USQ Law Society Law Review
Toby O’Brien
Winter 2021
From this blockchain implementation designed to allow currency transactions between parties without a trusted third-party intermediary, alternative implementations have allowed for the storage and execution of computer code within the blockchain itself.5 This extension then allows for one to trigger the code with a transaction, and therefore executing the actions associated with the stored code.6 This code is analogous to a contract, with the parties able to execute the code upon a specific trigger, which would then execute the expected action based on the smart contract terms, such as transferring tokens as payment on delivery of goods or services.7 As this contract is defined in computer code, rather than written in a human-readable language, the outcome of execution is predetermined and unable to be modified.8 With the fixed nature of outcomes from the smart contract execution, the potential for disputes concerning outcomes is eliminated, providing that the contract caters for all possible outcomes for the available inputs.9 Beyond the predetermined outcomes of the contract avoiding avenues of dispute, storage of the contract is on the blockchain itself. Due to the replication of the blockchain to network participants, replication of the smart contract occurs. As such, the contract exists on participant devices and can be examined by those accessing the blockchain network.10 Once the smart contract exists, the distributed nature and readability of the function ensure that the parties are unable to refute the existence of, or their liabilities, agreed to under the contract.
III A
ISSUES WITH CONSTRUCTION CONTRACTS IN AUSTRALIA Standard Form Contracts
The construction industry in Australia relies heavily on standard form contracts. This suggestion is demonstrated with University of Melbourne research from 2014, finding that existing standard form contracts were the basis of 68% of contracts.11 However, while this majority usage of standard form contracts exists within the Australian construction industry, the same survey further found that 54% of respondents suggested that no standard form was usable without significant amendment.12 Discussion from Glynn further reiterates the fact that these standard form contracts are commonly amended, with amendments including extension of time clauses, delay damages, site conditions, payment, variations, and warranties as to quality.13 The case of Re Multiplex Constructions Pty Ltd provides evidence of what may occur when these standard form contracts are modified, with the amendments initially being held to 5
Christidis and Devetsikiotis (n 2) 2296. Ibid 2296–7. 7 Reggie O’Shields, ‘Smart Contracts: Legal Agreements for the Blockchain’ (2017) 21 North Carolina Banking Institute 177, 179. 8 Christidis and Devetsikiotis (n 2) 2297. 9 Ibid. 10 Ibid. 11 John Sharkey et al, Standard Forms of Contract in the Australian Construction Industry (Research Report, Melbourne Law School, June 2014) 4 <https://law.unimelb.edu.au/__data/assets/pdf_file/0007/1686265/Research-Report-Standard-forms-of-contractin-the-Australian-construction-industry.pdf>. 12 Ibid 17. 13 Mark Glynn, ‘Construction Contracts - Avoiding the Pitfalls’, ACA - Association of Consulting Architects Australia (15 September 2017) <https://aca.org.au/article/construction-contracts-the-facts>. 6
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