Building Contracts

ABIC contracts

The Australian Building Industry Contracts (ABIC) are jointly published by Master Builders Australia (Master Builders) and the Australian Institute of Architects (Institute). They are intended for use in building projects where an architect administers the contract.

ABIC contracts are designed to make contract administration clear and less prone to dispute or time-consuming negotiation. Promptly resolving claims and other issues that arise under building contracts at the time that they arise is an effective way of avoiding disputes on construction projects. ABIC contracts bring certainty to the process, requiring timely presentation and resolution of claims. They have been extensively refined and field-tested and feature:

plain English and a clear, logical structure that reflects the sequence of the construction process;

equitable allocation of virtually all project risks to one party or the other, eliminating uncertainty and many potential disputes;

an integrated suite of versions for major, simple and basic works, and for housing and non-housing projects, and

inclusion of a number of detailed supporting documents, including a user guide and pro forma notices and certificates for the architect and the contractor.

Which contract to use?

Selecting the right building contract can be critical to the success of a project.

The contract should be selected to suit each individual project, taking account of its complexity, value and any specific project issues or requirements. A contract selected simply because the architect is familiar with its provisions or is comfortable using it, won’t overcome the inherent difficulties that can arise if the contract is inappropriate for the project.

Differences between SW and the MW contract

The MW contract is the most comprehensive contract in the ABIC suite of building contracts. The SW contract is intended for simpler projects than MW. Although the differences are numerous, notable differences are that SW does not provide for the following:

urgent instructions

separable parts to the works

change of type of security given by the contractor to the owner

provision of security for payments for off-site plant and materials

provision by the owner of security to the contractor

dangerous or contaminated materials

encroachments

quality assurance systems

separate contractors

identified, project specific potential causes of delay that entitle the contractor to costs

owner initiated amendments to programs and the consequences of any amendments

arbitration or expert determination of disputes as alternatives for dispute resolution

Contract orders

Contracts and Agreements are available for purchase from your local chapter office or online through Architext Bookshop. Reference copies, User Guides and Pro formas can be downloaded free from Acumen for A+ members and Acumen subscribers or can be purchased online through Architext Bookshop.

ABIC Contracts	Description
ABIC MW-2008 major works contract	Standard contract for non-housing work. (Not to be used in Queensland) In WA this contract is suitable for housing projects over $500,000.
ABIC MW-2008 major works contract – housing	State and territory specific contract for housing work, with appropriate conditions integrated into the contract to address legal requirements of state and territory housing legislation. (Not to be used in Queensland or in WA for projects over $500,000.)
ABIC MW H 2011 Major Works Housing Contract (Queensland only)	Major works ABIC MW-2011 H Qld (Queensland only) To be used for housing and other domestic projects in Qld to which the Domestic Building Contracts Act 2000 (Qld) applies.
ABIC MW C 2011 Major Works Commercial Contract (Queensland only)	Major works ABIC MW-2011 C Qld (Queensland only) To be used for non-housing or non-domestic projects in Qld which do not come under the Domestic Building Contracts Act 2000 (Qld).
ABIC SW-2008 Simple works contract	Standard contract for non-housing work. (Not to be used in Queensland) In WA this contract is suitable for housing projects over $500,000.
ABIC SW-2008 Simple works contract - housing	State and territory specific contract for housing work, with appropriate conditions integrated into the contract to address legal requirements of state and territory housing legislation. (Not to be used in Queensland or in WA for projects over $500,000.)
ABIC SW H 2011 Simple Works Housing Contract (Queensland only)	Simple works ABIC SW-2011 H Qld (Queensland only) To be used for simple housing and other domestic projects in Qld to which the Domestic Building Contracts Act 2000 (Qld) applies.
ABIC SW C 2011 Simple Works Commercial Contract (Queensland only)	Simple works ABIC SW-2011 C Qld (Queensland only) To be used for simple non-housing or non-domestic projects in Qld which do not come under the Domestic Building Contracts Act 2000 (Qld).
ABIC EW-1 2003 Early Works Contract	This contract is suitable for early works (demolition and/or groundworks including temporary works) where an architect administers the contract. When purchased for use in Queensland, unique special conditions for commercial and industrial projects are included with the contract. EW-1 2003 is also suitable for housing projects using the relevant special conditions included in the pack for the relevant state or territory, other than Queensland. (In Queensland, only single dwellings and duplexes are ‘housing’ in this sense, for which there is seldom a need for this form of contract.)
ABIC BW-1 2002 Basic Works Contract	ABIC BW-1 2002 is suitable for small commercial projects or single trade activities where an architect administers the contract in all states and territories except Queensland, where there are compulsory contract conditions it does not comply with. It is also suitable for residential building throughout Australia, as state and territory special conditions are ‘embedded’ in the document as a Schedule. The tender form and contract schedules are provided with the contract, and become part of the contract on signing by both the contractor and owner.
Non - ABIC Contracts	Description
FF/C Cost plus Contract	FF/C is a contract administered by an architect intended for commercial building works including alterations, where payments to the contractor are on the basis of the actual cost of the work, plus a fee. The fee may be a lump sum or a percentage of the cost of the work. FF/C does not allow for GST, so must be used with caution to deal with GST exclusive amounts only, with GST added according to law when payments are made to the contractor. FF/C may be suitable for housing projects, subject to legislative provisions in the relevant state or territory. For example, it may not be used without amendment where arbitration is disallowed - namely Victoria, New South Wales and Queensland. For these reasons, legal advice is recommended and special conditions may be required. FF/C is not usable in Queensland for either domestic or commercial projects.

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