Other contracts

If your client requests to use a non Master Builders contract, such as an ABIC or Australian Standards contract, Master Builders can review the contract for members and provide advice on contractual risk. 

ABIC

The Australian Building Industry Contracts (ABIC) are jointly published by Master Builders Australia Ltd and the Australian Institute of Architects. They are intended for use in building projects where an architect administers the contract.

Commercial contracts

  • Major Works Contract (ABIC MW-1 2003) – a lump sum contract for use on projects with a value of more than $2 million. The major works contract is the most comprehensive contract in the ABIC suite of building contracts.
  • Simple Works Contract (ABIC SW-1) – a lump sum contract for use on projects with a value up to $2 million
  • Basic Works Contract (ABIC BW-1 2002) – a lump sum contract for use on projects with a value up to $50,000
  • Early Works Contract (ABIC EW-1 2003) – used for preliminary works prior to entering into a contract.

Subcontract agreements

These subcontract agreements between a builder and subcontractor are companion documents to the above contracts:

  • Major Works Subcontract (MW SC-1 2002)
  • Simple Works Subcontract (SW SC-1)
  • Basic Works Subcontract (BW SC-1).

Australian Standards

The suite of Australian Standards for contract conditions (AS 4000) provides a guide to the general conditions of contracts for a range of contractual agreements, including design and construct, minor works, major works and supply of equipment.

Commercial contracts

  • AS 2124 – general conditions of contract for use on most commercial public sector projects
  • AS 4300 – general conditions of contract for use on commercial design and construct projects
  • AS 4000 – general conditions of contract for use on commercial projects.

Subcontract agreements

These subcontract agreements between a builder and subcontractor are companion documents to the above contracts:

  • AS 2545 – subcontract conditions (companion to AS 2124)
  • AS 4303 – general conditions of subcontract for design and construct (companion to AS 4300)
  • AS 4901 – subcontract conditions (companion to AS 4000).

Master Builders Australia

Master Builders Australia produces a range of contracts and subcontracts, which are available for purchase through Master Builders Queensland:

Contracts

Project Management Agreement

The Project Management Agreement is an agreement between a project manager and an owner, where the project manager acts as the owner’s agent and provides management services from pre-design to completion, including the engagement of a contractor to perform the work.

It is important to note that, in addition to the Project Management Agreement, the owner will need to sign a separate contract with the contractor responsible for the construction works. And the contractor would engage and sign a contract with the subcontractors.

This contract can only be used on commercial projects.

Purchase the Project Management Agreement from the eShop.

Construction Management Contract

The Construction Management Contract is an agreement between a construction manager and owner, where the construction manager acts as the owner’s agent. This means that the construction manager is responsible for supervision and management of the project, and the owner contracts with and pays the trade contractors directly.

The trade contractor's contract must contain a warning advising the trade contractor that the owner will be responsible for payment.

The construction manager and the owner sign a Construction Management Contract for a fixed construction management fee. The construction manager must be a licensed contractor; an engineer or architect cannot be a construction manager unless they hold a builder’s license.

While the construction manager is the licensed contractor responsible for the building works, under the Construction Management Contract, they act as a consultant to the owner ensuring coordination and cooperation between all trades on site.

The construction manager is also responsible for sourcing the trade contractors and ensuring their prices are reasonable. But, all trade contractors sign agreements directly with the owner.

The Commercial Construction Management Contract cannot be used for domestic building work.

Purchase the Construction Management Contract from the eShop.

Design and Construct Contract

The Design and Construct Contract is a contract between a contractor and owner, where the contractor provides all services and engages all trades, including design work to be carried out. All consultants are engaged, controlled and paid for by the contractor; the contractor contracts and pays the subcontractors directly. Progress payments are made by the owner to the contractor.

Under the Design and Construction Contract, owners may be offered maximum guaranteed price; however, special conditions to the contract will be necessary to achieve this.

Purchase the Design and Construct Contract from the eShop.

Trade Contract – Construction Management

The Trade Contract – Construction Management is the companion trade contract to the Construction Management Contract. It is for use between an owner and a trade contractor for the delivery of individual trades, where the project is being managed by a construction manager.

Purchase the agreement from the eShop.

Subcontracts

Design and Construct – Lump Sum Subcontract

The Design & Construct – Lump Sum Subcontract is the companion subcontract to the Design and Construct Contract. It is an agreement between a contractor and a subcontractor, setting out the terms and conditions upon which the subcontractor is engaged by the contractor.

Purchase the agreement from the eShop.