ABIC SW 2008 User Guide

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ABIC SW-2008
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Simple Works Contract
User guide
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Disclaimer
The user guide is for general guidance only and is not legal advice.
While all care has been taken in its preparation, the Australian Institute
of Architects, Master Builders Australia Ltd, their directors, officers and
the authors, do not accept any responsibility for the completeness,
accuracy or currency of the user guide
© 2008 Australian Institute of Architects / Master Builders Australia Ltd i ABIC SW-2008 Simple Works Contract User Guide
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Table of contents Page
ABIC SW-2008 Introduction .................................................. 1

SW-2008 Simple Works contract User Preamble ..................................................... 2
Guide
Time limits in the contract............................ 3
This user guide has been jointly Schedule 1 – Contract information .............. 8
prepared by the Institute and Schedule 2 – Special conditions ............... 12
Master Builders to assist in
understanding the administration of Schedule 3 – Order of precedence
the ABIC SW-2008 Simple Works of contract documents ......... 12
contract Schedule 4 – Site information.................... 13
The guide goes beyond assisting Schedule 5 – Form of guarantee ............... 13
with an understanding of the
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Schedule 6 – Provisional sums ................. 13
meaning of the clauses in the
contract. The administration Schedule 7 – Prime cost sums .................. 14
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processes are clearly explained. Schedule 8 – Items to be supplied
Advice is also included on the by the owner for
preparation of tender and contract incorporation into
documents, on completing the the works ............................. 14
schedules, and on when and where
to use each administration pro
forma.
Step by step instructions and flow
charts describe the processes to
C Pro forma forms ......................................... 14
Section A – Overview ................................ 15
Section B – Documents ............................. 15
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Section C – Security .................................. 16
follow when dealing with claims and
other matters that arise during the Section D – Liability ................................... 18
construction process. Section E – Insurance................................ 18
Section F – The site................................... 20
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Section G – Building the works .................. 21

Section H – Claims to adjust the
contract................................... 22
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Section J – Variation to the works............. 24

Section K – Adjustment of
provisional and
prime cost sums ..................... 26
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Section L – Adjustment of time ................. 28

Section M – Completion of the
works ...................................... 29
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Section N – Payment for the works ........... 35

Section P – Dispute resolution .................. 39
Section Q – Termination of
engagement ........................... 40
Sections R and S –
Miscellaneous and
Definitions............................... 44
Forms......................................................... 45
© 2008 Australian Institute of Architects / Master Builders Australia Ltd ii ABIC SW-2008 Simple Works Contract User Guide
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Introduction
The Australian Building Industry Contracts (ABIC) are jointly published by Master Builders Australia
(Master Builders) and the Australian Institute of Architects (Institute). They are intended for use in
building projects where an architect administers the contract.
ABIC contracts are designed to make contract administration clear and less prone to dispute or time‐
consuming negotiation. Promptly resolving claims and other issues that arise under building contracts at
the time that they arise is an effective way of avoiding disputes on construction projects. ABIC contracts
bring certainty to the process, requiring timely presentation and resolution of claims. They have been
extensively refined and field‐tested and feature:
 plain English and a clear, logical structure that reflects the sequence of the construction process;
 equitable allocation of virtually all project risks to one party or the other, eliminating uncertainty and
many potential disputes;
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 an integrated suite of versions for major, simple and basic works, and for housing and non‐housing
projects, and.
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 inclusion of a number of detailed supporting documents, including this user guide and pro forma
notices and certificates for the architect and the contractor.
The ABIC SW‐2008 suite comprises a standard contract for non‐housing work as well as state and territory
specific contracts for housing work, with appropriate conditions integrated into those contracts to address
legal requirements of state and territory housing legislation.
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For Queensland, there is also a specific version containing unique conditions for non‐housing work. This
user guide does not cover the housing versions of SW‐2008 or the Queensland non‐housing version.
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This user guide covers each section of the contract outlining the processes for dealing with particular
issues. As much as possible, these processes reflect the normal building sequence in which the issues are
faced by the parties.
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The guide provides relevant commentary on each section, and supplements it with charts and tables that
summarise processes required by the contract. The charts identify the relevant clause numbers and forms
to be used. There is a list of all pro forma forms at the end of the guide.
The user guide is not intended to be a substitute for reading the contract.
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The Institute and Master Builders have together prepared this user guide to assist in understanding the
contract. Practice notes for each state and territory are published by the Institute for architects’ use and
each Master Builders’ office provides its members with advice about local housing requirements.
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For further information, please contact:

Master Builders Australia Australian Institute of Architects
Level 1, 16 Bentham Street Knowledge Services
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YARRALUMLA ACT 2600 Level 2

PO Box 7170 41 Exhibition Street
YARRALUMLA ACT 2600 MELBOURNE VIC 3000
T (02) 6202 8888 F (02) 6202 8877 T (03) 8620 3877 F (03) 8620 3864
E [email protected] E [email protected]
W www.masterbuilders.com.au W www.architecture.com.au
© 2008 Australian Institute of Architects / Master Builders Australia Ltd Page 1 ABIC SW-2008 Simple Works Contract User Guide
Preamble
Differences between SW and the MW contract
The SW contract is intended for simpler projects than MW, the most comprehensive contract in the ABIC
suite of building contracts. Although the differences are numerous, notable differences are that SW does
not provide for the following:
 urgent instructions
 separable parts to the works
 change of type of security given by the contractor to the owner
 provision of security for payments for off‐site plant and materials
 provision by the owner of security to the contractor
 dangerous or contaminated materials
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 encroachments
 quality assurance systems
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 separate contractors
 identified, project specific potential causes of delay that entitle the contractor to costs
 owner initiated amendments to programs and the consequences of any amendments
 arbitration or expert determination of disputes as alternatives for dispute resolution
Flowcharts
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The flowcharts included in this user guide conform to the structure set out below.
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Chart 1.
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Time limits in the contract
The contract provides a number of critical times. Working days, non‐working days, business days and the
term ‘promptly’ are defined in section S of the contract:
A working day is Monday to Friday, excluding non‐working days.
Non‐working days are public holidays, “rostered days off” (RDOs) and recognised industry shut down
periods, such as over January.
Business days are any days other than a Saturday, Sunday or public holiday.
Promptly means as soon as practicable.
Critical times
Clause Event Architect/Owner Contractor
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A2.1a Begin works Within 10 working days after
possession of the site
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A3.1e Advise change of GST status or Promptly
ABN
A4.2 Inform architect and contractor Immediately
of alteration to financial
A5.3
position
Advise change of GST status or Promptly
ABN C
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A8.1 Dispute architect’s certificate, Within 20 working days of Within 20 working days after
written decision or failure to receiving certificate, notice or receiving certificate, notice or
act decision/assessment or decision/assessment or
becoming aware of failure becoming aware of failure
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A8.3 Assess party’s dispute notice 10 working days

under clause A8.1 and provide
written decision
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B1.1 Notify architect in writing of Promptly Promptly

discrepancy in documents
B1.1 Issue instruction to resolve Promptly
discrepancy in the documents
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B3.1 Supply copies of official Promptly Promptly

documents
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C3.1 Provide unconditional Within 10 working days after

guarantees as security execution of the contract
C6.3 Release 50% of security Within the time shown in item
10 of schedule 1 after issue of
notice of practical completion
C7.3a Release of remaining security Within the time shown in item
10 of schedule 1 after issue of
final certificate
D5.1 Reinstatement during period Promptly reinstate lost or
when contractor bears risk damaged items of works
© 2008 Australian Institute of Architects / Master Builders Australia Page 3 ABIC SW-2008 Simple Works Contract User Guide
E1.1 Effect public liability insurance From possession of the site From possession of the site
if nominated until 4:00pm on day final until 4:00pm on day final
certificate issued certificate issued
E2.1 Effect contract works insurance From possession of the site From possession of the site
if nominated until 4:00pm on date of until 4:00pm on date of
practical completion practical completion
E3.1 Advise insurer of entitlement to Within 20 working days of Within 20 working days of
input tax credit insurance being taken out insurance being taken out
E7.1 Maintain workers Until final certificate is issued
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compensation and employer’s
liability insurance
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E8.3a Make insurance claim Promptly Promptly
E8.3c Notify architect of insurance Promptly Promptly
claim and provide additional
information
F1.1 Give possession of the site
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Within 10 working days after
receiving copy of the signed
contract, any official documents
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to begin works to be obtained
by the contractor and being
satisfied that the insurances are
in place
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F3.1 Give all relevant site At least 5 working days before

information the close of tenders
F5.1 Notify and seek instructions Within 5 working days of
due to latent condition/valuable discovery
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item
F6.1 Give instruction regarding Promptly after receipt of notice
latent condition/valuable item
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G5.1 Give program to architect Within 10 working days of

possession of site
H1.1a Notify architect of intention to Promptly after receiving
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make time/cost claim instruction or on becoming

aware of event
H1.1b Submit detailed claim Within the time agreed, or
within 20 working days of
receiving instruction or
becoming aware of event
H3.1 Assess the time/cost claim Promptly
H3.3 Provide additional information Promptly
H4.1 Issue written decision Within 20 working days of
receipt of claim
J1.1 Give written instruction for Any time before date of
variation practical completion
J2.2c Carry out instruction for Promptly
variation if no time/cost
implications
J2.3c Notify architect of time/cost Promptly unless instruction
and implications of variation received under clause J1.2 in
J2.4 which case within 20 working
days
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J3.1 Instruct whether variation is to Within 5 working days
proceed or request further
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information
J4.1 Proceed with variation Promptly
J4.2d Submit detailed time/cost claim Within 20 working days of
completion of variation work
J6.1
J7.1
Notify architect of official
notice
Give written instruction Promptly C Promptly
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regarding official notice
L3.1 Notify delay to works Within 2 working days of
becoming aware of delay
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L3.1b Notify end of delay to works Within 2 working days of

becoming aware of end of delay
M1.1 Bring works to practical By the date shown in item 22 of
completion schedule 1
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M1.2 Owner takes possession of the 4:00pm on the date the notice of
works practical completion is issued.
M2 Notify works near practical At least 10 working days before
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completion and give timetable expected date of practical

for correction of defects completion as adjusted
M3.1 Notify architect that works at When works are at practical
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practical completion completion

