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ARTICLE · 04 APRIL 2024

Unfair Contract Terms (UCT) - The noose tightens on bad practices

Bartier Perry Solicitors
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The UCT regime impacts all standard form contracts in the building and construction industry.

AustraliaReal Estate and Construction
Nicholas Kallipolitis
Nicholas Kallipolitis
Matthew Singh
Matthew Singh
Mario Rashid-Ring
Mario Rashid-Ring
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On 10 November 2023, new, far-reaching legislation was introduced to address the use of unfair terms in standard form contracts.

The Unfair Contract Terms Regime (UCT Regime) applies to consumer contracts and small business contracts. A small business contract is defined as a contract for the supply of goods or services, or sale or grant of an interest in land where at least one party to that contract:

  • employs fewer than 100 persons (excluding casual employees, but including casual employees employed on a "regular and systemic basis"); or
  • has an annual turnover of the previous financial year of less than $10 million.

A small business contract could include a building contract, a subcontractor agreement, a consultancy agreement or even a material/product supply agreement – all of which councils will enter into at times.

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