What Is the Best Building Contract for Residential Projects in Victoria?

An architect’s guide for homeowners

When building a home in Victoria, most homeowners focus on design, budget and choosing the right builder. However, the type of building contract you enter into is just as critical to the success of your project.

In Victoria, residential construction is governed by state-specific legislation and industry practices. While there are several commonly used building contracts, not all of them offer the same level of clarity, balance or protection for homeowners—particularly on architect-designed projects.

As architects, we’re often asked:

“Which building contract is best for a residential project in Victoria?”

The answer depends on how the project is delivered, but for most bespoke, architect-led homes, there is a clear recommendation.

Residential Building Contracts Commonly Used in Victoria

Homeowners in Victoria typically encounter the following contract types:

• ABIC contracts (Australian Building Industry Contracts)

• HIA contracts (Housing Industry Association)

• MBA contracts (Master Builders Association of Victoria)

• Design & Construct (D&C) contracts

Each contract type suits a different project structure and level of design involvement.

ABIC Contracts (Australian Building Industry Contracts)

Developed by: Australian Institute of Architects & Master Builders Australia(used in conjunction with Victorian legislation)

What is an ABIC contract?

ABIC contracts are specifically designed for projects where an architect is engaged to design the project and administer the building contract during construction.

They are commonly used for architect-designed homes across Victoria.

Common ABIC contracts used in Victoria

• ABIC MW – Medium Works (most custom residential projects)

• ABIC SW – Simple Works (smaller residential projects)

• ABIC EW – Early Works

Why architects in Victoria recommend ABIC

• Fair and balanced risk allocation between homeowner and builder

• Architect acts as an independent contract administrator on behalf of the owner

• Clear processes for variations and extensions of time

• Transparent cost control mechanisms

• Established dispute resolution procedures

• Well accepted by reputable custom builders in Victoria

Best suited for

• Custom architect-designed homes

• Complex or bespoke residential projects

• Homeowners who value transparency, quality control and design integrity

For most architect-led residential projects in Victoria, ABIC is the preferred contract.

HIA Contracts (Housing Industry Association)

What is an HIA contract?

HIA contracts are widely used in builder-led and volume housing projects across Victoria.

Pros

• Familiar to many builders

• Straightforward and relatively simple

• Suitable for standardised residential builds

Cons (from a homeowner and architect perspective)

• Generally weighted in favour of the builder

• Limited role for architects during construction

• Less transparency around variations and cost adjustments

• Less suited to bespoke or design-driven projects

Best suited for

• Volume-built homes

• Builder-led residential projects

• Simple construction scopes

  
  

MBA Contracts (Master Builders Association of Victoria)

What is an MBA contract?

MBA contracts are developed by the Master Builders Association of Victoria and are commonly used across the state.

Pros

• Commonly accepted by builders

• Works adequately for standard residential projects

Cons

• Builder-favourable risk allocation

• Less suitable for architect-administered projects

• Reduced design oversight during construction

Best suited for

• Standard residential builds

• Builder-led delivery models

  
  

Design & Construct (D&C) Contracts

What is a Design & Construct contract?

Under a D&C contract, the builder is responsible for both design and construction. Designers are often novated to the builder after contract execution.

Pros

• Single point of responsibility

• Potentially faster project commencement

Cons (important for Victorian homeowners)

• Reduced design independence

• Cost often prioritised over design quality

• Limited flexibility during construction

• Architect’s role becomes constrained once novated

Best suited for

• Commercial or time-driven projects

• Rarely ideal for bespoke residential homes in Victoria

  
  

Which Building Contract Is Best for Homeowners in Victoria?

Short answer

For architect-designed residential projects in Victoria, ABIC contracts are generally the best option.

Why ABIC benefits Victorian homeowners

• Independent contract administration

• Clear checks and balances

• Transparent variation and cost management

• Better protection of design intent

• Fairer allocation of risk

Under an ABIC contract, the architect administers the contract on behalf of the homeowner, not the builder—providing an additional layer of clarity and accountability.

Comparison Table — Residential Building Contracts in Victoria

Contract Type	Best For	Who Controls Design	Risk Balance	Architect Involvement
ABIC	Custom homes	Homeowner / Architect	Balanced	High
HIA	Volume homes	Builder	Builder-favourable	Limited
MBA (Vic)	Standard builds	Builder	Builder-favourable	Limited
D&C	Time-driven projects	Builder	Builder-dominant	Very limited

Architect’s Perspective (Victoria)

From an architectural standpoint, ABIC contracts allow architects in Victoria to:

• Fulfil their professional duty of care

• Administer construction independently and fairly

• Resolve issues before they escalate

• Protect both homeowner interests and design quality

In practice, ABIC contracts often result in:

• Clearer communication

• Fewer disputes

• More predictable construction outcomes

  
  

When ABIC May Not Be Suitable

ABIC contracts may not be appropriate when:

• The project is very small or minor

• The builder is unwilling to work under ABIC

• The homeowner prefers a purely builder-led process

In these cases, HIA or MBA contracts may be used, but homeowners should understand the trade-offs involved.

Final Thoughts

A building contract is not just an administrative document—it sets the framework for how your project is delivered.

For most bespoke, architect-designed residential projects in Victoria, ABIC contracts provide the best balance of clarity, protection and quality for homeowners.

Disclaimer

The information provided in this article is intended as general information only. Building contracts in Victoria are subject to state legislation, including the Domestic Building Contracts Act 1995 (Vic), and may vary depending on project circumstances. This content does not constitute legal advice. Homeowners should seek independent legal advice before entering into any building contract.