7/23/23, 11:26 AM
Home About Services by Sector  Learning Centre
← Browse all articles
08 February 2019
Introduction to AS 4300
Contact
Morgan McIntosh
Senior Associate
morgan.mcintosh@turtons.com
(02) 9229 2901
Morgan is a specialist
construction lawyer in
Sydney who helps
companies navigate
through large or unusual
projects and streamline
their contracting
processes through
simplified contracts.
https://www.turtons.com/blog/introduction-to-as-4300
Introduction to AS 4300
 Careers +61 2 9229 2922  
Search all articles
AS 4300-1995 is a widely used form of Australian design & construct
construction contract, mostly used on commercial construction projects.
 This article provides a basic introduction. 
When is AS 4300 used?
AS 4300 is typically used on commercial constructions in three different
procurement scenarios:
design and construct;
design development and construct; and
design, novate and construct.
In the first scenario, the principal will provide the ‘Principal’s Project Requirements’
which is essentially the principal’s design brief.  The contractor is then responsible
for developing the design in accordance with the principal’s design brief and
constructing the works.
In the second scenario, the principal will provide the ‘Principal’s Project
Requirements’ which includes a ‘Preliminary Design’ developed by the principal
before the tender phase.  The contractor will complete the ‘Preliminary Design’ and
construct the works accordingly.
In final scenario, the principal develops the design but then passes responsibility for
the design over to the contractor. The contractor is typically required to accept the
novation of the principal’s designers.  In effect, this means the contractor is entirely
responsible for the principal’s designers (regardless of the extent of their
involvement in the design development).  From the principal’s perspective, novation
provides a level of comfort that the design will be completed by the original
designers. 
Where to buy AS 4300
AS 4300 is published by Standards Australia Limited, which is part of SAI Global.  It is
protected by copyright and you must pay a licence fee to use it.
You can purchase a copy of AS 4300 here.
When buying AS 4300, be sure to buy the right version.
You will notice that different types of licences are available (reference version,
multiple use versions, editable versions and so on).  Licence fees vary depending on
which licence option you pick.  You will need to choose the version that best suits
your circumstances.
How to assemble AS 4300
The document you purchase from SAI Global is the general conditions of contract.
 You will need to compile the other contract documents and complete the annexures.
You will also need a document to formalise your entry into the contract you have
compiled. 
1/4
7/23/23, 11:26 AM Introduction to AS 4300

As you will notice, there is nowhere to sign in the AS 4300 general conditions or
annexure
Home About Services pages.
by Sector To address
 Learning this, the
Centre  Careers parties will usually adopt: +61 2 9229 2922  

a ‘formal instrument of agreement’; or

a letter of acceptance.

Both documents serve much the same purpose, although most principals prefer a
formal instrument of agreement to ensure there is no doubt about which documents
are included in the contract.

You can purchase the Australian Standard Formal Instrument of Agreement (AS
4302-1995) here.  This document has been produced by Standards Australia for use
in conjunction with AS 4300.

What are the basic features of AS 4300?

(a)  Lump sum price. The contractor is required to carry out the works for a fixed
price and within a fixed timeframe.

(b)  Fixed timeframe. The contractor is required to ensure the works reach
practical completion by an agreed ‘date for practical completion’.  If this does not
occur, liquidated damages will apply (if provided for in the annexure).

(c)  Practical completion. The contract acknowledges that construction projects

can often be used and occupied before all works, including minor works, are
completed.  This is embodied in the concept of ‘practical completion’.

(d)  Design obligations. The contract requires the principal to provide the
contractor with a design brief (i.e. ‘Principal’s Project Requirements’).  The
principal may also be required to provide a ‘Preliminary Design’ where the
principal elects to go down the path of design, development and construct or
design, novate and construct as opposed to a pure design and construct
scenario.

(e)  Variations. The contract prescribes a process for dealing with variations.

(f)  Extensions of time. The contractor may claim extensions of time to the date
for practical completion if it is delayed by an event listed at clause 35.5.  The
contractor can also claim delay costs for delays caused by the principal,
superintendent, the principal’s employees or consultants, other contractors or
agents, and other events prescribed by the contract or the annexure.

(g)  Latent conditions. The contractor is entitled to claim an extension of time

and additional costs if it encounters a latent condition, subject to the contractor
following the prescribed notice procedure.

(h)  Provisional sums. Where the design of part of the works is not sufficiently
developed to enable the contractor to provide a fixed price, the parties can
agree on a ‘provisional sum’ instead.  The price of these items is adjusted once
the final cost is known.  AS 4300 contains a specific provision to deal with this.

