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ABIC - Simple Works Contract

The document summarizes key clauses in a construction contract that may result in adjustments to the contract price. These include clauses related to: variations in works; latent conditions or valuable items found; failure of the architect to issue certificates; changes in relevant legislation; and adjustment of time or costs.

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0% found this document useful (0 votes)

674 views

ABIC - Simple Works Contract

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Warning – The *contract price may be subject to adjustment due to the following:
clause B2 Order of precedence of documents clause L1 Adjustment of time with costs
clause E5 Limited right to arrange insurances clause M7 Failure to issue notice of *practical completion
clause F7 *Latent condition or *valuable item
E clause M8 Possession before *practical completion
clause G8 Costs of opening up or testing clause N8 If architect fails to issue certificate
clause J1 Architect may instruct *variation to the *works clause N15 Interest on overdue amounts
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clause J8 Claim for *official document clause R10 Change in *relevant legislation
clause K4 Adjustment for *provisional or *prime cost sum
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ABIC SW 2018 H NSW

Simple Works Contract for Housing
in New South Wales
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Contract Price: $
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Owner:

Contractor:

Site:
Cooling-off notice

Under the *Act, the owner has a right to ‘cool off’ or rescind this contract. If the owner
wishes to cool off or rescind the contract, the owner must:
1. prepare a written notice that states that the contract is rescinded;

2. give the notice to the contractor personally, or leave it at the contractor’s address
shown in the contract; and

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3. ensure that the owner gives the contractor notice before the end of 5 clear *business
days after the owner is given, or is aware that he or she is entitled to be given, a
copy of this contract.

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If the owner gives notice to the contractor as set out above:

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1. The contractor may retain any out-of-pocket expenses the contractor incurred before
the notice was given. E
2. The contractor must refund all other money paid by the owner to the contractor under
this contract.
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3. The owner is not liable to the contractor in any way for rescinding the contract.
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Notice about termination rights

Under the *Act, the owner may terminate this contract in the circumstances provided by
the general law, but this does not prevent the owner and contractor from agreeing to
additional circumstances in which the contract may be terminated.
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Table of contents
F6 Architect to instruct in relation to a *latent condition
Schedules or *valuable item ................................................................... 35
1 Schedule 1 – Contract information .........................................1 F7 Contractor to claim for *latent condition or
2 Schedule 2 – Special conditions...............................................8 *valuable item ........................................................................ 35
3 Schedule 3 – Order of precedence ....................................... 11
4 Schedule 4 – Site information ............................................... 13 G Building the works
5 Schedule 5 – Form of guarantee .......................................... 14 G1 Owner’s obligations ............................................................... 36
6 Schedule 6 – Provisional sums .............................................. 15 G2 Contractor’s obligations......................................................... 36
7 Schedule 7 – Prime cost sums .............................................. 16 G3 Contractor to appoint representative ................................... 36
8 Schedule 8 – Items to be supplied by the owner ................ 17 G4 Subcontracting ....................................................................... 36
9 Schedule 9 – Insurance certificate (Form 1) ........................ 18 G5 Contractor to give program to architect ............................... 36
10 Schedule 10 – Home Building Act 1989 ............................... 19 G6 Contractor to give updated program .................................... 36
11 Schedule 11 – Stage Payments Schedule ............................. 20 G7 Architect may instruct opening up or
testing of the *works ............................................................. 37
A Overview G8 Contractor entitled to claim for cost of

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A1 Cooperative contracting........................................................ 21 opening up or testing ............................................................. 37
A2 Obligations of the contractor................................................ 21 G9 When contractor entitled to unfixed or
A3 Warranties by the contractor ............................................... 22 undemolished materials ........................................................ 37
A4 Obligations of the owner ...................................................... 22
A5 Warranties by the owner ...................................................... 23 H Claims to adjust the contract
A6 Architect to administer contract .......................................... 24 H1 Time for making a *claim to adjust the contract.................. 38
A7 Architect’s instruction ........................................................... 24 H2 Details required for claim ...................................................... 38

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A8 Disputing architect’s certificate or written decision ........... 24 H3 Architect to assess claim........................................................ 38
A9 Disputing architect’s failure to act........................................ 25 H4 Architect to give assessment ................................................. 39
A10 Failure to give certificate, decision or notice ....................... 25 H5 Sum recoverable for claim for *adjustment of time costs ... 39

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A11 Compensation is sole remedy............................................... 25 H6 Architect may adjust contract in absence of claim .............. 39

B Documents J Variation to the works

B1 Discrepancies or omissions in documents ........................... 26 J1 Architect may instruct *variation to the *works .................. 40
B2 Order of precedence of documents ..................................... 26 J2 Contractor to review instruction ........................................... 40
B3 Must supply copies of *official documents .......................... 26
E J3 Architect to instruct whether *variation is to proceed ....... 41
J4 If contractor receives written instruction to proceed.......... 41
C Security J5 Adjustment to the contract after written
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C1 Security provided to owner .................................................. 27 instruction to proceed ........................................................... 41
C2 Security to owner by cash retention .................................... 27 J6 If *authorised person issues *official document .................. 41
C3 Security to owner by *unconditional guarantee ................. 27 J7 Architect to give instruction .................................................. 41
C4 Owner’s right to draw on security provided to it ................ 27 J8 Contractor entitled to claim for *official document ............ 41
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C5 Procedure for owner to draw on security

provided to it ......................................................................... 27 K Adjustment of provisional and prime
C6 Owner’s release of security on *practical completion ........ 28
C7 Owner’s release of security on final certificate ................... 28
cost sums
K1 *Provisional and *prime cost sums included in contract ..... 42
D Liability K2 Architect may instruct regarding *provisional or
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*prime cost sum ..................................................................... 42

D1 Risk before *practical completion ........................................ 29
D2 Indemnity before *practical completion .............................. 29 K3 Architect may instruct contractor to use particular person
D3 Risk after *practical completion ........................................... 29 for *provisional or *prime cost sum...................................... 43
K4 Adjustment for *provisional or *prime cost sum ................. 43
D4 Indemnity after *practical completion ................................. 30
D5 Reinstatement during period when contractor bears risk .. 30
L Adjustment of time
E Insurance L1 Causes of delay which entitle making a claim for
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E1 Public liability insurance ........................................................ 31 adjustment of time with costs ............................................... 44

L2 Causes of delay which entitle making claim for
E2 Contract works insurance ..................................................... 31
E3 Entitlement to *input tax credit ........................................... 31 adjustment of time without costs ......................................... 44
E4 Insurance cover ..................................................................... 32 L3 Contractor to notify of delay ................................................. 44
L4 Contractor to allow for delays ............................................... 45
E5 Limited right to arrange insurances ..................................... 32
L5 Adjustment of provisional allowance for delays .................. 45
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E6 Contractor and owner not to affect insurance .................... 32

E7 Worker’s compensation and employer’s liability L6 Overlapping delays ................................................................. 45
insurances .............................................................................. 32
E8 Insurance claims .................................................................... 33
M Completion of the works
E9 Payment of excess ................................................................. 33 M1 *Practical completion............................................................. 46
E10 Contractor entitled to make progress claim M2 Inspection by the contractor ................................................. 46
as result of loss or damage ................................................... 33 M3 Notification to architect of *practical completion ............... 46
E11 Warranty insurance ............................................................... 33 M4 Architect to decide if the *works have reached *practical
completion .............................................................................. 46
F The site M5 If the *works not at *practical completion ........................... 46
M6 Contractor to bring the *works to *practical completion ... 47
F1 Owner to give contractor possession of the *site ............... 34
F2 Contractor’s obligations in relation to the *site .................. 34 M7 If architect fails to issue notice of *practical completion .... 47
F3 Owner warrants that it has given contractor the M8 Possession of the *works before *practical completion...... 47
M9 Liquidated damages may be payable .................................... 47
*site information ................................................................... 34
F4 Contractor to examine the *site information ...................... 34 M10 Deduction of liquidated damages ......................................... 48
M11 Contractor to correct *defects and finalise work ................. 48
F5 If contractor discovers a *latent condition or
*valuable item ....................................................................... 35 M12 If the contractor fails to correct *defects and finalise work 48

© 2018 Australian Institute of Architects / Master Builders Australia Ltd

ABIC SW 2018 H NSW Page i Simple Works Contract for Housing in NSW
Table of contents
M13 Defects liability period ........................................................... 48 Q5 Owner may contract with others to complete
M14 Contractor’s obligations during and after the *works .............................................................................. 55
defects liability period............................................................ 48 Q6 Owner not bound to make further payment to the
contractor............................................................................... 56
N Payment for the works Q7 Owner may pay subcontractors or suppliers ....................... 56
N1 *Contract price ....................................................................... 49 Q8 Architect to give assessment of cost of completing the
N2 Owner’s obligation to pay *contract price............................ 49 *works .................................................................................... 56
N3 Stage payment claims – procedure for contractor .............. 49 Q9 Architect to give certificate of amount payable
N4 Stage payment claims – procedure for architect ................. 50 to contractor or owner .......................................................... 56
N5 *Tax invoice ............................................................................ 50 Q10 Contractor or owner to pay under clause Q9....................... 57
N6 Certificates – obligation to pay.............................................. 50 Q11 Contractor may require owner to remedy default .............. 57
N7 Before making first progress payment.................................. 51 Q12 Contractor may suspend if default not remedied................ 57
N8 If architect fails to issue certificate ....................................... 51 Q13 Contractor’s subsequent right to terminate ........................ 57
N9 Contractor entitled to make claim ........................................ 51 Q14 Contractor may immediately terminate ............................... 58
N10 Final claim – procedure for contractor ................................. 51 Q15 Contractor’s entitlement after termination ......................... 58

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N11 Final certificate – procedure for architect ............................ 52 Q16 Procedure for contractor to make claim .............................. 58
N12 Final certificate – *tax invoice ............................................... 52 Q17 Architect to give certificate ................................................... 58
N13 Final certificate – obligation to pay ....................................... 52 Q18 Contractor or owner to pay under clause Q17..................... 58
N14 Effect of final certificate......................................................... 52 Q19 If this contract is frustrated ................................................... 58
N15 Interest on overdue amounts................................................ 52
N16 Payment of *deposit .............................................................. 53 R Miscellaneous
N17 Time for assessing *deposit ................................................... 53 R1 Transmission of documents .................................................. 59

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R2 Time document is received ................................................... 59
P Dispute resolution R3 Assignment ............................................................................. 59
P1 Each *party to continue to perform its obligations ............. 54 R4 Entire contract ....................................................................... 59

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P2 Compulsory conference ......................................................... 54 R5 Contract to benefit successors and assignees...................... 59
P3 Mediation ............................................................................... 54 R6 Severability ............................................................................. 60
P4 Legal rights.............................................................................. 54 R7 Waiver .................................................................................... 60
R8 Governing law ........................................................................ 60
Q Termination of engagement R9 Compliance with law.............................................................. 60
Q1 Owner may require contractor to remedy default .............. 55
E R10 Change in *relevant legislation ............................................. 60
Q2 Owner may immediately terminate ...................................... 55 R11 Interpretation of headings .................................................... 60
Q3 Owner may take possession of the *site .............................. 55 R12 Contractor and owner to observe confidentiality................ 60
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Q4 Assignment of contractor’s rights ......................................... 55 R13 General interpretation........................................................... 60

S Definitions 61
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© 2018 Australian Institute of Architects / Master Builders Australia Ltd

Simple Works Contract for Housing in NSW Page ii ABIC SW 2018 H NSW
Checklist for owners
1 Have you checked that the contractor holds a current contractor licence? Yes  No 
2 Does the licence cover the type of work included in the contract? Yes  No 
3 Is the name and number on the contractor’s licence the same as on the contract? Yes  No 
4 Is the work to be undertaken covered in the contract, drawings or specification? Yes  No 
5 Does the contract clearly state a contract price or contain a warning that the Yes  No 
contract price is not known?
6 If the contract price may be varied, is there a warning and an explanation about Yes  No 
how it may be varied?
7 Are you aware of the cooling-off provisions relating to the contract? Yes  No 
8 Is the deposit within the legal limit of 10%? Yes  No 
9 Does the contract include details of the progress payments payable under the Yes  No 

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contract?
10 Do you understand the procedure to make a variation to the contract? Yes  No 
11 Are you aware of who is to obtain any council or other approval for the work? Yes  No 
12 Do you understand that you are not required to pay the contractor a deposit or

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any progress payments until the contractor has given you a certificate of
insurance under Part 6 or Part 6B of the Home Building Act 1989 (except where the
work is of a kind that does not require insurance)? Yes  No 

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12A Does the contract include the following: (a) the cost of insurance under Part 6 of
the Home Building Act 1989, OR (b) the cost of the alternative indemnity product
under Part 6B of the Home Building Act 1989? Yes  No 
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13 Has the contractor given you a copy of the Consumer Building Guide, which
provides key information about your rights and responsibilities under NSW’s
Yes  No 
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home building laws and where to get more information?
14 Does the contract include a statement about the circumstances in which the
contract may be terminated? Yes  No 
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Signatures
Do not sign this contract unless you have read and understand the clauses as well as the notes and
explanations contained in this document. If you have already answered “no” to any question in the
checklist, you may not be ready to sign the contract.
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Both the contractor and the owner should retain an identical signed copy of this contract including the
drawings, specifications and other attached documents. Make sure that you initial all attached
documents and any amendments or deletions to the contract.
Signed copy of contract
Under the Home Building Act 1989 a signed copy of the contract must be given to the owner within
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5 *working days after the contract is entered into.

Insurance under Part 6 or Part 6B of the Home Building Act 1989
The contractor must provide the owner with a certificate of insurance under Part 6 or Part B of the
Home Building Act 1989 before the contractor commences work and before the contractor can request or
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receive any payment.

Acknowledgement by owners
I/We have been given a copy of the Consumer Building Guide and I/we have read and understand it.
I/We have completed the checklist and answered “Yes” to all items on it.
Note. Where the owner is a company or partnership or the contract is to be signed by an authorised agent of the
owner, the capacity of the person signing the contract, eg director, must be inserted.