M3.2 Begin inspection of the works Promptly
M3.2 Complete inspection As agreed or within 10 working
days
M3.3 Give architect official Within agreed time for
documents for occupation and architect’s inspection or if none,
evidence of successful 10 working days
commissioning tests
M4.1 Issue notice if works at practical Within 5 working days after
completion completing inspection
M5.1 Issue written statement and Within 5 working days after
defects list if works not at completing inspection
practical completion
M7.2 Issue notice of practical Within 5 working days of the
completion on request from request
contractor
M8.1 Bring works to practical Promptly
completion after architect’s
statement under M5
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M8.1 Issue notice of practical Within 5 working days of
completion if owner has taken written advice that owner has
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possession before practical taken possession
completion
M9.1 Notify of owner’s entitlement Promptly
to liquidated damages
M9.2 Advise architect of enforcement Up to 20 working days after
of liquidated damages date of issue of notice of
practical completion
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M10.1 Notify contractor of owner’s Within 1 working day of
decision to enforce liquidated receiving owner’s decision
damages
M11.1 Correct defects or finalise Within 10 working days after
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incomplete work receiving instruction

M14.1 Rectify defects discovered Promptly until defects rectified
during defects liability period and work is finalised
N4.1 Issue progress payment Within 10 business days after
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certificate receipt of claim

N6.1 Pay progress claim Within period shown in item 10 Within period shown in item 10
of schedule 1 after delivery of of schedule 1 after delivery of
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certificate and tax invoice certificate and tax invoice

N8.1 Issue certificate after request Within 5 working days of
from contractor request
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N8.2 Pay certificate if architect does Within 7 days after request

not issue certificate after issued
request under N8.1
N8.3 Suspend work if owner does Immediately
not pay contractor under N8.2
N11.1 Assess final claim Promptly
N11.1 Issue final certificate Within reasonable time not
exceeding 10 business days
N13.1 Pay final claim Within period shown in item 11 Within period shown in item 11
Q1.1 Contractor to remedy default or 10 working days
show cause
Q1.2 Terminate due to contractor 10 working days after notice or
default as agreed
Q2.1 Terminate due to insolvency Immediately
event
Q3.3 Comply with removal of Within 10 working days of
property instruction instruction
Q8.1 Assess cost of completing the Promptly after termination
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works
Q9.1 Issue payment certificate Promptly after assessment
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under Q8
Q10.3 Pay amount owing Within period shown in item 10 Within period shown in item 10
Q11.1
Q12
Owner to remedy default or
show cause
Suspend work due to owner
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10 working days after notice
Immediately on written notice

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default
Q13 Terminate due to owner default Immediately on written notice
Q14.1 Terminate due to insolvency Immediately on written notice
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event
Q17.1 Assess contractor’s claim Promptly
following termination
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Q19.2 Assess claim and issue final Promptly

certificate in event of
frustration
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Schedule 1 – Contract information
Comments
At least two copies of all contract documents must be prepared to provide each party with an original, fully
executed set of the contract documents. To administer the contract, the architect must have a copy of the
contract documents identical to the executed copies, so either 3 copies can be prepared for signing, or one
party’s executed copy can be copied in entirety for the architect to use.
The parties must fill out the details of the project in schedule 1 of the contract. Schedule 1 is available
electronically in Microsoft Word format from the Australian Institute of Architects Knowledge Services and
Master Builders Australia. The owner and the contractor can meet to sign all copies of the contract (and
documents) at the same time. In the authors’ experience, this is the best way to ensure that the contract is
executed correctly. However, if that is not possible, each may sign separately. In that case, unless
otherwise agreed in writing, the date of the contract is the date the last party signs, and that party should
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be requested to insert that date when signing. That party should also be requested to keep one copy and
forward the others to the architect for distribution, or, if only two copies are executed, for copying for the
architect’s use.
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Details of the information to be inserted in schedule 1, and the places in which the contract and contract
documents may need to be signed or initialled are set out below:
Item 1 – Signing the contract
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The owner and the contractor sign the contract at item 1. Alternatives are provided so that each party can
sign as the appropriate legal entity that is entering into the contract, e.g. as an individual, a company, an
unincorporated association or trustee. It is desirable for each party to initial the bottom of each page of the
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contract (including each page of the specifications and each page of drawings).
Note that it is not recommended that alterations to the contract, or special conditions (other than those
supplied with the contract – see item 3), are drafted or agreed to without legal advice. Although alteration
to the contract may be handwritten, changes on the printed form are not recommended – insertion of
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changes as special conditions in schedule 2a is preferable. The parties must initial any handwritten
changes to the contract or the specification or the drawings. If there are special conditions in schedule 2a,
the page must be initialled by each party.
Item 3 in schedule 1 needs to be signed by the owner and contractor.
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Each party must provide their contact addresses and details, their ABN, if applicable, and nominate a
representative. The owner must identify its lending institution, if applicable. The contractor must provide
its licence or registration number.
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Item 2 – The architect

The architect must provide address and contact details, its registration number and identify its
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representative for administration of the contract.
Item 3 – Special conditions

In item 3, the parties need to say whether there are any special conditions. Where there are special
conditions, the ‘No’ option must be struck out and the special conditions must be set out in schedule 2a.
In the second part of item 3, the parties need to say if the owner will remain in occupation. If the owner
will remain in occupation, the ‘No’ option must be struck out and the standard owner occupier special
conditions set out in schedule 2b apply.
Item 4 – The contract price (clause N1)

The contract price must show the cost of building work and GST.
Contract information – Schedule 1
Items 5 and 6 – The works and the site
The works and the site for the works must be described accurately and briefly.
Items 7-9 – Security (section C)

If the owner wishes the contractor to provide it with security, and to nominate the type and amount of
security required from the contractor, it should do so at tender time. This is because the type and amount
may affect the contract price. Both may be subject to negotiation before the contract is executed.
Item 7 sets out the type of contractor’s security, either cash retention or unconditional guarantees. The
owner may nominate the type it requires or, if it does not, cash retention applies.
In item 8, the default provision is for the cash retention to be 5% of the contract price. The cash retention
remains equal to 5% of the original contract price even if the contract price is varied during construction.
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In item 9, the default provision for the contractor’s security is for two equal unconditional guarantees, both
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being 2.5% of the contract price. The contract includes a provision that the owner is not obliged to pay the
first certificate until (among other things) the unconditional guarantees have been provided.
Item 10 – Period for payment of certificates or release of security

This item defines the period for payment of all monies due to be paid by one party to the other. The parties
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may need to take into account the requirements of the owner’s lending institution if it has particular
requirements for making funds available. As the time the contractor must wait for payment may affect the
contract price, in such situations, the architect will often consult the owner so that the period for payment
is known as a tender requirement.
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Item 11 – Public liability insurance (clause E1)
The contract allows either party to take out and maintain the public liability insurance for the project,
although the default provision reflects the more common practice that the contractor does so.
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Item 12 – Contract works insurance (clause E2)

The contract allows either party to take out and maintain the contract works insurance for the project,
although again the default provision reflects the more common practice that the contractor does so.
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Item 13 – Amount to cover fees of the architect and other consultants (clause E4.1)
This item recognises that additional fees may need to be covered after an event resulting in an insurance
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claim. The default is 10% of the contract price, but the specific nature of each project should be taken into
account.
Item 14 – Amount to cover cost of demolition and removal of debris (clause E4.1)
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This item recognises that demolition and removal costs may need to be met after an event resulting in an
insurance claim. The default is 10% of the contract price, but the specific nature of each project should be
taken into account.
Item 15 – Amount of insurance against liability for injury, illness, disease or death (clause
E4.2)
This item sets the amount of insurance against liability for personal injury, disease or death. The default is
$20,000,000.
Item 16 – Insurance excess (clause E9)

This item defines the insurance excess applicable to both public liability and contract works insurance.
Schedule 1 – Contract information
Item 17 – Percentage for contractor’s overheads and profits (clause H2)
The contractor is entitled to the cost of any relevant preliminaries whenever the contract is varied such that
the contract price will change. The contractor is also entitled to an allowance for overheads and profit
calculated as a percentage of the value of a variation which increases the contract price. This percentage
will be reflected in the tender or be subject to negotiation with the contractor before the contract is
executed.
Item 18 – Adjustment of time costs (clause H5)

This item provides for adjustment of time costs to be pre‐agreed by the parties for the various stages of the
project. If no rates are shown, a contractor’s claim for delay will have to be assessed on actual evidence of
cost caused by the particular delay. It is therefore common to avoid the administrative burden, and
potential for dispute of the architect’s assessment, by establishing rates in advance which correspond to
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stages of completion. The rates per day should make reasonable allowance for the costs relevant to that
stage associated with the contractor being on site, (preliminaries) including but not limited to site
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establishment and labour costs, craneage, etc. The rates may be nominated by the contractor as part of its
tender submissions and be subject to negotiation, before the contract is executed.
Item 19 – Percentage of difference to be added to contract price (clause K4.2)
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If the cost of work associated with a provisional or prime cost sum exceeds the sum allowed in the contract,
the excess is increased by the percentage included in this item. This percentage is intended to make an
appropriate allowance for the additional contractor’s preliminaries, overheads and profit over and above
the allowance for these the contractor made when the contract was executed. The default rate is 10%.
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Before the contract is executed, this item may be subject to negotiation.
Item 20 – Allowance for delay due to disruptive weather conditions (clauses L2 and L4)
In this item, the contractor must provide or agree to an estimate of the likely delay that can be expected
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due to weather conditions that disrupt building activity, having regard to the nature of the works, the
location of the works and the time of the year when the works are to be constructed. This is a pre‐estimate
of delay for disruptive weather which applies to claims for delay costs in accordance with clauses L2 and
L4 and may be subject to negotiation before the contract is executed.
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Item 21 – Other allowances for delay having regard to the contract works that do not entitle
adjustment of time costs (clauses L2 and L4)
Where it is possible to predict that the works will, or might be, delayed due to identifiable causes which
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will not entitle the contractor to claim the costs of the delay, these causes should be included in this item,
along with a pre‐estimate of the length of the delay to be allowed. If there are any, they may affect the
contract price and should be nominated at tender, but may be subject to negotiation before the contract is
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executed.
Item 22 – Date for practical completion (clause M1)

