Types Of Construction Contracts In Australia
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Types of Standard Form Contracts NameWhen it is UsedAustralian Building Industry Contracts (ABIC)Used mainly for projects involving the architect as Superintendent.Housing Industry of Australia- HIAUsed for residential projects.Government ContractsMainly used for government-funded projects.2 more rows ?
Three Common Construction Contracts FIXED PRICE. Fixed price construction contracts, also commonly referred to as ?lump sum? or ?stipulated sum? contracts, are the most common types of construction contracts. ... COST PLUS. ... GUARANTEED MAXIMUM PRICE.
Here are four main construction contracts to choose from, plus their pros and cons: Lump-Sum Contracts. Cost-Plus-Fee Contracts. Guaranteed Maximum Price Contracts. Unit-Price Contracts.
Lump Sum Contracts: A Fixed Price for a Defined Scope One of the most common types of construction contracts in Australia is the lump sum contract. Under this type of contract, the contractor agrees to complete a defined scope of work for a fixed price.
Here are five of the most important terms that should be a part of every construction contract. Scope of Work. Clients need to be clear about what a company is going to do for them. ... Payment Obligations. ... Insurance Information. ... Parties to the Agreement and Notice. ... Authority to Make Decisions.