complexitysafebase

DESIGNSERVICESCONTRACT(DSC-12003)CONTRACTMANUALVOLUME3:CLAUSEBYCLAUSEGUIDANCE[LASTAMENDED:16AUGUST2011]DISCLAIMER:ThisManualhasbeenpreparedsolelyforthepurposeofprovidinginternalguidancetoDefencepersonnel.
Anyusebynon-Defencepersonnelisunauthorised.
NoresponsibilitywillbetakenbytheCommonwealthofAustraliaortheadvisersassistinginthepreparationoftheManual,foranysuchuse,includinganypurportedrelianceontheguidanceprovidedbytheManual.
TheManualisnotintendedtobeasubstituteforlegaladvice,andunlessexpresslyagreedinwritingbytheCommonwealthofAustralia,nothingintheManualwillalteroraffecttherespectiverights,obligationsandliabilitiesofthepartiesunderanycontract.
TableofContentsSECTION1-INTRODUCTION11.
GENERALINFORMATIONABOUTTHeMANUAL12.
backgroundtotheClauseByClauseGUIDANCE1SECTION2-CLAUSEBYCLAUSEGUIDANCE3CLAUSE1-GLOSSARYOFTERMS,INTERPRETATIONANDMISCELLANEOUS3Clause1.
1-GlossaryofTerms3Clause1.
2-Interpretation3Clause1.
3-Miscellaneous3CLAUSE2-ROLEOFTHECONSULTANT4Clause2.
1-Engagement4Clause2.
2-StandardofCare4Clause2.
3-AuthoritytoAct4Clause2.
4-KnowledgeoftheCommonwealth'sRequirements4Clause2.
5-NoticeofMattersImpactingontheServicesortheWorks5Clause2.
6-Co-ordinationwithOtherContractors5Clause2.
7-AccesstoConsultant'sPremises5Clause2.
8-ConflictofInterest5Clause2.
9-Subcontracting5Clause2.
10-StatutoryRequirements7Clause2.
11-ChangeinStatutoryRequirementsorVariancewithContract8Clause2.
12-Novation8Clause2.
13-TheEnvironment9CLAUSE3-ROLEOFTHECOMMONWEALTH13Clause3.
1-InformationandServices13Clause3.
2-AdditionalInformation13Clause3.
3-Access13Clause3.
4-MakingofDecisions13CLAUSE4-PERSONNEL14Clause4.
1-ContractAdministrator14Clause4.
2-ReplacementofContractAdministrator16Clause4.
3-Parties'Conduct17Clause4.
4-ContractAdministrator'sRepresentative17Clause4.
5-KeyPeople17Clause4.
6-RemovalofPersons17Clause4.
7-ProjectReview18CLAUSE5-INSURANCE19Clause5.
1-ConsultantInsuranceObligations19Clause5.
2-FailuretoInsure23Clause5.
3-PeriodofInsurance23Clause5.
4-NoticeofPotentialClaim23Clause5.
5-CrossLiability24CLAUSE6-DESIGNANDDOCUMENTATION24Clause6.
1-Commonwealth'sDocuments24Clause6.
2-Consultant'sDesign24Clause6.
3-ContractAdministratormayReviewDesignDocumentation27Clause6.
4-NoObligationtoReview27Clause6.
5-CopiesofDesignDocumentation27Clause6.
6-LicenceoverDesignDocumentation27Clause6.
7-IntellectualPropertyWarranties27Clause6.
8-IntellectualPropertyRights28Clause6.
9-CommonwealthMaterial28Clause6.
10-DCAP28Clause6.
11-ResolutionofAmbiguities28Clause6.
12-AccesstoPremisesandProjectDocuments29Clause6.
13-MeasurementsandDimensions29Clause6.
14-DesignCertification29Clause6.
15-Samples30Clause6.
16-OccupationalHealth,SafetyandRehabilitationManagement30CLAUSE7-QUALITY30Clause7.
1-QualityAssurance30Clause7.
2-Non-ComplyingServices30Clause7.
3-ReperformanceoftheNon-complyingServices31Clause7.
4-ProjectPlans31CLAUSE8-TIME31Clause8.
1-Progress31Clause8.
2-Programming;Clause8.
3-ConsultantNotRelieved32Clause8.
4-Suspension33Clause8.
5-DelaysEntitlingClaim;Clause8.
6-Claim;Clause8.
7-ConditionsPrecedenttoExtension34Clause8.
8-ExtensionofTime36Clause8.
9-ReductioninExtensionofTime36Clause8.
10-UnilateralExtension36Clause8.
11-Acceleration37CLAUSE9-VARIATIONS37Clause9.
1-VariationPriceRequest38Clause9.
2-VariationOrder38Clause9.
3-CostofVariation;Clause9.
4-RatesandPrices39Clause9.
5-Omissions39CLAUSE10-PAYMENT39Clause10.
1-PaymentObligation41Clause10.
2-PaymentClaims41Clause10.
3-ConditionsPrecedent42Clause10.
4-PaymentStatements42Clause10.
5-Payment43Clause10.
6-PaymentonAccount43Clause10.
7-CompletionPaymentClaimandNotice;Clause10.
8-ReleaseafterCompletionPaymentClaimandNotice44Clause10.
9-Interest44Clause10.
10-CorrectionofPaymentStatements44Clause10.
11-RightofSet-Off44Clause10.
12-PaymentofWorkersandSubconsultants45Clause10.
13-GST45Clause10.
14-SecurityofPaymentLegislation45Clause10.
15-AccountingRecords50Clause10.
16-CostAllocationAdvice50Clause10.
17-FacilitiesandInfrastructureAccounting50Clause10.
18-DEMSandGFIS51CLAUSE11-TERMINATION51Clause11.
1-PreservationofRights51Clause11.
2-ConsultantDefault;Clause11.
3-ContentsofNoticeofDefault51Clause11.
4-TerminationforInsolvencyorBreach51Clause11.
5-Commonwealth'sEntitlementsAfterTermination52Clause11.
6-Consultant'sEntitlementsafterTermination52Clause11.
7-TerminationforConvenience;Clause11.
8-Costs52Clause11.
9-CopiesofProjectDocuments52CLAUSE12-DISPUTES52Clause12.
1-NoticeofDispute53Clause12.
2-ExpertDetermination53Clause12.
3-TheExpert;Clause12.
4-NotArbitration;Clause12.
5-ProcedureforDetermination;Clause12.
6-DisclosureofInterest;Clause12.
7-Costs;Clause12.
8-ConclusionofExpertDetermination;Clause12.
9AgreementwithExpert54Clause12.
10-DeterminationofExpert54Clause12.
11-ExecutiveNegotiation54Clause12.
12-ArbitrationAgreement54Clause12.
13-Arbitration54Clause12.
14-ProportionalLiability55Clause12.
15-ContinuationofServices55CLAUSE13-NOTICES55Clause13.
1-NoticeofVariation56Clause13.
2-NoticesofOtherClaims56Clause13.
3-PrescribedNotices56Clause13.
4-ContinuingEvents57Clause13.
5-TimeBar57Clause13.
6-OtherProvisionsUnaffected57Clause13.
7-AddressforService57Clause13.
8-ReceiptofNotices57CLAUSE14-WOL57Clause14.
1-GeneralObligations57Clause14.
2-Consultation57Clause14.
3-WOLProposals58Clause14.
4-Reporting58Clause14.
5-CommissioningandHandover58Clause14.
6-PostOccupancyEvaluation58Clause14.
7-RightsandObligationsNotAffected58CLAUSE15-GENERAL58Clause15.
1-EqualOpportunityforWomen58Clause15.
2-IndigenousOpportunities58Clause15.
3-SafeBaseAlertStateSystem59Clause15.
4-ITEquipment59Clause15.
5-ProtectionofPersonalInformation59Clause15.
6-MoralRights59Clause15.
7-FreedomofInformation60Clause15.
8-LongServiceLeave60Clause15.
9-Assignment60Clause15.
10-Publicity60Clause15.
11-ClassifiedInformation61Clause15.
12-ManualofFireProtectionEngineeringandBuildingCodeofAustraliaCertification61CLAUSE16-NATIONALCODEOFPRACTICEFORTHECONSTRUCTIONINDUSTRY61Clause16.
1-General61Clause16.
2-ResponsibilitynotAffected62Clause16.
3-NoticeofEffectonCompliancewithNationalCodeandGuidelines62Clause16.
4-Records62Clause16.
5-AccessandDocuments62Clause16.
6-ProjectAgreements62CLAUSE17-COMMERCIAL-IN-CONFIDENCEINFORMATION62Clause17.
1-General62Clause17.
2-Commercial-in-ConfidenceInformation63CLAUSE18-FAIRWORKPRINCIPLES63Clause18.
1-General63Clause18.
2-ResponsibilitynotAffected63ANNEXUREA-CONTRACTADMINISTRATOR'SFUNCTIONS64SECTION1-INTRODUCTIONGENERALINFORMATIONABOUTTHeMANUALGeneralTheDepartmentofDefenceDesignServicesContract(DSC-12003)ContractManual(Manual)comprisessixvolumesbeing:Volume1:IntroductiontoDSC-12003;Volume2:CompletingtheTenderandContractDocuments;Volume3:Clause-by-clauseGuidance(fortheConditionsofContract);Volume4:Flowcharts(fortheConditionsofContract);Volume5:ProformaNotices(fortheConditionsofContract);andVolume6:Clause-by-clauseGuidancefortheSpecialConditions.
ThisVolume3providesclausebyclauseguidanceontheConditionsofContract.
ThisManualhasbeenpreparedsolelyforthepurposeofprovidinginternalguidancetoDefencepersonnel.
Anyusebynon-Defencepersonnelisunauthorised.
NoresponsibilitywillbetakenbytheCommonwealthofAustraliaortheadvisersassistinginthepreparationoftheManual,foranysuchuse,includinganypurportedrelianceontheguidanceprovidedbytheManual.
TheManualisnotintendedtobeasubstituteforlegaladvice,andunlessexpresslyagreedinwritingbytheCommonwealthofAustralia,nothingintheManualwillalteroraffecttherespectiverights,obligationsandliabilitiesofthepartiesunderanycontract.
ThisManualisstructuredasanon-linereferencetoollocatedontheDefenceInfrastructureManagementwebsite(seewww.
defence.
gov.
au/im/).
AprintableversionofeachvolumeoftheManualisalsoavailableontheDefenceInfrastructureManagementwebsite.
However,itisanticipatedthattheManualwillbeupdatedandsupplementedfromtimetotime.
Forthisreason,ifpersonnelhaveprintedaversionoftheManual,theyshouldreferregularlytotheDefenceInfrastructureManagementwebsitetoensurethattheyarereferringtothelatestrelease.
ThereleasereferenceisprintedonthefrontpageofeachvolumeoftheManual.
PersonnelshouldalsobeawarethatlegalandpolicychangeswillimpactonthecontentofthisManualfromtimetotime.
Personnelareresponsibleforensuringthattheyunderstandhowsuchchangesmayimpactontheirproject.
TheContractidentifiesdefinedterms(generally,thesearedefinedinclause1.
1oftheConditionsofContract)byusingacapitalletter–e.
g.
"Completion","Services"etc.
TheManualfollowsthisconvention.
NosubstituteforreadingtheContractTheManualdoesnotattempttodiscussallaspectsoftenderandcontractadministrationindetail,soitisnosubstituteforreadingtheContractand–ifnecessary–obtainingpolicy,legalorotherspecialistguidance.
Further,theManualdoesnotprovidedetailedadviceinrelationtomattersnotexpectedtoariseintheday-to-dayadministrationoftheContract,suchasterminationoftheContractordealingwithdisputes.
TheneedtoseekspecialistadviceinextraordinarycircumstancessuchastheseisflaggedthroughouttheManual.
Ifsuchcircumstancesarise,DefenceandtheContractAdministratorwillneedtoseekspecialistadvice.
Ifindoubt,contacttheDirectorateofConstructionContracts.
backgroundtotheClauseByClauseGUIDANCEThisVolume3providesguidanceoneachclauseoftheConditionsofContract,explainingthepurposeoftheclausewithintheContractandmattersofwhichpersonnelshouldbeawareinrelationtoit.
InterspersedthroughouttheclausebyclauseguidanceisgeneraladviceaboutissueslikelytobeencounteredintheadministrationoftheContract,suchas:communicationandmeetingswithConsultantpersonnel;anddealingwithclaimsmadebytheConsultant,includingthoseinrespectoftheprimaryriskareasoftime,cost(includingvariations)andquality.
ItalsoprovidesageneraldiscussionofthemajorthemeswithintheContract,includingqualityanddefects,timeandprogress,variationsandpaymentprocedures.
NotethatguidanceoneachclauseintheInvitationtoRegisterInterestandtheTenderDocumentsissetoutinVolume2andthatguidanceoneachclauseoftheSpecialConditionsissetoutinVolume6.
SECTION2-CLAUSEBYCLAUSEGUIDANCECLAUSE1-GLOSSARYOFTERMS,INTERPRETATIONANDMISCELLANEOUSClause1.
1-GlossaryofTermsThisclausecontainsdefinitionsofimportanttermsusedthroughouttheContract.
Alldefinedtermsareidentifiableastheirfirstletterisinuppercase.
Clause1.
2-InterpretationThisclausecontainsanumberofprovisionsrelatingtohowtheContractshouldbereadandinterpreted.
OfparticularrelevancetotheContractAdministratorwillbetheprovisionsinparagraphs(k),(l),(m)and(n)ofclause1.
2oftheConditionsofContractwhichdefine"day"inrelationtoparticularclausesoftheConditionsofContract.
Clause1.
3-MiscellaneousGoverningLaw:ThegoverninglawoftheContractissetoutintheContractParticulars.
ThisisusuallythelawoftheStateorTerritoryinwhichtheSiteislocated.
IftheSiteislocatedinoneormoreStatesorTerritories,adecisionneedstobemadebyDefenceabouttheappropriategoverninglawfortheContract.
Asdifferentjurisdictions'lawsmayimpactdifferentlyupontheServices,ifthereisanydoubtastowhichjurisdictionistoapply,legaladviceshouldbesought.
Waiver:NoneofthetermsoftheContractcanbevaried,waived,dischargedorreleasedunless,totheextentthattheterminvolvesarequestofonepartyseekingtowaiveatermoronepartyseekingtowaiveanobligationoftheotherparty,thereiswrittennoticetotheotherpartyor,otherwise,bothpartiesagreeinwriting.
However,certainstatutoryobligationsandequitableprinciplescannotbecontractedoutofandthereforethepartiesneedtoremainverycarefulthattheydonotactinawaythatisinconsistentwiththetermsoftheContract.
Contractisentireagreement:BothpartiesacknowledgethattheContractconstitutestheentireagreementbetweenthemandsupersedesallcommunications,negotiations,arrangementsandagreementsmadebetweenthepartiesbeforetheAwardDate.
OnlythosematterswhicharecontainedintheContract(asdefinedinclause1.
1oftheConditionsofContract)constitutetheenforceablecontractbetweentheparties.
IfadisputearoseinrelationtotheinterpretationoftheContract,thisclause1.
3(c)oftheConditionsofContractwouldreinforcetheprinciplethatacourtorarbitratorwillnotgenerallylookoutsideofthe"fourcorners"ofawrittencontracttofindoutwhatthepartiesintendedtheircontract(i.
e.
agreement)tomean.
Thus,anycontractspecificmatterswhichareatvarianceto,orbeyondthescopeof,theContractneedtobeincorporatedwithinthewordingofanyoneofthedocumentswhichcomprisethe"Contract".
Jointandseveralliability:ThisclauseisonlyrelevantwhereanumberofseparatelegalentitiesmakeuptheConsultant,suchaswherethereisaconsortiumorjointventure.
Insuchcircumstances,thisclauseseekstopreservetherightofDefencetotakeactionagainsteitherorbothoftheseparateentitiesmakinguptheConsultant.
However,givennewproportionalliabilitylegislationinanumberofjurisdictionsthataffectsthetraditionalapproachtojointandseveralliability,iftheConsultantwillconsistofmorethanoneseparatelegalentity,legaladviceshouldbeobtained.
Ifproportionalliabilitylegislationapplies(seecommentaryunderclause12.
14oftheConditionsofContract),itmayallowapersontoreduceitsliability,includingliabilityundertheContract,totheamountthataCourtconsidersjusthavingregardtotheextentofitsresponsibilityfortheunderlyinglossanddamage(excludingpersonalinjury),notwithstandingthatitmayhaveassumedresponsibilityforthefullamountofthatlossanddamageundertheexpresstermsoftheContract(includingbyvirtueofa'jointandseveralliability'clausesuchasthisclause).
TheproportionalliabilitylegislationisnewandcomplexlegislationwhichisnotidenticalineachStateandTerritory.
Asaresult,adviceconcerningitspotentialoractualimpactshouldbeobtainedfromtheDirectorateofConstructionContracts.
Severabilityofinvalidterms:ThisclauseprovidesthatanyprovisionsoftheContractwhichareillegal,voidorunenforceableareseverable(i.
e.
removable)totheextentoftheillegality,unenforceabilityorotherreasoncausingtheprovisiontobevoidandthattheywillnotinvalidateanyotherprovisionsoftheContract.
Confidentiality:TheConsultantmustnotdisclosetheContractortheProjectDocumentswithoutthepriorwrittenconsentofDefence,excepttotheextentthatthedisclosureisnecessaryfortheConsultanttocarryoutitsobligationsundertheContract.
Further,theConsultantmustensurethatanysubconsultantenteringintoasubcontractinconnectionwiththeContractentersintotermsrequiringthesubconsultanttocomplywiththeConsultant'sobligationsofconfidentialityasifthesubconsultantwastheConsultant.
Indemnity:TheConsultantprovidesunderthisclauseanindemnityinfavourofDefenceforbreachoftheContractbytheConsultant.
ThepurposeoftheindemnityistomakeiteasierforDefencetorecoveramountswhichitclaimsfromtheConsultantundertheContract.
Legaladviceshouldbesoughtbeforetakinganyactioninrespectoftheindemnity.
Seealsocommentaryaboveinrespectofthepotentialimpactofproportionalliabilitylegislation.
Survivalofindemnities:AllindemnitiesprovidedsurviveterminationoftheContractandmayberelieduponandenforcedbyDefenceintheeventthattheContracthasbeenterminated.
Servicesatcost:ThisclauseprovidesthatunlessitisstatedtothecontraryintheContract,theConsultantmustperformtheServicesatitscost.
CLAUSE2-ROLEOFTHECONSULTANTClause2.
1-EngagementThisclausesetsouttheConsultant'sbasicobligationtocarryouttheServicesinaccordancewiththeContract.
Clause2.
2-StandardofCareThepurposeofclause2.
2oftheConditionsofContractistoensurethattheServicesperformedbytheConsultantanditssubconsultants(includingAgreedSubconsultants)areofthestandardexpectedofanexpertprofessionalprovideroftheServices.
TheConsultantmustensurethattheDesignDocumentationmeetstherequirementsoftheContractandmustuseitsbestendeavourstoensurethattheDesignDocumentationwillbefitforitsintendedpurposes.
ThisclausealsorequirestheConsultanttoperformtheServiceseconomicallyandwithinanybudgetthatisnotifiedtoitbyDefenceandimposesontheConsultantageneralobligationtoactintheutmostgoodfaithinthebestinterestsofDefenceandtokeepDefenceinformedofanymattersthatmayaffecttheServices.
Clause2.
3-AuthoritytoActThisclauselimitstheauthorityoftheConsultanttoactonbehalfofDefence.
Inparticular,theConsultantisprohibited,unlessexpresslyauthorisedotherwise,fromenteringintocontracts,otherlegaldocumentsorarrangements,ortakingstepstobindorcommitDefence.
ThisclausefurtherclarifiestheroleoftheConsultantasanindependentconsultantandprohibitstheConsultantfrompurportingtobeapartnerorjointventureroftheCommonwealth.
Clause2.
4-KnowledgeoftheCommonwealth'sRequirementsThisclausetiesinwiththeConsultant'sgeneralobligationunderclause2.
2oftheConditionsofContracttoactintheutmostgoodfaithinthebestinterestsofDefence.
Inparticular,thisclauserequirestheConsultanttoinformitselfofDefence'srequirementswithrespecttotheServicesandtheWorks,torefertotheCommonwealth'sProgramandconsultwithDefencethroughoutperformanceoftheServices.
Clause2.
5-NoticeofMattersImpactingontheServicesortheWorksThisclauserequirestheConsultanttogivenoticetotheContractAdministratorpromptlyuponbecomingawareofanymatterwhich:islikelytochangeorwhichhaschangedthescope,timingorcostoftheServicesortheWorks;affectsormayaffecttheCommonwealth'sProgramortheConsultant'sapprovedprogram;orinvolvesanyerror,omissionordefectinanycontinuingorcompletedaspectoftheWorksortheServices.
Thisclausefurtherprescribesthatsuchnoticeshouldinclude,asfaraspracticableinthecircumstances,particularsofthechange,error,omissionordefect,itslikelyimpact,andtheConsultant'srecommendationastohowminimisetheimpactuponthescope,timingandcostoftheServicesandtheWorks.
