ABIC Contract Simplified

What You're Agreeing To

Australian Building Industry Contracts

ABIC Contract — Plain English

Australian Building Industry Contracts simplified for architecture studio use.

Legal Disclaimer

This is a simplified educational summary only. Obtain independent legal advice before executing any construction contract.

Choose your contract form

SW

Simple Works

Small, low-complexity projects

MW

Minor Works

Mid-range residential/commercial

MW-1

Major Works

Large or complex projects

Choose based on project value and complexity

Key clauses

Scope of Works

What it covers

The description of what is to be built, as set out in the drawings and specifications.

Watch out

"As per drawings and specifications" — make sure they're complete and properly annexed to the contract before signing.

Contract Sum

What it covers

The agreed price for the works.

Watch out

PC sums (Prime Cost) and Provisional Sums inflate the contract — understand what is estimated vs fixed before you sign.

Variations

What it covers

How changes to scope are priced and approved.

Watch out

Verbal instructions are not variations — all changes must be in writing and signed before work proceeds.

Extension of Time

What it covers

How delays are assessed and time extensions granted.

Watch out

Client-caused delays entitle the contractor to more time AND money — document everything meticulously.

Practical Completion

What it covers

The point at which the building is sufficiently finished to occupy.

Watch out

Not "perfect completion" — a schedule of defects is issued at PC, not before. Do not withhold PC unreasonably.

Defects Liability Period

What it covers

Period (usually 12 months) after PC where contractor must fix defects at own cost.

Watch out

Structural defects have longer liability under the Domestic Building Contracts Act — separate from the contract DLP.

Retention

What it covers

Typically 5–10% of each progress claim held back until practical completion.

Watch out

Half released at PC; balance after defects period. Check the schedule — some contracts reduce the retention cap.

Dispute Resolution

What it covers

How disagreements are escalated — expert determination, VCAT, or arbitration.

Watch out

VCAT handles domestic building disputes under $1M. It is cheaper than court but can still take 12–18 months.

ABIC contracts are published by the Australian Institute of Architects and Master Builders Australia. Always use the current edition and seek legal advice specific to your project.

This is a simplified summary for educational purposes only. Obtain legal advice before executing any construction contract.