The date for practical completion must be defined in the contract when it is executed. The architect may
nominate a date for practical completion at the time that tender documents are prepared or require the
date to be nominated by the tenderers at the time that tenders are submitted. The date takes into account
the provisional periods of delay in items 20 and 21 of schedule 1 and may be subject to negotiation before
the contract is executed.
Contract information – Schedule 1
Item 23 – Commissioning tests for practical completion (clause M1)
This item allows the architect and other consultants to nominate any specific commissioning tests that must
be satisfactorily completed before the works will be considered to have reached practical completion.
These tests may include tests of plant and equipment, such as air conditioning or heating systems.
Item 24 – Rate for liquidated damages (clause M9)

The amount stated in this item should represent a reasonable estimate of the actual losses that the owner
would suffer if the project is not completed by the adjusted date for practical completion. As the rate may
affect the contract price, it should be nominated when tender documents are prepared, and may be subject
to negotiation before the contract is executed.
Item 25 – Defects liability period (clause M13)
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The contract includes a default provision for a defects liability period of 12 months. Depending on the
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nature of the project, a shorter or longer period may be appropriate. As the length of the period may affect
the contract price, if the default is not to apply, it is preferable that this item is completed when tender
documents are prepared. Before the contract is executed this item may be subject to negotiation.
Item 26 – Date for submitting progress claims (clause N3)
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The default date is the 15th day of the month. The architect should nominate the most appropriate date for
the project in the tender documents, but it may be subject to negotiation before the contract is executed.
Item 27 – Information to be included in the progress claim (clause N3)

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The contract defines the information to be provided by the contractor when progress claims are submitted.
Where additional information is required, for example where a financial institution has particular
requirements, these should be included in this item. As these additional items may affect the contract
price, it is preferable to identify these at the time of tender. Before the contract is executed, these items may
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be subject to negotiation.
Item 28 – Interest rate on overdue amounts (clause N15)

Where a payment by one party to the other is overdue, the party who should have made the payment is
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liable to also pay interest from the due date. The interest rate is defined at this item. As the rate may affect
the contract price, it is preferable to nominate the rate at the time of tender, but it may be subject to
negotiation before the contract is executed. The default is 10%.
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Item 29 – Governing law

The default provision is the law of the state or territory where the site is located. However, this should not
be altered lightly, or in the absence of legal advice. If varied from the default provision, it may be subject to
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negotiation before the contract is executed.
Item 30 – Official documents (clause B3)

Anything inserted in this item is an exception to the ordinary requirement of clauses A2 and A4. Item 30a
sets out whether the contractor needs to get any official documents to begin the works and 30b whether the
owner needs to get any official documents to complete the works. As a requirement to obtain, or not
obtain, a particular official document may affect the contract price, known requirements, such as that a
particular document can only be obtained by one party, not the other, should be reflected in this item at
tender. However, these items may be subject to negotiation before execution of the contract.
Schedule 2 – Special conditions
Schedule 2 allows for special conditions to be included in the contract. The default order of precedence
(reflecting common practice) establishes that the special conditions take precedence over the general
conditions.
As noted in the Introduction to this guide, where it is necessary to amend the general conditions, it is
preferable to include special conditions in schedule 2a (if necessary by inserting additional sheets there),
rather than by inserting or striking out words in the general conditions. If special conditions are to be
included, they must be invoked by the parties striking out “No” in the first part of item 3 and the special
conditions being inserted in schedule 2a.
Schedule 2b provides standard special conditions to vary the general conditions for projects where the
owner remains in occupation during construction of the works.
Therefore, if the owner is to remain in occupation, the standard special conditions must be invoked by the
parties striking out ‘No’ in item 3 of schedule 1. Whichever options are selected, each party must sign
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where shown in item 3.
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Special versions of the SW‐2008 contract are for housing projects in each state and territory and must be
used where the legislation applies:
 SW‐2008 H ACT  SW‐2008 H NSW
 SW‐2008 H NT  SW‐2008 H Qld


SW‐2008 H SA
SW‐2008 H Vic


SW‐2008 H Tas
SW‐2008 H WA
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In Queensland, the SW‐2008 C Qld contract includes special conditions that comply with legislation
affecting non‐housing projects where C denotes ‘commercial’, meaning for this purpose – not for
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constructing housing as defined by the Queensland legislation.
Schedule 3 – Order of precedence of contract

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documents
This schedule allows for amendment of the standard order of precedence between contract document
categories set out in clause B2, and for establishment of detailed orders of precedence within the contract
document categories listed in clause B2.
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However, the standard order of precedence of the contract document categories should not be altered
lightly, or in the absence of legal advice.
The standard order of precedence set out in clause B2 is:
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 any special conditions shown in schedule 2a

 any owner occupier special conditions shown in schedule 2b
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 the conditions set out in the contract and schedule 1

 the specifications for the works in the order shown in schedule 3
 the drawings for the works shown in schedule 3
 any other documents in the order shown in schedule 3.
It is necessary to list the specifications, drawings and other documents that are incorporated in the contract
documents in the order of precedence required for the project. The following order is considered
appropriate for most projects:
Order of precedence of contract documents – Schedule 3
 specifications
– architectural specification
– structural specification
– mechanical specification
– electrical specification
– hydraulic specification
– landscape specification
 drawings
– architectural drawings
– structural drawings
– mechanical drawings
– electrical drawings
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– hydraulic drawings
– landscape drawings
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 other documents
– geotechnical survey drawings
– survey drawings.
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Site information – Schedule 4
This section provides for the insertion of site information relevant to the particular project.
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The contract requires the owner as part of the tender process to give to the contractor any information that
it has regarding the site. Where the owner has any such information at tender it should be included in this
schedule.
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Site information includes any reports, surveys, test results, plans, specifications, computations or other
information such as foundation data, soil tests or geotechnical tests.
Commentary on the purpose of this provision and on the type of information that should be included in
this schedule is given in this guide’s section F.
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Form of guarantee – Schedule 5

Some financial institutions may have a standard form of guarantee, but schedule 5 provides a form for
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contractor unconditional guarantees that meet the requirements of the contract, if this type of security is
nominated in item 7 of schedule 1.
The contract requires the guarantee to be from a recognised financial institution and be in a form approved
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by the owner. If a different form of guarantee is proposed, it has to incorporate the same provisions as
those contained in the standard form or be approved by the owner.
Provisional sums – Schedule 6

Schedule 6 provides, in accordance with clause K1, for details to be recorded of all provisional sums,
including the sum allowed, a description of the work covered by each sum, and (if applicable) the intention
to use a particular person to carry out the work.
The architect should complete this item for issue with the tender documents, but they may be subject to
negotiation before the contract is executed. The sum to be shown is exclusive of GST, so the appropriate
addition of GST on that sum needs to be made when including it in the contract price.
continued
Schedule 6 – Provisional sums
The owner may intend to use a particular person other than the contractor or contractor’s subcontractor in
accordance with clause K3. This intention must be indicated in this schedule at execution of the contract,
and if known, the name of the particular person (meaning the identity of the subcontractor) shown. 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’ in the column headed ‘Particular person’.
Schedule 7 – Prime cost sums

Schedule 7 provides in accordance with clause K1, for details to be recorded of all prime cost sums
including the sum allowed, a description of the item(s) covered by each sum, and (if applicable) the
intention to use a particular person to supply or supply and install each item.
The architect should complete this item for issue with the tender documents, but they may be the subject of
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negotiation before the contract is executed. The sum to be shown is exclusive of GST, so the appropriate
addition of GST on that sum needs to be made when including it in the contract price.
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The owner may intend to use a particular person other than the contractor or contractor’s subcontractor.
This intention must be inserted in this schedule at execution of the contract, and if known, the name of the
particular person (meaning the identity of the subcontractor) shown. 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
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should be indicated by inserting ‘Yes’ in the column headed ‘Particular person’.
Schedule 8 – Items to be supplied by the owner for

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incorporation into the works
In some projects the owner may wish to supply certain items that are to be incorporated in the works.
For items that the owner will supply, the schedule distinguishes between those to be installed or fitted by
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the contractor (with an allowance being included in the contract price), and those that will be installed by
the owner (with no allowance being included in the contract price).
Pro forma forms

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There are pro forma forms listed at the back of this user guide for use by the architect and the contractor.
The architect’s and contractor’s forms are available in electronic format for purchase from the Institute and
Master Builders Australia..
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Overview – Section A
Key points
 This section sets out the general obligations of the contractor and the owner.
 The architect is appointed to administer the contract.
 The architect may give an instruction at any time.
 A party may dispute the decision of an architect.
Comments
Under clause A1, the parties agree to the concept of cooperative contracting. This concept includes
requirements that the owner and the contractor act reasonably, cooperate in all matters and avoid
obstructing the other.
Clauses A2 and A4 set out the specific obligations and warranties given by the contractor and the owner.
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A party can dispute a decision of the architect under clause A8. To do so, the party must give the architect
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written notice of the dispute within 20 working days of the date of the decision. The architect has to assess
the party’s written notice and give a written decision within a further 10 working days. If a party wishes to
dispute the decision, the dispute resolution procedures in section P apply.
If a party does not give the architect written notice in time, the party is not entitled to dispute the matter
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under the contract.
Under clause A10, compensation awarded to a party as determined according to the terms of the contract
is its sole compensation under the contract.
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Documents – Section B
Key points
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 How to resolve a discrepancy or omission in the contract documents.

 How to deal with an official document relating to the works.
 Both parties and the architect must act promptly.
Comments
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Clause B1 sets out the requirement for the owner or the contractor to notify the architect promptly if they
discover a discrepancy or omission in the contract documents. Once notified, the architect must issue
promptly an instruction to the contractor having regard to the order of precedence of documents set out in
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schedule 3 of the contract.