AproformanoticefornotifyingtheContractAdministratorofanymatterwhichimpactsorislikelytoimpacttheServicesortheWorkstitled'NoticeofmattersimpactingontheServicesortheWorks'isprovidedinVolume5[insertlink].
Clause2.
6-Co-ordinationwithOtherContractorsThisclauseimposesobligationsontheConsultanttocooperateandcoordinatewithOtherContractors(asdefinedinclause1.
1oftheConditionsofContract)whichDefencehasengagedontheSite,regardlessofwhethersuchOtherContractorsareengagedonthesameprojectoronadifferentproject.
Clause2.
7-AccesstoConsultant'sPremisesThepurposeofthisclauseistomakeitclearthattheConsultantisobligedatallreasonabletimestopermittheContractAdministrator,oranypersonauthorisedbytheContractAdministrator,toinspectthecarryingoutoftheServicesandanyDesignDocumentationorotherProjectDocument.
Thus,itgivesDefencearighttoaccesstotheConsultant'spremisesifthisisrequiredtoinspectthecarryingoutoftheServices,DesignDocumentationoranyotherProjectDocuments.
Clause2.
8-ConflictofInterestThisclauseseekstoeliminateanyconflictofinterestthattheConsultantoranyofitssubconsultantshaveormayhaveintheperformanceoftheirobligations.
TheConsultantprovidesawarrantythat,attheAwardDate,noconflictexistsorislikelytoariseinitsperformanceoftheServices,andthatitwilluseitsbestendeavourstoensurethatnoconflictsexistsorislikelytoariseintheperformanceoftheobligationsofanysubconsultants.
TheConsultantmustimmediatelynotifytheContractAdministratorofanyconflictofinterestorriskofconflictofinterestandtotakeallstepsrequiredbytheContractAdministratortoavoidorminimisesuchconflictorriskofconflict.
Aproformanoticetitled'Noticeofconflictofinterest'isprovidedinVolume5[insertlink].
Clause2.
9-SubcontractingThisclausesetsouttheconditionstheConsultantmustsatisfybeforeasubconsultantmaybevalidlyengagedtoperformanyoftheServices.
IftheConsultantwishestoengageasubconsultantinrespectofworkwhichisdescribedintheContractParticularsbutthesubcontractorisneithernamedintheContractParticularsnoranAgreedSubconsultantspecifiedintheContractParticulars,itmustgetwrittenapprovalfromtheContractAdministrator.
Therefore,whereDefenceisconcernedabouttheprovisionofparticularservices,disciplinesorsubconsultants,itshouldspecifytheservices,disciplinesorsubconsultantsintheContractParticulars.
Aproformanoticetitled'Requesttosubcontract'isprovidedatinVolume5[insertlink]forthepurposeoftheConsultantrequestingapprovaltoengageasubconsultantotherthanonenamedintheContractParticularsoranAgreedSubconsultant.
AproformanoticefortheContractAdministratortoacceptorrejecttheproposedsubconsultanttitled'Responsetorequesttosubcontract'isalsoprovidedinVolume5[insertlink].
Underclause2.
9(a)(ii)oftheConditionsofContracttheConsultantremainsresponsibleforalloftheServicesregardlessofwhethertheyareultimatelysubcontractedtoathirdparty.
Similarly,theConsultantwillbevicariouslyliabletoDefenceforallacts,omissionsanddefaultsofthesubconsultants.
Clauses2.
9(b)(ii)Aand2.
9(b)(ii)BoftheConditionsofContractensurethattheConsultantwillbesimilarlyliabletoDefencewhereAgreedSubconsultantServicesaresubcontractedtoAgreedSubconsultants.
Clause2.
9(a)(iv)oftheConditionsofContractrequiresthatanysubcontractmustcontainprovisionswhichbindthesubconsultanttoparticipateinanynovationoftheagreementtoDefenceintheeventthatDefenceterminatestheContract.
Thisenablesthesubconsultanttocontinueperformingthecontractedworkontheproject(underanewheadconsultantordirectlycontractedtoDefence)despitetheterminationifDefencethinksthiswouldbebeneficialinthecircumstances.
ThisclausealsorequiresthatthesubcontractcontainprovisionsasotherwiserequiredbytheContract.
Forexample,clause16.
1(d)oftheConditionsofContractrequiresthatthesubcontractcontainprovisionswithrespecttoNationalCode.
Clause2.
9(a)(v)oftheConditionsofContractrequiresthatwhereanyStatutoryRequirementintheStateorTerritorywheretheWorksaresituatedortheServicesarecarriedout(asthecasemaybe)requiresapersontoberegisteredorlicensedtocarryoutthatpartofthework,theConsultantmustensurethatsuchregistrationorlicenceisobtainedand,whererequested,provideevidencetothesatisfactionoftheContractAdministratorthattheproposedsubconsultantissoregisteredlicensedoradequatelytrainedpriortothesubconsultantcommencingwork.
Aproformanoticetitled'Requestforevidenceof[registration/licensing/training]'isprovidedinVolume5[insertlink].
Clause2.
9(a)(v)alsodoesnotpermittheConsultanttodirectorallowanypersontoperform"highriskwork"(definedinPart2oftheOccupationalHealthandSafety(SafetyStandards)Regulations1994(Cth))withouttheappropriatelicenceortraining.
Ifalicensedholderisrequiredtoundertake"highriskwork",theConsultantmustprovideanynecessarytraining,instructionandinformationontherelevantequipmentoperation,hazards,risksandcontrolmeasures.
SubconsultantDeedofCovenantClause2.
9(a)(vi)oftheConditionsofContractrequires,whererequestedtodosobytheContractAdministrator,theConsultanttoexecuteandprocuretherelevantsubconsultanttoexecuteaSubconsultantDeedofCovenantandprovidethistotheContractAdministratorasaconditionprecedenttoseekingapprovaltosubcontracttheworkunderclause2.
9(a)oftheConditionsofContractor,ifnosuchapprovalisrequired,withinthetimerequiredbytheContractAdministratorandinanyeventpriortothecommencementoftheworkbytherelevantsubconsultant.
Aproformanoticetitled'RequestforSubconsultantDeedofCovenant'isprovidedinVolume5[insertlink].
AcopyofthedeedwhichistobefilledoutandexecutedisattachedintheScheduleofCollateralDocuments.
IfaSubconsultantDeedofCovenantisprovided,itshouldnotbeexecutedbyDefenceunlessanduntilDefencewantstonovatethesubconsultantfromtheConsultanttoDefenceoritsnominee.
ASubconsultantDeedofCovenantisadeedenteredintobyDefence,theConsultantandthesubconsultant.
AsthereisnodirectcontractualrelationshipbetweenDefenceandthesubconsultant,thepurposeofthedeedistoprovideadirectrelationshipbetweeneachofthepartiessothatallpartiesmayenforcerightsagainstoneanother.
AcommonquestioniswhetherornotaSubconsultantDeedofCovenantwillberequiredforallsubcontracts.
WhileDefencecouldinsistthatallsubconsultantsprovidesuchdeeds,inpractice(becauseoftheadministrativeburdenofobtainingandproperlyexecutingsuchdeedsforallsubcontractpackagesonlargeprojects)itisamatterfortheContractAdministratortodetermine.
Factorstoconsiderwillinclude:therisks(suchastime,cost,qualityandotherpoliticalpressures)inherentinthesubcontract(i.
e.
thegreatertherisk,thegreatertheneedforaSubconsultantDeedofCovenant);thevalueofthesubcontract(i.
e.
otherthaninparticularlyhighrisksubcontracts,itwouldnotbenecessarytoobtainsuchdeedsinrelativelyminorsubcontracts);thetimeframeforcommencementofthework;theterm/lengthoftimerequiredtocarryoutthework(i.
e.
thelongerthetime,thegreaterthelikelihoodthatproblemscouldarise,andhencethegreaterneedforsuchadeed);thetechnicalcomplexityofboththesubcontractandtheprojectgenerally(i.
e.
thegreaterthecomplexity,thegreatertheneedforsuchadeed,astheremaybefewerreplacementsubconsultants);andthefinancialstabilityoftheConsultant(i.
e.
iftheConsultantbecomesinsolvent,thenDefencemaywishtonovateintothesubcontract).
TheSubconsultantDeedofCovenantprovidesthat:thepartieswillnovatethesubcontracttoDefence(oritsnominee)iftheContract(i.
e.
DSC-12003)isterminated;andtheConsultantwillexerciseadutyofcareintheperformanceoftheservicestobeprovidedunderthesubcontractsuchthat(amongstotherthings)itwillexercisethestandardofcareofanexpertprofessionalprovideroftheservicesandwillensurethattheDesignDocumentationcomplieswiththerequirementsofthesubcontract.
ItshouldbenotedthatthisdeedcannotbeconstruedinanywaytomodifyorlimittheCommonwealth'srightsagainsttheConsultant.
Ifitisrequired,theprovisionofsuchadeedisaconditionprecedenttomakingapaymentclaim.
AgreedSubconsultantServicesClauses2.
9(b)and2.
9(c)oftheConditionsofContractprescribethebasisonwhichAgreedSubconsultantServicesaresubcontractedtoAgreedSubconsultants.
AgreedSubconsultantServicesmustbesubcontractedonthetermsofeither:anAgreedSubconsultantAgreement,thetermsofwhichareagreedbyDefenceandtheConsultant;oracontractnovatedtotheConsultantwhichDefenceenteredintowithanAgreedSubconsultantpriortotheAwardDateandwhichisspecifiedintheContractParticulars.
Inthelattercase,theConsultantmustacceptnovationofthecontractbyDefencebyexecutingtherelevantDeedofNovationsetoutintheScheduleofCollateralDocumentstogiveeffecttothenovationwithin7daysofreceiptofthedeedfromDefence.
Ineffectingnovation,theConsultantacknowledgesthatsomeoftheAgreedSubconsultantServiceshavealreadybeenperformedpriortonovationandwarrantsthatithasconsideredtheperformedservicesandthattheyarefitfortheirintendedpurposes.
TheConsultantmustalsomakeanadequateallowanceititsFeeandinitsprogramfortheperformanceoftheAgreedSubconsultantServices.
Clause2.
10-StatutoryRequirementsThisclauseconfirmsthat,unlessotherwisespecified,theConsultantbearstheriskof,includingthecostofobtainingandmaintainingallnecessaryApprovalsandcompliancewithanyStatutoryRequirements.
TheContractParticularsmaysetouttheApprovalswhichtheConsultantistoobtainandalsoanyStatutoryRequirementswithwhichtheConsultantdoesnotneedtocomply.
SeefurtherguidanceinVolume2.
ThedefinitionofStatutoryRequirementsissetoutinclause1.
1oftheConditionsofContract.
StatutoryRequirementsarealsodefinedtoinclude"DefenceRequirements"(alsodefinedinclause1.
1oftheConditionsofContract).
DefenceRequirementsincludeallpolicies,plans,manualsetc.
andotherCommonwealthorDefencerequirementswhichmaybeapplicabletotheSite,theWorksortheServices.
Further,thisdefinitionstatesthattotheextentthatanyoftherequirements(e.
g.
Defencepolicies)requireorsuggesttheinsertionofprovisionsintothisContract,thenthoseprovisionswillbeincorporatedbyreference(i.
e.
itwillbedeemedthatthoseprovisionsareinfactincludedinthisContracteveniftheyarenotphysicallystatedorreproducedinthisContract).
ThismeansthatDefencemustbeawareofallchangestoDefencepoliciesetc.
whichmayincludesuchclauses.
Thedefinitionof"DefenceRequirements"statesthat,ifthereisanyambiguity,discrepancyorinconsistencyarisingoutoftheincorporationofsuchprovisions,itwillberesolvedbytheContractAdministrator.
ItwouldbegoodpracticetoliaisewiththeConsultantassoonastherequirementisintroducedtoavoidthis.
TheConsultantmustalsopromptlygivetheContractAdministratorcopiesofalldocuments(whichincludesApprovalsandothernotices),thatanyauthority,bodyororganisationhavingjurisdictionovertheWorksortheServicesissuestotheConsultant.
Clause2.
11-ChangeinStatutoryRequirementsorVariancewithContractUnderthisclause,DefenceacceptstheriskofanychangeinStatutoryRequirementoraStatutoryRequirementbeingatvariancewiththeContract(sometimesreferredtoasa"changeinlaw")aftertheAwardDate.
WhatconstitutesaStatutoryRequirementisdefinedinclause1.
1oftheConditionsofContract.
IfthereisachangeinaStatutoryRequirementorifaStatutoryRequirementisatvariancewiththeContractthenthepartydiscoveringthechangeorvariancemustpromptlynotifytheotherparty.
AproformanoticetobeusedbyeitherDefenceortheConsultanttoadvisetheotherpartyofachangeorvariancetitled'NotificationofchangeinStatutoryRequirements'isprovidedinVolume5[insertlink].
DefenceisnotliabletopaythecostsassociatedwiththechangeorvariancewhichareincurredbeforetheConsultantortheContractAdministratorsubmitsthenoticerequiredunderclause2.
11(c)oftheConditionsofContract.
ThisprovidestheincentivefortheConsultanttoissueitsnoticepromptly.
Underclause2.
11(d)oftheConditionsofContract,theContractAdministratorwillissueinstructionstotheConsultantastohowtoproceedwiththeServicesinlightofthechangeorvariance.
Aproformanoticetitled'InstructioninresponsetochangeinStatutoryRequirements'isprovidedinVolume5[insertlink].
TheConsultantwillbeentitledtoanincreaseintheFeetocoveranyextracostsreasonablyincurreddirectlyasaresultofthechangeorvarianceandanyinstructionsissuedinrelationtosuchchangeorvariance.
TherelevantincreaseintheFeeistobedeterminedbytheContractAdministratorbyreferencetoclause2.
11(e)oftheConditionsofContract.
Conversely,DefencewillbeentitledtoadecreaseintheFeeifanysavingsaremadebytheConsultantasaresultofthechangeorvarianceandanyinstructionsissuedinrelationtosuchchangeorvariance.
TherelevantdecreaseintheFeeistobedeterminedbytheContractAdministratorbyreferencetoclause2.
11(e)oftheConditionsofContract.
Clause2.
12-NovationDefencemayatanytimewithouttheconsentoftheConsultantelecttonovatetheContracttoaContractor.
ThisisusuallyrelevantwhereDefenceisusingthedocumentandconstructiondeliverymethodtodelivertheproject,underwhichtheContractorassumesfullresponsibilitytoDefencefordesignandconstruction,includingthedesignperformedpriortonovation.
WhereDefenceelectstonovatetheContract,theConsultantmustexecutetherelevantDeedofNovationsetoutintheScheduleofCollateralDocumentstogiveeffecttothenovationwithin7daysofreceiptofthenovationDeedfromDefence.
TheConsultantmustalso,ifrequestedbytheContractAdministrator,executetheConsultantDeedofCovenantandprovidethistotheContractAdministratorwithintheperiodspecifiedbytheContractAdministratorintherequest.
Aproformanoticetitled'RequestforConsultantDeedofCovenant'isprovidedinVolume5[insertlink].
AcopyofthedeedwhichistobefilledoutandexecutedisattachedintheScheduleofCollateralDocuments.
IfaConsultantDeedofCovenantisprovided,itshouldnotbeexecutedbyDefenceunlessanduntilDefencewantstonovatetheConsultantbackfromtheContractortoDefenceoritsnominee.
AConsultantDeedofCovenantisadeedenteredintobyDefence,theContractorandtheConsultant.
AsthereisnodirectcontractualrelationshipbetweenDefenceandtheConsultantoncenovationhasoccurred,thepurposeofthedeedistoprovideadirectrelationshipbetweeneachofthepartiessothatallpartiesmayenforcerightsagainstoneanother.
SeeguidanceaboveastotheconsiderationswhicharerelevanttowhetherornotaConsultantDeedofCovenantisrequiredandthekeyrightsandobligationsunderthedeed.
ItshouldbenotedthatthisdeedcannotbeconstruedinanywaytomodifyorlimittheCommonwealth'srightsagainsttheConsultant.
Ifitisrequired,theprovisionofsuchadeedisaconditionprecedenttomakingapaymentclaim.
Clause2.
13-TheEnvironmentEnvironmentalconcernscarrysignificanceonallDefenceprojects,themanagementofwhichisconsideredofutmostimportancebyDefence.
TheContractthereforecontainsconsiderabledetailinrelationtotherequirementsandconsiderationsnecessaryfortheprotectionoftheEnvironment.
Thesearepredominantlysetoutinclause2.
13oftheConditionsofContractandreferencedtothedefinitionofEnvironmentalRequirementsinclause1.
1oftheConditionsofContract.
Setoutbelowisguidanceonthefollowing:theprimaryenvironmentalobligationsunderclause2.
13oftheConditionsofContract;matterstobecoveredbytheEnvironmentalManagementPlanandSiteManagementPlan;ESDPrinciples;theContractAdministrator'sroleinrelationtotheEnvironment;andtheabilitytosuspendtheServicesduetoenvironmentalconcerns.
Eachofthesearediscussedinturnbelow.
Primaryenvironmentalobligationsunderclause2.
13oftheConditionsofContractQuiteapartfromandinadditiontothegeneralrequirementtocomplywithallStatutoryRequirements(unlessotherwisespecifiedunderclause2.
10oftheConditionsofContract)clause2.
13oftheConditionsofContractsetsouttheEnvironmentalRequirementstheConsultantmustcomplywithinpreparingtheDesignDocumentationandincarryingouttheServices.
Clause2.
13oftheConditionsofContractrequirestheConsultanttocomplywithallStatutoryRequirements(thatisallrequirementsundertheCommonwealth,StateorTerritoryorlocallaws)andanyotherrequirementscontainedintheContractfortheprotectionoftheEnvironment.
Thisincludes:obtaininganynecessaryApprovalsandcomplyingwithanyconditionorrequirementunderthem;givingappropriatenoticesandpayingrequisitefeesandotheramountsinrelationtotheServicesrequiredfortheprotectionoftheEnvironment;complyingwiththeEnvironmentalClearanceCertificate;complyingwiththeDefenceEnvironmentalManagementSystemandDefenceEnvironmentalPlanwhichrelatetotheSite,theWorksortheServices;andcomplyingwithallpolicies,plans,manuals,guidelines,instructionsandotherCommonwealthorDefenceRequirementswhichareapplicabletotheSite,theWorksortheServices.
TheConsultantisobligedtoensurethatincarryingouttheServicesitdoesnotcauseanyEnvironmentalIncidentorcauseorcontributetoanyContamination,eitheroftheSiteorelsewhere.
TheConsultantmustcomplywithanynotices,ordersorcommunicationsfromauthoritiesfortheprotectionoftheEnvironmentandisrequiredtoimmediatelyinformtheContractAdministratorof:anynon-compliancewithclause2.
13oftheConditionsofContract;anybreachofStatutoryRequirementfortheprotectionoftheEnvironment;anyEnvironmentalIncident;orreceiptofanynotice,orderorcommunicationreceivedfromanyauthorityfortheprotectionoftheEnvironment.
Aproformanoticeforsuchnotificationtitled'NoticeregardingtheEnvironment'isprovidedinVolume5[insertlink].
TheConsultantwillberesponsibleforcleaningupandrestoringtheEnvironment,includinganyContaminationorEnvironmentalHarmarisingoutoforinanywayinconnectionwiththeServices.
TheConsultantwillalsobereimbursedthedirectreasonableandsubstantiatedcostsitincursincleaningupandrestoringtheEnvironment(asdeterminedbytheContractAdministrator)totheextenttherequirementtocleanupandrestoretheEnvironmentdidnotariseasaresultoftheConsultantfailingtocarryouttheServicesstrictlyinaccordancewiththeContract.
EnvironmentalManagementPlanandSiteManagementPlanTheConsultantisrequiredtoprepareanEnvironmentalManagementPlanandSiteManagementPlan(which,ifapplicable,includesaMethodofWorkPlanforAirfieldActivities).
ThespecificmatterstobeincludedintheEnvironmentalManagementPlanwilldifferfromprojecttoproject,however,itmustsetoutinadequatedetailhowtheConsultantproposestoensuretheServiceswillbeperformedconsistentlywithandsoastomaximisetheachievementof:theEnvironmentalRequirements;theStatutoryRequirements;theConsultant'senvironmentalcommitmentssetoutintheDCAP;theEnergyPolicyforCommonwealthAgencies,CommonwealthProcurementGuidelinesandDefenceGreenProcurementPolicy;theESDPrinciples;andtheEnvironmentalObjectives.
Withoutlimitingtheabove,generallytheEnvironmentalManagementPlanwillbeexpectedtoaddresstheEnvironmentalObjectivesincludinghowtheConsultantproposesto:encouragebestpracticeenvironmentalmanagementthroughplanning,commitmentandcontinuousimprovement;preventandminimiseadverseimpactsontheEnvironment;identifythepotentialfor,andrespondto,EnvironmentalIncidents,accidentsandemergencysituationsandtakecorrectiveaction;identifyandcontrolpossibleenvironmentalhazardsassociatedwiththeWorksandtheServices;establishprocedurestoensurethatnohazardoussubstanceisstoredonCommonwealthlandwithoutapproval;recogniseandprotectanyspecialenvironmentalcharacteristicsoftheSite(includingculturalheritagesignificance);definerolesandresponsibilitiesforpersonnel;ensureenvironmentaltrainingandawarenessprogrammesareprovidedtoemployeesandsubconsultants;ensuresubconsultantsimplementtheEnvironmentalManagementPlan;definehowthemanagementoftheEnvironmentduringtheServicesisreportedandperformanceevaluated;describeallmonitoringproceduresrequiredtoidentifyimpactsontheEnvironmentasaresultoftheWorksortheServices;implementcomplaintreportingproceduresandmaintainrecordsofcomplaintsandresponsetocomplaints;andestablishandmaintainprogramsandproceduresforperiodicEnvironmentalManagementPlanauditstobecarriedout.