Signature _ Signature

Name [print] ___________________________ Name [print] __________________________
Capacity [print] ___________________________ Capacity [print] __________________________

© 2018 Australian Institute of Architects / Master Builders Australia Ltd

ABIC SW 2018 H NSW For definitions, see pages 61 to 63 Simple Works Contract for Housing in NSW
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Contract information – Schedule 1
Item 1 The owner The contractor
Name:

ABN (if applicable):

Registration/licence no:

Representative:

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Address for notices:

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Email:
Mobile:

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Telephone:

Facsimile:

If the *party is an individual, individual trustee,

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partnership or unincorporated association
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Signed by *party:
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Signed by witness:

Name of witness:
Date of signing:
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If the *party is a corporation, corporate trustee or

incorporated association
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Common seal of *party:

(if applicable)
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Signed by:
Capacity: Officer / Director / Secretary Officer / Director / Secretary
Print name:

Signed by:
Capacity: Officer / Director / Sole Director Officer / Director / Sole Director
Print name:
Date of signing:

Representative:

Address:

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Email:

Mobile:
Telephone:

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Facsimile:

Item 2 The architect

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Clause A6
Name:

Registration number
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Representative:
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Address for notices:
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Email:

Mobile:
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Telephone:

Facsimile:

Item 3 Special conditions

Clause B2
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Are there any other special conditions? Yes No

If yes, schedule 2a applies. Strike out whichever doesn’t apply

Will the owner remain in occupation? Yes No

If yes, schedule 2b applies. Strike out whichever doesn’t apply
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Signature of owner: __________________________________

Signature of contractor: __________________________________

Plus *GST: $

*Contract price: $
Cost of home building compensation
insurance included in the above price: $ incl. GST
Warning – The *contract price may be subject to adjustment due to the following:
clause B2 Order of precedence of documents

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clause E5 Limited right to arrange insurances
clause F7 *Latent condition or *valuable item
clause G8 Costs of opening up or testing
clause J1 Architect may instruct *variation to the *works
clause J8 Contractor entitled to make claim for *official document

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clause K4 Adjustment for *provisional or *prime cost sum
clause L1 Adjustment of time with costs
clause M7 Failure to issue notice of *practical completion

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clause M8 Possession before *practical completion
clause N8 Failure to issue certificate
clause N15 Interest on overdue amounts
clause R10
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Change in *relevant legislation
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See also clause A4 on page 22 for both parties to sign.

Signature of owner: __________________________________

Item 5 The *works

Clause A2
Brief description of the *works:
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Item 6 The site of the works

Clause A2
The address/location of the *site:
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Item 7 Security provided by the contractor

Item 7a Is the contractor to give security to the
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Clause C1 owner? Yes No

Strike out whichever doesn’t apply

Item 7b Cash Retention

Clauses C1 Owner’s nominated type of security: Unconditional Guarantee
Strike out whichever doesn’t apply. If
neither selected, cash retention is default

Item 8 Percentage of *contract price for cash

Clause C2
retention %
If nothing stated, 5%

Item 10 Period for payment of certificates and

Clauses C4,
C6,C7, N6, N13,
for release of security calendar days
N16, Q10, Q18 If nothing stated, 7 calendar days

Item 11 Public liability insurance

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Clause E1
Is the owner or the contractor to take out and
maintain public liability insurance?
If nothing stated, the contractor

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Item 12 Contract works insurance
Clause E2
Is the owner or the contractor to take out and

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maintain contract works insurance?
If nothing stated, the contractor

Item 13 Amount to cover fees of the architect

Clause E4.1
and other consultants
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If nothing stated, 10% of the *contract price
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Item 14 Amount to cover cost of demolition
Clause E4.1
and removal of debris
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If nothing stated, 10% of the *contract price

Item 15 Amount of insurance for injury,

Clause E4.2
illness, disease or death
If nothing stated, $20,000,000.00
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Item 16 Insurance excess

Clause E9
Clause E1: Amount of excess for
public liability insurance:
If nothing stated, $1,000.00
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Clause E2: Amount of excess for

contract works insurance:
If nothing stated, $1,000.00
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Item 17 Percentage for the contractor’s

Clause H2
overheads and profit %
If nothing stated, 15%

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Item 19 Percentage of difference to be added

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Clause K4.2
to the *contract price %
If nothing stated, 10%

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Item 20 Allowance for delay due to disruptive
Clauses L2, L4
weather conditions *working days
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Item 21 Other allowances for delay having
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Clauses L2, L4
regard to the nature of the contract
and the *works which do not entitle
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*adjustment of time costs

Cause: Allowance (*working days):
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Item 22 Date for *practical completion

Clause M1
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Owner’s initials_________________ © 2018 Australian Institute of Architects / Master Builders Australia Ltd Contractor’s initials_________________
ABIC SW 2018 H NSW For definitions, see pages 61 to 63 Page 5 Simple Works Contract for Housing in NSW
Schedule 1 – Contract information
Item 23 Commissioning tests for *practical
Clause M1
completion

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Item 24 Rate for liquidated damages $ per calendar day
Clause M9 (including any *GST)

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Item 25 Defects liability period for the *works months
Clause M13 If nothing stated, 12 months

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Item 26 Not used E
Item 27 Information to be included in a
Clause N3
progress claim
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Item 28 Interest rate on overdue amounts %

Clause N15 If nothing stated, 10% per annum

Item 29 Official documents

Item 29a Official documents required to begin the works

but to be obtained by the contractor:
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Item 29b *Official documents required to complete the

*works but to be obtained by the owner:

Owner’s initials_________________ © 2018 Australian Institute of Architects / Master Builders Australia Ltd Contractor’s initials_________________
Simple Works Contract for Housing in NSW For definitions, see pages 61 to 63 Page 6 ABIC SW 2018 H NSW
Contract information – Schedule 1
Item 30 *Deposit provided by the owner
Item 30a Is the owner to give a *deposit to the
Clauses N4, N16 contractor? Yes No
Strike out whichever doesn’t apply

Item 30b If yes in item 30a, the amount of *deposit is: $ incl. *GST
Clause N4, N16 If nothing stated, $0.00

Refer to Information Statement for maximum Dollar value must not be more than the
deposit amounts permitted under the *Act maximum percentage in the *Act of the
*contract price

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Owner’s initials_________________ © 2018 Australian Institute of Architects / Master Builders Australia Ltd Contractor’s initials_________________
Simple Works Contract for Housing in NSW For definitions, see pages 61 to 63 Page 8 ABIC SW 2018 H NSW
Owner occupier special conditions – Schedule 2b
The owner remains in occupation
Item 3 of schedule 1

These special conditions only apply for projects where the owner will remain in occupation
during construction:

Replace clause A2.1a with the following:

begin the *works within 10 *working days after being given access to the *site

Replace clause A4.3c with the following:

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give access to the *site in accordance with this contract

Replace clause D1.1 with the following:

Subject to clause D2, from the time the contractor is given access to the *site until 4.00pm on the
date of *practical completion, the contractor bears the risks described in the following clauses.

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Replace clause D1.4c with the following:

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any structure on the *site before the time the contractor is given access to the *site

Replace clause D3.1 with the following:

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Subject to clause D4, from 4.00pm on the day the architect issues the notice of *practical completion,
the owner bears the risks described in the following clauses.
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Replace the first paragraph of clause E1.1 with the following:
Subject to clause E3.1, from the time the contractor is given access to the *site until 4:00pm on the
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day the architect issues the final certificate to the contractor and to the owner, the party nominated
in item 11 of schedule 1 must take out and maintain insurance naming the contractor, its
subcontractors and the owner as insureds, against:

Replace clause E2.1 with the following:

Subject to clause E3.1, from the time the contractor is given access to the *site until 4:00pm on the
day the architect issues the final certificate for the *necessary work to the contractor and to the
owner, the party nominated in item 12 of schedule 1 must take out and maintain insurance
naming the contractor, its subcontractors and the owner as insureds against loss of or damage to
the items referred to in clause D1.4.
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Replace clause E5.1a with the following:

the nominated party fails to satisfy the other *party that insurances under clause E1 or clause E2,
and complying with the required terms, are in place at the time access to the *site is given or
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Replace clause F1 with the following:

.1 The owner must give the contractor access to the *site within 10 *working days after the
owner:
a has received, or the architect as the agent of the owner has received, a copy of the
contract executed by both parties
b is satisfied that all the insurances required under section E to be provided by the
contractor, are in place; and
c has received, or that architect as the agent of the owner has received, any
*official document required under item 29a of schedule 1.

Replace clause L1.1b with the following:

the owner failing to give access to the *site in accordance with clause F1

Replace clause M1.2 with the following:

From 4.00pm on the day the architect issues the notice of *practical completion, the contractor ceases
to have access to the *works except by prior arrangement with the owner.

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Replace clause Q3.1 with the following:
If the owner terminates the engagement of the contractor under clause Q1 or Q2 before *practical
completion, the owner may exclude the contractor from the *site.

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1. The special conditions shown in schedule 2a and schedule 10.

2. The owner occupier conditions shown in schedule 2b.
3. The conditions set out in this contract and schedule 1.
4. The specifications described below:

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5. The drawings listed below:
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6. All other documents described below:

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for [insert amount $AUD]

in favour of [insert name of owner]

[Insert name of owner, and ABN if owner is a company] of [insert address] (owner) has entered into a
written contract dated [insert contract date] with [insert name of contractor and ABN] of [insert address]
(contractor) for the construction of the works described in that contract. The contract states that the

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contractor may elect to give security for the performance of the contract in the form of an unconditional
guarantee.

[Insert name of security provider] unconditionally undertakes that if the owner gives it a written notice
stating the basis and extent of its entitlement to draw on the undertaking and the amount to which it is

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entitled, the security provider will pay the owner the amount which the owner declares is due, up to a
maximum of the combined amount of [insert amount $AUD] (the Amount).

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It is not the responsibility of the security provider to investigate the accuracy or the reasonableness of the
contents of the notice or the declarant’s capacity to give the notice. The security provider will make the
payments without further reference to the contractor, despite any notice by the contractor or any other
person to the security provider not to pay the whole or any part of the amount.
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The security provider’s liability under this undertaking is not affected by any variation of the contract or
by any waiver by the owner of any default by the contractor.
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This undertaking remains in force until the first of the following events occurs:
• the owner notifies the security provider in writing that this undertaking is no longer required;
• the security provider pays the Amount to the owner;
• the owner informs the security provider that the contractor has performed all its obligations and
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paid all amounts required to be paid under the contract; or

• [insert date of expiry/termination of this undertaking].

This undertaking creates no rights in anyone except the owner and the owner’s successors and cannot be
assigned.
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This undertaking is governed by the law of [insert jurisdiction].

EXECUTED on [insert date] as a Deed.

Signed, sealed and delivered on behalf of [insert name of security provider] by its attorney [insert name
and address of attorney of security provider] declaring it has no notification of the revocation of the
power of attorney granted to it on [insert date] under which this undertaking is executed.

Signature of attorney

Signature of witness

Sum allowed Description Particular person†

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$

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$

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$ E
$
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$
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$
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$
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† Note: If the owner intends on using a particular person to carry out the work for which a *provisional
sum has been allowed the name of that person should be shown above. If the identity of the particular
person is not known at the time that this contract is executed the intention to use a particular person
should be indicated by inserting ‘Yes’ above in the column headed ‘Particular person’.

Sum allowed Description Particular person†

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$

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$

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$ E
$
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$
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$
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$
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† Note: If the owner intends on using a particular person to carry out the work for which a *prime cost
sum has been allowed the name of that person should be shown above. If the identity of the
particular person is not known at the time that this contract is executed the intention to use a
particular person should be indicated by inserting ‘Yes’ above in the column headed ‘Particular
person’.

Owner’s initials_________________ © 2018 Australian Institute of Architects / Master Builders Australia Ltd Contractor’s initials_________________
Simple Works Contract for Housing in NSW For definitions, see pages 61 to 63 Page 16 ABIC SW 2018 H NSW
Items to be supplied by the owner – Schedule 8
Items to be supplied by the owner for incorporation in the *works
Clause N1

Items to be supplied by the owner and installed by the contractor (and only the costs of
installation are included in the *contract price):

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Items to be supplied and installed by the owner (and no allowance has been included in
the *contract price for supply and installation):
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Owner’s initials_________________ © 2018 Australian Institute of Architects / Master Builders Australia Ltd Contractor’s initials_________________
ABIC SW 2018 H NSW For definitions, see pages 61 to 63 Page 17 Simple Works Contract for Housing in NSW
Schedule 9 – Insurance certificate
Form 1
(Clause 50(1))
Certificate in respect of insurance for residential building work
Home Building Act 1989
(Section 92, 96 or 96A)
Details of contract of insurance
A contract of insurance complying with section 92*/96*/96A* of the Home Building Act 1989
has been issued by [insert name of insurer.
* The contract was issued in respect of [insert brief description of building work] at [insert the

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address or description of the land] to be carried out by [insert name and licence number of licensed
contractor].
OR

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* The contract was issued in respect of [insert brief description of building work] by [insert name
and address of licensed contractor and period of insurance] ___.

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Period of insurance
Subject to the Home Building Act 1989 and the Home Building Regulation 2014 and the conditions
of the insurance contract, cover will be provided to:
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(a) * a beneficiary described in the contract and successors in title to the beneficiary, OR
(b) * the immediate successor in title to the contractor or developer who did the work and
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subsequent successors in title.
Premium
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The premium in respect of the insurance is [insert total amount of premium] _______________.
Cost of additional products or services under contract
The cost of the additional products or services provided as part of the building cover contract
is [insert total costs of products or services under contract] ___________________________.
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Price
The total price of the insurance contract inclusive of any applicable taxes is [insert total price,
inclusive of tax].
Note: The total price does not include any brokerage or other costs to arrange the insurance contract.
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Additional Information
[Additional information, not inconsistent with the Act or Regulation, may be included here ]

Date: [insert date]

Signed for or on behalf of the insurer:

[insert signature]
* Delete whichever is not applicable.
IMPORTANT NOTE
Your contractor must give you either:
(a) a certificate of combined cover, OR
(b) 2 certificates, one covering construction period cover and a second certificate covering the
warranty period for the work.

Schedule 2, Part 1

Conditions to be included in certain contracts

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Part 1 – Contracts to do residential building work

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1 Plans and specifications
(1) All plans and specifications for work to be done under this contract, including any variations to

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those plans and specifications, are taken to form part of this contract.
(2) Any agreement to vary this contract, or to vary the plans and specifications for work to be done
under this contract, must be in writing signed by or on behalf of each party to this contract.
(3) This clause does not apply to a contract of the kind referred to which section 7AA (Consumer
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information) of the Home Building Act 1989 applies.
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2 Quality of construction
(1) All work done under this contract will comply with:
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(a) the Building Code of Australia (to the extent required under the Environmental Planning and
Assessment Act 1979, including any regulation or other instrument made under that Act),
and
(b) all other relevant codes, standards and specifications that the work is required to comply
with under any law, and
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(2) Despite subclause (1), this contract may limit the liability of the contractor for a failure to comply
with subclause (1) if the failure relates solely to:
(a) a design or specification prepared by or on behalf of the owner (but not by or on behalf of
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the contractor), or
(b) a design or specification required by the owner, if the contractor has advised the owner in
writing that the design or specification contravenes subclause (1)
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Description of works comprising each stage of the *works Claim amount for stage
(incl. GST)

1. $

2. $

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3. $

4. $

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5. $

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6. $
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7. $
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8. $
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9. $
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10. $

11. $
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12. $
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13. $

14. $

15. $

Total of all claims (incl. GST)† $

† Note: The total of all claims stated above must equal the *contract price in item 4 of schedule 1.

A1 Cooperative contracting
.1 Under this contract, the contractor and the owner must:
a act reasonably
b cooperate in all matters
c avoid obstructing the other and
d provide all reasonable assistance and cooperation to the other who is a claimant under
an insurance policy required by this contract.
.2 These obligations do not affect either *party’s rights or responsibilities under this contract.

