When building contract disputes arise, the fallout can be costly, time-consuming, and damaging to reputations. That’s why a thorough pre‑contract review is essential—especially in Queensland, where specific legislation governs construction agreements and complicates standard terms.
At Cohen Legal, we help builders, developers, contractors, and subcontractors across Townsville, Mount Isa and North Queensland, spot contract risks, negotiate better terms, and prevent disputes before they start.
Most industry contracts are based on standardised Australian Standard forms (e.g. AS contracts). These templates are familiar but also commonly heavily modified, often without fully understanding the legal consequences.
What Are “Standardised Australian Standard Contracts” (AS Contracts)?
In Australia, the construction industry often uses pre-drafted templates known as Australian Standard (AS) contracts.
These are not “laws” — they’re commercially available legal contract templates published by Standards Australia. They’re intended to offer a fair starting point for building and construction agreements between two parties (like a principal and a contractor, or a head contractor and a subcontractor).
Examples of Common AS Contracts:
- AS 4000 – General conditions of contract for construction (most widely used)
- AS 4902 – Design and Construct
- AS 2124 – Older version, still used by some
- AS 4300 – For design and construct (less common today)
These templates are considered “industry standard” because:
- Many builders, subcontractors, architects, engineers, and consultants are familiar with them
- They include core legal concepts: payment terms, variations, delays, risk allocation, dispute resolution, etc.
- They’re meant to strike a reasonable balance of risk
What Happens if you Modify an AS Template Contract?
Even though the AS templates are meant to be neutral, they are often heavily modified by the party with more bargaining power—typically the head contractor, principal, or developer.
Examples of Common Modifications:
- Removing or limiting rights to extensions of time (so delay = liquidated damages)
- Rewriting payment clauses to reduce when/how contractors get paid
- Adding special conditions that shift more risk to subcontractors
- Increasing indemnity or insurance obligations
- Altering the dispute resolution process to make it more costly or restrictive
These are often done through a “Schedule” or “Special Conditions” section that overrides the standard clauses.
Why Is Modifying AS Contract Templates a Problem?
Because many contractors assume the AS contract is still “standard” once it’s been amended—but it’s not.
It looks like a duck, walks like a duck, but now it bites.
People familiar with the original AS 4000, for example, may glance over the terms and think they’re dealing with the usual fair conditions. But if someone has:
- Quietly changed a payment term
- Added a strict default clause
- Removed your right to claim delay costs
…you may sign away important protections without even realising it.
Real-World Legal Consequences
If you sign a modified AS contract without legal review:
- You may lose your right to claim variations, delay costs, or extensions of time
- You may be liable for more risk or damages than you expected
- You might struggle to enforce your payment entitlements under the Security of Payment Act
- You could be locked into an unfair dispute resolution process that limits your ability to recover costs
In short: a “standard contract” is only standard until it’s not — and you need to know how it’s been changed.
Cohen Legal’s Role in This
At Cohen Legal, we review these AS-based contracts clause by clause to:
- Identify hidden or excessive risk
- Compare to the true “industry standard” version
- Flag unfair special conditions
- Ensure the contract reflects the actual business agreement—not just legalese
“I’ve seen plenty of contracts that start out as AS 4000 but end up looking nothing like it once the special conditions are added,” says Sam Cohen. “By then, it’s not fair or balanced. And if you don’t understand it before you sign, it can be very difficult to fix later.”
Without a full review, you risk exposing your business to unexpected risk allocation, unclear scopes of work, or unenforceable terms.
Queensland’s Building Industry Fairness (Security of Payment) Act 2017 impose strict obligations on payment schedules, notices, and dispute mechanisms—non-compliance may lead to fines or legal invalidity.
Cohen Legal’s Role in This
At Cohen Legal, we review these AS-based contracts clause by clause to:
- Identify hidden or excessive risk
- Compare to the true “industry standard” version
- Flag unfair special conditions
- Ensure the contract reflects the actual business agreement—not just legalese
“I’ve seen plenty of contracts that start out as AS 4000 but end up looking nothing like it once the special conditions are added,” says Sam Cohen. “By then, it’s not fair or balanced. And if you don’t understand it before you sign, it can be very difficult to fix later.”
Without a full review, you risk exposing your business to unexpected risk allocation, unclear scopes of work, or unenforceable terms.
Queensland’s Building Industry Fairness (Security of Payment) Act 2017 impose strict obligations on payment schedules, notices, and dispute mechanisms—non-compliance may lead to fines or legal invalidity.
Practical Insights: How Cohen Law Help
- Clarifying Scope & Payment Terms
Contracts often contain vague milestones or ambiguous deliverables. We scrutinize specifications, timelines, and payment clauses to ensure they are fair and enforceable—protecting your cash flow and reducing avoidable disputes. “Misunderstanding the scope or being bound by vague milestones is one of the most common triggers of costly delays and conflict,” says Sam Cohen.
- Risk Allocation & Termination Clauses
We review how the contract divides financial risk, liability, and termination responsibilities—key provisions if delays or defects arise. We ensure clauses are legally balanced and reflect the real-world risk profile of your specific project.
- Legislative Compliance
We audit the contract against Queensland-specific requirements like the QBCC licensing rules, Home Warranty Scheme, and compliance with statutory timelines for progress claims.
- Security of Payment Strategy
Under QLD’s Security of Payment laws, improperly drafted invoicing, variation, or payment schedules can severely weaken enforcement rights. We ensure your contract preserves your entitlement to charge interest, dispute adjudicate promptly, or suspend work if necessary.
- Operational Perspective & Dispute Prevention
Our advice often turns routine contracts into risk‑resistant tools. We don’t just highlight problems—we help you implement systems: better onboarding, variation controls, and risk‑mapped documentation to reduce litigation triggers from day one.
Real Benefits of Pre‑Contract Review
|
Benefit |
Why It Matters |
|
Commercial Certainty |
Contracts reflect what was agreed—no hidden surprises |
|
Reduced Disputes |
Fewer ambiguous clauses = fewer arguments down the track |
|
Better Risk Control |
Balanced liability and fair termination mechanisms |
|
Stronger Cash Flow Protection |
Payment clauses that preserve your rights under QLD laws |
|
Cost Savings |
Identifying issues early is usually far cheaper than litigation. |
Why Cohen Legal?
Based in Townsville and led by Sam Cohen—a former commercial construction manager turned lawyer—our firm understands how projects run in the field, in North QLD conditions. We’re one of the few regional Queensland firms that can handle both the front‑end contract work and the back‑end litigation if needed.
Ready to Get Started?
Don’t risk signing a contract you don’t fully understand. A pre-contract review could prevent hundreds of thousands in disputes—or worse.
Contact Cohen Legal today for a tailored contract risk review. Our business is protecting yours.
Call us on 07 4721 0264
Or email us at info@cohenlegal.com.au