TheSiteManagementPlanmustaddresstheprocedurestheConsultantwillimplementtomanagetheServicesonorneartheSite,includinganymattersrequiredbytheContractAdministrator.
Suchaplanmightbeexpectedtocover:securityprocedures;accesstotheSitebyvisitors,pedestriansandvehicles;Siteinductionprocedures;safetyprocedures;emergencyprocedures;Approvalprocedures;usergroupandstakeholderprocedures;aMethodofWorkPlanforAircraftActivities(ifinthevicinityofaircraftmovements);andanyothermattersrequiredbytheContractAdministrator.
Ecologicallysustainabledevelopment(ESD)ESDisdefinedbytheNationalStrategyforEcologicallySustainableDevelopment(1992)as"developmentwhichaimstomeettheneedsofAustralianstoday,whileconservingourecosystemsforthebenefitoffuturegenerations".
PerformanceoftheContractisrequiredtobeconsistentwiththeESDPrinciples(setoutinclause1.
1oftheConditionsofContract).
TheEnvironmentalManagementPlanmustsetoutinadequatedetailhowtheConsultantproposestoensurethiswilloccur.
ESDPrinciplesarealsoarelevantfactortoconsiderindeterminingtheWOLObjectiveswhichmustbeachievedbytheConsultantinperformingtheServices.
Seeguidanceundercommentaryonclause14oftheConditionsofContractinrelationtoWOL.
TheContractAdministrator'sroleinrelationtotheEnvironmentAsnotedinthecommentaryforclause4.
1oftheConditionsofContract,theContractAdministratorisanagentoftheCommonwealthnominatedintheContractParticularsorbytheCommonwealthfromtimetotime,andisresponsibleforoverseeingandadministeringtheoperationoftheContract.
DefenceexpectsthattheContractAdministratorwillhavetrainedenvironmentalpersonneltoaddressenvironmentalissuesthatmayariseinrelationtotheServices.
Amongstotherthings,theContractrequirestheContractAdministratorto:reviewdraftplansandamendmentstheretosubmittedbytheConsultant;inspecttheServicesfromtimetotime(forexample,testingconductedonSite);provideinstructionstotheConsultantinrelationtomattersconcerningtheEnvironment;andsuspendtheServicesifnecessary.
AnynotificationsrequiredtobemadebytheConsultantundertheContractmustbemadetotheContractAdministrator.
TheContractAdministratorisresponsiblefordeterminingwhatactionneedstobetakenifanyasaresultofsuchnotificationsorotherwiseundertheContract.
TheConsultantmustcomplywithanydirectionsorinstructionsgivenbytheContractAdministratorwhererequiredbytheContract.
Inmakinganydetermination,theContractAdministratormaybeadvisedby,ormayseekadvicefromtheCommonwealth'sRegionalEnvironmentalOfficer(REO)inrelationtoenvironmentalissues.
SuspensionoftheServicesduetoenvironmentalconcernsTheContractAdministratorhasbroadpowertosuspendtheServicesunderclause8.
4oftheConditionsofContract.
Thispowermaybeexercisedatanytimeandforanyreason,andmaybeexercisedexpeditiouslytoensureenvironmentalprotectionisapriority.
AlthoughnotexplicitlystatedintheContract,theContractAdministratormayactontherequestoftheREOoranotherpersontoinstructtheConsultanttosuspenditsServices.
WheretheContractAdministrator'spowerisexercisedforreasonsotherthantheConsultant'sfailuretocarryoutitsobligationsinaccordancewiththeContract,theConsultantmaybeentitledtomakeaClaimagainsttheCommonwealtharisingoutofthesuspension.
TheConsultantwillnotbeentitledtomakeanyClaimagainsttheCommonwealthwhereithasbeeninstructedtosuspendtheServiceswhere:theConsultanthasnotcompliedwithallStatutoryRequirementsand/orotherrequirementsoftheContractfortheprotectionoftheEnvironment;theConsultanthascausedanEnvironmentalIncident;theConsultanthascausedorcontributedtoContaminationoftheSiteoranyotherland,airorwater,orcausedorcontributedtoContaminationemanatingfromtheSite;theConsultanthasnotimmediatelynotifiedtheContractAdministratorof:anynon-compliancewiththerequirementsofclause2.
13oftheConditionsofContract;abreachofanyStatutoryRequirementfortheprotectionoftheEnvironment;anyEnvironmentalIncident;orthereceiptofanynotice,orderorcommunicationreceivedfromanyauthorityfortheprotectionoftheEnvironment;ortheConsultant'ssubconsultantshavenotcompliedwiththerequirementsunderclause2.
13oftheConditionsofContract.
UnliketheContractAdministrator,theConsultantisnotentitledtosuspendtheServicesunlessitisorderedtodosobytheContractAdministrator.
OtheractionstobetakenbytheConsultantItisanticipatedthattheConsultantwill:conductitsownenvironmentalinductioncourse;takeallreasonableandproperprecautions,andexerciseallduediligencetoavoidandminimiseriskofdamagetotheEnvironment;implementandenforcesoundenvironmentalworkpracticesandproceduresontheSite;procureandmakeenvironmentalcontrolequipmentavailableforitsemployees,subconsultantsoragentsworkingontheSiteandinstructthosepersonsontheproperuseofthatcontrolequipment;complywithanydirectiongivenbytheContractAdministratorwheretheContractAdministratorformstheviewthattheConsultant'sworkpracticesorthoseworkpracticesoftheConsultant'semployees,subconsultantsoragentsmaycauseEnvironmentalHarm;andinrespectoftheServices,mitigatetheriskofEnvironmentalHarmontheSiteatitsownexpense.
CLAUSE3-ROLEOFTHECOMMONWEALTHClause3.
1-InformationandServicesThisclauserequiresDefencetomakeavailabletotheConsultantassoonaspracticableallinformation,documentsandparticularsrelatingtotheWorks,includingDefence'srequirementsfortheWorksandDefence'sprogram,anddetailsofbudgetfortheWorksinsofarasthesearerelevanttotheServices.
Clause3.
2-AdditionalInformationThisclausetiesinwithDefence'sobligationunderclause3.
1oftheConditionsofContracttoprovidetheConsultantwithallinformationrelatingtotheWorks.
IftheConsultant,initsreasonableopinion,considersthatinorderforittocarryouttheServicesitrequiresadditionalinformationnotprovidedtoitbyDefenceorbyanOtherContractor,itmustnotifytheContractAdministratorinwritingofthedetailsoftheadditionalinformationandthereasonswhyitisrequiredbytheConsultant.
Aproformanotice'titled'Requestforadditionalinformation'isprovidedinVolume5[insertlink].
IftheContactAdministratorbelievesthatsuchadditionalinformationrequestedbytheConsultantisneededbytheConsultant,thenDefencemustuseitsbestendeavourstoprovidesuchadditionalinformation,documentorparticulars.
Clause3.
3-AccessThisclausesetsoutDefence'sobligationsinrelationtoprovidingSiteaccesstotheConsultantand,inparticular,makesitclearthattheConsultant'srightofaccessissubjecttotheConstructionContractandanyagreementwithanyotherpartywithwhomDefencehasmadearrangementsforaccess.
TheSiteManagementPlanandtheOccupationalHealthandSafetyPlanpreparedbytheConsultantmustalsohavebeenfinalisedtothesatisfactionoftheContractAdministrator.
DefencemayberequiredtoarrangeaccesstootherpropertywhichisnecessaryfortheConsultanttocarryouttheServices.
Clause3.
4-MakingofDecisionsThisclauseenablestheConsultanttorequestDefencetoconsidertheselectionofalternativecoursesofaction.
SucharequestmustincludeallinformationrequiredforDefencetomakeadecisionontheappropriatecourseofaction.
DefencemustprovidesuchdecisioninsuchreasonabletimeasnottodelayordisruptthecarryingoutoftheServices.
Aproformanoticetitled'Requestfordecisiononalternativecoursesofaction'isprovidedinVolume5[insertlink]forthepurposesoftheConsultantrequestingDefencetochoosefromaselectionofalternativecoursesofaction.
Further,aproformanoticeforDefencetonotifyingtheConsultantofDefence'sdecisiononthealternativecoursesofactiontitled'Decisiononalternativecoursesofaction'isalsoprovidedinVolume5[insertlink].
CLAUSE4-PERSONNELClause4.
1-ContractAdministratorTherequirementthattheContractAdministratoractasagentofDefenceandnotasacertifierwhenexercisingtheContractAdministrator'sfunctionsundertheContractensuresthattheContractAdministratorcanactonDefence'sinstructionsanddoesnothavetoexerciseitsfunctionsindependentlyoftheseinstructions.
ThisisappropriategiventhattheContractAdministratorwillusuallybeaconsultanttoDefence.
DefencewillgenerallyengagetheContractAdministratorfromtheDefenceInfrastructurePanel(DIP).
TherelevantagreementsettingouttheContractAdministrator'sresponsibilitiesinrespectofaparticularprojectwillbethe"TermsofEngagement"undertheDIP.
TheConsultantmustnotcomplywithanydirectionofDefenceotherthanthoseexpresslystatedintheContract.
RegardlessofthetermsoftheagreementbetweenDefenceandtheContractAdministrator,asbetweentheConsultantandtheContractAdministrator,theConsultantwillbeentitledtorelyontheactionsoftheContractAdministratorundertheContract.
DefencewillbeboundbythoseactionsoftheContractAdministrator,asagainsttheConsultant,becausetheContractAdministratoristheagentofDefence.
ToaffordtheConsultantameasureofcomfort,disputesarisingoutofanydirectionoftheContractAdministratorwhichwouldordinarilybeclassedasacertifyingfunction(oneinwhichtheContractAdministratorwouldhavebeenrequiredtoactindependently)maybereferredtoexpertdeterminationunderclause12.
2oftheConditionsofContract.
Clause12.
2oftheConditionsofContract(byreferencetotheContractParticulars)specifieseachoftheclausesinrespectofwhichdisputesaretobedealtwithinthisway.
Seethecommentarybelowforclause12.
2oftheConditionsofContractforafurtherexplanationofthoseclauses[insertlink].
A"direction"oftheContractAdministratorisdefinedwidelyinclause1.
1oftheConditionsofContract.
ThatwidedefinitionisthenadoptedthroughouttheContractincludingforthepurposesofthefollowingclauses:clause4.
1oftheConditionsofContract,underwhichtheConsultantmustcomplywithadirectionbytheContractAdministratorgivenundertheContract;clause6.
4(b)oftheConditionsofContract,underwhichtheConsultantisnotrelievedofanyofitsobligationsbecauseofadirectionbytheContractAdministratorinrelationtotheDesignDocumentation;clause7.
1(c)(ii)oftheConditionsofContract,underwhichtheConsultantisnotrelievedofanyofitsContractobligationsasaresultofanydirectionoftheContractAdministratorconcerningtheConsultant'squalityassurancesystemoritscomplianceornon-compliancewiththatsystem;clause8.
11(b)oftheConditionsofContract,underwhichtheContractAdministratormaygiveadirectionrequiringtheConsultanttouseitsbestendeavourstoachieveaMilestonebyadateearlierthantheDateforCompletion(knownastheAcceleratedDateforCompletion);clause9.
3oftheConditionsofContract,underwhichtheFeewillbeincreasedordecreasedforVariationswhichhavebeenthesubjectofadirectionbytheContractAdministrator;clause9.
5oftheConditionsofContract,underwhichtheCommonwealthmaycarryoutanypartoftheServiceswhichareomittedasaresultofaVariationthesubjectofadirectionbytheContractAdministrator;clause11.
2(e)oftheConditionsofContract,underwhichtheCommonwealthmaygiveawrittennoticeunder11.
3oftheConditionsofContracttotheConsultantiftheConsultantdoesnotcomplywithanydirectionoftheContractAdministratormadeinaccordancewiththeContract;clause12.
2oftheConditionsofContractandtheContractParticulars,whichrefertodirectionsinrelationtowhichdisputesmustberesolvedbyanexpertdetermination;clauses12.
11(b)and12.
12(b)oftheConditionsofContract,underwhichdisputesordifferenceswhichdonotrelatetoadirectionoftheContractAdministratorunderoneoftheclausesreferredtointheContractParticularsmustbedeterminedbyexecutivenegotiationandthenarbitration;clause13.
1oftheConditionsofContract,underwhichtheConsultantmustgiveanoticeifitbelievesadirectionbytheContractAdministratorconstitutesaVariation;clause13.
2oftheConditionsofContract,underwhichtheConsultantmustgivethenoticesunderclause13.
3oftheConditionsofContractifitwishestomakeaClaimagainsttheCommonwealthinrespectofanydirectionbytheContractAdministrator(exceptforthoseparticularclaimsreferredtoinclause13.
2oftheConditionsofContract);clause15.
3(e)oftheConditionsofContract,underwhichtheCommonwealth'sliabilitytotheConsultantarisingoutofadirectionbytheContractAdministratorrelatingtoachangetotheSAFEBASEleveloranindividualmeasurewillbelimitedtotheamountdeterminedbytheContractAdministrator;andclause15.
5(a)(xi)oftheConditionsofContract,underwhichtheConsultantagreestoenforcetheobligationsonsubconsultantsinaccordancewithsuchdirectionsastheContractAdministratormaygive.
ContactwiththeConsultantSetoutbelowisguidanceonthevariouswaysinwhichtheContractAdministratormayhavecontactwiththeConsultantandalistofthespecificfunctionsoftheContractAdministratorundertheContract:DirectionsBeforeissuingadirection(thescopeofwhichiswidelydefinedunderclause1.
1oftheConditionsofContract),theContractAdministratormustensurethatithastheauthoritytoissuethedirectionunderthespecifictermsoftheContract.
TheContractAdministratormustalsobeawarethatifadirectionchangestheobligationsoftheConsultant,theConsultantmayhavesubsequententitlementsundertheContractagainstDefence.
TheContractAdministratormustalwaysconfirmsuchdirectionswithDefencebeforeissuingthem.
TheContractAdministratorshouldalsonotethatithascertainobligationstoDefenceunderthetermsofitsagreementwithDefence.
Whilstdirectionsmaybegivenorally,theyshouldalwaysbeconfirmedinwritingsothatwrittenevidenceexistsifeverrequiredtobecalledupon;thisis,inanycase,requiredbyclause4.
1oftheConditionsofContract.
Therefore,ifanoralnoticeisgiven,itshouldbefollowedbytherelevantcompletedproformanoticewithin24hoursorotherwiseassoonaspracticable.
AsuiteofproformanoticesissetoutinVolume5.
TheContractAdministratormustensurethatitgivesalldirectionsinatimelymannerandinanyeventwithinthetimeframesrequiredbytheContract.
Ifitdoesnotdoso,theConsultantmaybeentitledtoanextensionoftime.
NoticesundertheContractAsnotedabove,theContractimposesobligationsontheConsultantandtheContractAdministratortogiveanoticetotheotherpartyinvariouscircumstances.
FromtheConsultant'sperspective,itsnoticesmustbegiventopreservevariousentitlementsundertheContract.
FromDefence'sperspective,theobjectofthenoticerequirementsistoensurethatitiskeptfullyinformedofrelevantdevelopmentsandanycircumstancesinwhichitmaybeliabletopayextramoneyorgrantanextensionoftimeoranyotheradditionalentitlementtotheConsultant.
AllnoticesmustbegiveninaccordancewiththeparticularrequirementsoftherelevantContractprovision(inparticular,intermsoftiming,contentandsigning).
CorrespondenceCorrespondencewiththeConsultantshouldbetreatedinthesamemannerasdetailedfordirectionsabove.
OriginalsofcorrespondencefromtheConsultantshouldnotbeannotatedwithcommentsasthesemayneedtobedisclosedtoaCourtorduringanarbitration;manyacourtcaseandarbitrationhavechangedcoursebecauseofill-conceivedcommentsoncorrespondence.
Facsimiletransmissionslipsmustberetainedtoresolveanyquestionastodateofreceiptunderclause13.
8oftheConditionsofContract.
Electronicmail(e-mail)isbothanefficientandcommonformofcommunicationinbusinesstoday.
Whilee-maildoesconstitute"writing"andmaybeusedforthepurposesofprovidingdirectionsundertheContract:e-mailcanattimesbeunreliablesothatquestionsastowhether(and,ifso,atwhattime)adirectionwasgivenorcommunicatedmayarise;ande-mailisnotanacceptablemethodforthedeliveryorreceiptofformalnoticesundertheContract.
Seefurtherguidancerelatingtothedeliveryofnoticesatclause13.
7oftheConditionsofContractbelow.
TherearecertainsecurityissuesassociatedwiththeuseofprojectdocumentmanagementsoftwaresystemssuchasAconexorequivalents.
AdvicefromtheDirectorateofConstructionContractsshouldbesoughtbeforeincorporatingsoftwareandsuchsystemsintheContract.
Aspecialconditionmayberequired.
SpecificfunctionsoftheContractAdministratorTheContractAdministratormustoperateinaccordancewiththeexpressprovisionsoftheContract.
Thiswillincludecompulsoryfunctions(manyofwhichmustbecompletedwithinaspecifiedtimeframe)andsomediscretionarypowers(e.
g.
orderingaVariation)whichtheContractAdministratorwilltypicallyexerciseatitsdiscretion(subjecttofirsthavingobtainedDefence'sagreement).
WhilstthereisnoexpressobligationthattheContractAdministratoractinanyparticularwaywhenexercisingitsfunctions,thegeneralexpectationisthatitwillapplythetermsoftheContract.
Forthisreason,theManualrepeatedlyemphasisestheneedforcontractadministrationpersonneltobeawareof-andapply-thetermsoftheContractenteredintobyDefence.
Inotherwords,theContractAdministratorshouldcarefullyconsideritsroleundertheContractandtherelevantcircumstanceswhenexercisingitsfunctions.
TheContractAdministratorshouldalsokeepinmindthatmanyofitsdecisionswhicharemadeona"certifier"basisareappealable.
ThesedecisionsarelistedintheContractParticulars(seethedetaileddiscussiononclause12.
2oftheConditionsofContract).
ThetablesetoutinAnnexureAofthisVolume3listsallofthespecificfunctions/dutiesoftheContractAdministratorundertheContract.
Inadditiontothesespecificfunctions,theContractAdministratormayalsoberequiredtocarryoutadditionalfunctionswhichareimplicitorotherwisenecessarytoenablethepersonsinvolvedwiththeprojecttocarryouttheirrespectiveactivities.
OncetherelevantfunctionisidentifiedinthetablesetoutinAnnexureAofthisVolume3,itisnecessarytogotothecorrespondingclause/softheContracttodeterminetheexactcircumstancesinwhichthefunctionmust,shouldormaybeexercisedandanyfurtherconstraintsorinstructionsastotheexerciseordischargeofthatparticularfunction.
CommentaryoneachoftheseclausesisprovidedintherelevantpartoftheManual.
Clause4.
2-ReplacementofContractAdministratorDefenceisentitledtochangetheContractAdministratoratanytime.
AproformanoticeinformingtheConsultantthattheContractAdministratorhasbeenreplacedtitled'ReplacementofContractAdministrator'isprovidedinVolume5[insertlink].
Clause4.
3-Parties'ConductThisclauseplacesageneralobligationonthepartiestoco-operatewitheachother.
Itreflectsthegenerallawposition.
Clause4.
4-ContractAdministrator'sRepresentativeAstheContractAdministrator'sfunctionsundertheContractarebroad,itwilloftenbenecessaryfortheContractAdministratortodelegatecertainfunctionstoothers.
TheserepresentativeswillbesetoutintheContractParticulars,andwillcarryoutthefunctionsassetoutintheContractParticulars.
TheConsultantmustcomplywithanyinstructionsordirectionsissuedbyarepresentativeoftheContractAdministrator(CARs).
AsattheAwardDate,oneoranumberofCARsmaybelistedintheContractParticulars,togetherwiththeirrespectivefunctions.
SeeVolume2forfurtherguidance.
CARsmayalsobeappointedaftertheAwardDatebytheContractAdministrator.
TheConsultantmustalsocomplywithanyinstructionsordirectionsissuedbyCARsappointedaftertheAwardDateaslongastheContractAdministratorhasprovidedwrittennoticetotheConsultantthatthepersonhasbeenappointedasitsrepresentativeinrespectofthedescribedfunctions.
Aproformanoticetitled'AppointmentofContractAdministrator'sRepresentative'isprovidedinVolume5[insertlink].
TheContractAdministratormustalsoprovidewrittennoticetotheConsultantofanyrevocationofauthoritytoarepresentativeunderclause4.
