Master Builders SA Plain English Contracts for South Australia

Late in 2019 all of our Master Builder SA contracts were reviewed by leading construction law firm, Fenwick Elliott Grace (FEG). An up-to-date and sound building contract is important for every construction project no matter how big or small.

Contracts assist to clarify expectations and outline deadlines and deliverables for each party to the contract to avoid misunderstandings and disputes.

You can purchase our range of Master Builders SA Construction Contract online:

Or login to Master Suite to create co-branded contracts through our online platform:

Not registered for Master suite? No problem…

Master Builders SA members can enjoy the following benefits:

• Free preliminary legal advice (up to thirty minutes) for any building and contractual issues. This service is provided by external lawyers, on referral from Master Builders SA, via telephone and free of charge.

For more information or to book in for free preliminary legal advice, please contact our membership team on 08 8211 7466 or at membership@mbasa.com.au.

The Building and Construction Industry Security of Payment Act 2009 provides for a statutory right to progress payments for construction work undertaken in South Australia. The right to progress payments is backed up by a powerful system to enforce those progress payments, centred around the concept of “adjudication”, a rapid means of determining, on an interim basis, the liability of a respondent to pay a claimant a progress payment.

The Act applies to “construction contracts”, a concept drafted broadly enough to capture all construction and related activities – from onsite construction work to material supply and related services such as design, engineering and project management.

Despite the wide reach of the Act, there are specific exceptions. These include contracts involving domestic building work where the client intends to reside in the premises (but the Act does apply to subcontracts made pursuant to that contract), as well as certain contracts involving APRA regulated financial institutions. Other exemptions include drilling for or extracting minerals, oil or gas, employment contracts and insurance contracts.

In partnership with leading construction law firm Fenwick Elliott Grace (FEG) we have developed a Master Builders SA Member Guide in relation to the Security of Payment Act (2009) SA for the building and construction industry. You can view this on our Master Suite platform or request a copy from our Industrial Relations team on on 08 8211 7466 or at IR@mbasa.com.au

Authorised Nominating Authorities

Central to the operation of the security of payment system are the authorised nominating authorities. These bodies are responsible for appointing adjudicators and ensuring the quality of the adjudicators that they train and nominate.

ANAs are required to comply with the Code of Conduct for Authorised Nominating Authorities.

The importance of having high quality and respected adjudicators being appointed to security of payment disputes should not be understated. Judicial review of decisions, often brought about by poor quality adjudicators, or poor quality decisions, can be an expensive exercise for all parties involved. For a claimant with limited means, it is vital that the adjudicator gets the decision right. For both parties, trusting the adjudicator’s skills and competence will limit the risks of a challenge being made.

Given the importance of ensuring quality adjudicators, Master Builders SA successfully applied to become an ANA. As the peak industry association, Master Builders SA has a long history of assisting dispute resolution between building industry participants and has access to highly trained and experienced industry practitioners, with industry know-how to assist in resolving disputes and trust in the industry.

The Code of Conduct places various limits on bodies acting as ANAs. Master Builders SA is limited to dealing with disputes involving:

• Two Master Builders’ members
• A non-member who wishes for Master Builders to nominate in respect of a payment dispute with a member, and
• Two non-members

In the first scenario, both parties must agree to Master Builders acting as that ANA. In the second scenario, the non-member would need to acknowledge the potential conflict of interest before proceeding. In all of these cases, Master Builders is committed to the task of helping all stakeholders in the construction process resolve disputes as fairly and as efficiently as possible.

Fees

As an ANA Master Builders SA is able to offer members a very reasonable service charge:

• $125.00 initial application
• $280.00 per hour + GST for adjudication
• Further charges apply that relate to letter preparation, reports and documents, travel costs and other disbursements such as registered mail and other sundry items