Read time: 5 minutes
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.