Clause B2 sets out the order of precedence of documents. If the architect issues an instruction to resolve a
discrepancy or omission in the contract documents that is not in accordance with the order of precedence
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of documents, the instruction is an instruction for a variation. In that case, the process set out in section J
applies.
Chart 2.
Section B – Documents
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


Schedule 3 sets out the order of precedence of documents.
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Section H sets out the procedures for making and assessing claims to adjust the contract.
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Section J deals with instructions that constitute variations.
 Clauses J5 to J7 deal with variations arising as a result of official documents.
Architect’s forms
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 SW‐10 Architect’s instruction.

 SW‐11 Instruction – contract price variation.
 SW‐12 Instruction – for a variation.
 SW‐14 Instruction – adjustment of time.
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Contractor’s forms
 SW‐40 Request for information/instruction/notice.
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 SW‐41 Notice of intention to claim.

 SW‐42 Details of claim.
 SW‐43 Additional information.
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 SW‐57 Notification of official document.
Section C – Security
Key points
 The contractor has to give the owner security for its obligations under the contract either by
unconditional guarantee or by cash retention.
 The owner has to release half of the security from the contractor at practical completion and the balance
on the issue of the final certificate.
 The owner can only draw on the contractor’s security in specified circumstances.
Security – Section C
Comments
Contractor’s security
Clause C1 allows the owner to nominate the type of security from the contractor before the contract is
executed, normally at the time that tenders are called. If no alternative is nominated, cash retention applies
(see item 7 of schedule 1).
The default amount of security is 5% of the contract price but this may be varied before the contract is
executed, again normally at the time tenders are called (see item 8 of schedule 1).
If the security is by unconditional guarantee and the owner is registered for GST, the value of
unconditional guarantees to be provided is determined by applying the nominated percentage to the cost
of building work in item 4 of schedule 1, i.e., without the GST component of the contract price.
Clause C2 sets out the procedure if cash retention is used. Clause C3 sets it out if unconditional
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guarantees are selected.
Drawing on security
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Clause C4 sets out the conditions under which security can be drawn upon. Clause C5 sets out the
procedure for drawing on the security.
Release of security
Clauses C6 and C7 respectively set out the procedure for release of the security to the owner at practical
completion and final certificate.
Chart 3.
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 Items 7 to 9 of schedule 1 – (type of security and percentages).

 Section M (practical completion).
 Clauses N10‐N14 (final certificate).
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Architect’s forms
 SW‐20 Notice of practical completion.
 SW‐31 Final certificate.
 SW‐33 Certificate – release of contractor’s security.
 SW‐44 Security – providing bank guarantees.
 SW‐47 Notice to architect – works at practical completion.
 SW‐49 Final claim – summary sheet.
Section D – Liability
Key points
 The contractor is liable for the risks until practical completion.
 The owner is liable for the risks after practical completion.
 The other party may be proportionally liable for a risk if it contributed (even partly) to the risk
becoming manifest.
Comments
The risk allocation under the contract conforms to the widely accepted standard that the risk should reside
with the party best able to deal with it (Abrahamson Principle).
During construction the contractor bears the risks associated with the construction until practical
completion. After that, the owner bears the risks. The risks borne by the contractor and the owner are set
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out in clauses D1 and D3 of the contract, respectively.
Under clause D2, the contractor bears the risks set out in clause D1 and indemnifies the owner for any loss
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or damage occurring before practical completion, except to the extent that the owner is responsible for the
loss or damage.
After practical completion, the owner bears the risks set out in clause D3 and indemnifies the contractor
for any loss or damage the contractor suffers, except to the extent that the contractor is responsible for the
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loss or damage (clause D4). Note that the risks borne by the owner do not include those risks which would
ordinarily have been dissipated or subsumed by practical completion, namely, necessary work (being work
including temporary work required to create the works), risk to a structure already on the site before the
contractor gained possession of the site, on‐site materials and equipment intended to be incorporated, and
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plant, tools and equipment which ordinarily would have been removed.
Before practical completion (when it bears the risk), the contractor has to reinstate any loss or damage
caused (clause D5) whether or not the loss or damage was caused by the contractor or the owner.
However, the owner has to indemnify the contractor for any reinstatement work to the extent that the
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owner was responsible for the loss or damage.
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 Section E sets out the insurance requirements for the works.
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 Section M sets out when practical completion occurs.
Section E – Insurance
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Key points
 Contract works insurance and public liability insurance are essential because of the liabilities each
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party bears during construction, set out in section D.

 Normally, the contractor is responsible for these insurances, unless the owner chooses to obtain them.
 The contractor must maintain workers compensation and employer’s liability insurance and ensure
that any subcontractors maintain those insurances.
 The contract sets out particular terms that the insurances must contain.
 The party responsible for obtaining the insurances must give notice to the other party that it has
obtained them and provide details.
Comments
Clause E1 requires public liability insurance and clause E2 requires contract works insurance to be taken
out. Items 11 and 12 of schedule 1 determine whether the owner or the contractor has to take out the
insurance. The party who is required to obtain the insurance must maintain that insurance until the issue
of the final certificate.
Insurance – Section E
The required terms of the insurances are specified in clauses E1, E2 and E4.
When the owner is in occupation, it is more often the case that the owner has to take out the insurances. As
for the case when the owner is not in occupation, the nomination of the party who is required to take out
the insurance may be subject to negotiation before the contract is executed. The nominated party should
take advice from an expert such as an insurance broker.
The party responsible for obtaining the insurances has to provide evidence and details of them when
requested (clause E5) or the other party is entitled to take them out and recover the premium costs by an
adjustment in the next progress claim. If the contractor is required to take out the insurances, clause N7.1b
entitles the owner to withhold the first progress payment until satisfied that the insurances in accordance
with the contract are in place.
Chart 4.
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The contractor has to maintain workers compensation and employers liability insurances (clause E7).
A claim on any of the insurance policies must be made promptly and contain all the relevant information.
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The contractor or the owner must notify the architect of the event giving rise to the claim and must give
details of the claim.
The party making the claim has to pay the excess on the insurance set out at item 16 of schedule 1 (clause
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E9). The party can recover the excess from the other party to the extent that the loss resulted from the
actions of the other party. The primary obligation to make an insurance claim falls to the contractor, under
clause E8.1, unless the owner caused the event leading to the claim (clause E8.2).
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As noted in section D, if an event occurs between progress claims that causes loss or damage to the works
or materials or equipment intended to be incorporated into the works, the contractor is obliged by clause
D5 to reinstate the works. The loss or damage may include work done between progress claims but for
which the contractor has been unable to claim and be paid for, even though the same work must be
reinstated and will the second time be paid for, either by the insurer or owner. The contractor can submit
an additional progress claim for the work done the first time between progress claims which it would not
otherwise be able to claim (clause E10).
Links
 Items 11 and 12 of schedule 1 (who takes out and maintains insurance).
 Items 13, 14 and 15 of schedule 1 (minimum limits on insurance cover).
continued
Section E – Insurance
Item 16 of schedule 1 (insurance excess).
 Section D (liability).
 Section M (practical completion).
 Clauses N3, N4 and N7 (progress claims).
Architect’s forms
 SW‐21 Notice – contractor’s/owner’s evidence of insurances.
 SW‐45 Evidence of insurances – contractor to insure.
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Section F – The site
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Key points
 The owner has to give the contractor possession of the site.
 The contractor has to give the owner reasonable access to the site.

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The contractor must have inspected the site information before taking possession.
 The contractor can make a time/cost claim if the contractor discovers a latent condition or a valuable
item on the site.
Comments
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Owner to give possession of the site (clause F1)
The owner has to give the contractor possession of the site within 10 working days after:
 the owner, or the architect as the owner’s agent, receives a copy of the contract signed by the contractor
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 the owner is satisfied that all the insurances are in place for the works (see section E) and
 the owner, or the architect as the owner’s agent, receives any official documents required under item
30a of schedule 1.
The owner warrants that it has given the contractor all the site information at least 5 working days before
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the close of tenders.
Contractor’s obligations
The contractor warrants that it has examined the site information and inspected the site before signing the
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contract.
The contractor has to give the owner or its agents (the architect, consultants and others) access on
reasonable terms to the site. Reasonable terms include compliance with the contractor’s OH&S system in
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place (the owner/architect or other person has to be inducted if required by the contractor).
Time/cost claims
The contractor can make a time/cost claim if the contractor discovers a latent condition or valuable item on
the site. The requirements for making a time/cost claim and the procedures to be followed are set out in
section H.
The site – Section F
Latent conditions or valuable items
No. Action Clause Form
1. If the contractor discovers a latent condition or a valuable item, it must notify the F5 SW‐40
architect in writing within 5 working days of the discovery, seeking instructions.
2. The architect must give the contractor a written instruction promptly. F6 SW‐12
3. The contractor must comply with the instruction. A2
4. If the instruction will have time/cost implications, the contractor is entitled to make a F7 SW‐41
time/cost claim.
5. The requirements for making a time/cost claim and the procedures to be followed are H1
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stated in section H.
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 Section E (insurance).
 Section H (time/cost claims).
Architect’s forms
 SW‐12
Instruction – for a variation.
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 SW‐53 Contractor’s notice.
Building the works – Section G

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Key points
 The owner has to give the contractor sufficient information to allow the contractor to set out the works.
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 The contractor has various obligations to the owner including being liable to the owner for necessary
work done by subcontractors.
 The contractor must give the owner a program.
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 The architect can instruct the contractor to open up or test elements of the works.
Comments
Setting out the works
The owner has to give the contractor sufficient information to allow the contractor to set out the works,
including sufficient information to locate a reference set out mark (clause G1).
Contractor’s obligations
The contractor has various obligations to the owner set out in clause G2. The contractor has to appoint a
representative, whose contact details need to be stated in item 1 of schedule 1.
Section G – Building the works
The contractor is responsible to the owner for the necessary work undertaken by any subcontractors
engaged by the contractor and for the acts or omissions of any of its suppliers and subcontractors. The
contractor has to ensure that its agreements with its subcontractors and suppliers include all the relevant
provisions of the principal contract.
Program
The contractor has to give the owner a program or any updated program for the works but the program is
not a contract document. The updated program is required when the date for practical completion has
been adjusted by five working days or more (clauses G5 and G6).
Opening up or testing the works

