Building contract deposits

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The ABIC Simple Works Housing Contract (ABIC SW H Contract), in use in each state and territory in Australia (refer Acumen note ABIC contracts), includes the option to nominate that a deposit be provided by the owner to the contractor after the contractor has complied with specified obligations (for example, procuring relevant warranty insurance). The deposit is a part-payment toward the contract price.

This note provides guidance on the application of a deposit provided by the owner, the management of the deposit during the ABIC SW H Contract, and alternative options to protect the owner against risks related to the deposit.

Page contents

• Payments for unfixed goods or materials
• Application of a deposit and its management during the contract
• Alternative management of a building contract deposit