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ARTICLE · 01 JUNE 2025

UNFAIR CONTRACT TERMS (UCT) – BUILDING AND INFRASTRUCTURE

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Businesses in construction and infrastructure must now take greater care to ensure their standard form contracts do not contain unfair terms under the Australian Consumer Law.

AustraliaReal Estate and Construction
Drazen Kozaric
Drazen Kozaric
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Overview of the Updated UCT Laws

Businesses in construction and infrastructure must now take greater care to ensure their standard form contracts do not contain unfair terms under the Australian Consumer Law. These terms are now illegal, with significant penalties for breaches.

What's Changed Under the UCT Regime?

The regime has been significantly expanded and now covers more businesses, particularly those that meet the broader definition of a small business.

A small business is defined as one that:

  • Employs fewer than 100 people; or
  • Has an annual turnover of under $10 million.

Potentially unfair terms include:

  • One-sided indemnities
  • Disproportionate liability limits

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