4(c)oftheConditionsofContract.
Aproformanoticetitled'RevocationofappointmentofContractAdministrator'sRepresentative'isprovidedinVolume5[insertlink].
Clause4.
5-KeyPeopleTheprimarypurposeofthisclauseistoensurethattheConsultantretainsthepeopleontheprojectwhomitrepresentedwouldbeputontheprojectinitstender.
TheConsultantmustnominateapersonastheConsultant'sRepresentative.
ThispersonmustbenamedintheContractParticulars.
TheConsultantmustobtainthewrittenapprovaloftheContractAdministratorifitwishestoreplaceanyoftheseKeyPeople(asspecifiedintheContractParticulars).
Proformanoticestitled'RequesttoreplaceKeyPerson'and'ResponsetorequesttoreplaceKeyPerson'(respectively)areprovidedinVolume5[insertlinks].
TheContractAdministratorhasanabsolutediscretionastowhethertoapproveareplacementandisnotrequiredtogivereasonsforanyrejectionorapproval.
Clause4.
6-RemovalofPersonsThisclauseallowstheContractAdministratortoremoveanypersonsfromtheSitewho,initsreasonableopinion,areguiltyofmisconduct,incompetenceornegligence.
TheContractAdministratormustissueawrittennoticetotheConsultantdirectingtheConsultanttoremovethepersonfromtheSite.
TheConsultantmustensurethatthispersonisnotagainemployedintheServices.
Aproformanoticetitled'RemovalofPerson'isprovidedinVolume5[insertlink].
Misconductgenerallymeanswrongful,improper,orunlawfulconduct,motivatedbyapremeditatedorintentionalpurposeorbyobstinateindifferencetotheconsequencesofone'sacts.
Misconductmayinvolveeithergrossnegligenceoradeliberatedeparturefromacceptedstandardssoastoportrayindifferenceandanabuseofprivileges.
Incompetentdoesnothaveastrictlegalmeaning.
Thistermgenerallymeansalackofabilityorskilltodosomethingsuccessfullyorasitshouldbedone.
Negligenceisatermwithacomplexlegalmeaning.
Forthepurposesofclause4.
6oftheConditionsofContract,negligentconductwouldbeconductwhichischaracterisedbyalackofcareorattentiontothingswhicharethatperson'sresponsibility(whichmayormaynotresultinloss,injuryordamage).
ThereisnorequirementthattheContractAdministratorprovethattheindividualisguiltyoftheconductalleged,buttheContractAdministratorshouldbecarefultoensurethattherearereasonablegroundsforitsbeliefandshouldmaintainrecordswherepossible,especiallybecausetheremovalofapersonfromSitemaycauseindustrialunrest.
IftheContractAdministratorisinanydoubtastotheacceptabilityofconductofpersonsontheSite,itshouldseekadvicefromtheDirectorateofConstructionContractsand,potentially,legaladvicefromamemberoftheDefenceLegalPanel.
Clause4.
7-ProjectReviewThisclauseisanoptionalclauseandthereforeonlyappliesiftheContractParticularsstatethatitistoapply.
Ifapplicable,thepurposeofthisclauseistoensurethatthereareregularmeetingsbetweenthepartiesinvolvedintheproject.
Thisisacommonfeatureofconstructionprojectsandisaimedatmaintaininggoodcommunicationandinformationflow.
TheConsultantisrequiredtoattendeverymonthlymeetingorsuchothermeetingsastheContractAdministratorrequires.
TheContractAdministratorcanalsonominateotherpersonstoattendthemeetings.
MorethanmereattendanceatthemeetingbytheConsultantisrequiredandtheobligationsoftheConsultantateachmeetingaresetoutinthisclause.
TheContractAdministratorisresponsibleforpreparingagendasforthemeeting,preparingminutesofthemeetinganddistributingtheminutestoeachattendeeattherelevantmeetingaftersuchmeetingconcludes.
Setoutbelowisadiscussiononbothmeetingsunderclause4.
7oftheConditionsofContractandreportinggenerally,alongwithanoteontheeffectofinformalcontactandcollaboration:ReportsandMeetingsReportsandmeetingsareavitalpartofcontractadministrationandarevaluableforagreeingfacts,committingpeopletoobjectives,andproblemidentificationandsolving.
Meetingsmustbeplannedandmanaged.
MinutesshouldbeaccuratelyrecordedbytheContractAdministratorofmeetingsandagreedandsignedbyboththeContractAdministratorandtheConsultant(ortheirrelevantrepresentatives).
Accurateminuteswillprovideawrittenrecordofthediscussionandinstructionsinsuchcircumstances.
Notwithstandingclause1.
3(b)oftheConditionsofContract,whichprovidesthattheContracttermscannotbewaivedexceptincertaincircumstances,theContractAdministratorshouldensurethattherearenorepresentationsmadeatthemeetingswhichmightsubsequentlybearguedtobeawaiverofDefence'sstrictcontractualrights.
Carealsoneedstobetakentoensurethatmattersdiscussedatmeetingswhichconstitute"directions"arefollowedupwithawrittendirection.
InformalContactandCollaborationUndertheContract,itistobeexpectedthatinformaldiscussionsandmeetingswilltakeplaceduringthecourseoftheWorks.
Theseinformalinteractionsareimportant.
However,itisimperativethattheContractAdministrator(andtheCARs)atalltimestakesutmostcareduringanysuchdiscussionsormeetingsnottodealwith,byimplicationordirectly,anymattersthatshouldbedealtwithformally.
Shouldmattersrequiringnotificationbediscussedinapreliminarymanner,theContractAdministratormustensurethatformalnotification(inwriting)isissuedpromptly.
Ifthereareanymattersindoubtfollowinginformalcontact,theContractAdministratorshouldtakestepstoclarifythosemattersandinformtheConsultant.
AtalltimesitisimportanttorecordsuchcontactinalogordiarykeptasaformalrecordofcontactwiththeConsultant.
Thisisparticularlysointhecaseoftelephoneconversationswhich,ifnecessary,shouldbeconfirmedinwritingifthesubjectmatterimpactsontheContractortheprovisionoftheServices.
CLAUSE5-INSURANCEGeneralAnumberofissuescommonlyariseinrelationtoquestionsofriskandinsurance,including:thenatureandamountofinsurancerequiredforeachproject;andtheapplicabilityoflimitationsonliabilitytoDefencecontracts.
Ageneraldiscussionofeachoftheaboveissuesissetoutbelow.
AmountandnatureofinsurancerequiredTheamountofinsurancerequiredwilldependonanassessmentoftherelevantrisksandthismaydifferfromprojecttoproject.
Ifrequired,assistancecanbeobtainedfromtheDirectorateofConstructionContracts.
Anessentialdistinctionneedstobekeptinmindbetween"directloss"policies,whichprovidecoveragainstlossordamagetotheinsured'sownpropertyorpropertyforwhichitisresponsibleand"liability"policieswhich,asthenamesuggests,providecoveragainstlegalliabilitieseithertowardthirdparties,forpersonalinjuryorpropertydamage,ortowardstheCommonwealthforotherconduct,suchasnegligence.
Inallcases,abasicprincipleisthatinsurancefollowstherisk,nevertheotherwayaround.
ThismeansthattheriskallocationprovisionsintheContractareinextricablylinkedtotheinsurancerequirementsandtheConsultantwillonlyberequiredtoprovideinsurance(eitherforitsownbenefitorthebenefitofDefence),totheextentthatitbearstheriskoflossofordamagetopropertyorbearslegalliabilityinconnectionwiththeServices.
LimitationsonliabilityAswiththe"expert"standardofcareissue,anumberofconsultantstoDefencehaverequestedthattheContractincludealimitationontheamountoftheConsultant'sliabilityundertheContract.
However,whileitisamatterofcommercialjudgmenttobecarefullyconsideredineachcaseinlightoftherisksinvolved,itisnotgeneralDefencepolicytoagreetoalimitationofliability,inrespectofrisksorobligationswhichtheContractplacesontheConsultant.
Rather,liabilityistobeassessedinaccordancewithgenerallawanditisamatterfortheConsultanttoinsure,passthroughorotherwisemanagethisliability.
Anydeparturefromthispolicymayonlyoccurinspecialcommercialcircumstances,subjecttocertainDelegateapprovals.
Therelevantpolicyonthismattercanbefoundat[insertlink].
FurtherassistancecanbeobtainedfromtheDirectorateofConstructionContracts.
Clause5.
1-ConsultantInsuranceObligationsThisistheprimaryclauseoftheContractrequiringtheConsultanttoeffectdifferenttypesofinsurance.
ThereareanumberofdifferenttypesofinsurancelistedintheclauseitselfandadditionaltypesofinsurancemaybespecifiedintheContractParticulars.
TheprecisenatureandextentoftheinsurancesrequiredwilldifferaccordingtothenatureandcircumstancesoftheContractalthoughsome,suchasstatutoryWorkersCompensationInsurance,willalmostalwaysberequired.
TheContractParticularssetoutthedetailedrequirementsoftheinsurancerequiredbytheConsultant.
Thepolicylimitamountswillvaryaccordingtothe"ProbableMaximumLoss"associatedwiththerisk,whichiscalculatedonaproject-by-projectbasis.
Animportantconsiderationwillbewhetherornot,ineachcase,Defencerequiresthepolicylimittobebasedonan"eachandeveryclaim/occurrence"basis(thatis,subjecttoautomaticreinstatementaftereachpaidloss)orissatisfiedwithanannualaggregatepolicylimit.
FurtherinformationonthisdistinctionisavailablefromtheDirectorateofConstructionContracts.
Inshort,policylimitsandthebasisofthoselimitsisacomplexcommercialquestion,whichwilldependonfactorssuchastherelativecostandavailabilityofoneormorereinstatementsandthelikelihoodoflossesamountingtomorethanthepolicylimitinasinglepolicyyear.
WhereaConsultanthasarrangedinsuranceunderaworldwideprogram,thepossibilitythatthepolicylimitmaybeerodedbyclaimsmadeoutsideAustraliawillalsoneedtobeconsidered.
RegardlessoftheexistenceofthetermsoftheinsurancepoliciesputinplacebytheConsultant,itmustberememberedthatitistheConsultant'sresponsibilitytobeartheriskofandindemnifyDefenceagainsttheliabilitiessetoutintheContract(clauses5.
1and5.
2andalsoclause1.
3(g)oftheConditionsofContract).
Asaconsequence,cautionmustbeexercisedindirectingtheConsultantinrelationtotheinsuranceprovisionsundertheContractsothattheseliabilitiesarenotshiftedtoDefence.
FurtherassistancewithrespecttoinsuranceisavailablefromtheDirectorateofConstructionContracts.
TheinsurancepolicieswhichtheConsultantmusthaveinplace(clause5.
1(a)oftheConditionsofContract)are:PublicLiabilityInsurance;WorkersCompensationInsurance(andEmployeesLiabilityInsurance,ifapplicable)ineachStateandTerritoryinwhichtheServicesaretobeperformed/wheretheConsultant'semployeesareemployed/reside;ProfessionalIndemnityInsurance;andotherinsuranceonsuchtermsassetoutintheContractParticulars.
TheaboveinsurancesmustbeinplacefromtheAwardDateandbeforeanyoftheServicesarecommenced.
TheprovisiontotheContractAdministratorofevidence(whichissatisfactorytotheContractAdministrator)thatthepoliciesarecurrentisalsoaconditionprecedenttomakingapaymentclaimunderclause10.
2oftheConditionsofContract.
TheConsultantmustprovidetheContractAdministratorwithevidencewhichissatisfactorytotheContractAdministratorofthecurrencyinsurancearrangementsasrequiredunderclause5.
1(c)oftheConditionsofContract.
ThedeterminationastorequisiteevidenceofthearrangementsandofcurrencyisfortheContractAdministratortomake.
However,receiptsorcertificatesfromtheinsurer(oramajorreputableinsurancebroker)indicatingthepolicynumber,expirydate,parties'namesetc.
couldsatisfythecurrencyrequirement,althoughitwouldbesensible(bearinginmindtheprovisionsoftheContract)forcopiesofallschedulesandendorsementstobeobtainedinfullshowingthelimitsofcoveravailabletogetherwithcrossliabilityclauses,anyvariationandnoticeprovisionsandexclusionsinthepolicytomakesurethearrangementsaresatisfactory.
AproformanoticefortheContractAdministratortorequestthisfromtheConsultanttitled'Requesttoproduceevidenceofcurrency'isprovidedinVolume5[insertlink].
Theinsurancearrangementsshouldbecarefullyexaminedforcomplianceand,wherenecessary,theContractAdministratorshouldseekspecialistadviceregardinginsurancedetailsprovidedbyTenderersatthetenderstage.
ItisrelativelycommonforaConsultanttostatethatconfidentialityprovisionspreventtheConsultantfromcomplyingwiththeContractAdministrator'srequestsfordetailsofcoverageandsupportingevidence.
Thisisunacceptable,asconfirmationthattheinsuranceisinplaceandontherequiredtermsisfundamentaltotheContract.
However,wheretherearesufficientcommercialreasonstodoso,theContractAdministratormaybepreparedtoacceptconfirmationfromaninternationalinsurancebrokerthatthetermsofinsuranceaccordwiththerequirementsoftheContract.
FurtheradviceshouldbesoughtfromtheDirectorateofConstructionContracts.
DiaryentriesshouldbemadebytheContractAdministratortofollowupandensureappropriaterenewals/extensionstopoliciesoccurasnecessaryduringtheperformanceoftheServices,and(forthepurposeoftheProfessionalIndemnityInsurancecover)followingCompletion.
TheConsultantmustnotifytheContractAdministratorifitisgivenanoticeofexpiry,cancellationorrescissionofanyrequiredinsurancepolicy.
Proformanoticestitled'Noticeofexpiry,cancellationorrescissionofinsurancepolicy','Responsetonoticeofexpiry,cancellationorrescissionofinsurancepolicy'and'Noticeofreplacementinsurer'areprovidedinVolume5[insertlinks].
Proformanoticestitled'Requestto[cancelaninsurancepolicy/allowaninsurancepolicytolapse]'and'Responsetorequestto[cancelaninsurancepolicy/allowaninsurancepolicytolapse]'arealsoprovidedinVolume5[insertlinks]fortheConsultanttorequestpermissiontocancelaninsurancepolicyorallowaninsurancepolicytolapseasrequiredunderclause5.
1(e)(iv)oftheConditionsofContractandtheContractAdministratortorespondtoanysuchrequest.
Further,aproformanoticetitled'Noticeofeventinrelationtoinsurancepolicy'isalsoprovidedinVolume5[insertlink]fortheConsultanttonotifytheContractAdministratorofaneventthatmayresultinthelapsing,cancellationorrescissionofaninsurancepolicyasrequiredunderclause5.
1(e)(v)oftheConditionsofContract.
Whenreviewingpolicydocuments,DefencemustensurethatthepolicycoversallactivitiesrequiredinperformanceoftheServicesanddoesnotexclude(ifapplicable):removalofasbestos;tunnelling;andactivitiesneartoairfields,asthiscovermaybespecificallyrequiredforthepurposesofaparticularproject.
Therearesomespecificmattersrelatingtoeachtypeofinsurance.
Someaspectstoconsiderwhenreviewingpolicydocumentsare:PublicLiabilityInsurance:Thisisliabilitybasedinsurance(seebelow).
ThispolicymustcoverDefence,theConsultant,theContractAdministratorandallsubconsultants(includingAgreedSubconsultants)fortheirrespectiveliabilities:tothirdparties;andtoeachother,forlossofordamagetopropertyorthedeathoforinjurytoanypersonarisingoutof,orinanywayinconnectionwiththeServices.
ApurePublicLiabilityInsurancepolicyisnotrequiredtocoverliabilitiesinsuredunderothertypesofpolicies,suchasConstructionRisksInsurance,Worker'sCompensationInsurance,EmployeesLiabilityInsurance,ProfessionalIndemnityInsuranceorErrorsandOmissionsInsurance.
ThelevelofcovermustbenotlessthantheamountperoccurrenceandintheaggregatespecifiedintheContractParticulars.
Itwouldnotbeunusualtohavealevelofatleast$20millionandupto$150million.
However,theamountdependsonanumberoffactors,includingtheriskoflossordamagetopersonsorpropertyorthedeathorinjuryofanypersonandthe"ProbableMaximumLoss"amount.
Forexample,therisksinrespectofaSitelocatedinaruralorsparselypopulatedareamaybelessthanthoserisksinrespectofaSitelocatedinametropolitanareaoronahighly-populatedBase.
Asstatedabove,inadditiontobodilyinjuryanddamagetopropertyofthirdparties,thepolicymustcoverliabilityforlossanddamagetootherexistingpropertyofDefence(nottheWorks),forexample,anexistingbuildinginwhichalterations/renovationsarebeingundertaken.
Thepolicyshouldprovidecover,preferablyinadditiontothelimitofliability(althoughitwilloftenbesubjecttoacap)for:defence(asin,legalandrelated)costs;costsofimmediatemedical/surgeryand/ortemporaryrepair/mitigationoffurtherdamage;allincidentalexpensesincurredintheinvestigation,negotiation,presentationand/ordefenceofallclaims;andallcostsawardedagainstoragreedtobepaidbytheinsuredwiththeconsentoftheinsurerinconnectionwithanyliabilitycoveredbythepolicy.
TheperiodofcovermustextendtotheCompletionoftheServices(andthereforeshouldaccommodatetheeffectsofanyextensionsoftimeunderclause8oftheConditionsofContract).
WorkersCompensationInsurance:Again,thisisliabilitybasedinsurance(seebelow).
Wherepermittedbylaw,thepolicyshouldbeextendedtoprovideindemnitytoDefenceforitsstatutoryliabilitytotheConsultant'semployees.
TheConsultantmustensurethateachofitssubconsultantslegallyrequiredtodosohassimilarinsurancecoveringitsstatutoryliabilitytoemployees.
ThisinsurancemustbeheldinaccordancewiththelawsapplicableintherelevantStateorTerritoryintheminimumamountrequiredbylaw.
ProfessionalIndemnityInsurance:Thisis"claimsmade"liabilityinsuranceandwillrespondonlyifthepolicyiscurrentatthetimewhenaclaimismadeagainsttheinsured,asopposedtowhenthenegligentordefectivedesignworkwasperformed.
Seefurtherguidancebelow.
ProfessionalIndemnityInsurancecoversclaimsofcivilliabilitymadeduringtherelevantpolicyperiodagainsttheConsultantforbreachofprofessionaldutyonthepartoftheConsultantoritssubconsultants.
ThistypeofinsuranceisalwaysrequiredwhentheConsultantisundertakingdesignordesignandsupervisionworkundertheContract.
ItcoverstheConsultant'sdutytoensurethatinperformingsuchworkitexercisestherequisiteprofessionalskillandcare.
TheinsurancemustbemaintainedforthewholeoftheperiodinwhichapersonmaymakeaclaimagainstDefenceortheConsultantforfaultyornegligentdesignorsupervisioni.
e.
therelevantlimitationperiods.
Thespecifiedamountofcoverideallyshouldbemaintainedforatleast7years(or,ifanypartoftheSiteislocatedintheAustralianCapitalTerritory,NewSouthWales,SouthAustralia,NorthernTerritory,TasmaniaorVictoria,theperiodis11yearsastheresultof"long-stop"limitationperiodswithrespecttodefectivebuildingwork)afterthelatestofCompletionoftheServicesorthedateuponwhichtheConsultantceasestocarryouttheServices.
Thisissothatthepolicyisinplacetorespondtoanyclaimforbreachofprofessionaldutyorprofessionalnegligence(e.
g.
faultydesignwork)broughtaftertheServiceshavebeencompleted.
Theremaybesomeresistancewithrespecttotheperiodof"run-off"coverage.
Inprinciple,ifaConsultantcanaffordtopurchaseongoingprofessionalindemnitycoverinrespectofitsfutureactivities,itcanreasonablybeexpectedtobuyrun-offcovertomeetitscontractualobligations.
ThelevelofcovermustbeasstatedintheContractParticulars.
ThisisspecifiedatthetimeoftenderingfortheContract.
Consultants'offerswillthereforebebaseduponthatspecifiedlevel.
Itwouldnotbeunusualtohavealevelofatleast$5millionincover.
However,thatamountwilldependontherisks,circumstancesand"ProbableMaximumLoss"involvedwiththeparticularproject.
Afurtherimportantpointtonote,inrelationtoProfessionalIndemnityInsuranceisthatitoftencoversonlyconsequentialdamageresultingfrombreachofprofessionaldutyandexcludesthecostofrectifyingthenegligentperformanceitself.
Ifthiscomestolightbeforeanyresultantdamagehasbeensuffered,theonlyclaimagainsttheConsultantmaybetohaveitproperlyperformtheoriginaltaskandthecostofthismaybeexcludedfromtheinsurance.
Clause5.
2-FailuretoInsureThisclausegivesDefencetherighttotakeouttheinsurancerequiredunderclause5.
1oftheConditionsofContractiftheConsultantfailstoprovideevidenceofcurrencyofthepolicyoriftheinsuranceprocuredbytheConsultantisnotontermssatisfactorytotheContractAdministrator.
