a strategy is determined. One of the intriguing aspects in this context is that this strategy has the potency of minimizing the risk of HIA Construction receiving a financial penalty is to reference the "Force Majeure" clause. This clause typically entails circumstances beyond the control of either party, such as unforeseen delays, which may allow for an extension of time without financial penalties. By invoking the Force Majeure clause and providing appropriate documentation of the delays and the reasons behind them, HIA Construction can seek relief from any associated financial penalties. This clause can be equated with a safeguard notion against penalties in instances, where delays took place due to events or circumstances that cannot be regulated or defined as outside the control of the contractor.

Scenario 11:

Subject: Re: Extension of Time Request and Tile Change - Lot 70 Garth Road

Dear Max,

The intention of this letter is to captivate your kind attention to the fact stated below. The company acknowledge the gravity of your concerns and appreciate your prompt communication concerning the issue of time extension request and the change of tiles for the Lot 70 Garth Road project. This response would like to address the points that is mentioned, in a constructive manner.

  • Tile Sourcing: The company gained cognizance regarding the delay which occurred by the tile change. In response to the suggestion posited regarding sourcing tiles from other suppliers, this option has been expounded upon to a great extent. Unfortunately, the only supplier with the specific tiles in stock was located four hours away and was charging a $1200 delivery fee, which the company founds to be detrimental for the project, owing to the act that it would inherently result in significant added costs and time. Contrastingly, the company opted to emphasize cost-effectiveness and the original specifications to fulfil the predefined contractual obligations.
  • Plumber Selection: As far as selection of plumber is concerned, intense efforts have already been made to secure an alternate plumber to expedite the bathroom fixture installation. However, during the course of the inquiries, the company stumbled upon reluctance from other plumbers due to the potential compliance pertaining to the issues and concerns regarding the responsibility of work already completed. Since the primary focus is to maintain high construction standards and adhere to compliance with all regulations, necessary measures are surely going to be inculcated seamlessly and swiftly.

I would like to reiterate that our intent is to complete the project efficiently and in adherence to the contract. We understand the gravity of your frustration with the project delay and wish to express our commitment to delivering the best possible outcome for your new home. In response to your consideration of seeking legal advice, please be assured that we value our relationship and are open to a constructive discussion. We are confident that the decisions we made were based on the best interests of the project, but we also respect your concerns. If you would like to discuss this matter further or have any specific questions or requests, we encourage open communication to find an amicable solution that aligns with the contract, legislation, and the best interests of all parties involved.

Scenario 12:

Subject: Final Inspection and Handover for Lot 70 Garth Road

Dear Max,

The company is delighted to inform that the Lot 70 Garth Road project is now officially complete and ready for the final inspection as well as handover. Since this is an exciting milestone, the company would like to invite the party for a walkthrough to ensure the satisfaction and address any concerns.

Steps to Prepare for Handover:

  • The first action course emphasized is to schedule a walkthrough at the client’s convenience so that concerns can be identified and addressed accordingly. This will also furnish an opportunity to discuss any outstanding issues or specific preferences.
  • Upon successful completion of the walkthrough apart from resolution of any concerns, the payment will be finalized as per the predetermined terms delineated in the contract.
  • Finally, the company will provide the final certificate and any other relevant documents to ensure all contractual obligations are met.

Scenario 13:

Subject: Re: Defects Liability for Lot 70 Garth Road

Dear Max,

  • In consonance with the defect’s liability clause in the contract, the final steps will include the following:
  • The company will contribute towards resolving the painting issues and other minor defects as listed.
  • The painter is scheduled to be back on site within three days to rectify the painting issues.
  • Once all the defects have been rectified to the client’s satisfaction, a final inspection would be conducted to ensure all issues are resolved.
  • Upon successful completion of this process, the final payment would be processed, bringing the project to a close.
  • Additionally, the company will also manage any other defects that may emanate during the course of three months after the handover date, as per the defect’s liability clause and relevant legislation.

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