A2 Obligations of the contractor

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.1 The contractor must:
a begin the *works within 10 *working days after being given possession of the *site
b diligently carry out all *necessary work and complete the *works to the standard set out
in the *contract documents

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c keep the *site and any area affected by the *works clean and tidy at all times
d comply with all instructions issued under this contract by the architect
e obtain all *official documents required under this contract to complete the *works, and

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any shown in item 29a of schedule 1
f comply with all other obligations under this contract
g comply with all *relevant legislation
h
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bring the *works to *practical completion in accordance with clause M1
i provide the owner with the most recent version of the Consumer Building Guide
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document issued from time to time by the by the Office of Fair Trading before this
contract is executed.
.2 If the contractor’s capacity to complete the *works is altered to the extent that it may be
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unable to meet its obligations, it must immediately inform the architect and the owner in
writing.
.3 The contractor:
a acknowledges that the owner has appointed it as the principal contractor for the
*works as defined in the Work Health and Safety Regulation 2011
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b will discharge the responsibilities imposed on it as the principal contractor under the
Work Health and Safety Regulation 2011
c subject to the terms of this contract, acknowledges that it is responsible for the *works
at all times until the *works are completed
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d on behalf of the owner, will erect signs, that are clearly visible from outside the *site
and on which the name and contact telephone numbers (including an after-hours
emergency telephone number) of the contractor are stated.
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Owner’s initials_________________ © 2018 Australian Institute of Architects / Master Builders Australia Ltd Contractor’s initials _________________
ABIC SW 2018 H NSW For definitions, see pages 61 to 63 Page 21 Simple Works Contract for Housing in NSW
A Overview
A3 Warranties by the contractor
.1 The contractor warrants that it:
a has the capacity to enter into this contract
b has the skill and the technological, human and financial resources necessary to
perform its obligations
c is registered or licensed, as the case may be, in accordance with the *relevant legislation
to carry out the *works and the registration or licence number is shown in item 1 of
schedule 1
d has been allocated the Australian Business Number (ABN) shown in item 1 of
schedule 1 for taxation purposes and that it is registered for *GST

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e will notify the owner *promptly of any change in its ABN, *GST registration, or the
status of its licence or registration to carry out the *works.
.2 The contractor warrants pursuant to section 18B of the *Act that:
a the *works will be performed with due care and skill and in accordance with the plans

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and specification set out in the *contract documents
b all materials to be supplied by the contractor for use in the *works will be good and
suitable for the purpose for which they are used and that, unless the *contract

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documents state otherwise, those materials will be new
c the *necessary work will be done in accordance with and will comply with the *Act or
any other law
d
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the *necessary work will be done with due diligence and within the time stipulated in
the contract, or, if no time is stipulated, within a reasonable time
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e as the *works consists of the construction of a dwelling, the making of alterations or
additions to a dwelling or the repairing, renovation, decoration or protective treatment
of a dwelling, the *works will result, to the extent of the *necessary work conducted, in a
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dwelling that is reasonably fit for occupation as a dwelling

f as the particular purpose for which the *works are required and the result which the
owner wishes the *works to achieve is described in the *contract documents and the
owner relies on the contractor’s skill and judgement, the contractor warrants that the
*works and materials will be reasonably fit for the specified particular purpose or
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result.

A4 Obligations of the owner

.1 The owner may rescind this contract by giving the contractor written notice before the end
of 5 clear *business days after:
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a the owner is given a copy of this contract or

b the owner becomes aware that he or she is entitled to receive a signed copy of this
contract.
.2 The *contract price, subject to adjustment under this contract, is stated in item 4 of schedule 1.
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In accordance with the *Act, the *contract price is stated on the first page of the contract and
the contractor and the owner have placed their initials if shown below confirming the
amount shown is the same as stated in item 4 of schedule 1

Signature of owner: __________________________________

Signature of contractor: __________________________________

Owner’s initials_________________ © 2018 Australian Institute of Architects / Master Builders Australia Ltd Contractor’s initials _________________
Simple Works Contract for Housing in NSW For definitions, see pages 61 to 63 Page 22 ABIC SW 2018 H NSW
Overview A
.3 The owner must:
a subject to subclause A2.1e, obtain and give to the contractor all *official documents
required to begin the *works and any shown in item 29b of schedule 1
b obtain from neighbouring owners all easements that are required before the *works can
begin
c give possession of the *site in accordance with this contract
d appoint an architect to administer this contract and provide appropriate *contract
documents for the *works, given the nature of the *works
e indemnify the contractor for any liability incurred by the contractor to the extent that
the liability is a result of any default or negligence of the architect or any other
consultant the owner engages in relation to the *works

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f issue instructions to the contractor only through the architect
g pay the contractor the *contract price as adjusted in accordance with this contract
h comply with all other obligations under this contract.
.4 If the owner’s financial position alters to the extent that it may be unable to meet its

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obligations under this contract, it must immediately inform the contractor and the architect
in writing.
.5 If the owner does not own the property on which the *works are to be carried out, written

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permission from the property owner for the *works to be carried out must be provided by the
owner to the contractor. The contractor is released from any obligations under the contract if
the owner fails to provide this written permission.
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A5 Warranties by the owner
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.1 The owner warrants that it has the financial resources necessary to perform its obligations.
.2 If the owner has financed the *works using a lending institution, the owner warrants that the
institution is shown in item 1 of schedule 1.
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.3 If the owner has shown an Australian Business Number (ABN) in item 1 of schedule 1, it
warrants that:
a the ABN is correct
b it will notify the contractor if it is not registered for *GST and
c it will *promptly notify the contractor if its ABN or registration status changes.
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.4 The owner:
a appoints the contractor as the principal contractor for the *works as defined in the Work
Health and Safety Regulation 2011
b authorises the contractor to exercise such authority of the owner as is necessary to
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enable the contractor to discharge the responsibilities imposed on the contractor as the
principal contractor under the Work Health and Safety Regulation 2011
c acknowledges that the contractor is responsible for the *works at all times until the
*works are completed
d subject to subclause A2.3d, will ensure that signs, that are clearly visible from outside
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the *site and on which the name and contact telephone numbers (including an after
hours emergency telephone number) of the contractor are stated, are placed on the
*site.

Owner’s initials_________________ © 2018 Australian Institute of Architects / Master Builders Australia Ltd Contractor’s initials _________________
ABIC SW 2018 H NSW For definitions, see pages 61 to 63 Page 23 Simple Works Contract for Housing in NSW
A Overview
.5 The owner warrants that all *owner-specified materials comply with the *building code.
However, if the contractor:
a is or becomes aware that the *owner-specified materials don’t or will not comply, or
b has a reasonable doubt about whether the *owner-specified materials do or will comply,
with the *building code
then the contractor must *promptly give the owner a notice and a copy to the architect,
identifying the relevant *owner-specified materials and stating that they may not be compliant
with the *building code and may not be fit for the intended purpose. If the *owner-specified
materials are not compliant with the *building code and the contractor has not given such a
notice, then the warranty in clause A5.5 does not apply and is of no effect.
.6 A notice given under clause A5.5 is not a request for an instruction.

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A6 Architect to administer contract
.1 The architect for the purposes of this contract is shown in item 2 of schedule 1.
.2 The architect is appointed to administer this contract on behalf of the owner and the owner

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warrants that the architect has authority to administer this contract.
.3 The architect is the owner’s agent for giving instructions to the contractor and agreeing to
*variations. However, in acting as assessor, valuer or certifier, the architect acts independently

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and not as the agent of the owner.
.4 The owner must ensure that the architect, in acting as assessor, valuer or certifier, complies
with this contract and acts fairly and impartially, having regard to the interests of both the
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owner and the contractor. The owner must not compromise the architect’s independence in
acting as assessor, valuer or certifier.
.5 The architect is not the owner’s agent for giving or receiving notices under clause A8,
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clause A9, section P and section Q.
.6 If the architect resigns, or becomes incapable of acting as architect, or if the owner terminates
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the engagement of the architect, the owner must immediately nominate another architect and
give written notice of the name and address of the architect to the contractor.
.7 If the contractor has no reasonable objection to the nominated architect, that person will be
appointed as the architect for the purposes of this contract.
.8 The newly appointed architect is bound by the written decisions of any previous architect.
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A7 Architect’s instruction
.1 The architect may issue an instruction at any time during this contract provided that the
instruction is given in writing.
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A8 Disputing architect’s certificate or written decision

.1 If a *party wishes to dispute a certificate, notice, written decision or written assessment
issued by the architect, the *party must give the architect written notice under this
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clause within 20 *working days after receiving the certificate, notice, written decision or
written assessment.
.2 If the *party fails to give a notice under subclause A8.1, that *party will not be entitled to
dispute the matter at all.
.3 The architect must assess a notice given under subclause A8.1 and give a written decision to
the *party and the other *party within 10 *working days.
.4 If a *party wishes to dispute a written decision given under subclause A8.3, the requirements
of section P apply.

Owner’s initials_________________ © 2018 Australian Institute of Architects / Master Builders Australia Ltd Contractor’s initials _________________
Simple Works Contract for Housing in NSW For definitions, see pages 61 to 63 Page 24 ABIC SW 2018 H NSW
Overview A
A9 Disputing architect’s failure to act
.1 If a *party wishes to dispute the failure of the architect to issue something, the *party must
give the architect written notice under this clause A9 *promptly after becoming aware of the
failure of the architect to issue something.
.2 The architect must assess a notice given under subclause A9.1 and give a written decision to
the *party and the other *party within 10 *working days.
.3 If a *party wishes to dispute a written decision given under subclause A9.2, or the architect’s
failure to give that decision, the requirements of section P apply.

A10 Failure to give certificate, written decision or notice is not acceptance

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.1 If the architect fails to issue a certificate, notice, written decision or written assessment
required under this contract in respect of a claim, this does not mean that the claim has been
accepted or is valid.

A11 Compensation is sole remedy

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.1 If the contractor or the owner is entitled to compensation as determined under this contract,
that compensation, when paid in full, is the sole and complete remedy for the contractor or

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the owner under this contract.

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B1 Discrepancies or omissions in documents

.1 If either *party discovers a discrepancy, an ambiguity, or an omission in, or between, any of
the *contract documents, that *party must *promptly give written notice to the architect. The
architect must *promptly resolve the discrepancy, the ambiguity, or the omission by giving a
written instruction to the contractor and a copy to the owner.

B2 Order of precedence of documents

.1 Unless otherwise shown in schedule 3, the order of precedence of the *contract documents is
as follows:
a any special conditions shown in schedule 2a

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b any owner occupation special conditions shown in schedule 2b and schedule 10
c the conditions set out in this contract and schedule 1
d the specifications for the *works in the order shown in schedule 3
e the drawings for the *works shown in schedule 3

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f any other document in the order shown in schedule 3.
.2 Large scale drawings take precedence over small scale drawings.
.3 An instruction from the architect to resolve a discrepancy, an ambiguity, or an omission that

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is not in accordance with the order of precedence referred to in clause B2, is an instruction
for a *variation.

B3 Contractor and owner must supply copies of *official documents

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.1 The contractor and the owner must *promptly give to the architect or the architect must
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*promptly give to the contractor, a copy of any *official document either in or coming into its
possession in relation to the *works.
.2 An *official document is:
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a any report, notice, order, permit, licence, approval or other document required or
issued by an *authorised person in relation to the *works
b any document listed in item 29 of schedule 1
c any statutory approval
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d an approval for provision of infrastructure services to the site

e any other document required under any *relevant legislation.
.3 An *authorised person is a building inspector or certifier or other person authorised under
*relevant legislation having jurisdiction over the *works.
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C1 Security provided to owner

.1 If the contractor is required by item 7a of schedule 1 to provide security for performance of
its obligations under this contract, the contractor must:
a allow the owner to withhold a cash retention sum or
b provide the owner with the *unconditional guarantees
according to the alternative required by item 7b of schedule 1.

C2 Security to owner by cash retention

.1 If the security provided by the contractor is cash retention, the owner may withhold up to
10% of each progress payment until the value held equates to the percentage shown in item 8

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of schedule 1 of the *contract price.
.2 The owner must hold the cash retention, including interest earned on it, less any bank fees or
charges on the account, as trustee for the contractor in a separate bank account.
.3 A legal or accounting practice’s trust account will not discharge the owner’s obligations

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under clause C2.2.

C3 Security to owner by *unconditional guarantees

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.1 If the security provided by the contractor is *unconditional guarantees, the contractor must
within 10 *working days after this contract is executed give to the owner two *unconditional
guarantees each equal in value to the percentage shown in item 9a of schedule 1 of the
*contract price.
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.2 An *unconditional guarantee is an unconditional undertaking or a performance undertaking
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from a recognised financial institution approved by the owner. The guarantees must be of an
approved type. The type shown in schedule 5 is approved.
.3 If the owner is registered for *GST and able to claim an *input tax credit, the value of the
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*unconditional guarantees which must be provided to the owner is exclusive of the *GST
component of the *contract price.

C4 Owner’s right to draw on security provided to it

.1 The owner may draw on the security provided by the contractor under clause C1 only if:
a a certificate issued by the architect in favour of the owner under any of clause N4,
N11, Q9 or Q17 is not paid by the contractor within the period shown in item 10 of
schedule 1
b the contractor has not disputed the relevant certificate under clause A8 and
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c the owner has complied with the procedure set out in clause C5.

C5 Procedure for owner to draw on security provided to it

.1 To draw on the security under clause C4, the owner must first notify the contractor and the
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architect in writing of the basis and amount of its entitlement. The notification is not required
if the architect has issued a certificate in favour of the owner under clause Q9 or Q17.
.2 If the security is cash retention, the owner may then draw on the cash retention to the extent
of its entitlement.
.3 If the security is by *unconditional guarantees, the owner must first give to the security
provider a written demand for payment stating the amount of its entitlement.

Owner’s initials_________________ © 2018 Australian Institute of Architects / Master Builders Australia Ltd Contractor’s initials _________________
ABIC SW 2018 H NSW For definitions, see pages 61 to 63 Page 27 Simple Works Contract for Housing in NSW
C Security
C6 Owner’s release of security on *practical completion
.1 When the architect issues the notice of *practical completion, the contractor is entitled to the
release of 50% of the amount of the security then held.
.2 If the security is cash retention:
a the architect must give to the contractor a certificate equal to 50% of the amount of the
security then held at the same time that the notice of *practical completion is issued
b the contractor, on receiving the certificate, must prepare a *tax invoice in accordance
with clause N5 and give both documents to the owner for payment
c the amount stated in the certificate must be paid in accordance with clause N6.
.3 If the security is by *unconditional guarantees, the owner must return one of the guarantees to

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the contractor within the period shown in item 10 of schedule 1.