Under clause G7, at any time the architect can instruct the contractor to open up or carry out tests on
elements of the works. Clause G8 enables the contractor to make a time/cost claim for any loss resulting
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from such an instruction, but the contractor cannot make a time/cost claim if defective work is revealed or
the test is one that is required by the contract, such as one required by item 23 of schedule 1.
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Links
 Item 23 of schedule 1 (testing).
 Section H (time/cost claims).
Architect’s forms
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 SW‐46 Program.
 SW‐51 Amended program.
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Section H – Claims to adjust the contract

Key points
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 A claim to adjust the contract can be a claim for an adjustment of costs, an adjustment of time, or both
(time/cost claim).
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 Section H sets out the procedures to be followed whenever a claim to adjust the contract is made.
Comments
The contract states when a time/cost claim can be made. The procedure for making a time/cost claim is set
out below:
Claims to adjust the contract – Section H
Time/cost claims procedure
1. The contractor can only make a time/cost claim where the contractor: H1, H2 SW‐41
 promptly notifies the architect of its intention to make a claim after receiving an SW‐42
instruction from the architect or becoming aware of an event that will result in a
claim and
 submits a claim within a time agreed with the architect, or, if nothing agreed,
within 20 working days.
2. If a claim results from a delay, the contractor does not have to notify the architect of its H1.3 SW‐10
intention to make a claim, but must still submit a claim within 20 working days or a SW‐42
time agreed with the architect. SW‐53
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3. The architect must promptly assess the claim. H3
4. If the architect reasonably requests additional information, the contractor must H3 SW‐43
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provide it promptly.
5. The architect must give a written decision within 20 working days after receiving the H4 SW‐13
claim.
6. The contractor can dispute the decision but must continue to perform its obligations A8, SW‐57
7.
under the contract, including the change.
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If the decision adjusts the contract price, the contract price will be adjusted with the
next progress claim.
H4, P1
N4
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Item 18 of schedule 1 allows the parties to agree rates for delay costs before the contract is entered into.
The inclusion of the rates does not alter the contract requirements of clauses H1 to H4. If no rates are
shown, the contractor is entitled to the actual amount of the delay costs incurred as a result of any
adjustment (clause H5), but must establish these to the satisfaction of the architect who must assess the
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claim under clause H3.

Under clause H6, the architect can adjust the contract as a result of a variation or delay at any time up to
the date of issue of the final certificate or a certificate issued under clauses Q9 or Q17, even if the contractor
has not made a claim.
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Links
 Item 17 of schedule 1 (percentage for overhead and profits).
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 Item 18 of schedule 1 (delay costs).

 Clause A8 (disputes).
 Section S – a claim to adjust the contract is a defined term.
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Architect’s forms
 SW‐55 Notice of dispute.
Section I
Not used.
Section J – Variation to the works

Key points
 The architect may issue an instruction for a variation (clauses J1‐J5). A variation may or may not result
in a cost adjustment.
 If an authorised person issues an official document, the contractor may request a variation for the
works (clauses J6‐J7).
 If the contractor receives an instruction to change something documented which has time/cost
implications and then proceeds without seeking and receiving an instruction to proceed from the
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architect, it waives its right to make a time/cost claim later.
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Comments
Section J deals with variations to the works. There are four different situations covered by the section,
discussed below.
Chart 5.
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Variation to the works – Section J
Architect’s instruction for a variation (clauses J1-J5)
1. Architect issues an instruction for a variation. J1 SW‐10
SW‐12
2. The contractor may request an instruction for a variation from the architect J1 SW‐40
3. Contractor reviews instruction and if it considers there are no time/cost J2
implications, it must carry out the instruction promptly.
4. There may be time/cost implications where: J1, J2 SW‐10
 the instruction includes a request for an estimate of the cost or saving of a SW‐12
variation, or a request for a quote or an estimate of the delay or SW‐41
 the contractor notifies the architect within 20 working days that a variation will SW‐53
have time/cost implications. In which case, the following provisions apply.
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5. Within 5 working days after receiving the contractor’s request or notification, the J3 SW‐13
architect must further instruct the contractor:
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 that the variation will or will not proceed
 to negotiate with the architect about the variation.
6. If the architect accepts the contractor’s quotation, the contract price will be adjusted J5, N4
with the next progress claim.
7.
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If the contractor is instructed to proceed but the quotation is not, or only partly
accepted, the contractor must proceed with the variation promptly and maintain
detailed records for that part of the variation for which the quotation is not
accepted.
J4, H1
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8. When the work for the variation is completed, the contractor must: H2, J4 SW‐41
 give written notice to the architect and SW‐53
 submit a detailed claim within 20 working days of completion of the work. SW‐42
Official document and variations (clauses J6 to J8)

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1. On receiving an official document (see clause B3), the contractor must: J6 SW‐57
 notify the architect promptly
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 give the architect a copy of the official notice and

 request an instruction.
2.  The architect must issue a written instruction promptly. The instruction must J7 SW‐10
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request an estimate of the cost or saving of a variation, or request a quote or an SW‐12

estimate of the delay.
3. The contractor can only make a time/cost claim for any loss, expense or damage H2, J8 SW‐41
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resulting from the instruction where the circumstances giving rise to the official SW‐42
document were beyond the contractor’s control. SW‐53
Links
 Clause B3 (definition of an official document).
 Section H sets out the requirements for making a claim to adjust the contract arising from a variation
and the procedures to be followed.
Section J – Variation to the works
Architect’s forms
 SW‐13 Instruction – to proceed/not proceed with a variation.
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
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SW‐57 Notification of an official document.
Section K – Adjustment of provisional and prime cost

sums
Key points
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A provisional sum is an allowance for work, the supply of materials or the connection of an
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infrastructure service, where the details were not fully known at the time that the contract was
executed.
 A prime cost sum is an allowance for items of material or equipment or a fee to a relevant authority that
was not known or precisely identified at the time that the contract was executed.
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 The architect has to instruct the contractor about provisional and prime cost sums and can nominate
who undertakes the work or supplies the item.
 The contractor has to quote in relation to an architect’s instruction.
 On acceptance of the quote, the architect adjusts the cost of the building work.
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Comments
In clause K1, the contract distinguishes between a provisional sum that allows for foreseeable necessary
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work, including supply of materials, and a prime cost sum that allows for the supply or the supply and
installation of an ‘off‐the‐shelf’ item that is not yet fully specified. Allowances for provisional and prime
cost sums are set out in schedule 6 and schedule 7 of the contract.
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Provisional sums may cover work such as excavation, rock removal, joinery items not yet designed,
landscaping and physical connection of a service.
Prime cost sums cover items such as tap‐ware, sanitary fittings, light fittings or white goods, where the
final selection was not made at the time the contract was entered into, as well as specific authority fees and
charges.
The contract requires the contractor to allow, in the contract price, all of its costs including preliminaries
and its overheads and profit associated with the work involved with provisional sums and prime cost
sums, and for the time that the work may take.
The architect must determine the provisional sums and prime cost sums that are required for the project,
and they should be set out in the relevant schedule for the information of tenderers. However, as the
scheduled amount of the provisional or prime cost sum is exclusive of GST that will be become payable on
the actual work performed when the detail of it is finalised, the allowance for the scheduled amounts in the
Adjustment of provisional and prime cost sums –
Section K
contract price must include an appropriate amount of GST based on the scheduled amounts.
Architect can instruct a person

The owner can nominate a particular person other than the contractor to undertake the work associated
with a provisional sum or to supply or supply and install an item covered by a prime cost sum (see clause
K3, schedule 6 and schedule 7).
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Architect’s instructions for prime cost or provisional sum items
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If the architect issues an instruction regarding work for which a provisional or prime cost sum has been
allowed (except payment of a fee or charge), the following actions are required under the contract:

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1. The architect instructs the contractor to provide a written quotation for the supply K2.2 SW‐10
and installation of an item for which a provisional or prime cost sum is allowed.
2. The contractor must provide a quotation and cannot proceed unless it receives an K2.3, SW‐43
instruction to proceed, (except for a prime cost sum for payment of a fee or charge to K2.6
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an authority).
3. The quotation can only be for the direct cost to the contractor excluding any margins K2.3
for preliminaries, overheads, profit or GST.
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4. If the architect agrees with the quotation, the architect must issue an instruction to K2.4 SW‐10
proceed, except for a prime cost sum for payment of a fee or charge to an authority.
5. If the cost of the accepted quotation is greater than the allowance, the contract price K4.2
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will be increased by the excess over the provisional sum or prime cost sum
multiplied by the rate contained in item 23 of schedule 1.
6. If the cost of the accepted quotation is less than the allowance, the excess of the K4.3
provisional or prime cost sum over the cost will be deducted from the contract price.
7. If the architect does not agree with the quotation, or has not requested a quotation, K2 SW‐10
the architect may issue an instruction to proceed and must issue a decision under
clause H4 in response to the contractor’s claim for adjustment to the contract.
8. The contractor can dispute the decision. H4, A8 SW‐55
9. The contractor must continue to perform its obligations under the contract. P1
10. The architect must adjust the contract price to take account of any difference in cost K4
in relation to a fee or charge paid to a relevant authority.
Chart 6.
Section K – Adjustment of provisional and prime cost
sums
Links
 Item 19 of schedule 1 (percentage of difference between cost and allowance for sum)
 Schedule 6 sets out the (GST exclusive) provisional sums included in the contract.
 Schedule 7 sets out the (GST exclusive) prime cost sums included in the contract.
Architect’s forms
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Section L – Adjustment of time
Key points
 The contractor can make a claim for an adjustment of time with costs for some specific delays.