ThecostsofsuchinsurancearetreatedasadebtduebytheConsultanttoDefence.
IftheConsultantfailstoprocuretherequiredinsurance,orfailstoprovidesufficientevidenceofcurrencytotheContractAdministrator,orwheretheContractAdministratorisnotsatisfiedthattheinsuranceissatisfactory,legaladviceshouldbesoughtfromamemberoftheDefenceLegalPanelbeforeexercisingthepowersconferredbythisclause.
Notwithstandingtheabove,clause11.
2oftheConditionsofContract(seeguidancebelow)providesthatiftheConsultantfailstoprocure,maintainandprovideevidenceofthecurrencyofthepolicieswhenrequestedasrequiredbyclause5.
1oftheConditionsofContract,Defenceisentitledtoissueanoticeofdefaultunderclause11.
2(e)oftheConditionsofContract.
IftheConsultantthenfailstoprocure,maintainorprovideevidenceof(asthecasemaybe)therelevantinsurancewithintherequiredtimeframe,DefenceisthenentitledtoterminatetheContractbywrittennoticeunderclause11.
4(b)oftheConditionsofContract.
Clause5.
3-PeriodofInsuranceThisclausesetsoutthedifferentrequirementsinrelationtotheperiodoftimeforwhichtheConsultantmustmaintainthevariousinsurancesrequiredundertheContract.
Theperiodofcoverrequiredwilldifferdependingonwhethertheinsuranceis"claims-made"or"occurrence-based".
"Occurrence-based"insurancewillrespondifitiscurrentatthetimethatthedamagewasdoneregardlessofwhetheritisstillcurrentatthetimewhentheactualclaimismadeagainsttheinsured.
PublicLiabilityInsuranceandWorkersCompensationInsurancearebothoccurrence-basedinsurances.
Incontrast,ProfessionalIndemnityInsuranceis"claims-made"insuranceandsorespondsonlyifthepolicyiscurrentatthetimewhentheclaimismadeagainsttheinsuredbyathirdparty.
SeefurtherguidanceundercommentaryonProfessionalIndemnityInsuranceatclause5.
1oftheConditionsofContract,above.
ThisinsurancemustbemaintainedforthewholeoftheperiodinwhichapersonmaymakeaclaimagainstDefenceortheConsultantforfaultyornegligentdesign.
WheretheContractisterminatedorcompletedpriortotheexpirationoftheperiodforwhichtheinsuranceisrequired,itistheresponsibilityoftheContractAdministrator(subjecttothetermsofitsengagement)toensurethattherelevant"runoff"insurancesareneverthelessmaintainedfortheperiodsrequiredundertheContract.
Clause5.
4-NoticeofPotentialClaimThisclausesetsouttherequirementsfortheConsultanttonotifyDefenceinwritingofanyoccurrencethatmaygiverisetoaclaimunderanyinsurancepolicy,althoughslightlydifferentobligationsapplyiftheclaimisinrespectofProfessionalIndemnityInsurance(onthebasisthatsuchpoliciesoftenincludecircumstanceornotificationprovisions).
Thismustbedone"assoonaspossible"aftertheConsultantbecomesawareoftheoccurrenceorpotentialclaim.
Aproformanoticetitled'Noticeofpotentialclaimunderinsurancepolicy'isprovidedinVolume5[insertlink]fortheConsultanttocompletewhensuchaneventhasoccurred.
TheConsultantmustalsokeepDefenceinformedofsignificantdevelopments.
Aproformanoticetitled'Noticeofsignificantdevelopmentsconcerningclaim'isprovidedinVolume5[insertlink].
TherearesomeexceptionsinrespectofProfessionalIndemnityInsuranceclaims,includingwheretheCommonwealthismakingtheclaim.
TheConsultantisalsorequiredtoensurethatitssubconsultantssimilarlyinformtheConsultantandDefenceinrespectofanoccurrencewhichmaygiverisetoclaimsbythem.
Finally,theConsultantmustnotifytheCommonwealthiftheestimatedtotalcombinedvalueofclaimsmadeagainsttheConsultantandclaimswhichmayarisefromcircumstancesreportedbytheConsultanttoitsinsurerinapolicyyearwouldpotentiallyreducetheavailablelimitofpolicyindemnityforthatyearbelowtheamountrequiredbytheContract.
Aproformanoticetitled'Noticeofreductionofprofessionalindemnityinsuranceindemnity'isprovidedinVolume5[insertlink].
Clause5.
5-CrossLiabilityThisclausesetsoutthespecificrequirementsforliabilityinsurancepolicieswhicharerequiredtocovertheinterestofDefenceaswellasthatoftheConsultantanditssubconsultants.
ThisclausedoesnotapplytoProfessionalIndemnityInsuranceorWorkersCompensationInsurancesinceadditionalinterestsarenotcoveredbythosepolicies.
Pleaseseefurtheradditionalguidanceonclause5.
1oftheConditionsofContract,above.
CLAUSE6-DESIGNANDDOCUMENTATIONClause6.
1-Commonwealth'sDocumentsThedocumentsandnumberofcopiestobeprovidedbyDefencetotheConsultantaretobespecifiedintheContractParticulars.
Dependingonthetypeofproject,documentsprovidedbyDefencetotheConsultantmightincludedocumentsrelatingtotheconditionoftheSite,documentsrelatingtoDefence'srequirementsfortheproject,andanydesigndocumentspreparedbyDefenceoritsconsultants.
Clause6.
2-Consultant'sDesignTheConsultantmustdesigntheWorksandprepareDesignDocumentationforapprovalbytheContractAdministratoraspartoftheprogramrequiredunderclause8.
2oftheConditionsofContract.
Itshouldbenotedthat"DesignDocumentation"isbroadlydefinedinclause1.
1.
WhenconsideringaprogramsubmittedbytheConsultant,theContractAdministratorwillneedtoallowsufficienttimeforanyreviewunderclause6.
3(a)(ii)oftheConditionsofContract.
TheprogramshouldalsotakeintoaccountthefactthattheContractAdministratormay,uponreview,rejectanyoftheDesignDocumentationsubmittedbytheConsultant.
Aflowcharttitled'Flowchart1:Design'providedinVolume4[insertlink]indicatestheprocessfordevelopingtheDesignDocumentation.
ThenatureandextentofDesignDocumentationisgenerallydeterminedbytherequirementssetoutintheBrief.
Generally,ataminimumDefenceexpectstheBriefandthereforetheDesignDocumentationtoaddressthefollowingmatters:FunctionalRequirementsAspartoftheDesignDocumentation,theConsultantmayberequiredtoprovideinformationrelatingtofunctionalrequirementsforeachelementoftheWorksdescribedintheBrief.
Suchinformationmight:describetheperformancerequirements,parametersandfunctionalrelationshipsbetweenelementsoftheWorks;identifyrelevantorganisationalstructures,personnelandequipmentnumbers;andincludefunctionaldatasheets,foreachelementoftheWorks.
ThisinformationisreferredtobelowasFunctionalRequirementsInformation(FRI).
DesignReportsAspartoftheDesignDocumentation,theConsultantislikelytoberequiredtopreparedesignreportsatdifferentstagesofdesigndevelopment,frommasterplansthroughtoconceptdesignsandschematicdesigns.
ThereportsmayinvolvedesignofeachofthekeyinfrastructurecomponentsoftheWorks,suchas:fuelfarmsandfuelreticulationsystems;aircraftpavementsandapronareas;maintenancehangars;airfieldlighting;electricalsystems;communicationssystems;securitysystems;engineeringservices(e.
g.
watersupply,tradewaste,stormwater,sewerage,civilworks,hydraulics);andofficeandliving-inaccommodation.
ThedesignreportsformingpartoftheDesignDocumentationshould:bestand-alonedocumentsthatprovidethelogicbehinddesigndecisionsandcontainsufficientdrawingsandinformationwithouttheneedtorefertoadditionalinformationsuchasotherdrawingsorminutesofdesignreviews;providedetailonhowtheFRIareachievedandconfirmcomplianceorotherwisewiththeFRI,therequirementsoftheContract(e.
g.
StatutoryRequirements,certificationrequirements)andallowDefencetodeterminethatthelevelofdesignisadequate;containcleardescriptionsoftheWorkssothattheymayformareferenceforothersimilarprojectsandcompriseanimportantbriefingdocumentforusergroups,Commonwealthregionalstaffandnewpersonnel;incorporateastatementofdesignintentforeachelementoftheWorks,asummaryofthemajordesignissuesandthebackgroundtothesolution;addressthefollowing(whereapplicable):descriptionoftheFRI;locationandsiting;masterplanning;individualfacilitydesignphilosophiesanddescriptions;preferredschemese.
g.
forschematicdesign-floorplans,elevations§ions;compatibility–ofthedesignwithexistingdevelopments,servicesandfacilitiesandachievementoftherequirementsoftheFRI;ascheduleofrooms/spacescomparingproposedareas(m2)againstthoserequiredbytheFRIwithcommentaryasappropriatetovariances(includingadditionalrooms/spaces)fromtheBrief;futureexpansion–describingoptionsconsideredinthedesignforfurtherexpansionandtherelevantstrategiesrequiredtoachievetheseoptions;physicalsecurity-astatementofthedesignapproachtoachievinganappropriatelevelofphysicalsecurityforthefacilities;designphilosophies;notionalengineeringdrawingsforbuildingservicesandahigherlevelofdetailforinfrastructureworks;approachtofireengineeringandhowthedesignsatisfiesDefenceRequirements,StatutoryRequirementsandcertificationrequirements;descriptionofhowthedesignaddressestheadequacyoftechnicalsystemsandmaterialsselectedforthedesignwithrespecttocosteffectivenessandfitnessforpurpose;illustrationofhowtheWorkswillmeetESDPrinciples;provisionofasummaryofalllife-cyclecostanalysisundertakenfortheselectionofplantandequipmentincludingair-conditioningandwaterheating;environmentalissues(drainage,clearing,erosioncontroletc.
);finishesschedules;detailedcostreportsforeachelementoftheWorks;investigationandevaluationofalternativesincludingcostinformation;assessmentofoptionsofmethodsandmaterialsforconstruction;disabledaccess–anoverview/statementofthedesignapproachaddressingNationalCodeandDisabilityDiscriminationAct1992(Cth)requirements;identificationofanyStatutoryRequirementsapplicabletoand/orhavingjurisdictionovertheWorksanddescribetheprocessesrequiredtoensurecompliancewiththeseStatutoryRequirementsortoobtainapprovalfromtherelevantauthority.
identificationofanyoperationalprocedurerequired,asaresultofthedesign,tobeimplementedbythefutureoccupiersoroperatorsoftheWorks;identificationofinitiativestakentoimprovethebuildabilityoftheWorks;anddescriptionofinitiatives/practicestobeusedtoensuretherequiredconstructionprocessdoesnotexceedthecapacityandabilitiesofthelocalconstructionindustry.
DesignReviewsClause6.
2(d)oftheConditionsofContractrequirestheConsultanttoconductdesignreviewsateachofthedesignreviewmilestonesasidentifiedintheDCAP.
DesignreviewsmayresultintheissueoffurtherdesignreportsaspartoftheDesignDocumentation.
SuchreportsmayberequiredwherethereareoutstandingissuesraisedinthereviewofthepreviousreportsprovidedaspartoftheDesignDocumentation.
SuchreportsmustbepreparedpriortoconstructionoftherelevantelementoftheWorksandaretobeusedto"closeout"anyoutstandingdesignissues(thusminimisingclaimsfromaContractoratalaterstage).
TheymustberevisedandresubmittedinaccordancewiththereviewofDesignDocumentationprocess.
Thesereportsshouldbebasedonpreviousissuesofreports(ifany)andrevisedasrequiredtoadequatelycoverissuesraisedinreviewofthepreviousreport.
DesignReportforissuetomarketforContractorPriortoissueoftenderstoprospectiveContractorsfortheWorks,theConsultantshouldprepareandsubmitadesignreportcontainingall"forconstruction"(andtenderingpurposes)DesignDocumentationwhichreflectsallchangesorupdatestothedesign.
Clause6.
3-ContractAdministratormayReviewDesignDocumentationThisclausedeliberatelyprovidesthattheContractAdministrator"mayreview"theDesignDocumentationratherthan,forexample,"approve"or"allowuseof"thedesign.
ThisseekstoavoidtheargumentthattheContractAdministratorhasparticipatedinthedesignprocessandinthatwayaffectedtheConsultant'swarrantyunderclause2.
2oftheConditionsofContract,includingtouseitsbestendeavourstoensurethatthedesignisfitforitsintendedpurposeanditsobligationtocomplywiththeotherrequirementsoftheContract.
TheContractAdministratormayrejectallorpartofanysubmittedDesignDocumentation.
ThereisnoexpresslimitonthenumberoftimesthattheContractAdministratormayrejectadesign.
However,suchrejectionmustbemadewithinthenumberofdayssetoutintheContractParticulars.
TheContractAdministratorshouldprovidereasonsastowhytheDesignDocumentationisbeingrejected.
AlthoughitisnotexpresslystatedthattheContractAdministratorcanonlyrejectdesignifitisnotinaccordancewiththeContract,theConsultantmaybeentitledtoclaimaVariationinthatcase.
TheContractAdministratorshouldthereforeonlyrejectDesignDocumentationinsuchacasewiththepriorapprovalofDefence(alertingDefencetothepossibilityofaclaimofVariationbytheConsultantandcostimplicationsthereon-seeguidanceonVariationsandcostsincommentaryonclause9oftheConditionsofContractbelow).
Aproformanoticetitled'RejectionofDesignDocumentation'isprovidedinVolume5[insertlink]intheeventthattheContractAdministratorrejectsthesubmittedDesignDocumentation.
Clause6.
4-NoObligationtoReviewThisclauseanticipatestheargumentthatwarrantiesprovidedbytheConsultantmightbeunderminedorderogatedbyDefence'sparticipationinthedesignprocess.
Thisclausetiesinwithclause6.
3oftheConditionsofContractandseekstoensurethattheConsultant'sobligationsregardingthedesignarenotaffectedbyanycomments,review,rejectionorpermissiontousethatdesignbytheContractAdministrator.
Despitethisclause,theContractAdministratorshouldendeavournottoundulyinterferewiththeConsultant'sdesign.
TodootherwisemayleadtotheConsultantbeingrelievedofsoleresponsibilityfordesignproblems,notwithstandingtheexistenceofclause6.
4oftheConditionsofContract.
Clause6.
5-CopiesofDesignDocumentationTheContractParticularswilldescribehowmanycopiesoftheDesignDocumentationtheConsultantisrequiredtoprovideontheparticularproject.
TheConsultantmustsubmittotheContractAdministratorthenumberofcopiesspecified(inbothhardandelectroniccopies)andintheformatstatedintheContractParticulars.
FurtherguidanceisprovidedinVolume2.
Clause6.
6-LicenceoverDesignDocumentationThisclauseisdesignedtoensurethatDefenceisabletoexercisetherightsheldbytheactualowneroftheIntellectualPropertyintheDesignDocumentation.
ThisincludesanyothermaterialbroughtorrequiredtobebroughtintoexistencebytheConsultantaspartofcarryingouttheServices.
WhilsttheclausedoesnotpurporttomakeDefencetheowneroftheIntellectualProperty,itsintentistoconferalloftherightsoftheownerviaaperpetuallicencewhicharisesimmediatelyuponthecreationofanyDesignDocumentationorupontheprovisionofanyDesignDocumentationtoDefenceortheContractAdministrator,andwhichsurvivestheterminationoftheContractonanybasis.
Clause6.
7-IntellectualPropertyWarrantiesThisclauseisintendedtoensurethattheConsultantisabletograntthelicencesreferredtoinclause6.
6oftheConditionsofContract.
ThisgivesaseparaterightinDefencetotakeactionagainsttheConsultantifthesewarrantiesarenotcompliedwith.
Clause6.
8-IntellectualPropertyRightsThisclauserequirestheConsultanttoensurethattheServicesdonotinfringeanyintellectualpropertyrightsofanythirdparty,andrequirestheConsultanttoindemnifyDefenceagainstanyclaimsshouldanythirdparty'sintellectualpropertyrightsbeinfringed.
Clause6.
9-CommonwealthMaterialThisclauseensuresthatanymaterialsgiventotheConsultantbyDefenceremainthepropertyofDefence,areadequatelyprotectedandmaintainedwhileintheConsultant'spossessionandarenotusedinanywaythatmayinfringeanycopyrightthatathirdpartymayhaveinthematerials.
Clause6.
10-DCAPTheDCAPistheDetailedConsultant'sActivitiesProposalreferredtointheContractParticulars,asamendedfromtimetotimeinaccordancewiththisclause.
TheDCAPwillhavebeensubmittedbytheConsultantwithitstender.
ItfocusesontheConsultant'sapproachtokeyprocessessuchasdesigndevelopment,teambuildingandsubconsultantprocurementprocesses.
Itservesatleasttwodistinctfunctions:atthetimeoftender,itwillprovidethetendererwithabasisfordistinguishingthekeyinnovationswhichitwillapplytothedeliveryofthedesignservices;atthesametime,itprovidesDefencewiththeabilitytoevaluatethetenderer'sapproach;followingtheAwardDate,theDCAPbecomesacontractdocumentfollowingnegotiationbetweentheConsultantandDefence.
ThismeansthattheConsultantisboundbythepromiseswhichitmadeatthetimeoftender,andDefencewillbeabletoenforcethosepromises.
ThisclauseisdesignedtoensurethatthedesignoftheWorksisinaccordancewiththeDCAPwhichwillinturnachievecompliancewiththeContract.
Inthisregard,theConsultantwarrantsthat:theDCAPcomplieswiththerequirementsoftheContract;andpreparationoftheDesignDocumentationinaccordancewiththeDCAPwillensurethatthosedocumentscomplywiththerequirementsoftheContractandthattheConsultantotherwisedischargesitsobligationsundertheContract.
TheConsultantalsoacknowledgesthattheDCAPmayrequireupdatingandrefiningtotheextentthatitdoesnotreflectalltasksandthingstobedoneorprovidedtoperformtheServicesandonaccountofVariations.
ThiscannotbedonewithouttheContractAdministrator'swrittenpermission.
ProformanoticesrequestingsuchpermissionandgivingtheContractAdministrator'sresponsetitled'RequesttoupdateDCAP'and'ResponsetorequesttoupdateDCAP'(respectively)areprovidedinVolume5[insertlink]and[insertlink].
Clause6.
11-ResolutionofAmbiguitiesThisclauseprovidesassistancetotheContractAdministratorindetermininghowtoresolveinconsistencies,discrepanciesorambiguitieswithinthedocumentscomprisingtheContract(asdefinedinclause1.
1oftheConditionsofContract),orbetweentheContractandtheDesignDocumentationoranyotherProjectDocument.
TheContractParticularssetouttheorderofprecedenceforthestandardContractdocuments.
WhereadditionaldocumentsarestatedtoformpartoftheContractintherelevantitemintheContractParticularsunderclause1.
1oftheConditionsofContract,suchdocumentsmustalsobeincludedintheorderofprecedencelist.
Clause6.
11(c)oftheConditionsofContractrequirestheConsultantandContractAdministratortonotifytheotherpartyifitdiscoversanambiguity,discrepancyorinconsistency.
SeparateproformanoticesareprovidedinVolume5[insertlinks]foreithertheConsultantortheContractAdministratortonotifytheotherofanambiguity,discrepancy,orinconsistencyindocumentswhichmakeuptheContractandbetweentheContractandDesignDocumentationoranyotherProjectDocumenttitled'Noticeof[ambiguities/discrepancies/inconsistencies]indocumentswhichmakeuptheContract',and'Noticeof[ambiguities/discrepancies/inconsistencies]betweentheContractandDesignDocumentationorotherProjectDocuments'(respectively).
TheContractAdministratorhas14daysafteranoticedescribingtheambiguity,discrepancyorinconsistencyhasbeenissued(byitselforbytheConsultant)inwhichtoinstructtheConsultantastothecourseitmustadopt.
Aproformanoticeforsuchaninstructiontitled'Responsetonoticeregarding[ambiguities/discrepancies/inconsistencies]'isprovidedinVolume5[insertlink].
Clause6.
12-AccesstoPremisesandProjectDocumentsTheAustralianNationalAuditOffice(ANAO)requiresparticularrightstoaccesstheConsultant'spremisesandtoreviewcertainprojectdocumentsonDefenceprojects.
ThisclausethereforeprovidesageneralrightforDefence(andanynominatedperson,whichmayincludetheANAO)toaccesstheConsultant'spremisesandtheProjectDocumentsandmakestheprovisionofinstalledsoftwareaconditionprecedenttocompletionoftheServices.
AproformanoticefortheissuingofarequestbytheContractAdministratortitled'RequestforaccesstopremisesandProjectDocuments'isprovidedinVolume5[insertlink].
TheConsultantmustalsoensureallsubcontractsimposeobligationsonthesubconsultantsequivalenttotheConsultant'sobligationsarisingoutofclause6.
12oftheConditionsofContractasifthesubconsultantweretheConsultant.
Clause6.
13-MeasurementsandDimensionsThisclauserequirestheConsultanttocheckallrelevantdimensionsoftheSitebeforeproceedingwiththeServices,unlessstatedtothecontraryintheContractordirectedbytheContractAdministrator.
