In the construction industry, contracts outline the key terms and conditions of projects.
In Australia, there are two different types of commercial contract commonly used in construction, those are:
- > The Australian Standards Contracts
- > The Australian Building Industry Contracts (ABIC).
In this article, we will explore the differences and similarities between the two contract types and their applications in the construction tendering process.
Australian Standards Contracts
In commercial construction projects Australian Standards contracts are used between clients and builders and specify the:
- > terms,
- > conditions, and
- > obligations
the parties must adhere to.
They include important details such as payment schedules, performance requirements, defects liability, and more.
Australian Standards contracts commonly include:
- > Performance requirements
- > Payment schedules
- > Provisions for defects liability, and
Companion docs specific to subcontractors
Subbies are generally signed up to companion documents depending on the builder’s preference;
- > TAB- AS2545 — subcontract conditions (companion to AS2124)
- > TAB- AS4303 — general conditions of subcontract for design and construct (companion to AS3400)
- > TAB- AS4901 — subcontract conditions (companion to AS4000)
The advantages of Australian Standards Contracts include:
- > Easily purchased from SAI Global page (www.saiglobal.com)
- > Widely accepted in the industry
Australian Building Industry Contracts
The alternative type of construction contracts used in Australia are the Australian Building Industry Contracts (ABIC) contracts, produced by the Master Builders Australia and Australian Institute of Architects.
ABIC construction contracts are generally used where an architect acts as client-side project manager and administers the contract on the client’s behalf.
In ABIC Contracts, subcontractors will usually come across the following;
- > Major Works Subcontract (MW SC-1 2002)
- > Simple Works Subcontract (SW SC-1)
- > Basic Works Subcontract (BW SC-1)
The advantages of ABIC Contracts include:
- > Easily Purchased from Master Builders (www.masterbuilders.com.au)
- > Typically simpler and easier to use
- > Specifically designed for small-medium projects
Learn more about construction terminology
It can be tough to get your head around some of this construction industry terminology! If you’re left scratching your head, we recommend checking out our Construction Terminology 101 blog which should keep you up to date on the language of the industry.
Electrical subcontracting businesses are one of the linchpins of the commercial construction industry. Let’s face it, no one’s going to live, work or play in a building which doesn’t have power. Despite this, getting an electrical business running isn’t super straightforward, particularly in today’s competitive market. This blog will run you through a few tips you can be doing to grow your electrical business to start tendering for business, and landing more commercial jobs.
Starting an electrical business
Before you get on site, there are few things you’re going to need to consider. Consider the following a bit of a mini-checklist;
- > Do you have the right license, permits and insurance (Victorian subbies – consider this link: https://business.vic.gov.au/business-information/start-a-business/licences-and-registrations)
- > Do you have all the tools required?
- > What will the legal structure as your business be? Will you operate as a sole trader or as a company?
Finding electrical work
Perhaps the most important aspect of starting your electrical business is finding and maintaining a consistent pipeline of work. Starting out finding work can be difficult, that’s why platforms like EstimateOne can be a great head start – helping you connect with Head Contractors. On top of this, you should be seeking to network with Head Contractors as often as possible, this could be simply done by picking up the phone or attending trade shows in your area.
Winning electrical work/getting clients
Winning work takes a bit of practice, but once you’ve got the hang of quoting and winning work you’ll become a pro in no time. Ultimately, the best thing you can have on your side is reputation, if you do good consistent work with a Head Contractor, you’re more likely to be looked upon favorably for future work.
Getting your foot in the door isn’t as easy. What we would recommend is consistent quoting and following up with a Head Contractor – make yourself known! If you would like to know what goes into a good quote, feel free to check out our best practice quoting guide.
Growing your electrical business
Once you have set up a few solid relationships with Head Contractors, it is time to focus on growing your business. This can involve expanding your service offerings, hiring additional staff, or targeting new markets.
Growing is a lot easier said than done – it requires dedication and consistent high quality work and business development. EstimateOne is always there for you to help you identify and find new opportunities, but it’s truly the work you invest in growing your relationships, business development and craft which will pay dividends.
Searching for electrical tenders on EstimateOne
Australian builders list their electrical and electrician tenders online on EstimateOne. Looking for the latest commercial construction projects that need subcontractors to complete electrical jobs? Don’t miss out. Select your Category, State & Electrical Services on our electrical tenders page and you’ll be away!