(i)  Separable portions. AS 4300 allows the works to be divided into separable
portions (or stages), with each of them potentially having a different access date,
date for practical completion and liquidated damages rate.  Separable portions
can be defined at the time of contract entry, or directed by the Superintendent at
any time up until practical completion of the final portion of work.

Criticisms of AS 4300
Although AS 4300 was produced by Standards Australia following consultation with
a variety of industry stakeholders, it is not without its critics.

Some principals consider the relief available to contractors to be too generous, and
somewhat uncertain.  For example, clause 35.5(a) entitles the contractor to claim an

https://www.turtons.com/blog/introduction-to-as-4300 2/4
7/23/23, 11:26 AM Introduction to AS 4300

EOT for anything beyond its reasonable control.  Many principals will seek to limit the
availability
Home About Services by Sectorof
 EOTs toCentre
Learning a listofCareers
specific events.  +61 2 9229 2922  

There are parts of AS 4300 that are not to the liking of some contractors either.  For
example, if a delay is caused by multiple causes of delay and any of the causes
would not entitle the contractor to claim an EOT, no EOT will be available in respect
of the delay.  (The equivalent provision of AS 4902 allows an apportionment to be
made.)

If the superintendent directs the contractor to perform a variation, the price of the
variation need not be agreed or determined before work on the variation
commences.  There is also no prescribed timeframe for the superintendent to price a
variation.  Unless the parties make an active effort to promptly resolve variation
claims and other contract adjustments, the potential for disputes will only increase as
the project progresses.

Advantages of AS 4300
The contractor will be accountable for all aspects of the design and construction.
The principal can use the contractor’s full expertise, which means the design and
construction process is more efficient.
There should be fewer variations relating to the design if the contractor has
produced the design.
The construction phase is often faster, as sign-off is typically earlier than in a
‘construct only’ arrangement.

Disadvantages of AS 4300
The principal has less control over the final design.
The contract sum may be higher to reflect increased contractor risks.
If the parties enter the contract at a time when the design is complete, disputes
can arise over whether a change is a normal ‘design development’ or a variation.
The principal is heavily reliant on the contractor, with no team of consultants of its
own. Also if the head contractor becomes insolvent, that can create major
problems for the entire project.

Developments since release

AS 4300 was released in 1995, making it almost 25 years old.  Since then, there
have been a number of changes to the law.  Parties contemplating a contract under
AS 4300 will often agree to special conditions to address these changes.

Examples of legislative changes that have occurred since the first publication of AS
4300 include new laws relating to GST, security of payment, proportionate liability,
personal property securities, work health and safety, the Australian Consumer Law
and unfair contracts legislation.

Key takeaways
Despite its age, AS 4300 continues to be a widely used form of head contract.

If you are thinking of AS 4300 as your contract for a new project, you should
consider whether any amendments may be needed.  For example, you may wish to
alter the risk profile, you may wish to incorporate new clauses to deal with legislation
that has commenced since the AS 4300 was first released, and you may also need
clauses to deal with specific issues that arise out of your project.

If you have entered into a contract that incorporates AS 4300, be sure to familiarise
yourself with the detail of the document so that you understand your rights,
obligations, entitlements and liabilities, and so that you can administer the contract
accordingly.

https://www.turtons.com/blog/introduction-to-as-4300 3/4
7/23/23, 11:26 AM Introduction to AS 4300

Home About Services by Sector  Learning Centre  Careers +61 2 9229 2922  

Related Posts
10 differences between AS 4902 and AS 4300
How to claim a variation under AS 4300
What is a qualifying cause of delay under AS 4300?
How to claim an EOT under AS 4300
Practical completion under AS 4300
What is a provisional sum?

About Turtons
Turtons is a commercial law firm in Sydney with specialist expertise in the construction and
technology sectors.

We specialise in helping businesses:

improve their everyday contracting processes,

negotiate large commercial contracts and other deals that fall outside of "business as usual",
and
undertake strategic initiatives, such as raising capital, buying businesses, implementing
employee share schemes, designing and implementing exit strategies and selling businesses.

Level 18, 56 Pitt Street, Sydney NSW 2000 

P: +61 2 9229 2922 | E: info@turtons.com

Terms of Use  |  Privacy

Liability limited by a scheme approved under Professional Standards Legislation. 

https://www.turtons.com/blog/introduction-to-as-4300 4/4