C7 Owner’s release of security on final certificate

.1 When the architect issues a final certificate for the *works under clause N11, or a certificate

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under clause Q9 or Q17, as the case may be, the owner must release to the contractor any
remaining security for the *works less any amount owing to the owner under the certificate.
.2 If the security is cash retention, the architect must take into account any remaining security

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when preparing the final certificate.
.3 If the security is by *unconditional guarantee and:
a the certificate is in favour of the contractor, the owner must give to the contractor the
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remaining *unconditional guarantee within the period shown in item 10 of schedule 1
b the certificate is in favour of the owner, the certificate is evidence of the basis and
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amount of the owner’s entitlement, and the owner may draw on the security under
clause C5 before returning the remaining *unconditional guarantee to the contractor
within the period shown in item 10 of schedule 1.
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D1 Risk before *practical completion

.1 Subject to clause D2, from the time the contractor is given possession of the *site until 4.00pm
on the day the architect issues the notice of *practical completion, the contractor bears the risks
described in the following subclauses.
.2 The risk of injury to or illness, disease or death of any person occurring as a result of the
*works, on or in the immediate vicinity of the *site.
.3 The risk of loss of, or damage to, the property of any person occurring as a result of the
*works, on or in the immediate vicinity of the *site.
.4 The risk of loss of, or damage to and any of the following items on or in the immediate
vicinity of the *site:

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a the *works
b any *necessary work
c any structure on the *site before the time the contractor is given possession of the *site
d on-site materials or equipment intended to be incorporated in the *works, including
any items shown in schedule 8 and

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e plant, tools and equipment.

D2 Indemnity before *practical completion

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.1 While the contractor bears the risks described in clause D1, the contractor must indemnify
the owner in respect of any liability arising from negligence or breach of contract or breach of
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statutory duty by the contractor or any of the contractor’s employees, agents, licensees or
subcontractors.
.2 The amount of the contractor’s indemnity to the owner is reduced to the extent to which the
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owner or any of its employees or agents is responsible for the personal injury, illness,
disease, death or loss or damage.
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.3 Except if expressly provided otherwise in this contract, if the contractor is to indemnify,

reimburse, pay a contribution or pay damages to the owner under this clause or under any
other clause, the amount the contractor must pay the owner is:
a reduced by any *input tax credit directly obtained or obtainable by the owner and
b increased by *GST the owner has paid or will pay on that indemnity, reimbursement,
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contribution or damages.

D3 Risk after *practical completion

.1 Subject to clause D4, from 4.00pm on the day the architect issues the notice of *practical
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completion, the owner bears the risks described in the following subclauses.
.2 The risk of injury to, or illness, disease or death of any person on or in the immediate vicinity
of the *site.
.3 The risk of loss of, or damage to, the property of any person on or in the immediate vicinity
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of the *site.
.4 The risk of loss of, or damage to, any of the following items on or in the immediate vicinity of
the *site:
a the *works and
b materials or equipment intended to be incorporated in the *works, including any
items shown in schedule 8.

Owner’s initials_________________ © 2018 Australian Institute of Architects / Master Builders Australia Ltd Contractor’s initials _________________
ABIC SW 2018 H NSW For definitions, see pages 61 to 63 Page 29 Simple Works Contract for Housing in NSW
D Liability
D4 Indemnity after *practical completion
.1 While the owner bears the risks described in clause D3, the owner must indemnify the
contractor in respect of any liability arising from negligence or breach of contract or breach of
statutory duty by the owner or any of the owner’s employees, agents or licensees.
.2 The obligation of the owner to indemnify the contractor is reduced to the extent to which the
contractor or any of its employees, agents or subcontractors is responsible for the personal
injury, illness, disease, death or loss or damage.
.3 Except if expressly provided otherwise in this contract, if the owner is to indemnify,
reimburse, pay a contribution or pay damages to the contractor under this clause or under
any other clause, the amount the owner must pay the contractor is:

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a reduced by any *input tax credit directly obtained or obtainable by the contractor and
b increased by *GST the contractor has paid or will pay on that indemnity,
reimbursement, contribution or damages.

D5 Reinstatement during period when contractor bears risk

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.1 If an event occurs which causes loss or damage during the period when the contractor bears
the risk, the contractor must *promptly reinstate, at its own expense, the lost or damaged

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items referred to in subclause D1.4.
.2 The owner must indemnify the contractor for the cost of reinstatement under this clause to
the extent to which the owner, its employees or agents was responsible for the event which
caused the loss or damage.
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E1 Public liability insurance

.1 From the time the contractor is given possession of the *site until 4.00pm on the day the
architect issues the final certificate to the contractor and to the owner, the party nominated in
item 11 of schedule 1 must take out and maintain insurance naming the contractor, its
subcontractors and the owner as insureds, against:
a injury to or illness, disease or death of, any person occurring directly as a result of the
*necessary work, on or in the immediate vicinity of the *site (excluding liability in
respect of worker’s compensation and employer’s liability) and
b loss of, or damage to the property of, any person occurring directly as a result of the
*necessary work, on or in the immediate vicinity of the *site (except the *works, or

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materials or equipment on the *site that are intended to be incorporated in the *works,
or plant, tools and equipment used on the *site).
.2 The policy must contain all terms required by law and the following terms:
a the insurance covers the interests of the owner, the contractor and any other person
involved in the *necessary work

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b the policy does not apply to loss or liability caused by breach of professional duty by
the owner’s consultants or any other person involved in the *necessary work

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c the insurer’s rights of subrogation against any insured are excluded (although this
exclusion may be limited to the right of subrogation against an insured to the extent of
that insured’s interest under the policy).
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E2 Contract works insurance
.1 From the time the contractor is given possession of the *site until 4.00pm on the day the
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architect issues the final certificate to the contractor and to the owner, the party nominated in
item 12 of schedule 1 must take out and maintain insurance naming the contractor, its
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subcontractors and the owner as insureds against loss of or damage to the items referred to
in subclause D1.4.
.2 The policy must contain any term required by law and each of the following:
a the insurance covers the interests of the owner and the contractor
b notice of a claim given by any one insured is effective in relation to each of the
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insureds
c the insurer’s rights of subrogation against any insured are excluded (although this
exclusion may be limited to the right of subrogation against an insured to the extent of
that insured’s interest under the policy).
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E3 Entitlement to *input tax credit

.1 The *parties must each notify their insurer of their respective entitlement to an *input tax
credit on the insurance premium within 20 *working days of the insurance being taken out.
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Each *party must indemnify the other for any loss arising out of the *party’s failure to notify
the insurer. On request by a *party, the other *party must provide evidence that it has
complied with this clause.

Owner’s initials_________________ © 2018 Australian Institute of Architects / Master Builders Australia Ltd Contractor’s initials _________________
ABIC SW 2018 H NSW For definitions, see pages 61 to 63 Page 31 Simple Works Contract for Housing in NSW
E Insurance
E4 Insurance cover
.1 The insurance against loss of or damage to the items referred to in clause E2 must cover:
a the full reinstatement or replacement cost of the *works, materials and equipment on
the *site that are intended to be incorporated in the *works, and plant, tools and
equipment used on the *site
b additional consultants’ fees including the architect’s fees, relating to the reinstatement
or replacement for the amount shown in item 13 of schedule 1
c any necessary demolition and removal of debris, for the amount shown in item 14 of
schedule 1 and
d all *GST associated with reinstatement and replacement of the *works.

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.2 The insurance against liability for injury, illness, disease or death must be at least for the
amount shown in item 15 of schedule 1.

E5 Limited right to arrange insurances

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.1 If one of the *parties is required to take out and maintain either of the insurances under
clause E1 or E2, the other may do so if:
a the nominated party fails to satisfy the other *party that insurances under clause E1 or

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E2, and complying with the required terms, are in place at the time possession of the
*site is given or
b the nominated party fails to comply *promptly with a request from the other *party for
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either, a statement in writing setting out all the provisions of the insurances, or
insurance documentation to the satisfaction of the other *party or
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c the nominated party fails to satisfy the other *party that the insurance remains in place.
.2 If the other *party takes out and maintains insurance under this clause and wishes to recover
the cost from the nominated party, it must submit to the architect a claim that sets out
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evidence of the premium cost. The architect must take the claim into account in preparing
the next certificate and adjust the *contract price accordingly.

E6 Contractor and owner not to affect insurance

.1 The contractor and the owner must not do or fail to do anything, or allow anything to be
done or not be done, which might affect any insured’s right to recover from the insurer in
respect of damage or liability covered by an insurance.

E7 Worker’s compensation and employer’s liability insurances

.1 The contractor must maintain worker’s compensation or employer’s liability insurance in

accordance with the statutory scheme that applies under this contract until the final
certificate for the *works is issued under clause N11. If that scheme does not provide for an
indemnity against a common law damages claim by a worker, the contractor must also
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maintain insurance against that risk.

.2 The contractor must ensure that each of its subcontractors maintains similar insurances.

Owner’s initials_________________ © 2018 Australian Institute of Architects / Master Builders Australia Ltd Contractor’s initials _________________
Simple Works Contract for Housing in NSW For definitions, see pages 61 to 63 Page 32 ABIC SW 2018 H NSW
Insurance E
E8 Insurance claims
.1 Subject to subclause E8.2, the contractor has the primary responsibility to make any claim
under an insurance policy required by this contract.
.2 The owner must make a claim if the owner, its agents, employees or licensees directly causes
the event giving rise to the loss.
.3 The following are the obligations of either the owner or the contractor when making an
insurance claim for any loss or damage arising from an insured event:
a the insurance claim must be made *promptly
b the *party making the insurance claim must provide all information which is required
under the relevant insurance policy

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c the *party making the insurance claim must *promptly notify the architect in writing on
becoming aware of the event giving rise to the insurance claim
d the notice must contain details of the insurance claim
e the *party making the insurance claim must *promptly give the architect any additional

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information the architect reasonably requests.

E9 Payment of excess

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.1 The *party making a claim under an insurance policy arranged under clause E1 or E2 must
pay the excess.
.2 The *party paying the excess may recover the excess cost from the other *party in proportion
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to the extent to which the personal injury, illness, disease or death or loss or damage is the
result of negligence, or breach of contract or breach of statutory duty by the other *party. The
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excess paid under clause E9.1 that is to be reimbursed, is the amount shown in item 16 of
schedule 1.
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E10 Contractor entitled to make progress claim as result of loss or damage

.1 If an event occurs which causes loss or damage to:
a *necessary work undertaken between the last progress claim and the time that the event
giving rise to the loss or damage occurred, or
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b materials or equipment delivered to the *site since the last progress claim that are
intended to be incorporated in the *works,
the contractor is entitled to submit an additional progress claim to the architect for the
*necessary work or materials or equipment on the *site that were, or were intended to be,
incorporated in the *works, as the case may be, to which the loss or damage occurred.
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E11 Warranty insurance

.1 Where required by the *Act the contractor must:
a take out and maintain a policy of insurance which complies with the *Act
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b give the owner a copy of a completed certificate in respect of the insurance and any
other document in the form and as required by the *Act.

F1 Owner to give contractor possession of the *site

.1 The owner must give the contractor possession of the *site within 10 *working days after the
owner:
a has received, or the architect as the agent of the owner has received, a copy of the
contract executed by both *parties
b is satisfied that all of the insurances required under section E to be provided by the
contractor, are in place
c has received, or the architect as agent of the owner has received, any *official document
required under item 29a of schedule 1 to be obtained by the contractor.

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F2 Contractor’s obligations in relation to the *site
.1 In relation to the *site, the contractor must give the owner, the architect, separate contractors,
consultants and, if applicable, a representative of the owner’s lending institution, access on
reasonable terms to the *site and all other places at which *necessary work is carried out in

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relation to the *works by or on behalf of the contractor, after being given reasonable notice.
.2 If access to the site is given for the purposes in clause F2.1, the contractor may exclude from
the site, without prior notice, any person on the site who does not comply, or in the

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contractor’s reasonable opinion may have not complied, with the contractor’s work health
and safety policies and procedures.

F3 Owner warrants that it has given contractor the *site information

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.1 The owner warrants that it has given the contractor all the *site information in its possession at
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least 5 *working days before the closing of tenders.
.2 *site information includes any reports, surveys, test results, plans, specifications, computations
or other information such as foundations data, soils tests or geotechnical tests and any other
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information regarding the *site and the physical conditions on and underlying the *site
shown in schedule 4.

F4 Contractor to examine the *site information

.1 Before executing this contract, the contractor must have examined the *site information and
have inspected the *site and its surroundings and, having done so, is entitled to rely on the
*site information to the extent that it is reasonable to do so, having regard to the nature of the
*site and its surroundings.
.2 The contractor must indemnify the owner against a claim for any loss, expense or damage
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incurred by a subcontractor engaged by the contractor or any other person as a result of the
contractor failing to examine the *site information or inspect the *site.
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Owner’s initials_________________ © 2018 Australian Institute of Architects / Master Builders Australia Ltd Contractor’s initials _________________
Simple Works Contract for Housing in NSW For definitions, see pages 61 to 63 Page 34 ABIC SW 2018 H NSW
The site F
F5 If contractor discovers a *latent condition or *valuable item
.1 The contractor must notify the architect in writing and seek instructions within 5 *working
days if the contractor discovers:
a a *latent condition affecting the *site which the contractor considers may result in it
incurring loss, expense or damage, or may affect its ability to bring the *works to
*practical completion by the date for *practical completion as adjusted or
b a *valuable item on the *site.
.2 A *latent condition is a physical condition on, underlying or adjacent to the *site which a
competent contractor would not have anticipated if the contractor had examined the *site
information and inspected the *site before executing this contract.

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.3 A *valuable item includes minerals, money, treasure, fossils, archaeological remains, historic
objects or relics.
.4 Any *valuable item remains the property of the owner and the contractor must take all
necessary steps to avoid removal of, loss of, or damage to, any *valuable item.

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F6 Architect to instruct in relation to a *latent condition or *valuable item
.1 The architect must *promptly give the contractor a written instruction regarding a *latent

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condition or *valuable item.

F7 Contractor entitled to claim for latent condition or valuable item

.1
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The contractor is entitled to make a *claim to adjust the contract in relation to a written
instruction given by the architect regarding the discovery of a *latent condition or a *valuable
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item.
.2 The requirements for making a *claim to adjust the contract and the procedures to be followed
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are stated in section H.

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EF
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G1 Owner’s obligations
.1 The owner must give the contractor the necessary information to allow the contractor to
properly set out the *works including sufficient information to locate a reference set-out
mark.

G2 Contractor’s obligations
.1 The contractor must:
a set out the *works and have the setting out certified by a licensed surveyor
b direct the manner of performance of the *necessary work
c supervise the *necessary work competently

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d maintain satisfactory industrial relations in relation to the *works
e maintain compliant occupational health and safety on the *site.

G3 Contractor to appoint representative

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.1 The person named as the contractor’s representative in item 1 of schedule 1 is the
contractor’s representative for the purposes of this contract, particularly for receiving
instructions from, and giving information to, the architect. The contractor may change its

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representative by giving written notice to the architect.
.2 The contractor must ensure that a contractor’s representative is appointed at all times.
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G4 Subcontracting
.1 The contractor may subcontract any part of the *works, but not the *works as a whole. The
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contractor is liable for the *necessary work done by its subcontractors.
.2 The contractor must take responsibility for any acts and omissions of its suppliers and
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subcontractors in relation to the *works.

