I'm almost ready to put to tender 2 x higher end architect designed townhouses with expected build cost of circa $1.5m+ (total, both townhouses). The architect has offered to run the tendering process and administer the contract at a relatively low cost. The build will not be terribly easy in my view as there is a partial basement and boundary walls in a tight street in inner Melbourne. The architect has sent me a Simple Works Australian Building Industry Contract template and asked me if I am happy to use that contract. I understand it is different from a standard HIA contract. Schedule 1, item 24 of the ABIC contract relates to a penalty for delayed completion of works. I am thinking if this is set too high, the builders will inflate the contract price to mitigate the risk. If too low, I wear all the risk. My questions are: 1) what are the pros/cons of ABIC simple works vs HIA contract; 2) what reasonalble for schedule 1, item 24? I am thinking perhaps $1000/week per townhouse (ie. $2000/week). This would be a penalty of around 65%-75% of the expected rental return.