What Is the Standard Design and Construct Contract in Australia?

AS 4902:2000 is a recognised Australian Standard form titled General conditions of contract for design and construct. It is not the one mandatory contract for every D&C job in Australia. Clients may use other forms, including government contracts or amended bespoke agreements.

Standards Australia identifies AS 4902 in its construction contract suite. NSW Government agencies also use GC21 Edition 2, a standard form developed for design and construction. What applies on a particular project is the contract actually issued and signed, including its annexures, special conditions and project requirements.

Why does the form matter?

The conditions set processes for matters such as design responsibility, notices, time, payment, variations, defects and dispute resolution. The project-specific schedules and documents set the parties’ details, scope and requirements. Even familiar standard forms are often amended, so a label on the front cover does not tell the whole story.

What should the client define before tender?

State the required performance, quality, design life, approvals, information deliverables and review process. Identify the extent of any existing design and whether consultants are to be engaged or transferred. Set out how tenderers should record assumptions and departures so offers can be compared on the same basis.

What should a tenderer check?

Read the entire proposed contract with the scope, drawings, specification, returnables and addenda. Confirm which party owns each design and approval obligation, the order of precedence of documents, insurance requirements and the time allowed for client reviews. Seek appropriate contract advice on legal allocation of risk; a project manager or estimator should not treat an article as a substitute for reviewing the actual agreement.

The practical answer to “which standard contract?” is: AS 4902 is a key Australian D&C form, but verify the form chosen for the project and every amendment. Read our D&C definition for the delivery model behind it.

Sources and further reading

• Standards Australia — AS 4902:2000
• Standards Australia — General Conditions of Contract
• NSW Government — GC21 contract