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ARTICLE · 04 APRIL 2017

Builders beware - Does your standard contract measure up? - ACCC targets unfair construction contracts

The article considers terms commonly found in construction contracts that might be set aside or amended as being unfair.

AustraliaReal Estate and Construction

Since 12 November 2016, small businesses can apply to courts under the Australasian Consumer Law ("ACL") to set aside or amend unfair contract terms.

The Australian Competition and Consumer Commission ('ACCC') also has the power to make these applications on behalf of both small businesses and consumers.

The ACCC has set its priorities for 2017 by focusing on (amongst other areas), unfair contract terms in the construction sector.

HHG Legal Group has considered what kinds of terms commonly found in construction contracts might now be set aside or amended as being unfair. We have identified the following six kinds of terms as likely candidates:

  1. Termination for convenience without reciprocal compensation or notice

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