What Are Implied Terms in Building Contracts?
Implied terms are legal obligations that form part of your building contract even when not explicitly written. These obligations arise from the nature of the building work itself, industry standards, and statutory requirements. In Chen v Austral Built Pty Ltd, the NSW Civil and Administrative Tribunal determined that arranging mandatory inspections and providing essential documentation constituted implied terms of the building contract.
This legal principle means your builder cannot avoid documentation responsibilities simply because the contract doesn't specifically mention them. Implied terms protect homeowners from builders who attempt to narrow their obligations through incomplete contract drafting. Courts consistently enforce implied terms requiring builders to arrange council inspections, obtain occupation certificates, and provide sewer service diagrams as fundamental completion obligations.