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The contractor can make a claim for an adjustment of time without costs for other delays but only
where those delays exceed the allowances set out in items 20 and item 21 in schedule 1 of the contract.
There are restrictions on claiming overlapping delays affecting critical activities.
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Comments
The contract sets out particular causes of delay that entitle the contractor to make a claim for an adjustment
of time with costs (clause L1.1). They are:
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 Loss or damage to the works or material or equipment to be incorporated into the works, or plant and
equipment (not caused by the contractor).
 The owner failing to give possession of the site.
 An architect’s instruction.
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 An authority failing to give prompt approval for the works.

 A dispute with a nearby owner or occupier.
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The owner’s consultants failing to promptly provide necessary information to the contractor.
 Widespread industrial unrest not limited to the site.
 A suspension of the necessary work under clause Q12.
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 A breach of the contract by the owner.

 An act of prevention caused by the owner.
A contractor can make a claim for an adjustment of time without costs for other delays (clause L2.1) but
only where they exceed the provisional allowances in the contract (item 20 and item 21 of schedule 1).
The provisional allowances are for delay due to weather conditions and for other delays, if any, peculiar to
the circumstances in which the works are to be constructed (item 20 and item 21 of schedule 1).
The contractor is not entitled to an adjustment of the date for practical completion unless the delay has
exceeded the provisional allowance stated in the contract for that delay.
The contractor has to notify the architect when the progress of the works is delayed by any of the allowed
causes within 2 working days of becoming aware of the start or end of a delay (clause L3). This includes a
delay that falls within a provisional allowance.
Clause L6 allows the contractor to claim for overlapping delays that affect one or more critical construction
Adjustment of time – Section L
activities. The contractor can claim for the time commencing at the first overlapping delay to the end of the
last overlapping delay that extends the delay begun by the first overlapping delay. However, the
contractor can only claim costs for an overlapping delay set out in clause L1 that is not simultaneous with a
delay set out in clause L2.
Procedure for making a time/cost claim for delay

1. The contractor must notify the architect that the works are being delayed within 2 L3 SW‐58
working days of the start of the delay. Also, the notice must state:
 the time the delay began
 each cause of delay, if delays overlap and
 an estimate of the number of working days affected.
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2. The contractor must notify the architect that the works are no longer being delayed, L3 SW‐58
within 2 working days of the end of the delay.
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3. The requirements for making a claim and the procedures to be followed are stated in
section H.
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

respectively.
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Item 20 and item 21 of schedule 1 set out provisional allowances for weather and other delays
Section H sets out the requirements for making a claim and the procedures to be followed.
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Architect’s forms
 SW‐14 Instruction – adjustment of time.
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 SW‐58 Notice of start or end of a delay.
Completion of the works – Section M

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Key points

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The contractor notifies the architect when the contractor thinks the works have reached practical
completion.
 The architect certifies when practical completion is reached. The architect is obliged to certify practical
completion independently of the views of the parties.
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 The owner’s occupation of the works triggers practical completion even if the works have not reached
that stage.
 The issue of the certificate of practical completion triggers the defects liability period, the shift to the
owner of risk stated in clause D3 and release of security.
 The owner may have a right to liquidated damages if the works only reach practical completion after
the date for practical completion as adjusted.
 The contractor may be entitled to practical completion if the architect fails to act.
Comments
Practical completion
In clause M1, the contractor has to bring the works to practical completion by the date shown in item 22 of
schedule 1. This date may be adjusted under the contract. The works have reached practical completion
Section M – Completion of the works
when in the architect’s reasonable opinion:
 they are substantially complete and any incomplete works or defects are relatively minor and will not
unreasonably affect occupation.
 all commissioning tests set out in item 23 of schedule 1 have succeeded.
 the parties have given the architect all official documents required for occupation (see item 30 of
schedule 1).
The owner takes possession of the works or a separable part of the works at 4.00pm on the day that the architect
issues the notice of practical completion. The notice triggers release of security in accordance with clause C6.
The contractor is required to bring the works to completion by the adjusted date for practical completion.
If the works are not complete by the adjusted date for practical completion, liquidated damages may apply.
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The contract requires a defects liability period to be stated. If none is stated, then a default period of 12
months will apply and the contractor’s obligations during this period are defined in clause M14. A
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different defects liability period may be nominated in item 25 of schedule 1.
Under clause M2, at least 10 working days before the contractor expects that practical completion will be
reached, the contractor must inspect the works and prepare a detailed list of defects and incomplete works
and give a copy of that list to the architect. The contractor must also give the architect a written timetable
for the correction of defects and completion of any incomplete work.
Under clause M3:
 C
The contractor must notify the architect when the contractor believes the works are at practical
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completion. The contractor must give the architect a detailed schedule showing that any defects and
incomplete work have been corrected or completed to the contractor’s satisfaction.
 The architect must commence inspection of the works promptly and complete the inspection either
within an agreed time or 10 working days. The architect has to issue a notice of practical completion
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under clause M4 or give a notice to the contractor under clause M5 that practical completion has not
been reached.
 During the inspection period, the contractor must give the architect copies of any official documents
required for occupation and evidence that any commissioning tests set out in item 23 of schedule 1
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have been successful.

Under clause M7, if, after completing the inspection(s) of the works, the architect fails to issue a notice of
practical completion or a notice under clause M5 on time, the date of practical completion will be the date
claimed, security must be released, and the contractor may make a claim for any loss or damage it suffers.
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Under clauses M9 and M10, liquidated damages only apply if the works are not complete by the adjusted
date for practical completion and the owner makes a decision to have the architect apply them. The owner
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must decide to apply them no more than 20 working days after the date on which the notice of practical
completion was issued, or cannot apply liquidated damages under the contract. The rate for liquidated
damages must have been scheduled in item 24 of schedule 1 when the contract was signed to have any
effect, as there is no default rate in the contract.
Clauses M11 and M12 set out how the contractor is required to correct defects and finalise the work.
Clauses M13 and M14 set out the contractor’s obligation to rectify defects during and after the defects
liability period.
Practical completion
1. The contractor must notify the architect 10 working days before the works reach M2 SW‐47
practical completion and agree a program for the inspection(s) of the works.
2. The architect must commence the inspection(s) promptly and complete the M3
inspection(s) within 10 working days. A longer period for the inspection(s) may be
agreed with the contractor for more complex projects.
3. If the architect considers that the works have reached practical completion, the architect M4 SW‐20
must issue the notice of practical completion within 5 working days of the completion
of the inspection(s).
5. If the architect considers that the works have not reached practical completion, the M5 SW‐22
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architect must issue, within 5 working days of the completion of the inspection(s), a
notice to the contractor to that effect.
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6. If the architect issues a statement under clause M5, the contractor must promptly do M6 SW‐20
whatever is necessary to bring the works to practical completion.
Chart 7.
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If the architect fails to issue notice of practical completion on time (clause M7)
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1. The contractor must notify the architect that it considers that the architect has failed M7.1 SW‐53
to issue a notice under clause M4 or M5 on time and request issue of the notice.
2. If the notice is not issued within a further 5 working days, the contractor may advise M7.2 SW‐53
its intention to make a time/cost claim.
3. The date for practical completion will be the date identified in the contractor’s M7.2, SW‐33
notice, above and any security must be released in accordance with clause C6. C6
section H.
Chart 8.
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If the owner takes possession before practical completion (clause M8)
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1. If the owner has occupied the works then practical completion is deemed to have M8.1 SW‐52
been achieved
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2. The architect must issue the notice of practical completion within 5 days of being M8.1 SW‐20
advised of the owner’s occupation.
3. Possession of the works is to be treated as if it is an amendment to the program for M8.2,
the works and the contractor can make a time/cost claim. H1
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4. The issue of the notice of practical completion triggers release of security in C6

accordance with clause C6.
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section H.
Chart 9.
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Liquidated damages (clauses M9 and M10)
1.
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If the works are not complete by the adjusted date for practical completion, the
architect must notify the contractor and the owner of the owner’s entitlement to apply
liquidated damages.
M9.1 SW‐23
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2. If the owner decides that liquidated damages are to be deducted, it must request the M9.2
architect to do so in writing no more than 20 business days after issue of the
architect’s notice of practical completion. The architect must immediately notify the
contractor of the owner’s decision.
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3. When the architect prepares the next progress certificate, it must deduct the amount M10.1, SW‐30
of liquidated damages to which the owner is entitled. N4
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4. If, after liquidated damages have been deducted, an adjustment of time is granted, M10.2, SW‐23
with the result that the owner’s entitlement is altered, the architect must make an N4
appropriate adjustment in the next progress certificate.
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Chart 10.
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Correcting defects and finalising work (clauses M11-M14)
The contractor has to correct any defects or finalise any incomplete work within the time agreed or within
10 working days after receiving a written instruction from the architect.
If the contractor cannot remedy the defects or finalise any incomplete work in the time agreed or
nominated in the instruction, or show the architect reasonable cause why it cannot with a timetable for
rectification acceptable to the architect, the owner may use another person to rectify a problem and make a
claim for that cost against the contractor.
The defects liability period is shown in item 25 of schedule 1 and starts on the date of practical completion.
Where any part of the works has undergone significant correction, the architect may notify the contractor
that a further defects liability period of equal length will apply from the date of acceptance of the
correction.
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The contractor must remedy any defect or incomplete work notified during the defects liability period.
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The contractor may have to remedy a defect or complete work after the defects liability period is completed
if so notified.
The architect cannot notify the contractor of a defect or incomplete work after the defects liability period is
over unless it is for the rectification of a latent defect and it is before the issue of the final certificate.
Links


Item 22 of schedule 1 states the date for practical completion.
Item 23 of schedule 1 states any commissioning tests required.
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 Item 24 of schedule 1 states the rate for liquidated damages.
 Item 25 of schedule 1 states the defects liability period for the works.
 Item 30 of schedule 1 states the official documents required for practical completion and which party is
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obliged to obtain them.

 Section D (risks before and after practical completion).
 Section E (insurance before and after practical completion).
Architect’s forms
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 SW‐20 Notice of practical completion.

 SW‐22 Notice that works not at practical completion.
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 SW‐23 Notice of entitlement to liquidated damages.

