Contract User Guide

BC3 Contract

Commercial Head Contracts & Sub Contracts

Standard lump sum contract to be used for commercial / industrial projects
eg: shops, service stations, restaurants etc where no architect is supervising the work.

CPC

Cost Plus Contract – Commercial

Head contract for work undertaken on the commercial cost plus fixed fee or
percentage margin basis.

CM1

Construction Management Contract

The construction Manager Manages the Building works on behalf of the client
eg: they are to arrange and supervise the subcontractors.  This is entirely different
from the traditional method of lump sum contracting because the Construction Manager
acts as the agent of the owner.
NOT suitable for residential building work.

TC/CM1

Trade Contact – for use with Construction Management Contract

CM stands for construction manager.  The construction manager is not the builder,
he is the manager on site on behalf of the owner/proprietor/client.  The TC (trade contract)
enables the construction manager to go out and engage specific trades to do specific parts
of the work  eg: plumbing, bricklaying, roofing etc.

It is a contract between the trade contractor and the construction manager’s client.
It should not be used for residential work unless the client, through his construction manager
or otherwise, ensures that each trade contractor that does work on the domestic property,
has taken out Home Warranty Insurance.

PM2

Project Management Contract

A step beyond Construction Management, involving such duties as design approval,
having plans made, dealing with atchitects and arranging finance.
Covers the role from concept to completion.

Decon2

Design and Construct Contract (written by MBA inc.)

Decon 2 is a Design and Construct contract which is used when the contractor provides
all services necessary to complete a building project.
The principal engages the contractorto undertake the responsibility for adopting
a design that follows the principal’s project requirements and obtaining all licenses, permits,
consents, determinations and approvals necessary to complete the project within the specified
time.  Decon 2 establishes the legal rights and obligations of each party and their power and
duties under the contract.
Special conditions tailored to State and Territory domestic building legislation are necessary
for Decon 2 to be suitable for use in domestic building work.

STC

Standard Trade Contract (pad of 5 duplicate contracts)

Compatible with most MBA head contracts.  This contract is for use between the builder
and the trade contractor.
Can also be used for residential work to create a written record (contract) between the
head contractor and the trade contractor.  Presented in a simple to use, easy to follow format.

BC4

Residential Head Contract

Lump sum contract to be used for new houses, major residential renovations, or small multi
unit developments with no architect supervision.
This contract is used for works over $100,000.00

SFRB

Residential Small Renovations & Additions

Lump sum contract for small residential alterations and additions where work is
not architect administered.
This contract is valued at $12,001.00 to $100,000.00

PEMWC

Plain English Minor Works Contract (pad of 5 duplicate contracts)

Small three page contract designed for simple works where a deposit and no
more than two payments are required.
This contract is especially suited to jobs under $12,000.00 which do not require
home warranty insurance.

CPC

Cost Plus Contract – Residential

Head contract for work undertaken on a cost plus / fixed price fee or percentage margin basis.

BW1

Head contract (set of 3)

Suitable for small commercial projects or single trade activities where an architect
administers the contract in all states and territorys except Queensland, where there are
compulsory contract  conditions it does not comply with.
It is also suitable for residential building throughout Australia, as state and territory special
conditions are “embedded” in the document as a Schedule.
The tender form and contract shedules are provided with contract, and become part of
the contract on signing by both the contractor and owner.

BW1

Sub contracts (set of 2)

BW – SW – 1 Subcontract is the companion subcontract for the ABIC Basic Works Contract.
This subcontract sets out the obligations of a subcontractor engaged by a contractor to perform
work on a very small project or projects.  One central feature is that all claims and other
matters which arise during the course of construction are dealt with when the work in question
can be inspected and the issues are clear to all parties.

SW1

Head Contract (set of 3)

Suitable for smaller / simpler projects where an architect administers the contract.

SW1

Sub contract (set of 2)

SW – SC – 1 Subcontract is the companion subcontract for the ABIC Simple Works Contract.
This subcontract sets out the obligations of a subcontractor engaged by a contractor to perform
work on small to medium sized project/s.  One central feature is that all claims and other
matters which arise during the course of construction are dealt with then the work in question
can be inspected and the issues are clear to all parties.

MW1

Head Contract (set of 3)

Suitable for major or complex building projects where an architect administers the contract.

MW1

Sub contract (set of 2)

MW – SC – 1 Subcontract is the companion subcontract for the ABIC Major Works Contract.
This subcontract sets out the obligations of a subcontractor engaged by a contractor to perform
work on medium to large sized projects/s.  One central feature is that all claims and other
matters which arise during the course of construction are dealt with when the work in question
can be inspected and the issues are clear to all parties.