BY Projects Tips on Choosing the Right Building Contract

One of the main factors for a successful completion of a project is choosing the right building contract. There are a number of criteria to be considered while selecting a contract:

  • The value, size, and complexity of the project
  • Specific needs of the project
  • Who will be administrating the contract
  • State legislation

There are various standard-form contracts published by bodies such as the Australian Institute of Architects, Master Builders Australia Limited, Australian Standards Association, the HIA, and the Property Council of Australia.

At BY Projects Architecture, we would usually recommend the Australian Building Industry Contracts (ABIC) which are published by both Master Builders Australia Limited and the Australian Institute of Architects. These contracts are intended for use in building projects where an Architect administers the contract.

The main reasons why we would recommend using ABIC contracts are:
  1. The contract is written in plain English and in a clear, logical structure which reflects the construction process.
  2. It is designed to make contract administration clear and less prone to dispute or time-consuming negotiation.
  3. ABIC contract’s bring certainty to the process, requiring timely presentation and resolution of claims. This will avoid any claim disputes.
  4. It impartially allocate virtually all projects risks to one party of the other and eliminate any uncertainty and potential disputes.
  5. There are various ABIC contracts which suit different type of projects, ranging from major, simple and basic works, and for housing and non-housing projects.

Howard Siow

Graduate

M.Arch (MELB) Hons, RAIA

BY Projects Architecture