The Australian Building Industry Contracts (ABIC) are jointly published by Master Builders Australia Limited (Master Builders) and the Australian Institute of Architects (Institute). They are intended for use in building projects where an architect administers the contract. The 2018 revised editions of the ABIC Major Works (MW) and Simple Works (SW) commercial and domestic documents and template forms (previously called Contract proforma) are now available under the relevant state and territory pages. For a revised edition of the ABIC Basic Works (commercial) contract refer to ABIC Basic Works BW 2018.
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Note: The new Corporations Act / insolvency laws will affect all contracts and in particular Section Q of the ABIC contracts, refer to the ABIC MW or SW User guide under the relevant state and territory pages. For an explanation of the changes refer to Termination rights and insolvency events.
ABIC contracts information
ABIC contracts are designed to make contract administration clear and less prone to dispute or time-consuming negotiation. 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
- detailed supporting documents, including a user guide, template forms for the architect and the contractor.
Selecting the right contract
There are different contracts for each state and territory for various types of projects. 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 SW contract is intended for simpler projects than MW contract. The MW contract is the most comprehensive contract in the ABIC suite of building contracts. Although the differences are numerous, notable differences between the contracts are summarised in the table below:
|Condition||SW Contract||MW Contract|
|separable parts to the works||χ||✓|
|change of type of security given by the contractor to the owner||χ||✓|
|provision of security for payments for off-site plant and materials||χ||✓|
|provision by the owner of security to the contractor||χ||✓|
|dangerous or contaminated materials||χ||✓|
|quality assurance systems||χ||✓|
|seperate contractors||χ||✓ (except in Queensland)|
|identified, project specific potential causes of delay that entitle the contractor to costs||χ||✓|
|amendments to programs and the consequences of any amendments||χ||✓|
|alternative dispute resolution||χ||✓|
|expert determination of disputes||χ||✓|
|arbitration of disputes||χ||✓|