.3 The relevant provisions of this contract must be included in contracts the contractor makes
with its suppliers or subcontractors. The contractor must fully inform all potential suppliers
or subcontractors of the contractor’s relevant obligations under this contract.
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G5 Contractor to give program to architect

.1 The contractor must give the architect a program within 10 *working days after being given
possession of the *site. The program must include each of the following:
a the dates of commencement and completion of the major stages of the *works
b the date for *practical completion
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c the start and completion dates of all trades

d a critical path.
.2 The program is not part of this contract.
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G6 Contractor to give updated program

.1 The contractor must give the architect an updated program when the date for *practical
completion has been adjusted by 5 *working days or more or such other period as agreed. The
updated program must indicate how the previous program has been affected by any
adjustments of time.

G8 Contractor entitled to claim for costs of opening up or testing

.1 The contractor is entitled to make a *claim to adjust the contract in relation to any loss, expense
or damage that results from an instruction under clause G7, only if the opening up or testing
does not reveal *defective work.

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.2 The requirements for making a *claim to adjust the contract and the procedures to be followed
are stated in section H.

G9 When contractor entitled to unfixed or demolished materials

.1 The contractor owns and will own the following:

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a all demolished materials, and
b all unfixed materials supplied by the contractor, but only until the owner has paid for

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the materials.
.2 Clause G9.1 applies unless the *contract documents state otherwise.
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H1 Time for making a *claim to adjust the contract

.1 The contractor is entitled to make a *claim to adjust the contract only if the contractor:
a *promptly notifies the architect in writing of its intention to make a claim after
receiving an instruction or, if no instruction is issued, *promptly notifies the architect
after becoming aware of an event that will result in a claim and
b submits the detailed *claim to adjust the contract to the architect within a time agreed in
writing between the contractor and the architect or, if no time is agreed, within 20
*working days after receiving an instruction or, if no instruction is issued, within 20
*working days after becoming aware of the event that has resulted in the claim and, for
these purposes, an event is not a consequence of an instruction.

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.2 If the claim results from an instruction to proceed with a *variation, the requirements for
submission of the claim are set out in clause H2.
.3 If the claim results from a delay in the progress of the *works, the contractor is not required to
give the first notification required under subclause H1.1, but the detailed claim must be
submitted within 20 *working days after the *urgent instruction is issued or the suspension

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ends or the delay ends.

H2 Details required for claim

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.1 A *claim to adjust the contract must contain the following details:
a identification of the architect’s instruction that caused the claim or, if none has been
issued, details of the event and the basis for the claim
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b a breakdown, on a trade by trade basis, of any extra costs or savings including:
.1 the cost of relevant preliminaries and
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.2 the allowance for contractor’s overheads and profit at the rate shown in item 17
of schedule 1
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c reference to the rates and unit prices in any bill of quantities, if applicable
d reference to schedules of rates, if applicable
e any documentation required to be provided under any *relevant legislation
f any required adjustment to the date for *practical completion and
g any *adjustment of time costs associated with the claim.
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H3 Architect to assess claim

.1 The architect must *promptly assess the *claim to adjust the contract and in so doing the
architect must consider the detailed claim submitted by the contractor and any further
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information the architect requests the contractor to supply.

.2 If the architect needs additional information to assess the claim, the architect must issue a
written request to the contractor.
.3 The contractor must *promptly give to the architect any additional information the architect
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reasonably requests.

Owner’s initials_________________ © 2018 Australian Institute of Architects / Master Builders Australia Ltd Contractor’s initials _________________
Simple Works Contract for Housing in NSW For definitions, see pages 61 to 63 Page 38 ABIC SW 2018 H NSW
Claims to adjust the contract H
H4 Architect to give assessment
.1 The architect must, within 20 *working days after receiving the claim, issue to the contractor
and to the owner its written decision specifying any adjustment to the *contract price or any
adjustment to the date for *practical completion, or both.
.2 The contractor may dispute the architect’s decision or a failure to issue a decision issued
under this clause in accordance with clause A8 but, in accordance with clause P1, must
continue to perform its contractual obligations.

H5 Sum recoverable for claim for *adjustment of time costs

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.1 If a sum or sums per day is shown in item 18 of schedule 1, a claim by the contractor is
limited to that sum. If no sum or sums per day is shown, the contractor is entitled to an
adjustment to the *contract price equal to the loss, expense or damage it incurs as a result of
the approval of an adjustment by the architect to the date for *practical completion.

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H6 Architect may adjust contract in absence of claim
.1 If the contractor has not made a *claim to adjust the contract in relation to any change which

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results from complying with any instruction given under section J for a *variation or from
causes of delay noted in clause L1 or L2, the architect may adjust the contract at any time up
to the issue of the final certificate under clause N11, or a certificate under clauses Q9 or Q17.
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I Not used
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J1 Architect may instruct variation to the works

.1 The architect may give to the contractor a written instruction for a *variation at any time
before the date of *practical completion. However, except if subclause J2.2 applies, the
contractor must continue to perform the *works in accordance with the *contract documents
until it receives an instruction to proceed under clause J3.
.2 The instruction for a *variation may include an instruction to provide within 20 *working days,
or longer period if stated in the instruction, the following:
a a detailed quotation for the whole of the cost of, or any saving, as a result of the
*variation and its effect on the *contract price and the contract stages in schedule 11,
signed by the contractor
b an estimate of the effect of the *variation on the date for *practical completion, signed by

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the contractor.
.3 The contractor may request an instruction to proceed from the architect if it considers that a
*variation may be required. The request must be in writing, signed by the contractor, and
state:

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a the reason for and scope of, the *variation
b its effect on the date for *practical completion
c the full cost of the *variation, its effect on the *contract price and the contract stages in

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schedule 11.
.4 A *variation is a change to:
a the scope of the *works as contemplated by the *contract documents and capable of being
executed under this contract
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b a dimension or level of the *works
c the materials, workmanship or quality of any part of the *works
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d a detail of the *works or
e the order of precedence of the *contract documents referred to in clause B2.
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.5 If the contractor receives an *official document which requires a *variation, the procedures in
clauses J6 to J8 apply.

J2 Contractor to review instruction

.1 The contractor must review any written instruction issued by the architect under clause J1.
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.2 If the instruction for a *variation will not:

a result in an adjustment to the *contract price or
b require an adjustment to the date for *practical completion
then the contractor:
c must *promptly confirm in writing, identifying the instruction, that no adjustment to
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the contract price or date for practical completion is required and

d is not entitled to any adjustment to the contract as a result of carrying out the
instruction.
.3 If the instruction will:
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a result in an adjustment to the *contract price or

b require an adjustment to the date for *practical completion
or both, the contractor must within 20 *working days, unless it has received an instruction
under subclause J1.2 to provide information, notify the architect in writing, stating:
c the effect of the *variation on the date for *practical completion
d the full cost of the *variation and its effect on the *contract price.
.4 The contractor must continue to carry out the *works in accordance with the *contract
documents until a further instruction is received under clause J3, and is not entitled to any
adjustment to the contract as a result of carrying out an instruction to which subclause J2.3
applies, unless it receives an instruction to proceed following its notification under
subclause J2.3.

Owner’s initials_________________ © 2018 Australian Institute of Architects / Master Builders Australia Ltd Contractor’s initials _________________
Simple Works Contract for Housing in NSW For definitions, see pages 61 to 63 Page 40 ABIC SW 2018 H NSW
Variation to the works J
J3 Architect to instruct whether *variation is to proceed
.1 Within 5 *working days after receiving a confirmation under subclause J2.2 or notification in
accordance with subclause J2.3, the architect must either:
a instruct the contractor in writing whether or not to proceed or
b instruct or further instruct the contractor, as the case may be, under subclause J1.1.
.2 Within 5 *working days after receiving all requested or further information required under
subclause J1.2, or a request under subclause J1.3, the architect must instruct the contractor
whether or not to proceed with the *variation.
.3 An instruction to proceed under this clause J3 must be in writing and must:
a attach a copy of the contractor’s quote or estimate given under subclause J1.2 or the

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notification given under subclause J2.3 (as applicable) or
b attach a copy of the contractor’s confirmation given under subclause J2.2 and
c include the architect’s signed acceptance on behalf of the owner, of the quotation,
notification or confirmation (as applicable).

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J4 If contractor receives written instruction to proceed
.1 If the architect instructs the contractor to proceed with the *variation, the contractor must:

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a *promptly proceed with the *variation and
b notify the architect in writing when the *necessary work for the variation has been
completed.
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J5 Adjustment to the contract after written instruction to proceed
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.1 If the architect issues under clause J3 a written instruction to proceed that accepts the
contractor’s quotation or estimate, the architect must in the next certificate adjust the
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*contract price and the date for *practical completion (if applicable) in accordance with the
quotation or estimate.

J6 If authorised person issues official document

.1 If an *authorised person issues an *official document to the contractor which requires a *variation
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to the *works, the contractor must notify the architect in writing *promptly after receiving the
*official document. The notification must request an instruction from the architect and provide
a copy of the *official document to the architect.

J7 Architect to give instruction

.1 If the architect receives an *official document from the contractor under clause J6 the architect
must *promptly issue a written instruction to the contractor regarding the *official document.
.2 The architect’s instruction must be an instruction in accordance with subclause J1.2.
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J8 Contractor entitled to make claim for *official document

.1 The contractor is only entitled to make a *claim to adjust the contract for any loss, expense or
damage that results from a written instruction issued under clause J7 if the circumstances
giving rise to the *official document being issued were beyond the contractor’s control.
.2 The requirements for making a *claim to adjust the contract and the procedures to be followed
are stated in section H.

K1 Provisional and prime cost sums included in contract

.1 A *provisional sum shown in schedule 6 is a sum exclusive of *GST included in the contract
for:
a performance of foreseeable *necessary work, including the supply of materials, not fully
described by the *contract documents on the date that this contract was executed.
b connection of an *infrastructure service to the *site, if the detail of the *infrastructure
service required, or the supplier of the *infrastructure service, was not known or had not
been finally decided on the date that this contract was executed.
.2 A *prime cost sum shown in schedule 7 is a sum exclusive of *GST included in the contract
for:

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a a foreseeable item of material or equipment, the precise identity of which was not
known or had not been specified at the date of the contract or,
b an allowance for payment of a fee or charge to a *relevant authority.
.3 The contractor agrees that it has made adequate allowance in the *cost of building work for the
scheduled *provisional sums and *prime cost sums including, but not limited to, its

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preliminaries, overhead and profit.
.4 The contractor agrees that the contract period contains an adequate allowance of time for any

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work to be performed under any *provisional sum or *prime cost sum to the extent that the
work was reasonably described in the *contract documents at the time that the contract was
executed.
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K2 Architect may instruct regarding *provisional or *prime cost sum
.1 Subject to subclause K2.6, nothing is to be done for which a *provisional sum or a *prime cost
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sum has been included in the contract except in accordance with an instruction from the
architect.
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.2 The architect may instruct the contractor to provide a written quotation for anything for
which a *provisional sum or a *prime cost sum has been included in the contract.
.3 The quotation must be for:
a the direct cost to the contractor of performing the *necessary work
b connection of an *infrastructure service
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c supplying, or supplying and installing an item of material or equipment or

d the amount of a fee or charge to a *relevant authority,
excluding any margins for preliminaries, overheads, profit or *GST. The contractor must
notify the architect in writing if *GST is not applicable to the fee or charge.
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.4 Except in relation to payment of a fee or charge to a *relevant authority, if the architect agrees
with the quotation, the architect must issue an instruction to proceed accepting the
quotation.
.5 Except in relation to payment of a fee or charge to a *relevant authority, if the architect:
a does not agree with the quotation or
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b has not instructed the contractor to provide a quotation,

the architect may instruct the contractor to proceed, in which case the architect must issue a
decision in accordance with clause H4.
.6 The contractor may pay a fee or charge to a *relevant authority for which a *prime cost sum has
been included in the *cost of building work without first receiving an instruction from the
architect.

Owner’s initials_________________ © 2018 Australian Institute of Architects / Master Builders Australia Ltd Contractor’s initials _________________
Simple Works Contract for Housing in NSW For definitions, see pages 61 to 63 Page 42 ABIC SW 2018 H NSW
Adjustment of provisional and prime cost sums K
K3 Architect may instruct contractor to use particular person for *provisional or *prime
cost sum
.1 Except for payment of a fee or charge to a *relevant authority, the architect may give an
instruction to the contractor for a person other than the contractor to perform work or to
supply or supply and install an item for which a *provisional sum or *prime cost sum has been
included in the *cost of building work.
.2 The architect may only issue an instruction under this clause if the person is identified in
schedule 6 or schedule 7, or the intention to use a particular person whose identity was not
known at the time the contract was executed is shown in schedule 6 or schedule 7.

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K4 Adjustment for *provisional or *prime cost sum
.1 The architect must adjust the *cost of building work to take account of any difference between a
*provisional sum or *prime cost sum and:
a the accepted quotation,

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b the architect’s assessment of a claim under subclause K2.5,
c the amount of a fee or charge to a *relevant authority,

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as applicable. The architect must adjust the *cost of building work in the next progress
certificate.
.2 If the assessed cost of performance of the *necessary work, connection of an *infrastructure
service, or supply, or supply and installation is more than the *provisional sum or *prime cost
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sum, the extra cost will be increased by the percentage shown in item 19 of schedule 1 and
added to the *cost of building work.
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.3 If the assessed cost of performance of the *necessary work, connection of an *infrastructure
service, or supply, or supply and installation is less than the *provisional sum or *prime cost
sum, the difference will be deducted from the *cost of building work.
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.4 In relation to a fee or charge paid to a *relevant authority, the architect must adjust the *cost of
building work by deducting, or adding, the net difference between the *prime cost sum and the
actual fee or charge.
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L1 Causes of delay which entitle making a claim for adjustment of time with costs
.1 The contractor may make a claim for an adjustment to the date for *practical completion and
*adjustment of time costs in respect of a delay affecting *working days, caused by:
a loss of or damage to the *works, or materials or equipment on the *site that are
intended to be incorporated in the *works, or plant or equipment used on the *site,
provided that loss or damage was not caused by an act or omission of the contractor
b the owner failing to give possession of the *site in accordance with clause F1
c an architect’s instruction
d *relevant authorities, including a private building surveyor, failing to *promptly give
approval for the *works (except when the delay is caused by an act or omission of the

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contractor)
e a dispute with a nearby owner or occupier (except one caused by an act or omission of
the contractor)
f the owner’s consultants failing to *promptly provide necessary information which is
properly due to the contractor or which the contractor has specifically requested in

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writing
g widespread industrial unrest not limited to the *site or to any other sites on which only

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the contractor or any of its subcontractors is working
h a suspension of the *necessary work under clause Q12
i a breach of this contract by the owner
j an act of prevention by the owner not otherwise covered by this clause.
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.2 The contractor must take all reasonable steps to minimise the impact of the delay on the
progress of the *works.
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.3 A claim to adjust the date for *practical completion with or without *adjustment of time costs is
a *claim to adjust the contract.
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.4 The requirements for making a *claim to adjust the contract and the procedures to be followed
are stated in section H.

