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Schedule – $10,000 Per Week On-Time Completion Guarantee (Terms & Conditions)

1) Parties and Application

1.1

This On-Time Completion Guarantee (Guarantee) is offered by 2M Renovations & Extensions (Builder) to the Owner named in the HIA domestic building contract (Building Contract).

1.2

This Guarantee applies only where the Building Contract is a fixed price contract and expressly incorporates this Guarantee as a schedule/annexure.

2) Definitions

Unless the context requires otherwise, capitalised terms have the meaning given in the Building Contract. In addition:

Completion Date

Means the date for Practical Completion stated in the Building Contract as adjusted in accordance with the Building Contract (including any Extensions of Time (EOTs), suspensions, or other contractual adjustments).

Practical Completion

Has the meaning given in the Building Contract.

Delay

Means the number of calendar days between the Completion Date and the date Practical Completion is achieved, excluding any period the Builder is entitled to an EOT or suspension under the Building Contract or excluded under clause 6 of this Guarantee.

Daily Rate

Means $1,428.57 per day (being $10,000 ÷ 7).

Guarantee Amount

Means $10,000 per week, calculated daily at the Daily Rate.

3) The Guarantee

3.1

If Practical Completion is not achieved by the Completion Date, the Builder will pay the Owner the Guarantee Amount for each day of Delay, provided the Delay is not excluded under clause 6.

3.2

The Guarantee is calculated on a daily pro-rata basis at the Daily Rate for each calendar day of Delay.

4) Cap on Total Payments

4.1

The maximum total amount payable under this Guarantee is 8 weeks, being $80,000 (Cap).

4.2

Once the Cap is reached, no further amounts are payable under this Guarantee, even if Delay continues.

5) When a Project is “Finished”

5.1

“Finished” for the purposes of this Guarantee means Practical Completion under the Building Contract (not completion of minor defects/omissions that do not prevent Practical Completion, consistent with the Building Contract).

6) Exclusions (No Payment for Excluded Delay)

No payment is due under this Guarantee to the extent Delay is caused by, arises from, or is contributed to by any of the following (Excluded Delay):

Owner-Caused or Owner-Risk Delay

6.1

Variations (including changes to scope, design, selections, finishes, appliances, fittings, joinery, services, or materials), and any delay or reprogramming impact caused by them.

6.2

Late selections, late approvals, late instructions, or failure to provide information the Owner is required to provide under the Building Contract.

6.3

Failure to provide access to the site, or restrictions on access/working times imposed by the Owner or parties under the Owner’s control.

6.4

Delay in payment of progress claims or any other amount due under the Building Contract.

6.5

Works, items, trades, or consultants engaged by the Owner, including Owner-supplied materials or fixtures.

Contractual Entitlements

6.6

Any period the Builder is entitled to an EOT, suspension, or adjustment of time under the Building Contract (whether or not the EOT is agreed at the time, provided it is ultimately determined the Builder was entitled to it under the contract).

6.7

Industrial action, disputes, stop work directions, or suspension events contemplated by the Building Contract.

Approvals and Third Parties

6.8

Delays in planning, heritage, building approvals, authority approvals, inspections, certifications, or utility connections that are outside the Builder’s reasonable control (including council/authority processing timeframes and third-party inspection availability).

Latent Conditions and Unforeseeable Site Conditions

6.9

Latent or concealed conditions in the existing building/site (including but not limited to asbestos, termite damage, rot, structural defects, undocumented services, contamination, rock, groundwater, non-compliant existing works) that reasonably affect the program and/or require additional work or redesign.

Events Outside Reasonable Control

6.10

Weather conditions that prevent safe work or compliance with specifications/manufacturer requirements.

6.11

Material, labour, trade, or supply chain shortages or delays outside the Builder’s reasonable control (including long lead items, discontinuations, supplier failures, transport disruptions), where reasonable steps have been taken to mitigate.

6.12

Fire, flood, storm damage, theft, vandalism, pandemics/public health orders, or other events outside the Builder’s reasonable control.

7) Payment Method

7.1 Primary Method

Any amount payable under this Guarantee will generally be paid by direct bank transfer to the Owner.

7.2 Alternative Method

The Builder may elect to apply the amount payable as a credit against the final claim (or other amount due) under the Building Contract, provided the Owner receives a written statement showing the calculation and the credit applied.

7.3

The Builder will not apply a credit method in a way that deprives the Owner of transparency as to the amount payable and the basis of calculation.

8) Claim Process

8.1

The Owner must make a written claim within 30 days after Practical Completion, identifying:

• (a) the Building Contract details and site address;
• (b) the Completion Date (as adjusted) and the Practical Completion date; and
• (c) any relevant EOT/suspension notices or correspondence.

8.2

The Builder will assess the claim within 10 business days and provide:

• (a) the amount payable (if any) and how it was calculated; and
• (b) any Excluded Delay applied and reasons.

8.3

Payment (or credit) will be made within 10 business days after assessment.

9) No Double Recovery

9.1

The Owner is not entitled to recover amounts under this Guarantee and any other damages/late completion compensation for the same delay period, unless the Building Contract expressly permits both.

10) Priority and Consistency with the HIA Contract

10.1

This Guarantee is intended to operate alongside the Building Contract’s time/EOT provisions.

10.2

If there is any inconsistency, the Building Contract prevails, except where the Building Contract expressly states this Guarantee clause applies.

11) Non-Excludable Rights

11.1

Nothing in this Guarantee limits any rights the Owner may have under the Australian Consumer Law or any other law that cannot be excluded.

12) Governing Law

12.1

This Guarantee is governed by the laws of Victoria, Australia (or the state/territory specified in the Building Contract if different).