Scenario

You have been asked to select an appropriate contract for a new single storey residential project that is being proposed for the clients, Mr and Mrs Brown. After selecting an appropriate contract, you will be preparing this contract by completing the necessary contract terms and conditions and applying the essential terms and elements including those associated with the offer and acceptance of the selected contract.

Once you have prepared the selected contract and documents you will be meeting with the clients in the Role Play (assessment 3), to confirm their intent and capacity to enter into the contract.

Task 2.1

You will carry out research of industry associations or from your own state government sources, to identify and select the correct contract type for the Mr and Mrs Brown project.

You should consider the type of building that is described in the scenario and the supporting documents to ensure the parts and clauses of the contract are suitable.

The Fair Trading contract for building work over $20,000 is proposed for this project. Give TWO reasons why this contract is suitable to this project.

1.

2.