Australian Building Industry Case Study 2022

This assignment compares the four below stated standard forms of contract –
1. AS4000 –1997, General Conditions of Contract: Standards Australia.
2. Australian building industry contract: ABIC MW‐1 2008 major works contract. The
Australian Institute of Architects and Master Builders Australia Incorporated.
3. Conditions of contract for construction for building and engineering works designed
by the employer / Federation Internationale des Ingenieurs‐Conseils = International
Federation of Consulting Engineers (FIDIC); [The Red Book] 2010.
4. New Engineering Contract NEC4 : the contracts / Institution of Civil Engineers NEC
Panel. Engineering and construction contract Option B: priced contract with bill of
quantities.
For the sake of brevity they are hereinafter referred to as follows respectively (in the same
order as above) –
1. AS4000
2. ABIC
3. The Red Book
4. NEC4
1. Provisions relating to ‘contract documents’ including but not limited to:
a) which documents constitute the ‘contract documents
Under AS4000 documents under Item 15 constitute as contract documents.
Under ABIC contract documents are referred to as official documents, they are any report,
notice, order, permit, licence, approval or other document required or issued by an authorised
person in relation to the works, documents listed in item 36 of Schedule 1, statutory
approvals, documents given for provision of infrastructure services gas, electricity,
telecommunications, water, storm water or sewerage - (B3).
b) the duties and obligations of parties regarding the ‘contract documents’
Under AS4000, the Principal has the obligation to supply contract documents to the
Contractor as required in Item 15 which would remain the Principal’s property – (8.2). The
Contractor has to supply to the Superintendent documents stated in the contract and not use
the documents given by the Principal for any purpose other than WUC. The Superintendent
has to provide check documents and provide clarifications to the Contractor only where it is
required by the Contract - (8.3).
Under ABIC, the contractor and owner must supply the required contract documents to all
authorised persons (B3).

c) how discrepancies in the ‘contract documents’ are administered
Under AS4000, the parties shall refer to the Superintendent about discrepancies, ambiguities
and inconsistencies regarding contract documents for completing WUC. The Superintendent
shall issue directions to the Contractor regarding interpretation of such discrepancy and if any
additional cost is incurred by the contractor to adhere to such interpretation, it shall be
included in the contract sum - (8.1).
Under ABIC, discrepancies discovered by either party has to be promptly reported to the
Architect who has promptly give written directions to the Contractor to resolve disputes –
(B1).
d) the order of precedence of ‘contract documents’
Under AS4000, the order of precedence of contract documents have not been given. As
regards payment, the following order of precedence shall be followed – prior agreement,
applicable rates or prices in contract, rates and prices mentioned in bills of quantities,
schedules of rates or prices, and then reasonable rates or prices including reasonable profits
and overheads – (36.4).
Under ABIC, the order of precedence is given in Schedule 3. If the specifics are not given in
the schedule the following order shall be followed – special condition under Schedule 2a,
owner occupation special condition under Schedule 2b, conditions under Schedule 1,
conditions under Schedule 1, work specifications under schedule 3, drawings under schedule
3, and lastly any other documents under Schedule 3 – (B2).
e) availability of contract documents onsite during construction
Under AS4000, the Contract is required to keep available on site for the benefit of the
Superintendent and Principal, one complete set of documents affecting the WUC supplied by
the principle or superintendent – (8.4 (a)).
Under ABIC there is no provisions like AS4000 for keep available documents on-site by the
contractor.
f) privacy/confidentiality of ‘contract documents’; and
Under AS4000, the parties are to maintain the confidentially and non-disclosure of all
contract documents. If required a separate contract may be entered into to maintain
confidentiality of all contract documents even after completion of contract and delivery of
final certificate – (8.5). The contractor shall not disclose any contract documents to the media
without prior permission from the principal and shall inform the principal about the media’s
inquest (8.6).
Under ABIC the owner and contractor are both required to maintain confidentiality over
documents marked as confidential. The contractor must not advertise his business

relationship with the owner without written permission from the owner. The contractor has to
also ensure that sub-contractors abide by the same rules of confidentiality. - (R12).
g) copyright and intellectual property rights in the ‘contract documents.’
Under AS4000, the Contractor and Principle both guarantee that unless otherwise provided in
the contract, all documents, designs and materials supplied by each of them shall not violate
and intellectual property rights. In case of violations, they promise to indemnify each other
for breach of IPR due to their own fault – (10).
Under the ABIC there are no provisions for protection of intellectual property of contract
documents.
2. Provisions relating to progress claims including but not limited to:
a) How the Contractor submits progress claims
Under AS4000, a Contract shall submit progress claims in writing with the Superintendent
including value of WUC completed and other moneys due to the Contractor under the terms
of the contract as per Item 28. If progress claim is submitted is submitted early, it shall be
deemed to have been made on the date of making the claim – (37.1). In the progress claim,
the Contractor has to submit payments due to his workers and to the sub-contractor in respect
to WUC along with documentary evidence of the same to the satisfaction of the
Superintendent - (38.1).
Under the ABIC, the Contractor is entitled to submit to the architecture one progress claim
each month for payment, tem 32 of schedule 1, unless a different date is agreed upon in
writing between the owner and the contractor – (N3).
b) Who assesses the progress claim and the method by which it is assessed and priced
Under AS4000, the progress claim is submitted to and assessed by the Superintendent, who
within 14 days of receiving the progress claim, has to grant a Progress Certificate evidencing
his opinion of the payments due to the Contractor by the Principal. If any deviation of amount
is made in the Progress Certificate by the Superintendent, then reasons have to be provided.
The payments are calculated in accordance with Item 28 provisions (37.2). Moneys may be
deducted for unfixed plant and materials, or shall not be payable by the Principle unless such
is listed in Item 29 (37.3).
Under the ABIC, progress claims must be assessed by the Architect and within 10 business
days of receiving such claim from the Contractor issue a progress certificate to the owner and
contractor. During assessment, the Architect must evaluate the following factors – assessment
of the cost of building work since last assessment, works completed till the date of progress
claim, proportion of the cost of building work claimed, allowance for cash retention under
Clause C2, set off claims by owner, owner’s claim to previous liquidated damage, any
outstanding amount under previous progress certificates – (N5).