ABIC Simple Works Contract

The Australian Building Industry Contracts (ABIC) Simple Works Contract is an essential tool in the Australian construction industry, designed specifically for smaller and simpler projects such as residential renovations, extensions, or alterations. This type of contract is architect-administered, meaning an architect oversees and manages the contract throughout the project’s duration. While this contract offers a level of detail surpassing those issued by the Office of Fair Trading, it maintains a level of accessibility that is invaluable to homeowners.

Simple Works Contracts are particularly suited to smaller projects, where the requirements are less intricate. It’s crucial to consider the legal and financial risks associated with each contract, ensuring they are adequately addressed within the contract documentation. This contract is ideal for housing projects, as it is succinct yet comprehensive enough to cover all pivotal aspects. Despite its brevity, it leaves no stone unturned.

The Simple Works Contract for Housing is administered by three key parties:

1. The Architect, who administers the contract, ensures that all aspects of the project are carried out according to the agreed-upon plans and specifications.
2. The Contractor, who undertakes the actual construction work, translating the architectural plans into a physical structure.
3. The Owner, the client who requests the work to be done, providing the necessary resources and making key decisions throughout the project.

The structure of the Simple Works Contract is divided into various sections, each addressing a specific aspect of the construction process:

1. Section A: Overview – Outlines the obligations and warranties of the Architect and the Contractor, and how they will work together.
2. Section B: Documents – Details the parties’ obligations to supply documents and their recourse in case of discrepancies or conflict.
3. Section C: Security – Defines the parties’ securities and release of security.
4. Section D: Liability – Sets out the parties’ liabilities, risks, and indemnities before and after practical completion.
5. Section E: Insurance – Details the insurance requirements and procedures for payment of claims.
6. Section F: The Site – Outlines who can access the site and how, as well as the parties’ obligations on site.
7. Section G: Building the Works – Details the Contractor’s and Home Owner’s obligations, subcontracting, and how they will work together.
8. Section H: Claims to Adjust the Contract – Outlines the procedure on how a claim to adjust the contract can be made.
9. Section J: Variation to the Works – Details the procedure for claiming variations and managing changes in the works.
10. Section K: Adjustment of Provisional Sums and Prime Cost Sums – Outlines the provisional and prime cost sums, in addition to the contract price, and how they can be adjusted.
11. Section L: Adjustment of Time – Sets out the procedure by which the parties can alter the schedule.
12. Section M: Completion of the Works – Details the practical completion, defects relating to the works, and the liability period after practical completion.
13. Section N: Payment for the Works – Outlines the obligations of the parties regarding the contract price, progress claims, and final certificate.
14. Section P: Dispute Resolution – Sets out the process the parties are required to comply with should a dispute arise.
15. Section Q: Termination of Engagement – Details the parties’ rights and obligations concerning termination, and the procedure for effecting a valid termination.
16. Section R: Miscellaneous – Sets out additional clauses.
17. Section S: Definitions – Lists the legal and/or technical and other terms used in the contract, and how they’re defined in the context of the contract.

This structure ensures that all aspects of the construction process are covered, providing a comprehensive guide for both the architect and the contractor.