L2 Causes of delay which entitle making claim for adjustment of time without costs
.1 The contractor may make a claim for an adjustment to the date for *practical completion but
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not for *adjustment of time costs caused by:

a disruptive weather conditions exceeding the allowance shown in item 20 of
schedule 1
b any other circumstance exceeding the allowance shown in item 21 of schedule 1.
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.2 The requirements for making a *claim to adjust the contract and the procedures to be followed
are stated in section H.

L3 Contractor to notify of delay

.1 When progress of the *works is delayed by any of the causes in clause L1 or L2, the contractor
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must, within 2 *working days of becoming aware of the start or end of a delay, as the case may
be, notify the architect in writing:
a that the *works are being delayed, and state when the delay began, give a description
of the cause or causes of the delay and give an estimate of the number of *working days
affected and
b that the delay has ended, and state when the delay ended.
.2 Subject to subclause L3.1, delays of less than 2 *working days may be notified in the same
notice.

Owner’s initials_________________ © 2018 Australian Institute of Architects / Master Builders Australia Ltd Contractor’s initials _________________
Simple Works Contract for Housing in NSW For definitions, see pages 61 to 63 Page 44 ABIC SW 2018 H NSW
Adjustment of time L
L4 Contractor to allow for delays
.1 The contractor warrants that the number of *working days it has allowed to complete the
*works includes a reasonable allowance for delay due to weather conditions or the effect of
weather conditions that is reasonable, having regard to the time of the year when the
*necessary work is likely to be carried out, and which will disrupt a *critical construction
activity. The contractor’s allowance is shown in item 20 of schedule 1.
.2 A *critical construction activity is an activity which is part of the *necessary work that if delayed
will have a direct effect on subsequent activities such that the contractor’s ability to achieve
*practical completion by the date for *practical completion will be affected.

L5 Adjustment of provisional allowance for delays

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.1 The contractor is not entitled to an adjustment of time for any of the causes under clause L4
until the provisional allowance stated in items 20 and 21 of schedule 1 has been exceeded for
that cause.

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L6 Overlapping delays
.1 Subject to clauses L4 and L5, when one or more *critical construction activities are delayed by

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more than one cause at the same time, the architect must assess any *claim to adjust the
contract in accordance with this clause L6.
.2 If one overlapping cause of delay further extends the delay resulting from another
overlapping cause, the contractor is entitled to:
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a an adjustment of time equal to the time from the commencement of the first occurring
delay to the end of the last overlapping delay, and
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b *adjustment of time costs for that part of any delay due to an event described in
clause L1 that is not simultaneous with a delay due to an event described in clause L2.
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.3 If one overlapping cause of delay does not further extend the delay resulting from another
overlapping cause, the contractor is entitled to:
a an adjustment of time equal to the period of time from the first occurring overlapping
delay and
b *adjustment of time costs for that part of any delay due to an event described in
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clause L1 that is not simultaneous with a delay due to an event described in clause L2.
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M1 *Practical completion
.1 The contractor must bring the *works to *practical completion by the date for *practical
completion shown in item 22 of schedule 1 as adjusted in accordance with this contract. The
*works are at *practical completion when, in the reasonable opinion of the architect:
a they are substantially complete and any incomplete work or *defects remaining in the
*works are of a minor nature and number, the completion or rectification of which is
not practicable at that time and will not unreasonably affect occupation and use
b all commissioning tests in relation to the plant and equipment shown in item 23 of
schedule 1 have been carried out successfully and
c any approvals required for occupation have been obtained from the *relevant

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authorities and copies of *official documents evidencing the approvals have been
provided to the architect.
.2 Subject to clause M11, the owner takes possession of the *works at 4.00pm on the date the
architect issues the notice of *practical completion.

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M2 Inspection by the contractor
.1 At least 10 *working days before the date the contractor expects that *practical completion will

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be reached, the contractor must inspect the *works and prepare a detailed schedule of *defects
and incomplete work and give a copy of the schedule to the architect.
.2 At the same time, the contractor must give the architect a written timetable for the correction
of *defects and completion of incomplete work.
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M3 Notification to architect of *practical completion
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.1 When the contractor considers that the *works are at *practical completion, the contractor must
notify the architect in writing and give a copy of the detailed schedule of *defects and
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incomplete work indicating that each item has been corrected or completed to the
satisfaction of the contractor.
.2 The architect must commence its inspection of the *works *promptly and complete the
inspection within an agreed time or, if none is agreed, within 10 *working days. The architect
must issue a notice or instruction under clause M4 or M5.
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.3 Within the agreed time for the architect’s inspection, or if none is agreed, within 10 *working
days, the contractor must give the architect any *official documents required for occupation
and evidence that all the commissioning tests shown in item 23 of schedule 1 have been
successful.
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M4 Architect to decide if the works have reached practical completion

.1 If the architect decides that the *works have reached *practical completion, the architect must
give written notice of *practical completion to the contractor and to the owner within 5
*working days after completing the inspection. The notice must state the date when *practical
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completion was reached.

.2 The architect must also notify the owner in writing that security must be released in
accordance with clause C6.

M5 If the works not at practical completion

.1 If the architect considers that the *works are not at *practical completion the architect must give
a written notice to the contractor copied to the owner, listing what is to be done for *practical
completion to be reached. The architect must give the notice to the contractor within 5
*working days after completing the inspection.

Owner’s initials_________________ © 2018 Australian Institute of Architects / Master Builders Australia Ltd Contractor’s initials _________________
Simple Works Contract for Housing in NSW For definitions, see pages 61 to 63 Page 46 ABIC SW 2018 H NSW
Completion of the works M
M6 Contractor to bring the *works to *practical completion
.1 If the architect gives notice to the contractor under clause M5, the contractor must *promptly
do whatever is necessary for *practical completion to be reached. The contractor must notify
the architect in writing when it considers the *works have reached *practical completion. The
procedures under clauses M2 to M6 apply until the architect decides that the *works have
reached *practical completion.

M7 If architect fails to issue notice of *practical completion

.1 If the architect fails to issue a notice under clause M4 or M5 within 5 *working days of
completion of the inspection, the contractor may request in writing that the architect issue a

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notice.
.2 If the architect fails to issue a notice within 5 *working days of the request:
a the contractor may make a *claim to adjust the contract for any loss, expense or damage
that results from the failure of the architect to issue a notice and
b the date of *practical completion will be the date identified in the contractor’s notice

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made under clause M3 and
c any security must be released in accordance with clause C6.

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.3 The requirements for making a *claim to adjust the contract and the procedures to be followed
are stated in section H.

M8 Possession of the works before practical completion

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.1 If the owner takes possession of the *works before the architect issues the notice of *practical
completion, the *works are to be treated as having reached *practical completion. The architect
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must issue to the contractor and to the owner a notice of *practical completion within 5
*working days after being notified in writing that the owner has taken possession, unless
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clause M4 applies.
.2 If the owner takes possession of the *works before the architect issues the notice of *practical
completion the contractor may make a *claim to adjust the contract.
.3 The requirements for making a *claim to adjust the contract and the procedures to be followed
are stated in section H.
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M9 Liquidated damages may be payable

.1 If the *works have not reached *practical completion by the date for *practical completion as
adjusted, the architect must *promptly notify the contractor and the owner in writing of the
owner’s entitlement to liquidated damages.
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.2 Up to 20 *working days after the date of issue of the notice of *practical completion, the owner
may notify the architect in writing whether it will enforce its entitlement to liquidated
damages against the contractor.
.3 The contractor is liable to pay or allow to the owner liquidated damages at the rate shown in
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item 24 of schedule 1.

Owner’s initials_________________ © 2018 Australian Institute of Architects / Master Builders Australia Ltd Contractor’s initials _________________
ABIC SW 2018 H NSW For definitions, see pages 61 to 63 Page 47 Simple Works Contract for Housing in NSW
M Completion of the works
M10 Deduction of liquidated damages
.1 If the owner notifies the architect in writing under clause M9, then the architect must:
a notify the contractor of the owner’s decision within one *working day, and
b deduct liquidated damages from the next and subsequent progress certificates, as
applicable.
.2 If, after the architect has issued a certificate in which an allowance for the owner’s
entitlement to liquidated damages has been made, an adjustment is made to the date for
*practical completion, with the result that the owner’s entitlement to liquidated damages is
altered, or the owner has advised that it no longer wishes to enforce its entitlement to
liquidated damages, the architect must make an appropriate adjustment in the next

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certificate.

M11 Contractor to correct *defects and finalise work

.1 The contractor must correct any *defects or finalise any incomplete work, whether before or

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after the date of *practical completion, within the agreed time as stated in an instruction or if
no time is stated, within 10 *working days after receiving a written instruction from the
architect to do so.

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M12 If the contractor fails to correct *defects and finalise work
.1 If the contractor fails to correct a *defect or finalise any incomplete work within the time
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nominated under clause M11 or fails to show reasonable cause for the failure together with a
timetable for correcting the problem that is acceptable to the architect, the owner may use
another person to correct the problem at the cost of the contractor.
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.2 If the owner is required to use another person to rectify a problem, the owner is entitled to
make a *claim to adjust the contract in accordance with the procedure stated in clause H2.
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.3 If the owner makes a *claim to adjust the contract the architect must *promptly assess the claim
and may issue a certificate under clause N4.

M13 Defects liability period

.1 The defects liability period is shown in item 25 of schedule 1 and commences on the date of
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*practical completion of the *works. The owner must give the contractor access to the *site for
the duration of the defects liability period for the purpose of the contractor fulfilling its
obligation under clause M14.
.2 The architect may notify the contractor that, in respect of any part of the *works that has
undergone significant correction within the first defects liability period, a further defects
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liability period of equal length to the first defects liability period may run for that part. The
notification must be given at the time of acceptance of the corrected work.

M14 Contractor’s obligations during and after defects liability period

.1 If there is any remaining *defect or incomplete work, or the contractor becomes aware by
instruction from the architect or from the contractor’s own observations of any *defect or
incomplete work during the defects liability period, it must *promptly return to the *site and
correct the *defect or finalise the incomplete work. This obligation continues until the *defect is
corrected or the incomplete work is finalised, and does not come to an end when the defects
liability period is over.
.2 The architect cannot give the first instruction to correct an outstanding *defect or to finalise
any incomplete work after the end of the defects liability period, unless it is for the
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rectification of a latent *defect and the final certificate has not been issued.

Owner’s initials_________________ © 2018 Australian Institute of Architects / Master Builders Australia Ltd Contractor’s initials _________________
Simple Works Contract for Housing in NSW For definitions, see pages 61 to 63 Page 48 ABIC SW 2018 H NSW
Payment for the works N
N1 *Contract price
.1 The *contract price, shown in item 4 of schedule 1 is a lump sum and the contractor
represents that the *contract price allows for:
a everything reasonably required in accordance with this contract to complete the *works
b all *provisional sums and *prime cost sums shown in schedule 6 and schedule 7
c installation of any items shown in schedule 8 to be supplied by the owner and
installed by the contractor
d rise and fall
e all statutory taxes and charges applying 5 *working days before the closing of tenders
f import duties and tariffs on imported materials or equipment to be incorporated in or

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used in the completion of the *works applying 5 *working days before the closing date
for tenders
g exchange rates applying 5 *working days before the closing date for tenders
h relevant industrial awards and work place agreements, site allowances, building
industry superannuation levies and long service leave levies and

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i *GST.
.2 The *contract price does not include any items to be supplied and installed by the owner,

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shown in schedule 8 or specifically identified elsewhere in the *contract documents.

N2 Owner’s obligation to pay *contract price E

.1 The owner must pay the *contract price, adjusted in accordance with this contract in stages, in
accordance with this section N.
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N3 Stage payment claims – procedure for contractor
.1 The contractor may submit to the architect one claim for each stage shown in schedule 11, on
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or after the date the contractor claims that the stage has reached *stage completion. The claim
is not a *tax invoice.
.2 For the purposes of this section N, *stage completion means that the *necessary work for the
stage being claimed is, in the reasonable opinion of the architect, complete, except for:
a *defects or defective work and
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b incomplete *necessary work of a minor nature

that will not compromise the performance of the *necessary work required for the next stage
and which are capable of being rectified in the next or a subsequent stage.
.3 The claim must identify any amount of *GST that has been included in the claim. The claim
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must be supported by any information shown in item 27 of schedule 1 and a declaration

made by the contractor that:
a all wages and other entitlements including building industry superannuation and long
service leave levies due at the date of the declaration have been paid to or on behalf of
all employees of the contractor
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b all monies due to subcontractors at the date of the declaration have been paid
c all insurances required to be maintained by the contractor are in force.

Owner’s initials_________________ © 2018 Australian Institute of Architects / Master Builders Australia Ltd Contractor’s initials _________________
ABIC SW 2018 H NSW For definitions, see pages 61 to 63 Page 49 Simple Works Contract for Housing in NSW
N Payment for the works
N4 Progress claims – procedure for architect
.1 Within 10 *business days after receiving a claim made under clause N3.1, the architect must:
a attend the *site, inspect the *works for that stage being claimed under clause N3.1
and assess whether or not that stage has reached *stage completion and
b subject to clause N4.3, assess the claim and issue to the contractor and to the owner a
certificate setting out any payment due to either the owner or the contractor.
.2 If the stage being claimed has reached *stage completion, the contractor is entitled to the
dollar amount set out in schedule 11 for completing that stage, subject to applicable
adjustments assessed in accordance with clause N4.4 for that stage.
.3 If the stage being claimed has not reached *stage completion, then the architect cannot issue

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a certificate under clause N4.1b and the procedures in clauses M3, M5 and M6 apply as if
all references to *practical completion were instead references to *stage completion and the
contractor’s claim under clause N4.1b is taken to be the contractor’s notice to be given
under clause M3.1.

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.4 When assessing a claim for a progress payment the architect must take account of each of
the following:
a adjustments in accordance with sections H or K to the *cost of building work since any

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previous assessment
b *variations for which all the *necessary work has been completed during that stage and
for which an adjustment to the *contract price has been approved by the architect
c
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an allowance for cash retention where clause C2 applies
d any claim by the owner for a set off of monies due under this contract
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e the owner’s entitlement to liquidated damages, in accordance with clause M9, since
any previous certificate, calculated up to the date of the certificate
f any other matter to be taken into account in accordance with this contract
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g *GST
h if applicable under clause N17, the amount of the *deposit paid by the owner under
clause N16.1.
.5 The certificate must identify the amount of *GST that has been included and the architect
must give written reasons for any difference between the *cost of building work amount
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certified and the (*GST exclusive) amount claimed.

.6 If the architect reasonably needs additional information to assess the claim, the architect
must *promptly ask the contractor for it. If that information is needed to assess only part of
the claim, the architect must assess the rest of the claim.
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N5 *Tax invoice
.1 On receiving a certificate from the architect, the *party to be paid must deliver the certificate
to the other *party for payment. If the *party to be paid is registered for *GST, it must, at the
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same time, deliver a *tax invoice equal in value to the certificate to the other *party.

