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Chatswood Tower

AS4901 Construct Only

Chatswood, NSW

Concrete Placing and Finishing

Subbie: Concrete Demo Pty LtdPrincipal: Valence Build Group Pty LtdPM: Valence Build Group Pty Ltd - 0400 000 000

Clause Analysis

Round 1Initial AI Review

Contract Fairness Score

0/100

High RiskFair Contract

Total Critical Risks

0/ 185 clauses

9 Critical 20 High 18 Med 117 Low

Scope Analysis

Round 1Initial AI Review

AI Flagged Items

0/260

Total Scope Items Analyzed

4.3 Progress Claim Reference Dates

Critical

Initial AI Analysis

This clause does not align with the Security of Payment Act (SOPA). Payment terms exceed the statutory maximum of 20 business days, exposing the business to severe cash flow delays and statutory non-compliance.

Win-Win Suggestion

We propose amending this clause to align with the SOPA maximum of 20 business days to ensure statutory payment rights are maintained, while preserving standard processing times.

Hard Amendment Suggestion

Require deletion of the '35 days' term and replacement with '20 business days' as per SOPA. The current term is non-compliant and represents a significant cash flow risk. Non-negotiable.

Chatswood_Tower_Contract_v2.pdfPage 12

4.2 Valuation of claims

4.3 Progress Claim Reference Dates

The Subcontractor must submit progress claims on the 25th day of each month. Payment for approved claims shall be made no earlier than 35 days from the date of receipt of a valid tax invoice. Any claims submitted after the 25th will be assessed in the following month's payment cycle.

4.4 Final Payment Claim

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Clause Clarifications

Document • Round 2

Critical Risk

34.7 Liquidated damages

If WUS does not reach practical completion by the date for practical completion, the Subcontractor shall be indebted to the Main Contractor for liquidated damages at the rate stated in Item 27(a) for every day after the date for practical completion to and including the earliest of the date of practical completion or termination...

SUBCONTRACTOR - ROUND 1

To ensure commercial certainty for both parties, we propose capping our total liability for liquidated damages at 10% of the Subcontract Sum.

BUILDER - ROUND 1

We can agree to introduce a cap, but 10% leaves us overly exposed. We are willing to compromise with a cap set at 20% to better align with our upstream risk.

Subcontractor - Round 2High

The Builder has rejected our proposed 10% cap and countered with 20%. While this is an improvement from unlimited liability, it is double the industry standard and significantly exceeds our company policy target of 5%. This remains a high-risk exposure.

Use AI Suggestion

We appreciate your willingness to introduce a cap. However, a 20% cap is commercially unviable. Our corporate governance mandates a maximum exposure of 5% on a project of this scale, which aligns with the market rate for a subcontract of this value. We can accept a 5% cap as a final position.

Accept the clause as written.

Silent

No response — remain silent on this clause.

Custom Input

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Project Context

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Layer 02

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Layer 03

Company Specific Playbook

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Primary Standard

AS4901 & AS4903 Principles

Core risk allocation and standard form baselines.

Can you spot any unfair clauses?

The Subcontractor indemnifies the Builder for all consequential loss, without mo...

Notice of delay must be provided within 24 hours of the delaying event, otherwis...

Payment of progress claims will be made 45 days after the end of the month.

The Builder may set-off amounts owed on this project against disputed amounts on...

The Subcontractor assumes all risk and liability for errors in the Builder's des...

Liquidated Damages apply at $10,000 per day, regardless of concurrent delays by ...

Directed variations must proceed immediately, even if the price and EOT are not ...

Progress payments will be made within 20 Business Days of a valid tax invoice.

An EOT will be granted for Builder-caused delays, provided notice is given withi...

The Subcontractor must rectify any defective work at their own cost during the 1...