FurthertheConsultantisrequiredtoobtainandcheckanymeasurementinformationitrequirestocarryouttheServicesitself.
Thisclausespecificallystatesthatthelayoutofplant,equipment,ductwork,pipeworkandcablingshownintheBriefistobetakenasdiagrammaticonly.
Additionally,theCommonwealthwillnotbeliableuponanyClaimresultingfromtheConsultant'sfailuretoobtainandcheckmeasurementsandotherinformationconcerningdimensionsoftheSiteandthelayoutofitemsdiscussedabove.
Clause6.
14-DesignCertificationThisclauserequirestheConsultanttoprovidetheContractAdministratorwithConsultantDesignCertificatesandSubconsultantDesignCertificates.
Suchcertificatesaretobeprovided:asaconditionprecedenttoeachpaymentclaimunderclause10.
2oftheConditionsofContract;andifrequestedbytheContractAdministrator,priortoCompletion(asdefinedintheConstructionContract).
ConsultantDesignCertificateTheformoftheConsultantDesignCertificateissetoutintheScheduleofCollateralDocuments.
ByissuingtheConsultantDesignCertificate,theConsultantcertifiesthat:theDesignDocumentationcomplieswiththerequirementsoftheContractand,subjecttoclause2.
10(a)oftheConditionsofContract,allStatutoryRequirements;andtheWorkscomplyortheStageorSectioncomplies(asthecasemaybeandasdefinedintheConstructionContract)withtheDesignDocumentationwhichhasnotbeenrejectedunderclause6.
3,excepttotheextentsetoutinthecertificate.
SubconsultantDesignCertificateTheformoftheSubconsultantDesignCertificateissetoutintheScheduleofCollateralDocuments.
TheConsultantmustprovideaSubconsultantDesignCertificatefromeachsubconsultantperformsdesignworkformingpartoftheServicescertifyingthat:alldesigncarriedoutbythesubconsultantcomplieswiththerequirementsofthesubcontractand(subjecttothetermsofthesubcontract)allStatutoryRequirements;andtheWorkscomplyortheStageorSectioncomplies(asthecasemaybeandasdefinedintheConstructionContract)withthedesigncarriedoutbythatsubconsultant,excepttotheextentsetoutinthecertificate.
Clause6.
15-SamplesThisclauseobligestheConsultanttoobtainandsubmittotheContractAdministratorforapprovaleachsampleorrangeofsamplesrequiredbytheContractinaccordancewiththeapprovedprogram.
ThenatureandextentofsampleswillusuallybespecifiedintheBrief.
TheContractAdministratorhasthediscretiontoreview(andifnecessaryreject)samplesorrangeofsamplessubmittedbytheConsultant.
Aproformanoticetitled'RejectionofSamples'isprovidedinVolume5[insertlink].
IftheContractAdministratorrejectsanysamplesorrangeofsamples),theConsultantmustresubmitsamples(orarangeofsamples)totheContractAdministrator.
ThereisnolimittothenumberoftimestheContractAdministratormayreviewandrejectsamplesorrangesofsamples.
TheContractAdministratorhas14daysinwhichtorejectsuchsamples.
UnlesstheContractAdministratorrejectsthesamplesorrangeofsampleswithinthatperiod,attheendofthatperiod,theConsultantmaycommencedesignoftheWorkstowhichthesampleorrangeofsamplesapplies.
Similarprovisionstotheseinclause6.
4arealsoincludedtoensuretheConsultantremainsresponsibleforthesamples,despitetheContractAdministrator'sreview.
Clause6.
16-OccupationalHealth,SafetyandRehabilitationManagementThisclausemakesitclearthattheConsultantisresponsibleforensuringthatitandallsubconsultantscomplywithallStatutoryRequirementsandotherrequirementsoftheContractinrelationtooccupationalhealth,safetyandrehabilitationmanagement.
ThisclausealsorequirestheConsultanttonotifytheContractAdministratorimmediately(andinanyeventwithin12hoursofsuchmattersarising).
ThismightincludetheconductingandresultsofanyinvestigationsorreportsintosuchmattersbytheContractor,thesubconsultantorathirdparty.
Aproformanoticetitled'NoticeofOccupationalHealthandSafetymatters'isprovidedinVolume5[insertlink]fortheConsultanttoinformtheContractAdministratorofanyrelevantmattersarisingoutoftheServices.
CLAUSE7-QUALITYClause7.
1-QualityAssuranceThisclauseprovidesfortheimplementationofthequalityassurancesystemasspecifiedintheDCAPandtheContractAdministrator'saccesstothatsystemforthepurposeofmonitoringandauditing.
ThisclausemakesitclearthattheConsultantisnotrelievedfromanyofitsobligationsundertheContractastheresultof,forexample,compliancewiththequalityassurancesystem,oranydirectionbytheContractAdministratorrelatingtocompliance/non-compliancewiththequalityassurancesystemorconcerningthequalityassurancesystem.
Clause7.
2-Non-ComplyingServicesTheConsultanthasprimaryresponsibilityforensuringthattheServicesareperformedinaccordancewiththeContractandforcorrectinganypartoftheServicesthatdonotcomplywiththeContract,regardlessofwhetherthenon-complyingserviceisperformedbytheConsultantorbysubconsultantsengagedbytheConsultant.
ThisclauseenablestheContractAdministratortoinstructtheConsultanttorespondtoanynon-complyingServicesbyrequiringtheConsultantto:re-performthenon-complyingServicesbyaspecifiedtime;takeallreasonablestepstomitigatetheeffectofthenon-complianceonDefence;andtakeallreasonablestepstoputDefenceascloselyaspossibleinthepositioninwhichitwouldhavebeeniftheConsultanthadcarriedouttheServicesinaccordancewiththeContract.
Alternatively,theContractAdministratormayadvisetheConsultantthatDefencewillacceptthenon-complyingServicesdespitethenon-compliance.
AproformanoticefortheContractAdministratortonotifytheConsultantofnon-complyingServicesandissueinstructionsinrelationtosuchnon-conformancetitled'InstructionsrelatingtoNon-complyingServices'isprovidedinVolume5[insertlink].
Clause7.
3-ReperformanceoftheNon-complyingServicesThisclauseprovidesthatwhereadirectionisgivenunderclause7.
2oftheConditionsofContract,theConsultantmustthenadheretotheContractAdministrator'sdirectionwithinthetimespecifiedinthatdirection.
Iftheperformanceofthenon-complyingServicestakesplaceaftertheDateforCompletion,theymustbeperformedsoastominimisethedelayanddisruptiontotheexecutionoftheWorks.
Clause7.
4-ProjectPlansThisclauseprovidestheprocedurefordealingwithProjectPlans.
TheareasinwhichtheConsultantisrequested(duringthetenderperiod)andrequired(aftertheAwardDate)toprovideProjectPlansaredetailedinTenderScheduleB-DetailedConsultant'sActivitiesProposal(DCAP)andPlansandtheContractParticulars.
TheseareaswillhavebeendeterminedbyDefenceatthetimeoftender.
TheProjectPlansincludetheEnvironmentalManagementPlan,SiteManagementPlan,CommissioningandHandoverPlanandOccupationalHealthandSafetyPlan.
Seeguidanceundercommentaryonclause2.
13oftheConditionsofContractaboveformatterstobecoveredbytheEnvironmentalManagementPlanandtheSiteManagementPlan.
TheConsultant'sobligationsinrelationtoProjectPlansarefurtherdescribedinclause7.
4(a)(ii)oftheConditionsofContract.
TheServicesincludethepreparationofdraftProjectPlans(basedonthoseoutlineProjectPlanssubmittedintheConsultant'stender)bythedatesetoutintheContractParticulars,soastoensurenodelayordisruptiontotheServices.
TheConsultantmustre-submitanyrejectedProjectPlansuntilsuchtimeastheContractAdministratordoesnotrejecttheProjectPlansinthetimeprovidedundertheContract.
TheConsultantmustdocumentandmaintaindetailedrecordsofinspectionsandauditsundertakenaspartofanyProjectPlans.
AproformanoticefortheConsultanttosubmittheProjectPlans,titled'ProjectPlans'isprovidedinVolume5,asisaproformanoticefortheContractAdministratortorejecttheProjectPlans,titled'Rejectionof[draft/resubmitted]ProjectPlans'[insertlink].
ThisclausealsomakesitclearthatcompliancewithsubmittedProjectPlansdoesnotrelievetheConsultantofitsotherobligationsundertheContractorotherwiseaccordingtolaw.
Clause7.
4(b)oftheConditionsofContractfurtherprovidesthattheContractorwillnotberelievedofitsobligationsundertheContractorotherwiseaccordingtolawwheretheContractAdministratororotherrelevantpersonfails(duetonegligenceorotherwise)todetectadefectoromissionintheProjectPlans.
CLAUSE8-TIMEClause8.
1-ProgressThisclausesetsouttheprimaryobligationsoftheConsultanttocompleteontime.
Essentially,theConsultantmustregularlyanddiligentlyprogresstheServicesandachieveCompletionofeachMilestonebytherelevantDateforCompletion.
TheDateforCompletionforeachMilestonewillbethetimespecifiedintheContractParticulars,asadjustedundertheContract.
ClauseswhichmayresultintheDateforCompletionbeingadjustedinclude:clause8.
8oftheConditionsofContract-generalclauserelatingtoentitlementtoextensionofDateforCompletion;andclause8.
4oftheConditionsofContract-suspension.
Clause8.
2-Programming;Clause8.
3-ConsultantNotRelievedClause8.
2oftheConditionsofContractrequirestheConsultanttoprovidetheContractAdministratorwithaprogramwithin14daysoftheAwardDate.
ProgramsareusedasamanagementtooltoassistthepartiesandtheContractAdministrator.
TheConsultantisalsorequiredtoperiodically(attheintervalsspecifiedintheContractParticulars)updatetheprogramtotakeaccountofanychangestotheprogramordelayswhichmayhaveoccurredorextensionsoftimewhichmayhavebeengrantedundertheContract.
UnlikesomeotherconstructionstandardformcontractswheretheprogramformspartoftheContract,underclause8.
2oftheConditionsofContracttheprogramisnotpartoftheContract.
ThisistoovercomethepotentiallyinconsistentobligationswhichmayariseiftheConsultanthastocomplywithboththeConditionsofContractandtheprogram.
TheConsultantisalsorequiredtoensurethatthesubconsultantsadheretotheprogram.
ThisclausereflectsthattheConsultantmayrelyheavilyontheperformanceofsubconsultants.
Further,clause8.
3oftheConditionsofContractprovidesthatnoapprovalof,reviewof,orsuggestedamendmenttotheprogrambytheContractAdministratorwillaltertheConsultant'sprimaryresponsibilityundertheContract.
Theprogramistocontain"thedetailsrequiredbytheContractorwhichtheContractAdministratorotherwisereasonablydirects".
Apartfrombeingageneralindicationofprojectedsequencinganddurations,asimpleprogramwillbeoflimitedusetoaContractAdministrator.
Aprogramthereforeshouldtaketheformofamoredetailedcriticalpathnetwork,setouttoatimescaleofworkingdaysstatedintheContract.
TheprogrammustbeprovidedinaformatcompatiblewiththesoftwaredescribedintheContractParticulars.
FurtherguidanceisprovidedinVolume2.
Tobeuseful,aprogramshouldbetoalargescaleand:includesufficientdetailtodescribethemajorelementsoftheServices;includeallowanceforusualdetails/eventsforwhichtheConsultantisnotentitledtoextensionoftime;identifykeyactivitiesbyothers,suchas:supplyofdocumentationorinformationbytheContractAdministrator;approvalprocessesbyboththeContractAdministratororDefenceandotherauthorities;anddatesforDefence-dependentmilestones;provideestimateddurationofactivitiesandkeyprecedencerelationshipsbetweencriticalornearcriticalactivities;providethesequenceofactivitieswhichconstitutethecriticalpathatthetimeofinceptionoftheprogramanditslogic;andprovidethelevelsofadministrative,managementandsupervisorystaffrequiredoverthedurationoftheContract.
Inreviewingtheprogram,theContractAdministratorshouldhaveregardtomatterssuchas:IsthebaseprogramsetouttothetimescalerequiredbytheContract(i.
e.
totheDate/sforCompletionofMilestonesasappropriate)Thisisparticularlyrelevantas,eveniftheConsultantchoosestoaccelerateprogresstoachieveCompletionpriortothedueDateforCompletion,neithertheContractAdministrator,Defencenoranyotherpersonisexpresslyobligedtodo(ornotdo)anythingtoenabletheConsultanttoreachCompletionpriortotheduedate,norisfailuretodo(ornotdo)anythingasgroundsforanextensionoftime.
Inaddition,theContractAdministratormayrequireanunacceleratedprogramagainstwhichtoassesstheimpactofpurporteddelayingeventsagainsttheacceleratedprogram,toascertaintheanswertothethresholdquestionofwhethertheConsultantisorwillbedelayedinreachingCompletionbythedueDateforCompletion.
DoestheprogramsufficientlydetailactivitiesandelementsandprovidekeyprecedencerelationshipsandthesequenceofactivitiesrepresentingcriticalpathThiswillbeparticularlyrelevantwhenassessingtheimpactofeventsonparticularactivitiesincludingconcurrencyofeventsandcriticalityofactivity.
ItmaybethatanextensionoftimeinrespectofadelayingeventtooneactivityissuchthatasubsequentseparatedelayingeventonanotheractivityhasnoeffectuponreachingCompletionbythedueDateforCompletion.
IstheresourcingofeachactivityclearlydetailedandabletobemonitoredandcomparedonadailybasisWithoutproperresourcinginformationaprogramisnottrulyuseful.
Asaresult,progressisnotabletobeclearlyidentifiedandcomparedwithactualresourcingandprogress,thereforeamajorconstrainingelementwhenattemptingtoassesstrueprojectprogram.
Asaconsequence,thetrueeffectofaneventuponthequestionastoanyentitlementtoanextension(i.
e.
whethertheConsultantisorwillbedelayedinreachingCompletionbythedueDateforCompletion),andthelengthofanysuchextensionmaybedistorted.
Bywayofasimplisticillustration,acriticalactivityprogrammedfor6daysdurationisdisruptedbyhavingtocarryouttheServicesdifferentlyduetoanActofPrevention.
Actualrecordsindicatethattheactivitytook10daystocomplete.
Assumingotherentitlementandthresholdconstraintsaremet,onthefaceoftheevents,theConsultantappearsentitledtoclaimfor4daysextension.
However,iftheprogrammedactivity,properlyresourced,required6employeesperdaytocarryitoutwithinthe6daydurationandactualrecordsindicatedtheConsultantonlyeverhad4employeesundertakingthatactivity,thenthetruedelayoftheeventislessthanfirstappears.
Inasimplisticassessmentassumingrateofprogresswasdirectlyrelatedandproportionaltoresourcing,itcouldbearguedthattheConsultant'sresourcingwasonly66%ofthatrequiredtocarryouttheactivityandthatasaconsequenceintheoriginal6daysdurationthoseemployeescouldonlyhaveproduced4daysofprogrammedservices.
Thatistosay,atthatlevelofresource,theConsultantwouldhavetakendays(i.
e.
9days)toundertaketheservicesasoriginallyrequired,adelayof3daysattributabletotheresourceconstraint.
Therefore,itisarguablethattheActofPreventionwasonlyresponsiblefor1dayofthedelaytotheactivity,withtheother3daysbeingattributabletotheConsultant'sdefaultinnotprovidingtherequisiteresourcestoprogresstheServicesatasatisfactoryrate.
Clause8.
4-SuspensionTheConsultanthasnorighttosuspendtheServicesundertheContractunlessitisorderedtodosobytheContractAdministratorunderclause8.
4oftheConditionsofContract.
However,incertainlimitedcircumstancestheConsultantmayhavearighttosuspendworkbyoperationoftheSecurityofPaymentLegislation,ifsuchlegislationapplies.
Seecommentaryonclause10oftheConditionsofContractforfurtherguidance.
TheContractAdministratormayordertheConsultanttosuspendtheServicesinitsabsolutediscretion.
TheConsultantwillbeentitledtoclaimanextensionoftimeandpaymentforitsextracostsprovidedthatthesuspensionisnottheresultoftheConsultant'sfailuretoperformitsContractobligations.
TheentitlementtopaymentforthoseextracostsistheConsultant'sonlyentitlementtomoneyinthesecircumstances.
TheConsultantwillnotbeentitledtocostswhichcouldhavereasonablybeenavoided(i.
e.
itmustmitigatetheextracostsincurred).
AproformanoticeinstructingtheConsultanttosuspendworktitled'Instructiontosuspend'isprovidedinVolume5[insertlink].
Aproformanoticetitled'Instructiontorecommence'isalsoprovidedinVolume5forthepurposesofinstructingtheConsultanttore-commenceperformanceoftheServices[insertlink].
Clause8.
5-DelaysEntitlingClaim;Clause8.
6-Claim;Clause8.
7-ConditionsPrecedenttoExtensionTheprimaryintentionofDefenceinincorporatingstrictertimeforCompletionprovisionsinDSC-12003istoimprovethemanagementdeliveryofdesignagainstsignificantprojectmilestones.
TheprimaryintentionisnottocreatefixedtimeobligationsindefaultofwhichtheConsultantbecomesliabletoliquidateddamages(asunderHC-12003).
Havingsaidthat,theConsultantcouldneverthelessbeliabletoDefenceingeneraldamagesforfailuretomeetaMilestonebytherelevantDateforCompletion(e.
g.
wherethatfailureresultsinDefencehavingexposuretodelaycoststoaContractor).
Claimsforextensionsoftimeneedtobeassessedwithcare.
Inparticular,theContractAdministratorshouldbemindfulthattheConsultanthasnoentitlementtoanextensionoftimeundertheContractunlessitsatisfiesanumberofrequirements.
Theserequirementsaresetoutinclauses8.
5to8.
7oftheConditionsofContractandcanbecategorisedasfollows:thesubstantiverequirements,being:firstly,whethertheeventcomplainedofbytheConsultantis:beyondthereasonablecontroloftheConsultant;andrecognisedbytheContractasaqualifyingeventofdelayinthecircumstances;andiftheeventsatisfiestheserequirements,whetherithascausedtheConsultanttobedelayedinamannerwhichentitlesaclaiminthecircumstances;andthattheproceduralrequirementssetoutinclause8.
6oftheConditionsofContracthavebeenstrictlyfollowedbytheConsultant.
SubstantiveRequirementsEventisbeyondthecontroloftheConsultantThisrequirementisself-explanatorybutshouldnotbeoverlooked.
Likewise,asnotedbelow(seecommentaryonclause8.
9oftheConditionsofContract,below),theConsultantwillbedisentitledtotheextentthatithascontributedtothedelayorfailedtotakeallnecessarystepstoprecludethecauseofthedelayandtoavoidorminimisetheconsequencesofthedelay.
QualifyingeventsofdelayThequalifyingeventsapplicableiftheConsultantisdelayedbeforeorafteraDateforCompletion,are"ActsofPrevention",being:abreachoftheContractbytheCommonwealth;anyotheractoromissionoftheCommonwealth,theContractAdministratororanOtherContractorengagedbytheCommonwealth(notethattheactoromissionneednotbewrongful);oraVariationwhichhasbeendirectedbytheContractAdministrator.
TheConsultanthasnoentitlementtoclaimanextensionoftimefor"neutral"events(i.
e.
thosebeyondeitherparty'scontrol;thesemightincludeinclementweatherorindustrialdisputes)undertheContract.
MannerofdelayIftherelevantActofPreventionisbeyondthecontroloftheConsultant,thenextrequirement(underclauses8.
5and8.
7(c)oftheConditionsofContract)isthattheConsultantshowsthatithasbeendelayedbytheeventinamannerwhichwilldelayit:wherethedelayisclaimedtohaveoccurredbeforetherelevantDateforCompletion–inachievingCompletionoftheMilestonebytherelevantDateforCompletion;andwherethedelayisclaimedtohaveoccurredaftertherelevantDateforCompletion–inachievingCompletionoftheMilestone(astheDateforCompletionhaspassedbythisstage,itisnolongersensibletorefertotheConsultantbeingdelayedinachievingit).
AdetailedanalysisoftechniquesforassessingclaimsforextensionsoftimeisbeyondthescopeoftheManual.
Generally,contractadministrationpersonnelneedtobeaware–attheveryleast–that:thegroundsforclaiminganextensionoftimearequitedifferentundertheDSC-12003ContracttootherformsofconsultantcontractsincommonuseinAustralia;andinparticular,becauseofthetestsreferredtoabove,theConsultantwillnotautomaticallybeentitledtoanextensionoftimeongroundswhichmightentitleittoanextensionundersuchotherforms–forexample,whereitisdelayedinachievingCompletionbyanearlierdateprogrammedbytheConsultant,butnottherelevantDateforCompletion,oranactoromissionbeyondthereasonablecontroloftheConsultant.
ProceduralRequirementsThepurposeofclause8.
6oftheConditionsofContractistoensurethattheConsultantpromptlyinformstheContractAdministratorofanyeventwhichitconsiderswillentitleittoanextensionoftime,ratherthanbundlingtogetheraseriesofclaimsneartheendofitsengagementiftheConsultantrealisesitisrunningoutoftime.