N6 Certificates – obligation to pay

.1 The amount stated as owing in any certificate must be paid within the period shown in
item 10 of schedule 1 after delivery of the certificate and the *tax invoice (if applicable).
.2 The architect may issue a certificate for payment at any time up until the final certificate is
issued.

N8 If architect fails to issue certificate

.1 If the architect fails to issue a certificate on time the contractor may issue a notice in writing
to the owner, copied to the architect, requesting the owner to ensure that the architect issues

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the certificate within 5 *working days after the date the notice is delivered.
.2 If the architect fails to issue the certificate within 5 *working days after the date the notice is
delivered, the contractor is entitled to payment of the full amount of the progress claim
within 7 calendar days after the date the notice was delivered.

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.3 If the owner then fails to pay the full amount of the progress claim in accordance with
subclause N8.2, the contractor may immediately suspend the *necessary work in accordance
with clause Q12.

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N9 Contractor entitled to make claim
.1 The contractor is entitled to make a *claim to adjust the contract for any loss, damage or
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expense that results from the suspension of the *necessary work under clause Q12.
.2 The requirements for making a *claim to adjust the contract and the procedures to be followed
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are stated in section H.

N10 Final claim – procedure for contractor

.1 The contractor is entitled to submit to the architect a final claim for payment when:
a all defects liability periods have ended
b the contractor has rectified all *defects and finalised all incomplete work it became
aware of by instruction from the architect or from the contractor’s own observations
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during the defects liability period and

c the *works have been completed in accordance with this contract.
.2 The contractor’s final claim must identify any *GST included in the claim.
.3 The contractor must submit a final claim within 20 *working days after receiving a written
request to do so from the architect.
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.4 If the contractor fails to comply with a written request made under subclause N10.3 the
architect may determine the final claim.
.5 After a final claim has been made under subclause N10.1 or is treated as having been made
under subclause N10.4, the contractor is not entitled to make any further claims under this
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contract.

Owner’s initials_________________ © 2018 Australian Institute of Architects / Master Builders Australia Ltd Contractor’s initials _________________
ABIC SW 2018 H NSW For definitions, see pages 61 to 63 Page 51 Simple Works Contract for Housing in NSW
N Payment for the works
N11 Final certificate – procedure for architect
.1 The architect must *promptly assess the final claim. If the architect reasonably needs
additional information to do so, the architect may ask the contractor for it. The contractor
must *promptly give the architect any additional information the architect requests. The
architect must, within a reasonable time (not exceeding 10 *business days) after receiving the
final claim (or the additional information if requested) issue to the contractor and to the
owner a final certificate setting out the amount due for payment.
.2 The certificate must:
a identify the amount of *GST that has been included
b give written reasons for any difference between the (*GST exclusive) amount certified

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and the (*GST exclusive) amount claimed and
c notify the owner of its obligation to release any remaining security under clause C7.
.3 If the contractor fails to give the architect any additional information the architect asks for
within a reasonable time, the architect must *promptly assess the claim on the basis of the

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information the architect has.
.4 If the engagement of the contractor is terminated under clause Q1, Q2, Q13 or Q14 a
certificate will be issued in accordance with clause Q9 or Q17, as applicable.

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N12 Final certificate – *tax invoice
.1 On receiving the final certificate from the architect, the *party to be paid must deliver the
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final certificate to the other *party for payment. If the *party to be paid is registered for *GST,
it must, at the same time, deliver a *tax invoice equal in value to the final certificate to the
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other *party.

N13 Final certificate – obligation to pay

.1 The amount stated as owing in the final certificate must be paid within the period shown in
item 10 of schedule 1 after delivery of the certificate and the *tax invoice (if applicable).

N14 Effect of final certificate

.1 The final certificate must state the architect’s assessment of all outstanding entitlements
under this contract. The final certificate is evidence of the *parties’ entitlements under this
contract and that the contractor has performed its obligations under this contract, subject to
any matter already in dispute under section P.
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N15 Interest on overdue amounts

.1 Each *party must pay interest on any money that it owes the other but fails to pay on time. In
the case of the owner, this includes any delay caused by the failure of the architect to issue a
progress certificate on time.
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.2 The interest rate is shown in item 28 of schedule 1.

.3 The interest is calculated daily, from the date the money should have been paid. The interest
must be paid on the last day of each month. If interest due on the last day of a month is not
paid, it is immediately capitalised and added to the money outstanding.

Owner’s initials_________________ © 2018 Australian Institute of Architects / Master Builders Australia Ltd Contractor’s initials _________________
Simple Works Contract for Housing in NSW For definitions, see pages 61 to 63 Page 52 ABIC SW 2018 H NSW
Payment for the works N
N16 Payment of *deposit
.1 If the owner is required by item 30a of schedule 1 to provide a *deposit to the contractor, the
owner must provide the *deposit within the period shown in item 10 of schedule 1 after the
contractor has complied with clause C3 and section E (as applicable).
.2 If the owner is required by item 30a of schedule 1 to provide a *deposit to the contractor, the
contractor must:
a only apply the *deposit towards the contractor’s *cost of building work and to no other
purpose.
b not make any request, claim or demand on the owner to pay the *deposit unless and
until the contractor has complied with clause C3 (if applicable according to

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clause C1.1b) and has obtained all insurances under Section E, as well as home
warranty insurance (or equivalent).
.3 In calculating the *deposit amount stated in item 30b of schedule 1, the percentage (if
applicable) of the *contract price must not be higher than the applicable maximum limit set

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out in the *Act.

N17 Time for assessing *deposit

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.1 The architect must assess the *deposit only after the time the contractor submits the claim
immediately after *practical completion.
.2 When assessing that claim under clause N4, the architect must assess the *deposit by
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deducting from any amount owed by the owner to the contractor in this claim, the *deposit
paid by the owner under clause N16.2.
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O Not used
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P1 Each *party must continue to perform its obligations

.1 If a dispute or difference arises out of or in relation to this contract, the *parties must continue
to perform their obligations under this contract.

P2 Compulsory conference
.1 If a dispute or difference between the *parties arises out of or in relation to this contract:
a either *party may deliver a written dispute notice to the other which states what the
dispute is and requires the representatives of the *parties to meet within 5 *working days
after the dispute notice is delivered to make a bona fide attempt to resolve the dispute
or difference.

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b if the dispute or difference is not resolved within 5 *working days after the dispute
notice is delivered, representatives of the owner and the contractor with authority to
settle a dispute must meet within 10 *working days after the dispute notice is delivered
and make a bona fide attempt to resolve the dispute or difference.

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.2 The operation of this clause is not affected by one *party receiving a proposal under clause P3
from the other within 10 *working days after the dispute notice is delivered.

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P3 Mediation
.1 If the dispute or difference is not resolved within 10 *working days after the dispute notice is
delivered, representatives of the owner and the contractor with authority to settle a dispute
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may agree, subject to subclause P3.2, to resolve their dispute or difference by mediation.
.2 Mediation is only available if the *parties agree in writing to mediation within 20 *working
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days after a dispute notice is delivered.
.3 If the *parties fail to comply with subclauseP3.1, either *party may begin any legal
proceedings available to it.
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.4 After written agreement under subclause P3.2 to mediate the dispute or difference, and
within 25 *working days after a dispute notice is delivered, representatives of the owner and
the contractor with authority to settle a dispute must agree in writing on the identity of the
mediator or, if not, the *party that issued the dispute notice must request in writing, copied
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to the other *party, that the chairperson of the Chapter of the Resolution Institute in NSW,
nominates the mediator.
.5 Subject to subclause P3.4, the mediation must be conducted in accordance with the
mediation rules of the Resolution Institute unless the *parties agree alternative rules in
writing within 5 *working days after agreement or nomination of the mediator.
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.6 The mediation must commence within 10 *working days after agreement or appointment of
the mediator under subclause P3.4, unless the *parties agree in writing to a longer period.
.7 If the mediation has failed to resolve the dispute or difference when the mediator confirms
the mediation is concluded, either *party may begin any legal proceedings available to it
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P4 Legal rights
.1 Nothing in this contract prevents either *party from seeking resolution of any dispute under
this contract, in accordance with the *Act, at any time.

Q1 Owner may require contractor to remedy default

.1 If the contractor fails to meet a substantial obligation under this contract, the owner may give
the contractor a written notice requiring the contractor to remedy the default within 10
*working days. The notice must specify the default, and state that it is given under this clause.
.2 If the default is not remedied, or the contractor fails to show reasonable cause why it cannot
be remedied within 10 *working days, or such additional days as agreed with the architect, the
owner may terminate the engagement of the contractor by giving the contractor a written
notice of termination.
.3 The notice of termination must state that it is given under this clause and a copy must be
given to the architect.

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Q2 Owner may immediately terminate
.1 If an *insolvency event occurs in relation to the contractor, the owner may immediately
terminate the engagement of the contractor under this contract by giving the contractor a

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written notice of termination.
.2 The notice of termination must state that it is given under this clause and a copy must be
given to the architect.

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Q3 Owner may take possession of the *site
.1 If the owner terminates the engagement of the contractor under clause Q1 or Q2 before the
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architect has issued the notice of *practical completion:
a clause D3 applies as if the architect had issued the notice of *practical completion on the
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day the owner terminates the engagement of the contractor, and clauses E1 and E2
apply, except that the owner must take out the insurance and
b the owner may take possession of the *site and exclude the contractor from it.
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.2 The owner may take possession of any documents, plant, tools, unused materials and
equipment on the *site belonging to the contractor, and may use them in completing the
*works. The owner must make available for collection by the contractor, the items of which it
has taken possession, as soon as it receives the certificate issued under clause Q9. The owner
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is not liable for fair wear and tear of anything of which the owner has taken possession.
.3 At any time after termination of the contractor’s engagement, the architect may instruct the
contractor to remove all or some of its property from the *site. The contractor must comply
within 10 *working days, failing which the owner may remove the property identified in the
architect’s instruction, and dispose of it. The owner must give notice in writing to the
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contractor and the architect of the amount the property is disposed for. The owner must pay
the contractor the amount the property is disposed for, less the costs of removal and
disposal.

Q4 Assignment of contractor’s rights

.1 If the engagement of the contractor has been terminated under clause Q1 or Q2, the
contractor must assign to the owner all of its rights under any subcontract relating to the
supply of labour, services, materials or equipment for the *works if directed to do so by the
architect.

Q5 Owner may contract with others to complete the *works

.1 If the owner terminates the engagement of the contractor under clause Q1 or Q2, the owner
may contract with others to complete the *works.

Owner’s initials_________________ © 2018 Australian Institute of Architects / Master Builders Australia Ltd Contractor’s initials _________________
ABIC SW 2018 H NSW For definitions, see pages 61 to 63 Page 55 Simple Works Contract for Housing in NSW
Q Termination of engagement
Q6 Owner not bound to make any further payment to contractor
.1 If the engagement of the contractor has been terminated under clause Q1 or Q2 the owner
will not be bound to make any further payment to the contractor unless an obligation to pay
arises under clause Q9.

Q7 Owner may pay subcontractors or suppliers

.1 If the owner terminates the engagement of the contractor under clause Q1 or Q2, the owner
may at its sole discretion directly pay any subcontractor or supplier for any *necessary work,
materials or equipment necessary to complete the *works. Any sum paid by the owner to the

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subcontractor or supplier is to be taken into account by the architect in preparing its
certificate under clause Q9, provided the owner has not already paid the contractor for the
same *necessary work, materials or equipment.

Q8 Architect to give assessment of cost of completing the *works

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.1 If the engagement of the contractor has been terminated under clause Q1 or Q2, the architect
must *promptly make a written assessment of the cost to the owner of completing the *works

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and issue to the contractor and to the owner a copy of that assessment. For this purpose, the
cost to the owner of completing the *works excludes any amount paid by the owner under
clause Q7. That assessment is to be reflected in the certificate made under clause Q9.
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Q9 Architect to give certificate of amount payable to contractor or owner
.1 If the engagement of the contractor has been terminated under clause Q1 or Q2, and the
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assessment required under clause Q8 has been made, the architect must *promptly prepare a
certificate as to the amount payable, including *GST, by one *party to the other and issue it to
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the contractor and to the owner. That certificate is to be calculated using the following
procedure.
.2 The architect is to determine the amount of the *contract price as adjusted at the date of
termination of the engagement of the contractor.
.3 The architect is to determine the total of:
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a the value of building work completed, including *GST, assessed in the last certificate
issued under clause N4
b the cost to the owner of completing the *works, including *GST, as assessed by the
architect under clause Q8
c any sum paid directly by the owner to a subcontractor or supplier, including *GST,
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under clause Q7 not already paid to the contractor for the same work, materials or
equipment necessary to complete the *works
d the architect's assessment of any claim by the owner under this contract for a set off of
monies due and
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e any liquidated damages in accordance with clause M9, since any previous certificate,
calculated up to the date of termination of the engagement of the contractor.
.4 The architect is to determine the total of:
a the amount of security drawn or appropriated to date and
b the amount of any security by cash retention held by the owner under clause C2.
.5 The certified amount payable to the owner or the contractor, as the case may be, is the total
determined in subclause Q9.2, less the total determined in subclause Q9.3, plus the total
determined in subclause Q9.4.
.6 The architect must also state on the certificate the value of any remaining security by
*unconditional guarantee.
.7 If a certificate is issued under this clause, it takes the place of a final certificate under
clause N11, and clause C7 applies.
Owner’s initials_________________ © 2018 Australian Institute of Architects / Master Builders Australia Ltd Contractor’s initials _________________
Simple Works Contract for Housing in NSW For definitions, see pages 61 to 63 Page 56 ABIC SW 2018 H NSW
Termination of engagement Q
Q10 Contractor or owner to pay under clause Q9
.1 If the certified amount calculated by the architect under clause Q9.5 is a positive figure, the
owner must pay the contractor that amount. If that amount is negative, the contractor must
pay the owner that amount.
.2 After receiving the certificate from the architect, the *party to be paid must deliver the
certificate to the other *party for payment. If the *party to be paid is registered for *GST, it
must, at the same time, deliver a *tax invoice equal in value to the certificate to the other
*party.
.3 The amount stated as owing must be paid within the period shown in item 10 of schedule 1
after receipt of the certificate and the *tax invoice.

PY
Q11 Contractor may require owner to remedy default
.1 If the owner defaults by:
a failing to make a progress payment on time or
b failing to meet any other substantial obligation under this contract

O
then the contractor may give the owner a written notice stating that:
c it is given under this clause
d the owner must rectify the default within 10 *working days after receipt

C
e if the default is not so rectified, the contractor will be entitled to proceed under
clause Q12 to suspend the *necessary work or subsequently under clause Q13 to
terminate its engagement.
.2
E
The contractor must give a copy of the notice to the architect.

