Snapshot: AS4000:2025 – Updates to one of Australia’s most commonly used forms of construction contract

On 30 June 2025, Standards Australia rolled out the updated AS4000:2025 General Conditions of Contract, marking the first full update to this standard form construction contract in nearly thirty years.

Those well acquainted with AS4000 will note that the core risk allocation mechanisms remain largely unchanged, with some long-awaited updates to modernise the contract and reflect changes in law and industry practice.

Some of the key updates are as follows:

1. Pick-and-mix dispute resolution – Negotiation remains step one, with the parties obliged to communicate with one another and attempt to resolve the dispute. The new edition invites parties to consider including ADR provisions which will apply if negotiations are unsuccessful, such as proceeding to mediation, expert determination (either interim or final) or even a dispute avoidance board. If the dispute cannot be resolved by negotiation or ADR (where selected), the 2025 version defaults to litigation as the final step, unlike the 1997 version (which defaulted to arbitration) – although arbitration remains available as an option where the parties agree.
2. Formal Instrument of Agreement – A standard, fill-in-the-blanks deed now accompanies the contract, capturing the parties, the project, the price, and incorporating AS 4000:2025 wholesale. Execution should be faster, cleaner and less reliant on bespoke drafting.
3. Legislative updates – The general conditions have been updated to address various changes in law since the 1997 version of AS4000, including the introduction of GST, insolvency changes, the introduction of the Personal Property Securities Act 2009 (Cth), and work health and safety changes (including a new definition of “Principal Contractor”).
4. Plain-english overhaul – Alignment with modern drafting practices has now been addressed by removing words like “forthwith” and “thereon”, and including an electronic communication clause. Terms such as “shall” or “may” have also been replaced with words like “is”, “will” or “must”. Common exceptions to the definition of “Confidential Information” have also been included such as where the disclosure is required by law or where the other party’s written consent is obtained. The references to certain prescribed timeframes have been replaced with “as soon as practicable” or “as soon as reasonably practicable”.
5. Practical completion – Clause 34.6 confirms that practical completion can occur before the certificate is issued, with the certificate free to nominate an earlier date. That timing tweak ripples through risk allocation, liability exposure, return of security and liquidated damages mechanisms.

While the updates are certainly welcome, given the core risk allocation mechanisms remain largely unchanged, we expect the practice of heavily amending and negotiating the standard terms will continue as a mainstay in the construction industry. Principals and head contractors are likely to continue to apportion risk downstream to contractors – particularly on matters like site risks, warranties and indemnities, and time / delay risk – while contractors will continue to look for ways to de-risk projects.

We expect similar amendments will be rolled out across various other Australian Standard construction contracts, including AS4902 (design and construct), AS4901 (subcontract), AS4905 and 4906 (minor works) and AS 4910 and 4911 (equipment supply). Watch this space.

If you have any questions about AS4000:2025 or need advice on your next project, please get in contact with our construction law experts.