10 differences between AS 4000 and AS 2124
Both AS 2124 and its successor AS 4000 are widely used forms of construction contract in Australia. Although they have many similarities, there are some significant differences.
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A shareholders agreement will normally address the situation where one or more parties wish to exit the venture, or where there is a falling out between shareholders. This article explains some of ...
Although AS 4000 is one of the most widely used construction contracts in Australia, many people remain unfamiliar with the detail. You can find our easy to understand explainer right here. The ...
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Early contractor involvement (or 'ECI') is a method of construction contracting that allows a builder to become involved, and potentially start work, before the design has been completed.
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This article explains how to claim an EOT, and addresses some of the areas where mistakes are often made.
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AS 4000, more formally known as the Australian Standard AS 4000-1997 General Conditions of Contract, is one of the most widely used forms of head contract for construction projects in Australia.
As a minority shareholder, your rights will be limited. However there are a few basic protections you may consider asking for before you invest.
Usually, yes. A contractor will normally remain liable for defects after the defects liability period has expired. This article addresses a common misconception about the defects liability period ...
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A joint venture agreement sets out the parties' rights and obligations in relation to a joint venture. It explains who will contribute what, how decisions will be made, and how profits and ...
A latent condition clause regulates the contractor's ability to make claims for unexpected site discoveries. There are 5 key elements to any latent condition clause.
A heads of agreement is a short, interim agreement that parties use before negotiating and finalising a formal agreement. They are also known as a ‘terms sheet’ or ‘memorandum of understanding’ ...
Time bars prevent a party from exercising a right under a contract outside a prescribed timeframe. The general rule is that time bars are enforceable, although there can be exceptions.
In NSW at least, the date of 'practical completion' under an unamended AS 4000 is the date the certificate of practical completion is issued - even if the works have reached practical completion ...
Shareholder oppression involves conduct by the majority shareholder(s) that is unfairly prejudicial to the interests of the minority. The courts are able to provide a variety of remedies to ...
It all depends. You could do the job for next to nothing, or you could end up spending tens of thousands. Whether you're getting value for money really depends on what you are trying to achieve.
In a shareholders agreement, tag along and drag along rights are two very different things, designed to serve completely different purposes.
Sham contracting is where a person is treated as an independent contractor, even though they are (in reality) an employee. It's a practice that raises a number of risks for employers.
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Company directors have a number of different duties and obligations, and a breach can have serious consequences for you personally. There are several things you can (and should) do to reduce your ...
An officer's deed of indemnity is a deed signed by a company that is intended to protect you against claims made by third parties.
A shareholders agreement explains how the company will be run, how decisions will be made, and what happens when shareholders disagree or someone wishes to exit. It governs all of the key aspects ...
A recent case in NSW shows that a superintendent can be required to grant an EOT even where the contractor is barred from claiming one. Whether this is the case for you will depend on the terms of ...
Most informed principals consider AS 4000 to be too heavily weighted in favour of the contractor. Consequently, it is fairly normal to see AS 4000 issued with amendments or special conditions. ...
Tag along rights give a shareholder the right to join (or 'tag along' with) another shareholder if they find a buyer for their shares. They can be an important protection for minority shareholders.
The purpose of warranties in a share purchase agreement is often misunderstood by purchasers. There are a number of factors to consider before requesting or relying on a warranty in your ...
When you think of performance security under a construction contract, cash retentions and bank guarantees come to mind. However they are not your only options.
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Construction contracts usually contain specific procedures for claiming a variation - which, if not followed, can result in your entitlement to claim being lost. There are six basic steps to ...
The much anticipated national review of security of payment laws by John Murray AM was released by the Federal Government on 21 May 2018.
Separable portions are a common feature in Australian construction contracts. It is important to understand when they can be used, and how they sit within the broader contractual framework.
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Arbitration and mediation are two very different processes that allow parties to resolve disputes outside of court. Mediation involves a facilitated negotiation, whereas arbitration involves a ...
The Australian Consumer Law can protect small businesses from unfair contract terms in standard form contracts. This article explains when and how this legislation applies.
A qualifying cause of delay under AS 4000 is a delay for which the contractor can claim an EOT. The specific qualifying causes of delay are explained in more detail below.
If you receive a payment claim under the Building and Construction Industry Security of Payment Act 1999 (NSW), you have limited time to prepare a payment schedule. This article explains how to do ...
Here are a few simple things you need to do if you want to make the most of a payment claim under the Building and Construction Industry Security of Payment Act 1999 (NSW).
The defects liability period is a fixed period of time, starting from the date of practical completion.
This article explains how to claim a variation under AS 4000. It includes a flowchart to explain the process.
The Australian Government has appointed John Murray AM to review the security of payment ...
A shareholders agreement sets out the rights and obligations between the shareholders of a company. It is normally signed by the shareholders and the company itself. It is separate from the ...
A shareholders agreement template may look like an appealing solution. But there are a number of reasons why you should be very wary of them.
Drag along rights can be an important protection for a company's founding or controlling shareholders. Here's what you need to know.
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A recent decision by the Fair Work Commission helpfully summarises when a dismissal for poor performance is an unfair dismissal for the purposes of the Fair Work Act.
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If your company has (or will have) more than one shareholder, you should consider having a shareholders agreement. This article explains why and answers a few other frequently asked questions.
Victoria’s security of payment is different to its interstate equivalents, in that it prohibits certain types of variation from being claimed under the Act. The provisions are complex, and ...
Clause 35.5 identifies the causes of delay for which the contractor can claim an extension of time under AS 2124. Compared with other forms of contract, the list of qualifying causes is ...
Two recent High Court cases have confirmed that you cannot set aside an adjudication determination under the security of payment legislation merely because of an error of law, such as a mistake by ...
There is a common misconception that employee share and option schemes (ESOPs or ESS's) are the exclusive domain of tech start-ups and large corporates. However there are a number of reasons why ...
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This article explains how to make a claim for a latent condition under AS 4000. It includes a flowchart to explain the process.
Data released by the Department of Fair Trading provide a number of interesting insights about the use and application of the security of payment legislation in NSW.
Although a final certificate is intended to mark a point of finality under a construction contract, a final certificate may not be as ‘final’ as you might think.
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A buy-sell agreement allows you to buy out a co-owner of your business if they die or become permanently incapacitated.
An early payment claim made in NSW or Queensland will have no effect under the security of payment legislation. In Victoria however, the position may be different.
The federal government has introduced legislation that outlines new protections for whistleblowers, and requires public and large private companies to have a whistleblower policy. The laws are ...
This article explains practical completion under AS 4000 - what it is, and the notice requirements for claiming and certifying it.
This article explains how to make a claim for a latent condition under AS 2124. It includes a flowchart to explain the process.
The Australian Standard AS 2124-1992 General Conditions of Contract remains a widely used form of construct only head contract, despite it having been succeeded by AS 4000-1997 and now being more ...
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If onerous notice or time bar clauses are to be regulated by the security of payment legislation, a simple (prescriptive) solution might be the best answer.
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This article explains how to claim an extension of time (EOT) under AS 2124. It includes a flowchart to explain the process.
Both AS 2124 and its successor AS 4000 are widely used forms of construction contract in Australia. Although they have many similarities, there are some significant differences.
From time to time, most businesses encounter a customer who is either unwilling or unable to pay. There are however a few things you can do to minimise the risk of non-payment.