 SW‐24 Notice of application of liquidated damages.
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 SW‐47 Notice to architect that the works are at practical completion.

 SW‐52 Notice of possession of the works before practical completion
Payment for the works – Section N
Key points
 The contract price has to include all relevant costs associated with completing the works including
provisional and prime cost sums.
 The contractor has to submit progress claims for the works. A progress claim is a required procedure
under this contract and is not a ‘payment claim’ under security of payment legislation unless it is also
provided by the contractor to the owner in accordance with the relevant legislation’s requirements.
 The architect has to assess each progress claim within 10 business days and then issue progress
certificates.
 A progress certificate issued by the architect to the contractor is a required procedure under this
contract and is not a ‘payment statement’ or equivalent under security of payment legislation, unless
the owner provides it to the contractor as a response to a claim under that legislation.
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 The contractor has to prepare a tax invoice and submit it with the certificate to the owner for payment.
 There are particular requirements for the first and final payment claims.
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 Interest is payable on overdue amounts.
Comments
This section defines the owner’s obligation to pay progress claims and the final claim and sets out the
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procedures that apply when claiming progress payments and assessing claims.
The contract price is required to include all provisional and prime cost sums and relevant costs associated
with completing the works and specifically includes rise and fall, tariffs and duties and industrial costs
such as award payments and site allowances.
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Under clause N3:
 The contractor may submit one claim to the architect each month on or after the date in the month
shown in item 26 of schedule 1 unless the architect and contractor agree in writing a different date.
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 The claim must set out the contractor’s valuation of the work completed, materials and equipment
delivered to the site, all in relation to the cost of building work up to and including the day of the
claim.
 The claim must include the amount of GST.
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 The claim must include a declaration that all wages and other entitlements have been paid, all monies
due to subcontractors have been paid and all insurances required to be maintained by the contractor
are in force.
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The contract requires the architect to issue progress certificates within 10 business days after receiving a
claim. If the architect fails to do so, the contractor may request the architect to issue the certificate. If the
architect fails to do so, within 5 working days of the request, the contractor is entitled to be paid the full
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amount of the claim within 7 calendar days after the written request was delivered. If the owner then fails
to pay, the contractor may suspend the works and may make a claim for any resultant loss or damage.
The contract requires the contractor to prepare a tax invoice for the same amount as the certificate and
present both documents to the owner for payment. The architect’s certificate must therefore include GST
and should identify the amount of GST that is included in the claim.
Section N – Payment for the works
Progress payments and final payments
1. The contractor may submit a progress claim for each agreed period, supported by N3 SW‐48
information required in the schedules and declarations required by the contract.
2. The architect must assess the claim N4
3. The architect may request additional information reasonably required to assess the N4.4 SW‐10
claim, but must do so promptly and continue to assess the remainder of the claim.
4. The architect must issue a progress certificate to the contractor and to the owner N4.1 SW‐30
within 10 business days of receiving a valid claim from the contractor.
5. On receiving the certificate, the party to be paid (generally the contractor) must then N5
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present the certificate along with a tax invoice to the other party for payment.
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6. The payment must be made within the period shown in item 10 of schedule 1 N6
(default period is 7 calendar days after delivery of the certificate and the tax invoice)
7. The contractor may submit its final claim on completion of the works and all defects N10 SW‐49
liability periods, and must do so within 20 working days after a request from the
architect to do so – failing which the architect may determine the final claim.
8.
9.
or any requested information) assess the final claim.
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The architect must promptly (but within 10 working days of receiving the final claim N11
If the contractor fails to provide any additional information requested by the N11.3
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architect to assess the final claim, the architect must promptly assess the final claim
on the basis of available information.
10. The architect must issue the final certificate to the contractor and to the owner N11.1 SW‐31
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within 10 working days of receiving the final claim from the contractor.
11. On receiving the final certificate, the party to be paid must then present the N12
certificate along with a tax invoice to the other party for payment.
12. The final payment must be made within the period shown in item 10 of schedule 1 N13.1
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(default period is 7 calendar days) after delivery of the final certificate and the tax
invoice.
Chart 11.
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Payment for the works – Section N
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If the architect fails to issue a progress certificate on time (clause N8)
1. If the certificate is not issued on time the contractor may by written notice, copied to N8.1 SW‐53
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the architect, request the owner to ensure the architect issues the certificate.
2. If the architect still fails to issue the certificate 5 working days after the contractor’s N8.2
notice is delivered, the contractor is entitled to payment of the full amount of the
progress claim within 7 days after the notice was delivered.
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3. If the owner does not pay the full amount by then, the contractor may immediately N8.3, SW‐54
suspend work. Q12
4. The contractor may claim for any loss, damage or expense that results from the N9, H1
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suspension and must promptly notify the architect that it intends making a time/cost
claim.
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section H.
Chart 12.
Section N – Payment for the works
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Links
 Item 10 of schedule 1 sets out the time in which progress certificates/final certificate has to be paid.

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Item 26 of schedule 1 sets out the date for submitting progress claims.
 Item 27 of schedule 1 sets out the information to be included in a progress claim.
 Item 28 of schedule 1 sets out the interest rate on overdue amounts.
 Section H sets out the requirements for making a claim and the procedures to be followed.
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 Section Q sets out procedures for terminating or suspending the contract.
Architect’s forms

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SW‐10 Architect’s instruction.

 SW‐30 Progress certificate.
 SW‐31 Final certificate.
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 SW‐48 Progress claim.

 SW‐49 Final claim.

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SW‐53 Contractor’s notice.

 SW‐54 Notice of suspension/termination.

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Section O
Not used.
Dispute resolution – Section P
Key points
 The parties must continue to perform their obligations even though there is a dispute.
 At least one party has to serve a written notice on the other.
 There must be at least two compulsory conferences to attempt to resolve the dispute within ten
working days.
 The parties may then agree to use mediation to resolve the dispute.
 In general, a party can only take legal action after the compulsory conferences.
 A party can take legal action at any time to enforce a payment already due under a certificate or for
urgent relief from detrimental action by the other.
Comments
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If a dispute or difference arises, each party has to continue to perform its obligations under the contract
(clause P1). The process for resolving the dispute is set out below.
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Disputes
1. Written dispute notice stating what the dispute is, delivered to the other party. P2.1 SW‐56
2. Within 5 working days of the notice, the representatives of the parties have a P2.1a
3.
compulsory conference.
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Within 10 working days of the notice, if there is no resolution to the dispute, there
has to be a further conference of representatives of the parties who have authority to
settle the dispute.
P2.1b
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4. Within 20 working days of the dispute notice, the parties have to agree in writing on P3.2
mediation.
5. Within 25 working days of the dispute notice, the parties have to agree on the P3.2
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mediator or no dispute resolution by mediation will be enabled under the contract.

6. Within 35 working days of the notice, or a different period by written agreement of 3.6
the parties, a mediation must commence, or no mediation will be enabled under the
contract.
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8. The decision of a mediator cannot be reviewed under the contract. A party must P3.7
take legal action to review the decision.
In general, a party may only take legal action either after the compulsory conference or if the parties have
pursued mediation, following the decision of the mediator. If a dispute has to be resolved urgently or
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relates to payment already due under a certificate, a party can take legal action at any time (clause P4).
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 SW‐56 Contractor’s notice of dispute.
Section Q – Termination of engagement
Key points
 The owner or the contractor can terminate the engagement of the other party where that party becomes
insolvent or breaches a substantial obligation under the contract and does not rectify the breach or
show cause why it cannot. A failure by the owner to pay a progress payment on time is a breach of a
substantial obligation.
 In some cases, the contract can be frustrated. Frustration is a legal term and legal advice should be
obtained before claiming that the contract is frustrated.
Comments
If insolvent, the insolvent party’s engagement can be terminated immediately by written notice from the
other party.
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Before a party’s engagement is terminated for breach of a substantial obligation, a party needs to identify
the substantial obligation of the other party that has been breached under the contract. Whether or not an
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obligation is substantial will depend on the particular circumstances, and for that reason it is always
recommended that legal advice is obtained before the termination process is initiated. However, a failure
by the owner to pay a progress payment on time entitles the contractor to begin the same process as a
breach of a substantial obligation (clause Q11.1).
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If the party’s engagement is to be terminated, or the contract is frustrated, the following procedures apply:
Termination by the owner (clauses Q1 to Q10)

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1. If the contractor fails to meet a substantial obligation under the contract, the owner Q1 SW‐10
may give written notice:
 specifying the breach
 requiring the contractor to remedy the breach within 10 working days and
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 stating that the notice is given under clause Q1.
2. If: Q1 SW‐10
 the default is not remedied or
 the contractor fails to show reasonable cause why it cannot be remedied within
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10 working days, or such additional days as agreed,

the owner may give the contractor a written notice of termination stating that the
notice is given under clause Q1.
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3. The owner may immediately terminate the engagement of the contractor if the Q2 SW‐10
contractor becomes insolvent. The owner gives a written notice stating that it is
given under clause Q2.
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4. If the owner terminates the contract under clause Q1 or Q2: Q3

 the owner can take possession of the site and exclude the contractor from it
 the owner can take possession of any documents, plant, tools and unused
materials and equipment and use them in completing the works until the
payment certificate is issued under clause Q9
 the risk passes to the owner who must take out insurance.
Termination of engagement – Section Q
5. After termination under clause Q1 or Q2: Q3 SW‐10
 the architect can instruct the contractor to remove its property from the site
 the contractor must comply within 10 working days or the owner can remove
and dispose of the property
 if the owner disposes of the contractor’s property, it must give the contractor
written notice of the amount received and pay this to the contractor, less disposal
costs.
6. After termination under clause Q1 or Q2: Q4 – SW‐25