TheproceduralrequirementsforclaiminganextensionoftimefordelaymustbestrictlyadheredtobytheConsultantifitistobeentitledtoanextensionoftimeundertheContract.
Therefore,toclaimanextensionoftime,theConsultantmust:within14daysofthecommencementoftheoccurrencecausingthedelaysubmitawrittenclaimtotheContractAdministratorwhich:givesdetailedparticularsofthedelayandtheoccurrencecausingthedelay;andstatesthenumberofdaysextensionoftimeclaimedtogetherwiththebasisofcalculatingtheperiod,includingevidencethatitwillbedelayedinachievingCompletioninthemannersetoutinclause8.
7(c)oftheConditionsofContract(asdiscussedabove);andiftheeffectsofthedelaycontinuebeyondtheperiodof14daysafterthecommencementoftheoccurrencecausingthedelayandtheConsultantwishestoclaimanextensionoftimeinrespectofthefurtherdelay,submitafurtherwrittenclaimtotheContractAdministrator:every14daysafterthefirstwrittenclaimuntil7daysaftertheendoftheeffectsofthedelay;andcontainingtheinformationrequiredbysubparagraph(a).
AwrittenclaimforanextensionoftimemustincludeevidencethattheConsultantisabletocomplywiththesubstantiverequirementsreferredtoabove-i.
e.
itwillbedelayedinachievingCompletioneitherbytheDateforCompletionoftherelevantMilestone(ifthedelaywascausedpriortotherelevantDateforCompletion)orsimplyadelayinachievingCompletionoftheMilestone,ifthedelayoccurredaftertheDateforCompletionfortherelevantMilestonehasalreadypassed.
SuchevidencewouldbeexpectedtoincludeadetailedprogramandaccompanyingexplanationandsuchotherdetailsastheContractAdministratorrequiresinthecircumstances.
Proformanoticesforclaiminganinitialextensionoftimeandforsubmittingfurtherwrittenclaimstitled'InitialClaimforanExtensionofTime'and'ClaimforafurtherExtensionofTime'(respectively)areprovidedinVolume5[insertlinks].
Clause8.
8-ExtensionofTimeIfthesubstantiveandproceduralrequirementssetoutinclauses8.
6and8.
7oftheConditionsofContracthavebeensatisfied,theContractAdministratorwillberequiredtoextendtherelevantDateforCompletionbyareasonableperiod.
Whatisreasonablewilldependonthesituation,howeveritwillnotnecessarilybetheperiodoftimeclaimedbytheConsultant.
ItisworthnotingherethatasagentandundertheDIPTermsofEngagementtheContractAdministratorhascertainobligationsundertheDIPTermsofEngagementtoconsultwithDefencewithrespecttonumerousmatters,whichwouldincludeproposedextensionsoftime.
TheContractAdministratormustnotifyDefenceandtheConsultantofthelengthoftheextension,ifany,within21daysofreceivingtheConsultant'swrittenclaimunderclause8.
6(a)oftheConditionsofContractor(iftheeffectsofthedelaycontinuebeyond14days)under8.
6(b)oftheConditionsofContract.
AproformanoticefortheContractAdministratortonotifywhetherornotanextensionhasbeengrantedandforhowlong,titled'DeterminationofExtensionofTimeclaim'isprovidedinVolume5[insertlink].
Further,aflowcharttitled'Flowchart2:ExtensionsofTime'providedinVolume4[insertlink]setsouttheprocedureforgrantinganextensionoftimeforCompletionandthefactorsthatshouldbeconsideredinmakingadeterminationonextendingtimeforCompletionoftherelevantMilestone.
Clause8.
9-ReductioninExtensionofTimeThisclauseprovidesthattheConsultantisnotentitledtoanextensionoftimewhereithascontributedtothedelayorfailedtotakeallnecessarystepstoprecludethecauseofthedelayandtoavoidorminimisetheconsequencesofthedelay.
Thus,theConsultant'sresponsibilityunderthisclausecomplementsandextendstheconditionprecedentinclause8.
7(b)oftheConditionsofContract,whichrequiresthecauseofthedelaytohavebeenbeyondthereasonablecontroloftheConsultant.
IftheContractAdministratorbelievesthattheConsultantcontributedtothedelayorfailedtotakenecessarystepstopreclude,avoidorminimisetheconsequencesofthedelay,itistoreducetheamountofanyextensionoftimetowhichtheConsultantwouldotherwisebeentitled.
Clause8.
9oftheConditionsofContractshouldbeexpresslyreferredto,andthereasonsexplainedintheContractAdministrator'sresponseunderclause8.
8oftheConditionsofContract,iftheextensionistobereducedunderclause8.
9oftheConditionsofContract.
Theproformanoticetitled'DeterminationofExtensionofTimeclaim'inrelationtoclause8.
8oftheConditionsofContract,providedinVolume5[insertlink],allowsforthis.
Clause8.
10-UnilateralExtensionTheCommonwealth'srighttoinsistupontheConsultantcompletingtheContractbytheDateforCompletionforeachMilestone,evenwherethecauseofdelayisbecauseofanActofPreventionispreservedbyitspowertounilaterallyextendtimeunderclause8.
10.
TheCommonwealthshouldonlyexercisethisrightwheretheConsultantfailstolodgeaclaimforanextensionoftimeandwheresomeorallofthedelayhasbeencausedbyan"ActofPrevention"(asdiscussedabove).
ThegrantofanextensionoftimeinsuchacaseavoidstheargumentthattheDateforCompletionhasotherwisebeen"setatlarge"bytheActofPrevention(i.
e.
theobligationisonlytocompletebya"reasonabledate").
Aproformanoticetitled'UnilateralExtensionofTime'isprovidedfortheCommonwealthtonotifytheConsultantofaunilateralextensionoftimeinVolume5[insertlink].
Clause8.
11-AccelerationTheContractAdministrator'spowertorequireaccelerationunderDSC-12003differsfromthepowerunderHC12003inthefollowingkeyrespects:itisnotpredicatedontheConsultantfirsthavingsubmittedaclaimforanextensionoftime;theCommonwealthcanunilaterallyseektobringtheoriginalDateforCompletionforward;andtheConsultantonlyhasa"bestendeavours"obligationtoachievethe"AcceleratedDateforCompletion".
TheintentionistoenableDefencetorequiretheConsultanttodeliverdesignearlierthanoriginallyagreed,becauseofchangesintheprojectprogram.
Inexchange,theConsultantisentitledtotheextracosts.
TheContractAdministratorneedstoinformtheConsultantinwritingoftheacceleration.
AproformafortheContractAdministratortoinstructtheConsultanttoacceleratetitled'Instructiontoaccelerate'isprovidedinVolume5[insertlink].
CLAUSE9-VARIATIONSGeneralValuationofVariationsisanareaofcontractadministrationwhichisoftennotaccordedtheappropriatetimelyactionbyallorsomeinvolvedintheprocess.
ItisalsooftenanareaofhighdisputationrelativetovalueinaccordancewiththetermsoftheContract.
WhilsttheContractdoesnotexpresslystateanytimeconstraintastowhenvaluationofaVariationistooccur,itispreferable,ifpossible,towrapupallimplicationsofaVariation(thatis,bothtimeandcost)atthetimeofitsinstruction.
AVariationisdefinedinclause1.
1oftheConditionsofContractasbeing(unlessotherwisestated)anychangetotheServicesincludinganyaddition,increase,decrease,omissionordeletiontoorfromtheServices.
Notethatthedefinitionisinrelationtoachangeintheworkscope.
Thus,aVariationwillnotnecessarilyinvolveachangetotheFee.
Itshouldalsobenotedthatothertypesofchangese.
g.
timingrequirementsandotherrequirementsnotimpactingonthescopeoftheServicesmayneedtobedealtwithinanotherwaye.
g.
deedofamendment,ratherthanbyusingthevariationpower.
FurtherinformationisavailablefromtheDirectorateofConstructionContracts.
TheContractAdministratormay,atanytime,issueaVariationPriceRequesttotheConsultantdetailingaproposedVariation.
ItisastrategicdecisionwhetherornottoissueaVariationPriceRequestandspecialistconsultationshouldbesoughtifasignificantchangeiscontemplated.
AsagentofDefence,theContractAdministratorshouldonlyissueaVariationPriceRequestifsodirectedbyDefence.
TheConsultantmustrespondtoanyVariationPriceRequestprovidingdetailsoftheadjustmentstoandeffecttheproposedVariationwouldhaveontheprogramandtheeffectontheFee(ifany).
AVariationistheprimarymeansbywhichDefencecanchangetheworkscopeundertheContract.
ItiscriticalthattheContractAdministratorfollowtheproceduresetoutinclause9oftheConditionsofContractwhenissuingaVariation.
Inthefirstinstance,aVariationisusuallypricedbytheConsultantandsubmittedtotheContractAdministratorforagreement.
Asaconsequence,theonuswillgenerallybeontheConsultanttopresentadequatedetailandsubstantiationoftheamountsandquantitiesincludedinitsresponse.
Recordswillbeessential,fromboththeContractAdministrator'sandtheConsultant'sviewpoint,particularlyifthepaymentmethodisnotagreedandevenifagreed,inthecaseofadisputearising.
Recordscoveringnotonlymanpowerresources,butwhattheyweredoing,when,andwheremustbekept.
Directcostsofmaterial,disbursements(e.
g.
travelexpenses)etc.
shouldbesupportedasnecessarybytheConsultantbyinvoiceandothermaterialsasappropriate.
Itisalsoimportanttorememberthat:indirectingandassessingVariations,theContractAdministratorisactingasDefence'sagentandmustthereforeactinDefence'sbestinterests.
Accordingly,theContractAdministratorisnotunderadutytoactindependentlyorfairly.
Seeguidanceaboveinrelationtoclause4.
1oftheConditionsofContract;whendirectingVariationsorotherwiseactinginamannerwhichwillconstituteaVariation,Defencepersonnel(includingtheContractAdministrator)mustensurethatthevalueoftherelevantDefenceinternalpurchaseorderwillmeettheliabilityincurredasaresultofcarryingouttheVariation.
ThisconfirmationmustoccurpriortodirectingaVariation.
IfthevalueoftheVariationwillnotfallwithinthevalueofthepurchaseorder,thenDefencemustensurethatthevalueofthepurchaseorderisincreased.
Clause11oftheConditionsofContractalsoneedstobereadinlightofclause13.
1oftheConditionsofContract,whichprovidesamechanismfortheConsultanttoassertthatadirectionoftheContractAdministratorconstitutesaVariationeveniftheContractAdministratordidnotissuethedirectionbywayofaVariationOrder.
Seefurtherguidancebelowinrelationtoclause13.
1oftheConditionsofContract[insertlink].
Aflowcharttitled'Flowchart3:Variations'hasbeenprovidedinVolume4[insertlink]detailingtheprocedurestobetakenwhereVariationsarerequestedbytheConsultantordirectedbytheContractAdministrator/Defence.
Clause9.
1-VariationPriceRequestAllVariationsorderedbytheContractAdministratorshouldbeissuedusingtheproformanoticetitled'VariationPriceRequest'inVolume5[insertlink]orbyissuingaVariationOrderunderclause9.
2oftheConditionsofContract(inwhichcaseanyadjustmenttotheFeewillbedeterminedlater).
TheConsultantmustrespondtoaVariationPriceRequestwithin14daysofreceipt.
Aproformanoticetitled'ResponsetoVariationPriceRequest'isprovidedinVolume5[insertlink].
IftheContractAdministratoragreeswiththeConsultant'sresponse,itcanissueaVariationOrderconfirmingthis.
However,iftheConsultantfailstoprovideacompliantresponsewithin14days,ortheContractAdministratordoesnotagreewiththeresponse,theContractAdministratorisentitledtoissueaVariationOrderanddetermineanyadjustmenttotheFeeandDateforCompletioninaccordancewithclause9.
2oftheConditionsofContract.
Clause9.
2-VariationOrderOnceDefenceisreadytoorderaVariation,theproformanoticetitled'VariationOrder'providedinVolume5[insertlink]shouldbeused.
VerbalinstructionswhichcouldinvolveaVariationshouldbeavoided.
AVariationOrdermaybeissuedwithouttheneedforapriorVariationPriceRequest.
However,itisalwayspreferabletofirstissueaVariationPriceRequest,tomaximisethelikelihoodofthepartiesagreeingthetimeandcostconsequencesoftheVariation.
TherearetwodifferentoptionsforhowtheVariationcanbepricedunderclause9.
2oftheConditionsofContract(assumingthattheVariationwillhaveacostimpactontheConsultantincarryingitout).
Clause9.
2(a)shouldbeselectedwhentheContractAdministratorhasissuedaVariationPriceRequestandissatisfiedwiththeConsultant'sproposedadjustmenttotheFeeassetoutintheConsultant'sresponseunderclause9.
1oftheConditionsofContract.
Clause9.
2(b)isavailablewherenoVariationPriceRequestwasissued,whentheContractAdministratordoesnotaccepttheConsultant'sproposedadjustmenttotheFee,orwheretherehasbeennoresponsetoaVariationPriceRequest.
Clause9.
3-CostofVariation;Clause9.
4-RatesandPricesThevaluationofaVariationunderclause9.
3representstheConsultant'stotalentitlementtopaymentforthatVariation.
WheretheConsultanthasissuedaresponsetoaVariationPriceRequestwhichhasbeenacceptedintheContractAdministrator'sVariationOrder,theFeewillbeadjustedasagreed.
WheretheContractAdministratorhasnotissuedaVariationPriceRequestorhasnotacceptedtheConsultant'swrittennoticeinresponsetoaVariationPriceRequest,orwheretheConsultantdidnotissueawrittenresponsetoaVariationPriceRequest,thecostoftheVariationwillbedeterminedinaccordancewithclause9.
3(b)and(c)oftheConditionsofContract.
Underclause9.
3(b)oftheConditionsofContract,theContractAdministratordeterminesthecostoftheVariationbyreferencetoanyrelevantratesorpricessetoutintheTableofVariationPricesandRatesattachedtotheContract.
ItisimportanttonotethatthequestionofapplicabilityofratesorpricesintheTableofVariationPricesandRatesasameansofvaluingaVariationunderclause9.
3(b)oftheConditionsofContractrequirescarefulconsiderationbytheContractAdministrator.
Generally,iftheConsultantcontendsthatotherratesandpricesaretoapply,itisuptotheConsultanttoclearlydemonstratetotheContractAdministrator'ssatisfactionthatsuchratesorpricesarenotapplicableagainstthebackgroundofthesurroundingcircumstances.
Somefactorswhichmayberelevantindeterminingwhetherascheduledrateorpriceisorisnotapplicabletoparticularworkare:thestageoftheprojectatwhichtheworkisdirectedwhichmaymakethatworkeithermoredifficultandexpensive,oralternativelysimplerandlessexpensive,thantheworkcontemplatedinthescheduleitem;andthequantityofworktobedonewhereanincrease(ordecrease)mayaddtothecomplexity(orsimplicity)ifthereisadifference.
Generally,itwouldnotbeunreasonabletoapplythetest:"Istheworkofasimilarcharacterandexecutedundersimilarconditions".
TheContractAdministratorshouldtakeintoaccountthefactorsthatcouldgotomakeupareasonablerateandwhethereachparticularfactorshouldbeappliedinaspecificinstance.
WheretheTableofVariationPricesandRatesdoesnotapply,thepartiesmayagreethecostoftheVariationor,iftheycannotagree,theContractAdministratorwilldetermineareasonableamountunderclause9.
3(c)oftheConditionsofContract.
ThereisnoexpressrequirementundertheContractthattheContractAdministratornotifytheConsultantoftheamountbywhichtheFeeistobeadjustedunderclause9.
3oftheConditionsofContract;nevertheless,itwouldbegoodpracticetoensurethatthisisdone.
Clause9.
5-OmissionsUnderthisclausetheContractAdministratorisentitledtoissueaVariationwhichomitsanypartoftheServices.
DefencemaythenelecttocarryouttheomittedworkitselforbyengagingOtherContractors.
Thisclauseisveryimportant,asotherwiseatcommonlawthehandingoverofworkinthismannercouldconstitutearepudiationoftheContract.
Nonetheless,giventhecommonlawrestrictionsonexercisingsuchapower,theContractAdministratorshouldnotattempttoexerciseitspowerwithoutseekingspecialistadvice.
CLAUSE10-PAYMENTGeneralThisclausesetsupthecontractualmechanismsforassessingtheamountsduetotheConsultantandotheramountsundertheContract.
Assessmentofsuchamountsistobecarriedoutinaccordancewithclauses10.
2and10.
4oftheConditionsofContract.
Theprocedureforassessingpaymentsisoutlinedintheflowcharttitled'Flowchart4:Payment'setoutinVolume4[insertlink].
ItisfortheContractAdministratortodeterminethevalueoftheworkcompletedinaccordancewiththeContract,notwithstandingtheConsultant'sclaim.
TheContractAdministratormustnotmerelyacquiescetodemandsoftheConsultantinrespectofpayment.
ItisimportantforbothConsultantsandContractAdministrators/CARstorememberthatDefenceisneitherobligated,norintheposition,tocompensateaConsultantforaninadequatetender.
AContractAdministratorlegallycannotdisburseDefencemoneywithoutaclearandsubstantiatedlegalbasisfortheclaim.
Ifthereisanydoubtastothelegalorfactualbasisforaclaim,expertprofessionaladvice(beitlegal,engineering,accountingorotherwise)shouldbesought.
WhilsttheContractAdministratormayprobeandtesttheveracityandvalidityoftheclaim,itistoberememberedthattheonusofproof(onthebalanceofprobability)lieswiththeConsultantasclaimantandtheContractAdministratorshouldnotattemptto"maketheclaim"fortheConsultant.
Inessence,theConsultantshouldprovidetheclaimsinaformat,andwithsuchbackupdetailasisnecessary,toallowtheContractAdministratortoreadilyestablishtheprogressandvalueoftheservicesprovidedundertheContractduringtherelevantclaimperiod.
Ideally,thereshouldbesomediscussionandagreementatthecommencementoftheprojectaboutthenatureandextentofinformationtobesubmittedbytheConsultantwitheachpaymentclaim.
Clause10.
3oftheConditionsofContractestablishesanumberofconditionsprecedenttotheentitlementoftheConsultanttosubmitpaymentclaims,buttherequirementsofeachprojectwilldictatetheotherdetailsthataContractAdministratorrequirestoassesstheclaim.
ThesedetailsshouldbecommunicatedtoaConsultantbywrittennotice(seeclause10.
2(f)oftheConditionsofContract)asearlyonintheprojectaspossibletominimisedelaysandpotentialproblemsoccurringlater.
SecurityofPaymentLegislationInadditiontothecontractualentitlementtoprogresspaymentscontainedinclause10oftheConditionsofContract,securityofpaymentlegislationinplaceinNewSouthWales,Victoria,Queensland,WesternAustralia,NorthernTerritory,Tasmania,AustralianCapitalTerritoryandSouthAustraliacreatesastatutoryentitlementtoprogresspaymentsaslongastherequirementsofthelegislationgivingrisetotherelevantentitlementaresatisfied.
TheNewSouthWales,Victorian,Queensland,Tasmanian,AustralianCapitalTerritoryandSouthAustralianlegislationgoesfurtherbyalsoestablishingastatutoryprocedureforaConsultanttoclaimandrecoverprogresspaymentstowhichitisentitled.
Thatstatutoryprocedureexistsindependentlyof,andinadditionto,anycontractualprocedureforclaimingprogresspayments.
Althoughuseofthestatutoryprocedureisrequiredtobe"optedinto"byaConsultant,Defencehaselectedtorequire(sofarasitisable)allprogresspaymentclaimssubmittedundertheContracttoalsobeclaimsundertherelevantstatutoryprocedurewhereNewSouthWales,Victorian,Queensland,Tasmanian,AustralianCapitalTerritoryorSouthAustraliansecurityofpaymentlegislationapplies.
IftheproformapaymentclaimincludedintheScheduleofCollateralDocumentsisusedandcompletedproperlybyaConsultant,theclaimwillbebothaclaimunderthecontractandundertherelevantstatutoryprocedure.
WhereaclaimhasbeenmadeundertherelevantstatutoryprocedureinNewSouthWales,Victoria,Queensland,Tasmania,theAustralianCapitalTerritoryorSouthAustralia,therearequiteseriousimplicationsforDefenceiftheContractAdministratorfailstoadequatelyrespondtotheclaimwithinthetimerequiredbytheContractandthesecurityofpaymentlegislation.
Theseimplicationsareexplainedinmoredetailbelowundertheheading"Clause10.
14-SecurityofPaymentLegislation".
Clause10oftheConditionsofContracthasbeendraftedsothattherequirementsofthestatutoryprocedure,intermsofdocumentsandtimeframes,arealsoreflectedintheContract.
Therefore,ifthepartiesmeettherequirementsofclause10,theyshouldalsosatisfytherequirementsoftherelevantstatutoryproceduresapplicableinNewSouthWales,Victoria,Queensland,Tasmania,theAustralianCapitalTerritoryorSouthAustralia.
