The departure schedule: how subcontractors change a builder's contract
A departure schedule is a one-page table of the changes you want to a builder's subcontract. Each row names the clause, quotes the current wording, gives your proposed wording and says why. It goes in with your tender or before you sign, and the rows the builder accepts become part of the contract.
It beats a marked-up contract because it puts your priorities on one page with the wording already drafted, so the builder's contracts team can say yes row by row.
AI risk report, not legal advice. The scanner gives general information about the risks in a document. It is not a lawyer, does not know your circumstances, and can be wrong. For decisions with legal consequences, get advice from a construction lawyer.
The five columns
- Priority. Must-have, nice-to-have or trade-able. Keep this column on your copy only: the builder doesn't need to see which changes you would give up.
- Clause. The clause number and heading, so the builder's contracts team can find it in seconds.
- Current wording. The words as drafted, quoted exactly. It stops any argument about what the clause says.
- Proposed wording. Your replacement text, written as contract wording, ready to paste in. Builders accept drafted wording far more often than a request to "review" a clause.
- Reason. One or two sentences in commercial terms: what the clause costs, why your position is fair. Point to the Security of Payment Act or market data where you can.
A worked example
Four rows from an example schedule for an electrical package (made-up parties: Example Subbie Pty Ltd and Example Builders Pty Ltd). This is the format the scanner exports.
| Priority | Clause | Current wording | Proposed wording | Reason |
|---|---|---|---|---|
| Must-have | Payment General Conditions 37.2 | The Contractor shall pay the Subcontractor the amount certified within 45 business days after the end of the month in which the payment claim is received. | The Contractor must pay the Subcontractor the scheduled amount within 20 business days after the payment claim is made. | 45 business days after the end of the month runs past the 25 business day maximum for subcontract payments under the Building Industry Fairness (Security of Payment) Act 2017 (Qld), so the clause can't operate as written. 20 business days is a fair market position. |
| Must-have | Liquidated damages General Conditions 34.1 | If the Subcontractor fails to reach Practical Completion by the Date for Practical Completion, the Subcontractor must pay the Contractor liquidated damages at the rate stated in Item 21 ($2,500 per day) for every day after the Date for Practical Completion up to and including the Date of Practical Completion. | ...liquidated damages at the rate stated in Item 21 ($1,200 per day), up to a maximum aggregate amount of 5% of the Subcontract Sum. Liquidated damages are the Contractor's sole and exclusive remedy for the Subcontractor's failure to reach Practical Completion by the Date for Practical Completion. | Uncapped damages at $2,500 a day make the cost of a late finish unlimited on a $640,000 package. A rate proportionate to the package, a cap of 5% and a sole remedy clause is the position we can price and insure. |
| Must-have | Notice of delay General Conditions 41.1 | The Subcontractor must give written notice of a claim for an extension of time within 2 days of the commencement of the delay, failing which the Subcontractor will have no entitlement to an extension of time. | The Subcontractor must give written notice of a claim for an extension of time within 10 business days after the Subcontractor became aware, or ought reasonably to have become aware, of the delay. A notice given by email to the Contractor's site representative is sufficient. | 2 days from the start of a delay, with the right lost entirely if it's missed, is not workable on a live site where the cause of a delay is often not clear on day one. 10 business days from awareness still gives the Contractor early warning. |
| Nice-to-have | Set-off General Conditions 38.4 | The Contractor may deduct from any moneys due to the Subcontractor any debt or other moneys due from the Subcontractor to the Contractor, or any claim to money which the Contractor may have against the Subcontractor, whether for damages or otherwise. | The Contractor may deduct from any moneys due to the Subcontractor any debt due from the Subcontractor to the Contractor under this Subcontract, provided the Contractor has first given the Subcontractor 5 business days' written notice setting out the amount and how it was calculated. | As drafted, amounts can be deducted from a payment without warning or substantiation, which makes our cash flow impossible to plan. Written notice with the amount and its basis lets us answer the claim before the money is taken. |
How to write one in under an hour
- Run the contract against the 15-point subcontract review checklist and note every red flag.
- Rank each one: must-have (you won't sign without it), nice-to-have, or trade-able (you'll give it up to win a must-have).
- Draft replacement wording for each row. Short and specific beats clever. The clause library has fairer wording for the common clauses.
- Write one or two sentences of reason per row in commercial terms. Quote the Act where a clause breaches it, and the Australian Subcontract Index where the market sits elsewhere.
- Send the schedule without the priority column, and keep your ranked copy for the negotiation.
Common questions
What is a departure schedule in construction?
A departure schedule is a table of the changes a subcontractor wants to the builder's subcontract, submitted with the tender or before signing. Each row gives the clause, the current wording, the proposed wording and the reason. The builder accepts, rejects or counters each row, and the agreed rows become part of the contract.
Is a departure schedule better than marking up the contract?
Usually. A marked-up contract makes the builder's contracts team reread the whole document and hides your priorities. A schedule puts every change on one page, in order, with drafted wording, which makes saying yes easy. Most commercial builders are used to receiving them.
When should I submit a departure schedule?
With your tender, or as early as possible before signing. Departures agreed before award are part of the price. Asked for after award, every change becomes a favour.
How many departures should I ask for?
As few as protect you. Five to ten well-reasoned rows are taken more seriously than forty. Lead with the clauses that can hurt the business: uncapped liquidated damages, absolute time bars, set-off without notice and payment terms beyond the statutory cap.