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Understanding Australian Construction Contracts

Navigating the alphabet soup: AS4000, ABIC, HIA, and MBA.

Standard Form Contracts

In Australia, we rarely draft contracts from scratch. We use "Standard Form" contracts that allocate risk in known ways.

1. Residential Contracts (HIA & MBA)

HIA (Housing Industry Association) & MBA (Master Builders Association) contracts are the standard for domestic building. They are generally simpler and designed to comply with state-specific Home Building Acts (e.g., QBCC Act in QLD, DBCA in NSW).

  • Focus: Consumer protection, stage-based progress payments (Base, Frame, Lock-up, Fixing, PC).
  • Risk: Heavily regulated. Builders cannot request payments in advance of work in many states.

2. Architectural Contracts (ABIC)

ABIC (Australian Building Industry Contracts) are jointly developed by the Master Builders and the Institute of Architects. They are designed for architect-administered projects.

  • Key Feature: The Architect acts as the Superintendent (impartial assessor).
  • Risk Profile: generally considered balanced, but stricter on the builder regarding time and quality than standard HIA/MBA forms.

3. Commercial Contracts (AS Suite)

AS 4000 / AS 2124 are the heavyweights of commercial construction.

  • AS 4000: The most widely used construct-only contract. Balanced risk.
  • AS 4902: Design & Construct (D&C). The builder takes on the risk of the design being fit for purpose.

Warning: Commercial clients often amend these standards heavily. Always check the "General Conditions" against the "Special Conditions". Special Conditions usually override everything else.