The Two Types Of Construction Contracts Used In Australia

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:
In this article, we will explore the differences and similarities between the two contract types and their applications in the construction tendering process.
In commercial construction projects Australian Standards contracts are used between clients and builders and specify the:
the parties must adhere to.
They include important details such as payment schedules, performance requirements, defects liability, and more.
Australian Standards contracts commonly include:
Subbies are generally signed up to companion documents depending on the builder’s preference;
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.
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.
If you want to know more about the tendering process, head over to our tendering timeline blog, or if your ready to start winning work, sign up to EstimateOne with a free account today.