Q12 Contractor may suspend if default not remedied

C
.1 If after receiving a notice under clause Q11:
EN

a the owner fails to rectify the default

b the owner fails to show reasonable cause why the default cannot be remedied within
time or
c subclause N8 applies,
the contractor may immediately suspend the *necessary work by giving the owner written
ER

notice.
.2 The notice must state that it is given under this clause. A copy of the notice must be given to
the architect.
.3 If, after the suspension of the *necessary work, the owner rectifies the default, the contractor is
entitled to make a *claim to adjust the contract for any loss, expense or damage that results
EF

from the suspension of work.

.4 The requirements for making a *claim to adjust the contract and the procedures to be followed
are stated in section H.

Q13 Contractor’s subsequent right to terminate

.1 After the contractor has given the owner written notice of suspension under clause Q12, the
contractor may terminate its engagement under this contract by giving the owner written
notice of termination.
.2 The notice must state that it is given under this clause. A copy of the notice must be given to
the architect.

Q15 Contractor’s entitlement after termination

.1 If the contractor terminates its engagement under clause Q13 or Q14 the owner must pay the
contractor the amount the owner would have had to pay if the owner had wrongfully
repudiated the contract.

PY
Q16 Procedure for contractor to make claim
.1 Within a reasonable time of terminating its engagement under clause Q13 or Q14 the
contractor must submit to the architect a claim setting out the contractor’s entitlement,
calculated on the same basis as if the owner had wrongfully repudiated the contract.

O
Q17 Architect to give certificate

C
.1 The architect must *promptly assess any claim made by the contractor under clause Q16 and
must *promptly issue to the contractor and to the owner a certificate specifying the amount
for payment to the contractor or the owner, as the case may be.
.2 If a certificate is issued under this clause, it takes the place of a final certificate under
clause N11, and clause C7 applies.
E
Q18 Contractor or owner to pay under clause Q17
C
.1 On receiving the certificate from the architect, the *party to be paid must deliver the
certificate to the other *party for payment. If the *party to be paid is registered for *GST, it
EN

must, at the same time, deliver a *tax invoice equal in value to the certificate to the other
*party.
.2 The amount stated as owing must be paid within the period shown in item 10 of schedule 1
after delivery of the certificate and the *tax invoice.
ER

Q19 If this contract is frustrated

.1 If this contract is frustrated at law or the *parties agree that the contract is frustrated, the
contractor is entitled to submit a claim for:
a the value of the *works at the date of frustration, less any progress payments that have
EF

already been made

b the value of any security then held by the owner
c the non-recoverable costs the contractor has incurred, or entered into an agreement to
incur, to enable the contractor to complete the *works
d the non-recoverable costs the contractor has incurred or will incur in order to cease the
R

*necessary work and

e loss of profit.
.2 The architect must *promptly assess the claim and issue to the contractor and to the owner a
final certificate specifying the amount for payment. If a final certificate is issued under this
clause, it takes the place of a final certificate under clause N11, and clause C7 applies.
.3 A final certificate issued under this clause must be paid in accordance with clause Q18.

R1 Transmission of documents
.1 A *party or the architect may only deliver a document under this contract to the other *party
or the architect by:
a delivering it to the *party or the *party’s representative or the architect by hand or mail
at the address shown in item 1 of schedule 1
b faxing it to the *party or the architect at the fax number shown in item 1 of schedule 1
c emailing it to the *party or the architect or attaching an electronic copy to the email, but
only if the receiving *party or the architect has given an email address in item 1 of
schedule 1, or, the *party or the architect has confirmed in writing that email
communication to the *party or the architect is acceptable for use under this contract.

PY
.2 If the fax numbers, or email addresses of the *party and the *party’s representative are
different, the document must be sent to both the *party’s address and the address of the
*party’s representative.
.3 If a *party or the architect has had 5 *working days written notice from another *party or the
architect of a change of postal address, email address, or fax number, a document may then

O
only be delivered to that *party or the architect at the latest address, email address or fax
number.

C
R2 Time document is received
.1 A document that is hand delivered is to be treated as having been received when it is left at
the relevant address.
E
.2 A document that is sent by mail is to be treated as having been received 3 *working days (7
*working days in the case of overseas mail) after posting.
C
.3 A document sent by fax is to be treated as having been received as soon as the sender
receives an error free transmission report from the correct fax number. If a document is
EN

delivered, or an error free transmission report is received after 5.00pm in the time zone of the
*site the document is to be treated as having been delivered at the beginning of the next
*working day.
.4 A document sent by email is to be treated as having been received when the sender receives
a return email, which is an email in reply or from the recipient’s e-mail system confirming
ER

delivery, or that it has been read. If an email is sent after 5.00pm in the time zone of the *site
the email is to be treated as having been delivered at the beginning of the next *working day,
whether or not the return email is received on the day of sending.

R3 Assignment
EF

.1 Neither of the *parties may assign any rights under this contract, without obtaining the
other’s consent. That consent may not be unreasonably withheld.

R4 Entire contract
R

.1 This contract contains everything the owner or the architect has agreed with the contractor in
relation to the matters it deals with. Neither *party may rely on an earlier contract, or on
anything else said or done by the other *party (or by an officer, agent or employee of the
other *party) before this contract was entered into.

R5 Contract to benefit successors and assignees

.1 This contract continues for the benefit of, and binds, a successor in title of a *party, including
a person to whom a *party’s rights and obligations are assigned in accordance with this
contract.

Owner’s initials_________________ © 2018 Australian Institute of Architects / Master Builders Australia Ltd Contractor’s initials _________________
ABIC SW 2018 H NSW For definitions, see pages 61 to 63 Page 59 Simple Works Contract for Housing in NSW
R Miscellaneous
R6 Severability
.1 If any clause or part of a clause is illegal, unenforceable or invalid, that clause or part of a
clause is to be treated as removed from this contract and the rest of this contract is not
affected. This does not apply if the clause or part of a clause goes to the heart of the
transaction contemplated by this contract.

R7 Waiver
.1 The fact that a *party or the architect fails to do, or delays in doing, something it is entitled to
do under this contract, does not amount to a waiver of that *party’s or the architect’s right to
do it. Any waiver by a *party or the architect must be in writing. A written waiver is only

PY
effective in relation to the particular obligation or breach in respect of which it is given. It is
not to be taken as an implied waiver of any other obligation or breach, or as an implied
waiver of that obligation or breach in relation to any other occasion.

R8 Governing law

O
.1 This contract is governed by the law of New South Wales and the *parties submit to the non-
exclusive jurisdiction of its courts.

C
R9 Compliance with law
.1 Both *parties must comply with *relevant legislation or any order, code, ordinance or *official
E
document of a *relevant authority applicable to the *works and this contract.

R10 Change in *relevant legislation

C
.1 If, on or after the date of the contract, any *relevant legislation changes, or new legislation
comes into force that requires a change in the *works, the contractor must *promptly notify the
EN

architect in writing giving details of the effect on the *works. The architect must *promptly
issue an instruction to the contractor.

R11 Interpretation of headings

.1 The headings in this contract are used as a guide only and do not form part of it.

R12 Contractor and owner to observe confidentiality

.1 Confidential information is information marked as confidential when provided by one *party
to the other. Each *party must not disclose any confidential information except to the extent
EF

that either *party is required, or entitled to do so, by law.

.2 The contractor must not advertise its relationship with the owner or its involvement in the
*works without the written permission of the owner, which must not be unreasonably
withheld.
R

.3 The contractor must ensure that its subcontractors are bound by a clause similar to this
clause. The owner’s written permission to the contractor applies to the subcontractors, unless
the owner specifically restricts the permission in writing.

R13 General interpretation

.1 A reference to the singular includes the plural and the plural includes the singular.
.2 No rule of construction will apply to the disadvantage of one *party on the basis that that
*party has put forward the contract documents or any of them.

S1 Definitions
Act Home Building Act 1989 (NSW)
adjustment of time costs includes any loss, expense or damage reasonably incurred by the
contractor that results from a delay due to the causes referred to
in clause L1
authorised person a building inspector or certifier or other person authorised under
*relevant legislation having jurisdiction over the *works
building code means Volumes One and Two of the National Construction Code
as in force as at the date of commencement of the *works

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business day any day other than a Saturday, Sunday, or a day that is wholly or
partly observed as a public holiday throughout New South Wales
or 27, 28, 29, 30 or 31 December

O
claim to adjust the contract a claim made to the architect to adjust the *contract price
(including *adjustment of time costs) or the date for *practical
completion or both

C
contract documents any special conditions shown in schedule 2, the conditions of this
contract, the specifications, the drawings and any other
documents shown in schedule 3
E
contract price see clause N1
C
cost of building work the actual net cost of the *works excluding any amounts for *GST
critical construction activity see clause L4
EN

defect or defective work work that is:

a in breach of any of the warranties set out in the *contract
documents
b not in accordance with the standard or quality of building
ER

work specified in the *contract documents

deposit a part-payment towards the *contract price inclusive of *GST
payable in accordance with clauses N16, N17 and item 30 of
schedule 1
EF

GST goods and services tax levied under the *GST Act
GST Act the A New Tax System (Goods and Services Tax) Act 1999
infrastructure service a service to the *site for which there is an alternative source of
R

supplier, or supply, such as gas, electricity, telecommunications,

water, stormwater or sewerage
input tax credit has the same meaning as ‘input tax credit’ under the *GST Act
insolvency event in relation to a person, means anything that indicates that the
person is or will become unable to pay their debts as and when
they become due or payable including:
a the person is declared, made or becomes insolvent
b an execution or distress process is levied against the
person’s assets which include the person’s income

Owner’s initials_________________ © 2018 Australian Institute of Architects / Master Builders Australia Ltd Contractor’s initials _________________
ABIC SW 2018 H NSW Page 61 Simple Works Contract for Housing in NSW
S Definitions
c the person enters into a deed of company arrangement
with the person’s creditors
d the person fails to comply with a bankruptcy notice or a
statutory demand served under the corporations law
e a provisional liquidator, liquidator, receiver, receiver and
manager, administrator, scheme administrator, controller
or other such administrator is appointed (whether by a
court, creditor or otherwise) to the person or over the
person’s assets
f a trustee in bankruptcy, interim receiver, controlling

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trustee or other such administrator is appointed (whether
by a court, creditor or otherwise) to the person or over the
person’s assets.
latent condition see clause F5

O
necessary work all work including any temporary work necessary to complete
the *works

C
non-working days statutory public holidays and rostered days off and recognised
industry shut-down periods in New South Wales
official document see clause B3
E
owner-specified materials all items, materials, fixtures and fittings sourced or supplied and
requested by the owner to be incorporated into the *works
C
party or parties the owner or the contractor or both, as the case may be
EN

practical completion see clause M1

prime cost sum see clause K1
promptly as soon as practicable
provisional sum see clause K1
ER

relevant authority a body or organisation, statutory or otherwise, which has

authority over the *works in accordance with *relevant legislation,
including an *infrastructure service supplier able to exclusively
supply the *site
EF

relevant legislation Acts, regulations, *official documents and official interpretations of

them that have a direct relationship to the work being carried out
by an authority having jurisdiction of the *works
R

site the place at which the *works are to be constructed and any other
place made available by the owner to the contractor under this
contract (briefly described in item 6 of schedule 1)
site information see clause F3
stage completion see clause N3.2
tax invoice an invoice for payment complying with the requirements of the
*GST Act
unconditional guarantee see clause C3
valuable item see clause F5

Owner’s initials_________________ © 2018 Australian Institute of Architects / Master Builders Australia Ltd Contractor’s initials _________________
Simple Works Contract for Housing in NSW Page 62 ABIC SW 2018 H NSW
Definitions S
variation see clause J1
working day Monday to Friday excluding *non-working days
works the completed construction set out in the *contract documents
(briefly described in item 5 of schedule 1).

PY
O
C
E
C
EN
ER
EF
R

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ABIC - Simple Works Contract

Uploaded by

ABIC - Simple Works Contract

Uploaded by

PY

ABIC SW 2018 H NSW

Notice about termination rights

B Documents J Variation to the works

C5 Procedure for owner to draw on security

*prime cost sum ..................................................................... 42

E1 Public liability insurance ........................................................ 31 adjustment of time with costs ............................................... 44

E6 Contractor and owner not to affect insurance .................... 32

© 2018 Australian Institute of Architects / Master Builders Australia Ltd

© 2018 Australian Institute of Architects / Master Builders Australia Ltd

5 *working days after the contract is entered into.

receive any payment.

Signature ___________________________ Signature __________________________

© 2018 Australian Institute of Architects / Master Builders Australia Ltd

ABN (if applicable):

If the *party is an individual, individual trustee,

If the *party is a corporation, corporate trustee or

Common seal of *party:

Item 2 The architect

Item 3 Special conditions

Are there any other special conditions? Yes No

Will the owner remain in occupation? Yes No

Signature of owner: __________________________________

Signature of contractor: __________________________________

Signature of owner: __________________________________

Item 5 The *works

Item 6 The *site of the *works

Item 7 Security provided by the contractor

Clause C1 owner? Yes No

Item 7b Cash Retention

Item 8 Percentage of *contract price for cash

Item 10 Period for payment of certificates and

Item 11 Public liability insurance

Item 13 Amount to cover fees of the architect

If nothing stated, 10% of the *contract price

Item 15 Amount of insurance for injury,

Item 16 Insurance excess

Clause E2: Amount of excess for

Item 17 Percentage for the contractor’s

*adjustment of time costs

Item 22 Date for *practical completion

Item 28 Interest rate on overdue amounts %

Item 29 Official documents

Item 29a *Official documents required to begin the *works

Item 29b *Official documents required to complete the

Replace clause A2.1a with the following:

Replace clause A4.3c with the following:

Replace clause D1.1 with the following:

Replace clause D3.1 with the following:

Replace clause E2.1 with the following:

Replace clause E5.1a with the following:

Replace clause F1 with the following:

Replace clause L1.1b with the following:

Replace clause M1.2 with the following:

1. The special conditions shown in schedule 2a and schedule 10.

6. All other documents described below:

for [insert amount $AUD]

paid all amounts required to be paid under the contract; or

This undertaking is governed by the law of [insert jurisdiction].

EXECUTED on [insert date] as a Deed.

Sum allowed Description Particular person†

Sum allowed Description Particular person†

Date: [insert date]

Signed for or on behalf of the insurer:

Conditions to be included in certain contracts

Total of all claims (incl. GST)† $

A2 Obligations of the contractor

dwelling that is reasonably fit for occupation as a dwelling

A4 Obligations of the owner

a the owner is given a copy of this contract or

Signature of owner: __________________________________

Signature of contractor: __________________________________

A8 Disputing architect’s certificate or written decision

A10 Failure to give certificate, written decision or notice is not acceptance

A11 Compensation is sole remedy

B1 Discrepancies or omissions in documents

Signature _ Signature

Item 6 The site of the works

Item 29a Official documents required to begin the works

d an approval for provision of infrastructure services to the site

F7 Contractor entitled to claim for latent condition or valuable item

J1 Architect may instruct variation to the works

the contract price or date for practical completion is required and

J6 If authorised person issues official document

K1 Provisional and prime cost sums included in contract

M4 Architect to decide if the works have reached practical completion

M5 If the works not at practical completion

M8 Possession of the works before practical completion