The General Conditions of Contract, otherwise previously known as AS 4000:1997 remains one of many fundamental and commonly sought after construct-only contract templates within the building and construction industry but who regulates the templates to ensure that the contracts deliver the desired outcomes and are consistent with industry practice?

Domestically, Standards Australia act as the primary organisation, [i] responsible for developing and adopting contractual standards that can be used to undertake commercial or residential projects.

As part of their latest update, in late June 2025, Standards Australia, the primary organisation which produces contractual standards, published a revised version of the Australian Standards 4000 (AS 4000:2025). This standard was released to ensure the General Conditions of Contract are clarified and consistent with updated legislation and the developing commercial landscape, whilst leaving risk allocation between parties untouched and balanced. ^[ii]

What is the AS 4000?

The AS 4000 or ‘General Conditions of Contract’ are a domestically utilised and uniform set of contract terms commonly used by negotiating parties within the construction industry. The primary purpose of the AS 4000 is to provide a predetermined and practical framework,^[iii] to regulate and manage contractual relationships both up and down the contractual chain. However, these terms can also be amended to reflect the varied levels of risk allocation between the contracting parties.

The release of the AS 4000:2025 also represents an acceptance of rapid degree of advancement that has recently taken place within the construction industry towards engaging in project management that is flexible in its application yet compliant with key legislative instruments like the Personal Property Securities Act 2009 (Cth).

What key amendments were made, and what does this mean for you?

Primarily, amendments made to the AS 4000:2025 include the following:

• Providing negotiating parties with the ability to customise how they approach dispute resolution. The renewed AS 4000:2025 lists and prioritises negotiation to occur before opting for litigation but simultaneously encourages and allows parties to arbitrate if the circumstances require it. Aside from arbitration, the AS 4000:2025 continues to offer additional dispute resolution mechanisms including:

• • Mediation
  • Expert Determination
  • Referral to a Dispute Avoidance board

Although the renewed AS 4000:2025 presents contracting parties with ample opportunity for flexibility and autonomy to engage in alternate forms of dispute resolution, this does not change the fact that parties must remain vigilant to the differing degrees of authority dispute resolution mechanisms have. For example, when parties choose to rely on arbitration to determine the outcome of a dispute they do so with the knowledge that the decision of the arbitrator is binding and requires strict compliance.

• The addition of a newly drafted Formal Instrument of Agreement (FIA) and deed of novation annexed to the AS 4000:2025 represents a clear time saving mechanism for contracting parties, removing the need to separately prepare an FIA. These can be particularly useful for repetitive transactions between the same contracting parties. However, parties to an FIA or deed of novation should seek legal advice if amended versions of these terms are sought to be relied upon to minimise excessive risk allocation.
• General updates to the AS 4000:2025 template to account for broad legislative amendments to the federal GST system and Personal Property Securities Act 2009 (Cth). The renewed template also focuses on remaining compliant with existing domestic work, health and safety (WHS) provisions to ensure all building and construction projects, regardless of scale remain subject to a regulatory landscape that accounts for:

• • transactions that require the payment of GST and generation of tax invoices;
  • in line with the updated model WHS laws and regulations, the renewed template now allows a contractor to be appointed to the position of ‘Principal Contractor’, giving the term an updated definition that mirrors the interdependent relationship between contractor’s responsibilities under the AS 4000:2025 and mandatory health and safety standards to be fulfilled when completing building and construction works;
  • insolvency events that may impact contractual relationships under the Bankruptcy Act 1966 (Cth); and
  • aligns with duties of payment mechanisms that continue to develop under the Building and Construction industry Security of Payment Act 1999 (NSW). [iv]

• Altering requirements associated with determining practical completion. The AS 4000:2025 now allows the listed date for practical completion to arise before a certificate of Practical Completion is issued. This appears to be better aligned with practical developments in contract administration.
• A continued preference for straightforward and plain descriptions when contract drafting including replacing “shall” and “will” with definitive terms within the AS 4000:2025.

Takeaways

Although only minimal changes have taken place to ensure the AS 4000:2025 remains compliant with legislative instruments as they present currently, it is still important that practitioners, principals and contractors continue to review and note any updates to ensure best practice techniques are used when entering into or drafting agreements between parties. Standards Australia’s media release can be found here, but if you or anyone else you know has questions about how this updated agreement may impact you, please contact Bradbury Legal on (02) 9030 7400 or at info@bradburylegal.com.au to see how we can assist you.

 

[ii] See https://www.standards.org.au/news/standards-australia-updates-as-4000-2025-general-conditions-of-contract

[iii] See https://www.standards.org.au/flagship-projects/general-conditions-of-contract

[iv] Ibid.