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Strengthening contracts and standards

Better procurement methods and improved building construction contracts will help drive reform in the sector.

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Construct NSW will deliver better procurement methods for clear and consistent standards across residential building construction.

Building construction contracts

Building construction contracts will outline the various roles and responsibilities that apply to developers, designers, suppliers and certifiers. Contracts will be modernised to reflect changes made through Construct NSW. 

  • NSW Government is working with industry to update ‘Design and Construct’ and ‘Build Only’ contracts so that they align with legislative reforms.
  • We are ensuring that contracting parties understand their specific roles and responsibilities in producing compliant building work.
  • We are promoting the use of relevant and appropriate standards across the construction industry.

Building standards

A model term sheet has been created, based on the Build-Only and Consultant Agreements in the AS 4000 suite of contracts, to support the industry in the implementation of the new Acts. The model term sheet is a document that includes provisions that make the AS 4000 contracts compliant to the new legislation. The AS 4000 contract suite is commonly used in industry and was selected for these model clauses. They include the key terms required to implement the new legislative requirements. 

The NSW Building Commissioner will work with Standards Australia and industry bodies to improve the application of standards in construction work, particularly in relation to key building elements. 

Design and Building Practitioners Act 

The Design and Building Practitioner Act commences 1 July 2021. To assist developers in preparing for this commencement, the Office of the Building Commissioner has worked with industry groups to prepare some model clauses. 

The model clauses show what is required in construction contracts to reflect the process under Part 2 of the Design and Building Practitioners Act 2020. The model clauses do not address contract matters other than the Design and Building Practitioners Act, which is the responsibility of the contracting parties.

There are currently two sets of model clauses available for use in:

  1. a construct-only building contract (AS4000) (PDF, 400.52 KB)
  2. a design consultancy agreement (AS4122-2010) (DOCX, 113.08 KB)

The model clauses contain guidance notes to help parties understand the declaration process in Part 2 of the Act. 

We have provided these model clauses as information only and not as legal advice. Contracting parties should obtain legal advice about including the use of the model clauses in their construction contracts.

Industry guidance material on the DBP Act

Leading industry groups (Consult Australia, Engineers Australia and the Australian Institute of Architects) have developed A Guide for design practitioners and engineers that highlights key issues relevant to contracts and professional indemnity (PI) insurance relating to the legislative and regulatory changes. 

Related information

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