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.