Advance Payment
Payment by a Principal to a Contractor which is made in advance of the progress of the Works. A Contract may provide for advance payment where there are large mobilisation or tooling costs, or long lead time procurement required of the Contractor.
Abatement
A reduction or lessening of something. Often used in the context of environmental factors such as a requirement of an environmental authority to reduce noise or other emissions. Also used in the context of leases where there is provision to reduce the rent in the event that part or all of the premises become unusable. It can also be used in relation to reducing a price or value if works have not been carried out to correct specifications, are incomplete, or have not been carried out at all.
ABIC
The Australian Building Industry Contracts (ABIC) are a suite of building Contracts jointly published by Master Builders Australia Ltd and the Australian Institute of Architects. They are intended for use in building projects where the Contract is administered by an Architect.
ABIC BW-2008 (Basic Works Contract)
Previously used for basic building works, usually small commercial projects up to $50 000, or single trade projects with a low level of complexity. This form is no longer published and has been withdrawn form sale and use. See ABIC BW-2018.
Acceleration
An increase in the rate of progress of a Contractor above that initially contemplated by the Contract or a construction program forming part of the Contract. The Contract may allow for the Superintendent to direct an acceleration to bring the Date for Practical Completion forward (stand alone or as an alternative to an extension of time and in each case the Contractor would usually receive Acceleration Costs). A Contractor may also decide to accelerate works in order to meet the Date for Practical Completion at its own cost.
Acceleration Costs
Additional costs incurred by the Contractor arising from Acceleration. For example, the additional labour or overtime for labour incurred as a result of Acceleration. These costs may or may not be recoverable depending on the basis of the Acceleration and the terms of the Contract.
Acceptable Quality
A requirement that something be of acceptable quality is one of the guarantees provided under the Australian Consumer Law and applies to the supply of goods to a consumer from 1 January 2011. Goods will be considered to be a supply to a consumer if: • the amount payable for the goods is $40,000 or less; or • the goods are of a kind ordinarily acquired for personal, domestic or household use or consumption; or • in the case of vehicles or trailers, the vehicle or trailer is acquired primarily for use in the transport of goods on public roads. The goods are of acceptable quality if they are: • fit for all the purposes for which goods of that kind are commonly supplied; • acceptable in appearance and finish; • free from defects; • safe; and • durable, as a reasonable consumer fully acquainted with the state and condition of the goods (including any hidden defects of the goods), would regard as acceptable. Relevant to this test are: • the nature and price of the goods; • any statements made about the goods on any packaging or labels; • any representations made by the supplier about the goods; and • any other relevant circumstances relating to the supply of the goods.
Access
Entitlement of a party to enter the site of the Work under the Contract. Rights of access can be exclusive or non-exclusive. Distinct from possession of, or control over, the site. The Contractor may be given access to the site to deliver materials or to carry out survey work, or following Practical Completion to rectify Defects. The Principal and Superintendent may need access while the Contractor has possession for the inspection or testing of work carried out by the Contractor or others. (Also referred to as Possession)
Accreditation
Generally, the authorisation (usually statutory) of a person or body to undertake some specified activity or role. In the building and construction industry, accreditation or a certificate of accreditation (such as that issued by the Australian Building Codes Board) provides evidence that materials, methods of construction and designs comply with the Building Code of Australia.
Adjoining Land
Land on either side of a common boundary.