 the contractor must assign its rights under any subcontract if required to do so Q9 SW‐32
by the architect
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 the owner may contract with others to complete the works
 the only obligation on the owner to make payment is under clause Q9
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 the owner may pay any amounts due to subcontractors or suppliers and subtract
this amount from the payment certificate under clause Q9
 the architect must promptly make a written assessment of the cost to the owner
of completing the works, excluding any amount it has paid to the contractor’s
subcontractors or suppliers and give a copy to the owner and the contractor.
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Then the architect must promptly prepare the certificate under clause Q9 for the
amount payable (if any) to the contractor or the owner and give it to the owner and
the contractor.
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7. The party to be paid must prepare a tax invoice for the amount in the certificate and Q10
give it to the other party for payment.
8. The certificate takes the place of a final certificate under clause N10 and any security Q9
must be released. C6
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9. The amount must be paid within the period shown in item 10 of schedule 1. Q10
Chart 13.
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Section Q – Termination of engagement
Termination by the contractor (clauses Q11 to Q18)
1. If the owner fails to make a progress payment on time or fails to meet a substantial Q11 SW‐53
obligation under the contract, the contractor may give written notice to the owner and
the architect:
 specifying the breach
 requiring the owner to remedy the breach within 10 working days
 stating that the notice is given under clause Q11 and
 that if the default is not remedied within 10 working days the contractor will be
entitled to suspend the works.
2. If: Q12 SW‐54

 the default is not remedied or
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 the owner fails to show reasonable cause why it cannot be remedied within time
or
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 if the owner fails to pay the full amount of a progress claim under clause N8.3
the contractor may suspend the works by giving written notice stating that the works
are suspended under clause Q12.
3. Once a notice of suspension has been given under clause Q12 the contractor may Q13 SW‐54
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terminate the contract by written notice to the owner and the architect stating that the
contract is terminated under clause Q13.
The contractor may immediately terminate the contract if the owner becomes Q14 SW‐54
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insolvent. The contractor gives a written notice stating that it is given under clause
Q14.
5. If the contractor terminates under clause Q13 or Q14 the owner must pay the Q15
contractor as if it had wrongfully repudiated the contract.
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6. The contractor must submit a claim within a reasonable time to the owner for the Q16 SW‐42
amount in clause Q15.
7. The architect must promptly assess the claim and promptly issue a payment Q17
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certificate.
8. The payment certificate takes the place of a final certificate and security must be Q17
released under clause C6. C6
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9. The party to be paid must prepare a tax invoice for the amount in the certificate and Q18
give it to the other party for payment.
10. The amount must be paid within the period shown in item 10 of schedule 1. Q18
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11. If, after suspension of the works: Q12

 the owner rectifies the default and
 the contractor has suffered any loss, expense or damage as a result of the
suspension of works,
the contractor can make a time/cost claim.
The requirements for making a time/cost claim and the procedures to be followed are stated in section H.
Chart 14.
Termination of engagement – Section Q
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Frustration (clause Q19)
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Before a party decides to assert that the contract is frustrated, it should obtain legal advice.
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Frustration generally means that the parties can no longer do what they agreed to do under the contract
because of some outside event that they could not have foreseen when they entered into the contract.
Frustration can exist at law or under this contract, because the parties agree the contract is frustrated. If the
contract is frustrated for either reason, the contractor can make a claim for work performed and not paid
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for, security held by the owner, non recoverable costs, and loss of profit.
The architect must promptly assess the claim for payment and issue a final payment certificate which will
take the place of a certificate under clause N11.
Security must then be released in accordance with clause C7 and payment must be made within the time
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shown in item 10 of schedule 1.
Architect’s forms
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 SW‐25 Notice – assessment of cost of completing the work.
 SW‐32 Certificate – termination payment.
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 SW‐54 Notice of suspension/termination.
Sections R and S – Miscellaneous and Definitions
Comments
Both sections R and S assist in the interpretation of the contract. In section R, there are a number of
clauses assisting in interpretation of the contract, including setting out how and when documents are
delivered by one party to the other and the architect.
Section S contains definitions of a number of terms used in the contract. Defined terms are shown in the
contract with a star and in italics, e.g., *works. If a party is unsure of the meaning under the contract of a
defined word, they should refer to section S.
Sending documents to a party

A party can send a document to another party by hand or post, facsimile or email (clause R1). For ease of
communication, each party should nominate their contact details in the contract and agree on the preferred
method of communication and protocols for that communication. Clause R2 sets out when a document is
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deemed to be delivered by different methods (hand, post, facsimile or email).
Each party needs to take account of the time taken for a document to be delivered according to the rules in
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clause R2, so that the party complies with the time constraints set out in the contract. Where time of
sending affects the operation of the rule, it is the time of sending in the time zone of the site.
For example, if a party has 5 working days to send a notice and it sends the notice by post, the notice has to
be sent within 2 working days (to allow the remaining 3 working days for postage). If a party sends the
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notice by email, and does not receive a reply from the recipient, or a notice by return confirming delivery
or a ‘read’ notice from the recipient’s email system, the notice is deemed to have been delivered on the next
working day. However, if the notice is sent by email after 5.00pm (in the time zone of the site) on a
working day, the message is also deemed to have been delivered on the next working day, even if a reply,
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or notice confirming delivery or that it has been read is received on the day it was sent. If the notice is sent
by email but not on a working day, it is deemed to have been served on the next working day, again
whether or not a reply or a delivery or read notice is received.
Change in relevant legislation

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Clause R10 provides that if, after the parties sign the contract, any relevant legislation changes or new
legislation comes into effect that requires changes to the works, the contractor has to notify the architect
promptly. The architect has to promptly instruct the contractor what to do. This may involve time and/or
cost adjustments.
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Forms
The forms referred to in the user guide are listed below. Electronic copies are available for purchase
separately to the user guide and the contract.
Architect’s forms
Form Title Clause
Instructions
SW‐10 Architect’s instruction A7, J1
SW‐11 Contract price adjustment H4, K4
SW‐12 Architects instruction for a variation J1
SW‐13 Instruction – to proceed/not proceed with a variation J3
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SW‐14 Adjustment of time L1
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SW‐15 Instruction – to correct defects or finalise work M11, M14
SW‐16 Instruction – request for contractor to submit final claim N10
Notices
SW‐20
SW‐21
SW‐22
Notice of practical completion
Notice of insurance
Notice – the works not at practical completion C C6, M4, M13
E1, E2, F1
M5
ce
SW‐23 Notice – entitlement to liquidated damages M9
SW‐24 Notice – application of liquidated damages M10
SW‐25 Notice – assessment of cost of completing the works Q8
en
Certificates
SW‐30 Progress payment certificate N4
SW‐31 Final certificate N11
er
SW‐32 Certificate – termination payment Q9

SW‐33 Certificate – release of security C6, C7
ef
Form Title Old form
R
SW‐40 Request for information/instruction/notice Con 1

SW‐41 Notice of intention to claim Con 2
SW‐42 Details of claim Con 3
SW‐43 Additional information Con 4
SW‐44 Security – providing bank guarantees Con 5
SW‐45 Evidence of insurances – contractor to insure Con 6
SW‐46 Program Con 7
SW‐47 Notice to architect – works at practical completion Con 8
SW‐48 Progress claim – summary sheet Con 9
Forms
Form Title Old form
SW‐49 Final claim – summary sheet – clause N10 Con 10
SW‐50 Evidence of insurances – owner to insure Con 12
SW‐51 Amended program Con 13
SW‐52 Notice of possession of the works before practical completion Con 14
SW‐53 Contractor’s notice Con 16
SW‐54 Notice of suspension/termination Con 17
SW‐55 Notice of dispute Con 18
SW‐56 Notice of dispute – clause P2 Con 19
y
SW‐57 Notification of an official document Con 20
op
SW‐58 Notice of start or end of delay Con 21
C
ce
en
er
ef
R

ABIC SW 2008 User Guide

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Simple Works Contract

ABIC SW-2008 Introduction .................................................. 1

Section G – Building the works .................. 21

Section J – Variation to the works............. 24

Section L – Adjustment of time ................. 28

Section N – Payment for the works ........... 35

For further information, please contact:

YARRALUMLA ACT 2600 Level 2

A8.3 Assess party’s dispute notice 10 working days

B1.1 Notify architect in writing of Promptly Promptly

B3.1 Supply copies of official Promptly Promptly

C3.1 Provide unconditional Within 10 working days after

F3.1 Give all relevant site At least 5 working days before

G5.1 Give program to architect Within 10 working days of

make time/cost claim instruction or on becoming

L3.1b Notify end of delay to works Within 2 working days of

completion and give timetable expected date of practical

practical completion completion

incomplete work receiving instruction

certificate receipt of claim

certificate and tax invoice certificate and tax invoice

N8.2 Pay certificate if architect does Within 7 days after request

Immediately on written notice

Q19.2 Assess claim and issue final Promptly

Item 1 – Signing the contract

Item 2 – The architect

representative for administration of the contract.

Item 3 – Special conditions

Item 4 – The contract price (clause N1)

Items 7-9 – Security (section C)

Item 10 – Period for payment of certificates or release of security

Item 12 – Contract works insurance (clause E2)

Item 16 – Insurance excess (clause E9)

Item 18 – Adjustment of time costs (clause H5)

Item 19 – Percentage of difference to be added to contract price (clause K4.2)

Item 22 – Date for practical completion (clause M1)

Item 24 – Rate for liquidated damages (clause M9)

Item 25 – Defects liability period (clause M13)

Item 26 – Date for submitting progress claims (clause N3)

Item 27 – Information to be included in the progress claim (clause N3)

Item 28 – Interest rate on overdue amounts (clause N15)

Item 29 – Governing law

negotiation before the contract is executed.

Item 30 – Official documents (clause B3)

Schedule 3 – Order of precedence of contract

 any special conditions shown in schedule 2a

 the conditions set out in the contract and schedule 1

Form of guarantee – Schedule 5

Provisional sums – Schedule 6

Schedule 7 – Prime cost sums

Schedule 8 – Items to be supplied by the owner for

Pro forma forms

 How to resolve a discrepancy or omission in the contract documents.

schedule 3 of the contract.

 SW‐10 Architect’s instruction.

 SW‐41 Notice of intention to claim.

 SW‐57 Notification of official document.

 Items 7 to 9 of schedule 1 – (type of security and percentages).

owner was responsible for the loss or damage.

 Section M sets out when practical completion occurs.

party bears during construction, set out in section D.