General Conditions of Contract

AS 4000 is a standard form contract which is widely used in the construction industry. The risk allocation between the parties in the contract is therefore well understood. The current revision of AS 4000 has been conducted by a committee of industry representatives and experts. In accordance with industry feedback gathered in the lead up to the revision, the committee has ensured the risk allocation in AS 4000 remains unchanged from the 1997 edition. This continuity will provide contractors, subcontractors, and principals alike with the assurance they need to confidently navigate the complexities of construction projects.

AS 4000 provides an effective, trusted and widely accepted general conditions of contract document and this update brings its content to currency with 25 years of progressive legislation.

Project summary

In 2022, Standards Australia commenced the process to update the Standard by inviting experts and relevant stakeholders to be represented on our Technical Committee MB-010 General Conditions of Contract. These experts were tasked to review AS 4000 in accordance with the following principles:

• Reflect developments in legislation and case law since the 1997 edition.
• Keep the updates to the contract tightly focused so as not to impact the risk allocation between the parties and any comments will be considered in this context.
• Amend the terminology and structure so the contract is easier to use and read.

The major changes in the current revision are as follows:

• Insertion of a Formal Instrument of Agreement as an option for forming the contract.
• Enhanced clause 1, with new definitions and principles of interpretation added.
• Addition of a GST clause.
• Use of consistent language for time periods (e.g. using “as soon as practicable” rather than a range of terms).
• Addition of a clause dealing with the Personal Property Securities Act 2009.
• Alignment of the insolvency provisions with current legislation
• Amendments to the dispute resolution clause to allow users greater flexibility in choosing a dispute resolution forum that best meets their business needs.

Project Scope and proposals that change risk allocation

MB-010 were tasked to review AS 4000 in accordance with the following principles:

• Reflect developments in legislation and case law since the 1997 edition.
• Improve the contract structure and align with modern standard form contracts.
• Keep the updates to the contract tightly focused so as not to impact the risk allocation.

Any comments submitted to the committee will be considered in the above context, and any changes that impact the existing risk allocation will not be considered during this revision.

Next stage

The Technical Committee MB-010 General Conditions of Contract is currently reviewing and considering the submitted industry feedback and updating the draft in accordance with the project scope and principles.

Following the update of AS 4000, Standards Australia has committed to review and update the complete suite of AS 4000-based documents including the HB 140-2000 Administration manual for AS 4000—1997 General conditions of contract and AS 4902—2000 General conditions of contract for design and construct.