Fair Trading & Government Contracts
Fair Trading & Government Building Contracts
When a plain-language contract published by a state regulator is enough for the job, and when the project needs more than the statutory minimum
Several state consumer-protection regulators publish a short, plain-language residential building contract, written to meet the baseline requirements of their own legislation. The best known is the NSW Fair Trading home building contract.
They circulate under the regulator’s name, and availability, currency and the value of work each is intended for differ from state to state. Their appeal is real: they are short, readable, free or inexpensive, and they are written to satisfy the mandatory statutory requirements.
The limitation is the same fact seen from the other side. A contract drafted to the statutory minimum allocates very little risk in either direction, so there is usually limited machinery for variations, extensions of time, latent site conditions, or a defects process beyond the statutory warranty. On a small, contained job that is a fair trade. On a long or high-value build it is not.
Christopher Larcos advises owners, owner-builders and builders on whether one of these forms suits the work in front of them, reviews the contract as actually proposed, and advises on moving to a fuller standard form where the project has outgrown a minimal one.
How Christopher helps with a government standard form
Is this the right form for the job?
The question that matters most, answered before you sign: whether a minimal, plain-language form fits the work in front of you, or whether the project has already outgrown it.
Review of the completed contract
Reading the contract as actually proposed, including how the scope, plans, price and payment schedule have been filled in, which is where most problems with these forms originate.
What the form does not cover
Identifying the gaps that matter on your project: variations, extensions of time, latent conditions, defects beyond the statutory warranty, and how a dispute would actually be handled.
Moving to a fuller standard form
Where the job needs more machinery than a minimal form carries, advice on which standard form to move to and what it changes for both parties.
Common questions
What is a Fair Trading building contract?
It is a short, plain-language building contract published by a state consumer-protection regulator, written to meet the baseline requirements of that state's residential building legislation. The best known is the NSW Fair Trading home building contract, and several other states publish an equivalent through their own regulator. Availability, the work each is intended for, and the current edition all differ by state.
Is a Fair Trading contract good enough for my job?
For a small, contained residential job with a short programme and no architect administering the work, it often is, and its brevity is a genuine advantage. The judgement is about the project rather than the form. A contract drafted to the statutory minimum protects you to the statutory minimum, which is fine until the job produces something the contract has no answer for.
What is missing from a government standard form compared with an ABIC or HIA contract?
Mostly machinery. A form written to the statutory minimum allocates very little risk in either direction, so there is usually limited provision for variations, extensions of time, latent site conditions, or a defects process beyond the statutory warranty. The fuller standard forms carry that machinery because larger projects need it. On a long, complex or high-value build, its absence becomes the problem rather than the simplicity being the benefit.
Does a regulator-published contract still need reviewing?
The blank form rarely needs reviewing, and that is not really the point. What warrants a look is the contract as actually proposed for your project: whether the form suits the work at all, and how the schedules have been completed. The scope, plans, price and payment schedule are filled in by the parties, and a well-drafted form completed carelessly is no better than a poor form.
Can a Fair Trading contract be amended with special conditions?
It can, but it is usually the wrong tool for the job. These forms are deliberately short, so adding the machinery a complex project needs means writing much of a fuller contract on top of a minimal base. Where a project has outgrown the form, moving to a standard form that already contains that machinery is normally cleaner than amending a minimal one heavily.
Which building contract should I use instead?
It depends on the value and complexity of the work, whether an architect is administering the build, how you want the work priced, and the residential building legislation in your state. As a rough guide, ABIC forms suit architect-administered projects, HIA and Master Builders forms are common where there is no architect, and the Australian Standard suite is used on larger and commercial work.
More on choosing and reviewing a residential building contract
Which building contract is right for you?
A balanced comparison of the Fair Trading, HIA, ABIC, Master Builders and Australian Standard forms.
ContinueResidential Building Contracts
Contract selection, structuring and compliance for residential building work across Australia.
ContinueResidential Contract Rules by State
The Act that governs residential building contracts in each state, and what each one requires.
ContinueCredentials
- Dual-qualified solicitor and registered architect
- Fellow of the Australian Institute of Architects (FRAIA)
- 40+ years in the construction industry
- Adjudicator across five Australian jurisdictions