Standard Contract Forms In The Construction Industry

The Australian Standard forms

At present, the suite comprises:

  • AS4000-1997 (‘General Conditions of Contract’ – for construct-only delivery)
  • AS4901-1998 (sub-contract for use with AS4000)
  • AS4902-2000 (variant of AS4000 for design and construct delivery)
  • AS4903-2000 (sub-contract for use with AS4902)• AS4122-2010 and 4904-2009 (consultants’ agreements)
  • AS4905-2002 (minor works contract – superintendent-administered) and AS4906-2002 (minor works contract – principal-administered)
  • AS4910-2002 (equipment supply with installation) and AS4911-2003 (equipment supply without installation)
  • AS4912-2002 (periodic supply of goods)
  • AS4915-2002 (project management)
  • AS4916-2002 (construction management)
  • AS4917-2003 (construction management trade contract)
  • AS4919-2003 (asset maintenance and services – superintendent’s version (AS4920-2003 is the principal’s version and AS4921-2003 the short version))
  • AS4949-2001 (work order)

The Australian Building Industry Contract suite (ABIC)

The suite currently comprises:

  • ABIC MW-2008 (major works), with residential works variants for each State and Territory
  • ABIC MW-SC-1 (subcontract under MW form; there are also short form subcontracts)
  • ABIC SW-2008 (simple works), with residential works variants for each State and Territory
  • ABIC SW-SC-1 (subcontract under SW form; there are also short form subcontracts)
  • ABIC BW-1 2002 (basic works (up to $50,000 in value))
  • ABIC BW-SC-1 (subcontract under BW form)
  • ABIC EW-1 2003 (early works)

Master Builders Australia Ltd

  • BC3 (commercial) and BC4 (residential) – lump sum
  • CM2012 – Construction Management Contract
  • CP3 (commercial) and CP5 (residential) cost plus contract (there are also other cost plus-based forms in the suite)
  • DB1, RBC-1 and RBW 2014 (contract sum >$500,000) – domestic (residential) building
  • DECON 2013 and DECON 2 – design and construct, lump sum
  • GCC5 – head contract for commercial construction (with SC-7 subcontract)
  • HC6 – new homes• HIC5 – home improvement
  • LSC2 – Commercial Building Contract
  • MWC-C (commercial) and MWC-1 (residential) – minor works
  • PB-1 – pool building
  • PM2 – project management
  • SWC – small works and SWC-R – simple works
  • TC2012 – trade contract under CM2012 (also trade contract TC-H)

What types of clauses are amended?

No matter how detailed and thorough a standard contract, it will never be project specific. Parties will seek to shift certain risks to another or implement regulatory requirements to ensure clear contract administration.

The highest incidence of amendments are to the following clauses (in order):

  1. Extensions of time
  2. Delay damages including liquidated damages and limitations of liability
  3. Site conditions
  4. Payment generally
  5. Variations
  6. Warranties as to quality
  7. Claims including time bars
  8. Security of payment
  9. GST

The lowest incidence of amendments are to the following clauses (in order)

  1. Dispute avoidance procedures
  2. Contract administration
  3. Inspection and testing

 

There are other standard forms such as government and industry specific construction contracts.

 

 

The contents of this article is intended to provide a general guide to the subject matter and does not constitute legal advice. Ferrer Lawyers always recommend that you obtain legal advice prior to selecting your procurement route or entering into any contract.