Ontheotherhand,theWesternAustralianandNorthernTerritorysecurityofpaymentlegislationimpliestermsformakingclaimsforprogresspaymentsandrespondingtosuchclaims,unlessthecontractmakesexpresswrittenprovisionaboutsuchmatters.
Clause10hasbeendraftedsothatitcontainsthoseexpresswrittenprovisions.
Theresultisthatthetermsaboutsuchmatterssetoutinthesecurityofpaymentlegislationarenotimplied.
Althoughclause10hasbeendraftedtoalignwiththesecurityofpaymentlegislationaroundAustralia,eachsecurityofpaymentlegislationregimeimposesadditionalrightsandresponsibilitiesontherespectivepartieswhichcannot(andshouldnot)beincludedintheContractorcontractedoutofbytheparties.
Forthisreason,itisessentialthatDefencepersonnelandtheContractAdministrator(asagentofDefence)arefamiliarwiththerequirementsoftherelevantsecurityofpaymentlegislation.
Inaccordancewiththe"expert"standardrequiredofitsContractAdministrators,membersofDefence'sDIPPanelareexpectedtotraintheirpersonnelonthenatureandeffectofsecurityofpaymentlegislation.
FurtherinformationisavailablefromtheDirectorateofConstructionContracts.
Clause10.
1-PaymentObligationDefenceisobligedtopaytheConsultanttheFeeandanyotheramountswhicharepayabletotheConsultantundertheContract.
ThispaymentobligationissubjecttoDefence'srighttoset-offwhichissetoutinclause10.
9oftheConditionsofContract.
ThatrightentitlesDefencetodeductfrommoneyswhichitwouldotherwisebepayingtotheConsultant:anydebtorothermoneysduefromtheConsultanttoDefence;anyclaimtomoneywhichDefencemayhaveagainsttheConsultantwhetherfordamagesorotherwiseandwhetherundertheContractorotherwiseatlawrelatingtotheServices;andtodeductanydebtorclaimreferredtoinparagraphs(a)or(b)fromanymoneyswhichmaybeorthereafterbecomepayabletotheConsultantbyDefenceinrespectofanyvariationthesubjectofa"VariationOrder"underclause9.
2oftheConditionsofContract.
Clause10.
2-PaymentClaimsThisclauserequirestheConsultanttoissuepaymentclaimsatcertaintimesandinacertainformat.
Thisclauseprovidesthateachpaymentclaim:issubjecttocertain"conditionsprecedent"beingsatisfied,assetoutinclause10.
3oftheConditionsofContract;mustshowcertainamountsseparately;mustcontainasummaryofallClaimsnotifiedtotheContractAdministratorinaccordancewiththeContract;andmustattachsufficientdetails,calculationsandothersupportingdocumentationtoenabletheContractAdministratortofullyandaccuratelydeterminetheamountsthenpayable.
AproformapaymentclaimisprovidedintheScheduleofCollateralDocuments.
TheproformapaymentclaimprovidesthatthepaymentclaimismadeundertheContract.
TheContractAdministratorcanrequest(inwriting)atanytimeforinformation/documentationtobeprovidedbytheConsultantinrelationtoanypaymentclaim.
Aproformanoticetitled'Requestfordocumentationorinformation'isprovidedinVolume5[insertlink].
Ifapaymentclaimisnotissuedinaformthatmatchestheproformapaymentclaim(orsuchotherformastheContractAdministratorrequires)therequirementsofclause10.
2oftheConditionsofContractortheconditionsprecedenttomakingtheclaimsetoutinorclause10.
3oftheConditionsofContracthavenotbeensatisfied,itwillnotbeavalidclaimundertheContract.
However,theContractAdministratormustnonethelessissueapaymentstatementunderclause10.
4oftheConditionsofContractinresponsetothepaymentclaim.
ThepaymentstatementshouldsetoutthenonconformingcircumstancesandincludeastatementthattheamountclaimedisthereforenotdueunderthetermsoftheContract.
However,beforeissuingsuchapaymentstatement,adviceshouldbeobtainedfromtheDirectorateofConstructionContracts.
Indoingso,DefencepersonnelandtheContractAdministratormustbearinmindthattheContractAdministratormustissuethepaymentstatementwithinthetimeframespecifiedinclause10.
4oftheConditionsofContract.
Clause10.
3-ConditionsPrecedentUnlessalloftheconditionssetoutinclause10.
3oftheConditionsofContractaresatisfiedatthetimethepaymentclaimisissued,theConsultanthasnoentitlementtosubmitapaymentclaimunderclause10.
2oftheConditionsofContract.
OfparticularnoteistherequirementfortheConsultanttoprovidetheContractAdministratorwithexecutedcopiesofanySubconsultantDeedofCovenant,ConsultantDeedofCovenantandcertificates.
OtherrequirementsrelatetotheConsultant'sobligationsinrespectofinsurance,programmingandstatutorydeclarationsastopaymentstoworkersandsubconsultants.
TheConsultantisalsoobligedtoassisttheCommonwealthwithcostallocationadvice,facilitiesandinfrastructureaccountingandtheCommonwealth'scompliancewithDefenceEstateManagementSystemobligationsandGeographicalFacilitiesInformationSystemobligationsasaconditionprecedenttotheentitlementtosubmitapaymentclaim.
TheconditionsprecedentprovideDefencewithamechanismforensuringthatcertainobligationsundertheContractaremet.
Denyingpayment(onthebasisthattheConsultantisnotentitledtoserveapaymentclaimbyreasonofitsfailuretofulfiltherequiredconditionsprecedent)mayofferamorecompellingremedythanexercisingothercontractualremedies.
IftheConsultantsubmitsapaymentclaimwhichincludesoneormoreamountsinrespectofwhichtheConsultanthasfailedtocomplywiththerequirementsofclause10.
2(e)oftheConditionsofContract,theConsultantisnotentitledtopaymentof,andDefenceisnotliabletopay,theorthoseamountsclaimedwithdeficientdocumentation/information,unlesstheContractAdministrator(initsabsolutesolediscretion)notifiestheConsultantofdocumentation/informationrequiredandtheConsultantsubsequentlyprovidestherequesteddocumentation/informationtotheContractAdministratorwithinthetimenominatedbytheContractAdministrator.
Aproformanoticetitled'Identificationofparticularinformationordocumentationnotprovidedpursuanttoclause10.
2(f)',isprovidedinVolume5[insertlink].
Itisimportanttonotethough,thatclause10.
4oftheConditionsofContractprovidesthattheContractAdministratormustissueapaymentstatementinresponsetothepaymentclaim,notwithstandingthattheconditionsprecedenthavenotbeensatisfied.
Asdiscussedinthecommentaryonclause10.
4andundertheheading"Clause10.
14SecurityofPaymentLegislation",theContractAdministratorshouldidentifyinthepaymentstatementthereasonswhytheConsultantisnotentitledtotheprogresspaymentunderthetermsoftheContract,citingthespecificconditionsthathavenotbeensatisfied.
Clause10.
4-PaymentStatementsTheContractAdministratormustprovidetotheConsultantapaymentstatementintheformsetoutintheScheduleofCollateralDocumentswithin10businessdaysofreceivingapaymentclaim.
Apaymentstatementmustsetoutallthedetailsrequiredunderclause10.
4oftheConditionsofContract.
TheproformapaymentstatementintheScheduleofCollateralDocumentsfacilitatesthis.
Itisimportanttoensurethatallreasonsforreducingthevalueclaimed,withholdingpayment(suchasarightofsetoff)orrefusingpaymentclaimed(suchaswherethepaymentclaimhasnotbeenissuedinaccordancewiththerequirementsofclauses10.
2and10.
3oftheConditionsofContract)aresetoutinfullinthepaymentstatement-seethefurtherdiscussionofthisissueundertheheading"Clause10.
14-SecurityofPaymentLegislation".
Asnotedwithrespecttoclause10.
3oftheConditionsofContract,apaymentclaimwillnotbevalidlyissuedundertheContractunlesstheconditionsprecedentsetoutinclause10.
3oftheConditionsofContracthavebeensatisfied.
However,theContractAdministratormustnonethelessissueapaymentstatementwithin10businessdays.
TheContractAdministratorshouldidentifyinthepaymentstatementthereasonswhytheConsultantisnotentitledtotheprogresspaymentunderthetermsoftheContract,citingthespecificconditionsthathavenotbeensatisfied.
However,beforeissuingsuchapaymentstatement,adviceshouldbeobtainedfromtheDirectorateofConstructionContracts.
Indoingso,DefencepersonnelandtheContractAdministratormustbearinmindthattheContractAdministratormustissuethepaymentstatementwithinthetimeframespecifiedinclause10.
4oftheConditionsofContract.
IssuingapaymentschedulewithintherelevanttimeframeensuresthattherequirementsoftheContractaresatisfiedand,wheretheNewSouthWales,Victorian,Queensland,Tasmanian,AustralianCapitalTerritoryorSouthAustralianlegislationapplies,toavoidDefencebecomingliableunderthatlegislationtopaythewholeoftheclaimedamount-seethefurtherdiscussionofthisissuebelowundertheheading"Clause10.
14-SecurityofPaymentLegislation".
Becausethereareseriousconsequencesifapaymentstatementisnotissuedwithintherelevantperiod,specialistlegaladviceshouldbesoughtimmediatelyifthereisafailuretodothis.
AfailurebytheContractAdministratortoissueapaymentstatementinaccordancewiththeprovisionsofclause10.
4oftheConditionsofContract,includingprovidingacopytoDefenceonthesamedayasissuingthestatementtotheConsultant,mayalsoconstituteabreachoftheContractAdministrator'sobligationstoDefence.
IftheContractAdministratormakesanerrororotherwisewishestoamendsomethinginapaymentstatementafterithasbeenissued,itcan,forthepurposeoftheContract,correctormodifythepaymentstatementinasubsequentpaymentstatement(seeclause10.
10oftheConditionsofContract).
However,insofarasthepaymentstatementisaresponsetoaclaimmadeundertheSecurityofPaymentLegislationinNewSouthWales,Victoria,Queensland,Tasmania,theAustralianCapitalTerritoryorSouthAustralia,thepaymentstatementcannotbecorrectedormodifiedbyanysubsequentpaymentstatement.
Forthepurposesofclauses10.
4and10.
5oftheConditionsofContract,a"businessday"isdefinedinclause1.
2oftheConditionsofContract.
TherelevantperiodwithinwhichthepaymentstatementistobeissuedshouldbecalculatedcarefullyineachStateandTerritory.
InVictoria,serviceofapaymentstatementbyfacsimilemustbecompletedby4pm,orservicewillbetakentohavebeenreceivedonthenextbusinessday.
Thisisimportanttokeepinmindifthepaymentstatementisbeingfinalisedonthelastdayforitsservice.
Clause10.
5-PaymentDefencemust,withinthenumberofbusinessdayssetoutintheContractParticularsofreceivingthecopyofthepaymentstatementunderclause10.
4oftheConditionsofContractfromtheContractAdministrator,paytheConsultanttheamountsetoutasthenpayableinthepaymentstatement.
SpecificlimitationsontheperiodoftimeforpaymentareimposedbysecurityofpaymentlegislationaroundAustralia.
ThesemustbekeptinmindwhencompletingtheContractParticulars.
TheproformaContractParticularshavebeendraftedtoreflecttheselimitations.
InQueensland,wherethecontractisaheadcontractwhichinvolvesanybuildingworkwithinthemeaningofthattermintheQueenslandBuildingServicesAuthorityAct1991(Qld),theContractcanonlyprovideforamaximumof15businessdaysbetweenthedateofthepaymentclaimandthedateofpayment.
IftheContractprovidesforalongerperiod,theclauseisvoidandpaymentisdue10businessdaysafteraprogressclaimunderthestatutoryregimeismade.
Thelimitationdoesnotapplytocontractsforworkthatisnotbuildingwork,whichmayincludedesignservicescontracts.
However,forreasonsforconsistencyacrossDefence'ssuiteofcontracts,theproformaContractParticularforQueenslandis5businessdays.
InWesternAustralia,theContractcanonlyprovideforamaximumof50daysbetweenthedateofthepaymentclaimandthedateofpayment.
IftheContractprovidesforalongerperiod,theclauseisreadasrequiringpaymenttobemadewithin50daysofthepaymentclaim.
TheproformaContractParticularforWesternAustraliais10businessdays.
IntheNorthernTerritory,theContractcanonlyprovideforamaximumof50daysbetweenthedateofthepaymentclaimandthedateofpayment.
IftheContractprovidesforalongerperiod,theclauseisreadasrequiringpaymenttobemadewithin28daysofthepaymentclaim.
TheproformaContractParticularfortheNorthernTerritoryis10businessdays.
Inallotherjurisdictions,theproformaContractParticularis10businessdays.
Clause10.
6-PaymentonAccountClause10.
6oftheConditionsofContract(andthefinalpartofclause10.
4oftheConditionsofContract)seekstopreserveDefence'srighttosubsequentlymakeclaimsinrespectofworkeveniftherelevantamountshavebeenincludedinapaymentstatementorpaidforbyDefence.
Clause10.
7-CompletionPaymentClaimandNotice;Clause10.
8-ReleaseafterCompletionPaymentClaimandNoticeClause10.
7oftheConditionsofContractrequirestheConsultanttoissueapaymentclaimincludingallamountswhichtheConsultantclaimsfromDefenceundertheContractandnoticeofanyotheramountswhichtheConsultantclaimsfromDefence(outsidetheContract)inrespectofanythingthatoccurredinconnectionwiththeServicespriortoCompletionoftheWorksorSection.
Thismustbedonewithin28daysofCompletion.
TheproformapaymentclaimprovidedintheScheduleofCollateralDocumentscanbeusedfortheCompletionpaymentclaim.
Seecommentaryaboveinrespectofclause10.
2.
ThepaymentclaimandnoticerequiredunderthisclauseareinadditiontoanyothernoticewhichtheConsultantisrequiredtoissueinordertoprotectitsentitlementsundertheContract.
Inturn,clause10.
8oftheConditionsofContractprovidesareleasetoDefenceinrespectofmatterswhichoccurredpriortoCompletionwhicharenotsetoutinaclaimunderclause10.
7oftheConditionsofContractordirectlyarisingasaresultofaClaimmadebyathirdpartyagainsttheConsultantwhichcouldnothavebeenreasonablyforeseenbytheConsultantatthetimethepaymentclaimunderclause10.
7oftheConditionsofContractwassubmitted.
Paymentclaimsthatareissuedinrelationtoacompletionpaymentclaimarealsoconsideredtobe"progressclaims"underthetermsofthesecurityofpaymentlegislation.
Clause10.
9-InterestExceptwheretheNewSouthWales,Victorian,Queensland,Tasmanian,AustralianCapitalTerritoryorSouthAustraliansecurityofpaymentlegislationapplies,thisclauselimitsDefence'sliabilitytopayinterestonlatepaymentsanddamagestotheratestatedintheContractParticulars.
Theratepayablewilldependonwhethertheinterestpaymentisinrespectoflatepaymentsordamages.
TheapplicablerateissetoutintheContractParticulars.
Bystatingthatthiswill"betheConsultant'ssoleentitlementtointerestincludingdamagesforlossofuseof,orthecostof,borrowing,money"thisclauseisintendedtolimitDefence'sliabilityforwhataresometimesreferredtoasHungerfordsvWalkerdamagesforlossoftheuseoftheoverduemoney.
Unlessotherwisespecified,therateinrespectofdamageswillbetheAustralianTaxationOffice-sourcedGeneralInterestChargerateattheduedateforpayment.
ThisratecanbefoundontheAustralianTaxationOfficewebsite:www.
ato.
gov.
au.
WheretheNewSouthWales,Victorian,Queensland,Tasmanian,AustralianCapitalTerritoryorSouthAustraliansecurityofpaymentlegislationapplies,theConsultantwillbeentitledtostatutoryinterestonlatepaymentsatthehigheroftherateforlatepaymentswhichisstatedintheContractortheratewhichisidentifiedintheapplicablesecurityofpaymentlegislation.
Forexample,whereaprojectislocatedinQueenslandandtheContractinvolvestheperformanceofbuildingwork(asdefinedintheQueenslandBuildingServicesAuthorityAct1991(Qld)),theConsultantwillbeentitledtointerestundertheQueenslandsecurityofpaymentlegislationatthehigheroftherateprovidedforintheContract,ortheratewhichisthesumof10%plustheratecomprisingtheannualrateaspublishedfromtimetotimebytheReserveBankfor90daybills.
Clause10.
10-CorrectionofPaymentStatementsUnderthisclause,theContractAdministratormaycorrectormodifyanythingwritteninapreviouspaymentstatementinasubsequentpaymentstatement.
Clause10.
11-RightofSet-OffAsnotedabove,thisclausemakesitclearthatDefencemaydeductdebtsorothermoneysduefromtheConsultanttotheCommonwealthfromanymoneysotherwiseduetotheConsultant.
Toavoidargumentsaboutthescopeoftherighttosetoff,theContract'ssetoffprovisionsexpresslystatethatthepaymentobligation(underclause10.
1oftheConditionsofContract)issubjecttothesetoffright.
Withintheactualsetoffclause,itisstatedthatthedebt,moneysdueorclaimtomoneywhichtheCommonwealthwishestosetoffagainstthemoneysotherwiseduetotheConsultant,mayariseundertheContractorotherwiseatlawrelatingtotheServices.
Further,DefencemaydeductanydebtorclaimfrommoneyswhichmaybeorthereafterbecomepayabletotheConsultantinrespectofanyVariationthesubjectofa'VariationOrder'underclause9.
2oftheConditionsofContract.
TheamountofanysuchdeductionshouldalwaysbecontainedinthepaymentstatementissuedinresponsetotheConsultant'spaymentclaim.
FailuretodosomaymeanthatDefencehastopaythefullamountofthepaymentstatement,withoutanyfurtherrightofset-off,byvirtueofthesecurityofpaymentlegislation.
Clause10.
12-PaymentofWorkersandSubconsultantsThepurposeofthisclauseistoensurethattheConsultantpaysitsworkers,subconsultantsandsuppliersandthatsubconsultantsandtheirsuppliersalsopaytheirworkers.
ItdoesthisbyrequiringtheConsultanttoprovide,witheachpaymentclaim:astatutorydeclaration,togetherwithsupportingevidencereasonablyrequiredbytheContractAdministrator,that,excepttotheextentdisclosedinthestatutorydeclaration(suchdisclosuretospecifyallrelevantamounts,workersandsubconsultants):allworkershavebeenpaidallmoneysdueandpayabletotheminrespectoftheiremploymentontheServicesatthedateofthepaymentclaim;andallsubconsultantshavebeenpaidallmoneysdueandpayabletotheminrespectoftheServices;anddocumentaryevidencethat,excepttotheextentotherwisedisclosed,allworkerswhohavebeenemployedbyasubconsultantoftheConsultanthavebeenpaidallmoneysdueandpayabletotheminrespectoftheiremploymentontheServicesasatthedateofthepaymentclaim.
Aproformastandardstatutorydeclarationtitled'StatutoryDeclarationinrelationtopaymentofworkersandsubconsultants'isprovidedinVolume5[insertlink].
Compliancewiththisclauseisaconditionprecedenttotheentitlementtomakeapaymentclaimunderclause10.
2oftheConditionsofContract.
DefenceisentitledtowithholdfromanypaymentotherwiseduetotheConsultantanyamountsdisclosedasunpaidunderthisclause.
Ifrequired,thewithholdingmustbedoneinthepaymentstatementissuedinresponsetotherelevantpaymentclaim.
Ifthathasnotoccurred,thenDefenceshouldnotwithholdthepayment,andshouldpaythefullamountstatedaspayableinthepaymentstatement.
Clause10.
13-GSTGenerally,ratesandpricesundertheContractaretobetenderedonaGST-exclusivebasisandgrossed-upforanyapplicableGSTunderclause10.
13oftheConditionsofContract.
FordetailsoftheadministrationofthisclauseandGSTgenerallypleaserefertotheGSTmanualontheDefenceintranetathttp://defweb/cbr.
defence.
gov.
au/home/documents/departmental/manuals/gstman.
htm.
Clause10.
14-SecurityofPaymentLegislationTheprovisionsinthisclauseareintendedtoassistintheadministrationoftheprocessesunder,andcompliancewith,therelevantsecurityofpaymentlegislation.
Forinstance,thesecurityofpaymentlegislationrequiresthepersonwhoisliabletopaythepaymentclaimtoissuethepaymentstatement.
Clause10.
14oftheConditionsofContractprovidesthat,forthepurposesofthelegislation,theContractAdministratorissuespaymentstatementsasagentofDefence.
DefencemayrevoketheappointmentoftheContractAdministratorasDefence'sagentfortheabovestatedpurposesatanytime.
ItmustgivenoticeofsuchrevocationtotheConsultantfortherevocationtohaveeffectwithregardstotheConsultant.
Aproformanoticetitled'RevocationofappointmentofContractAdministratorastheCommonwealth'sagentunderSecurityofPaymentLegislation'isprovidedinVolume5[insertlink].
Similarly,inVictoria,Defenceisentitledtoprovidesecurityratherthanpaymentforadjudicatedamountsifitinstitutesdisputeresolutionproceedingsinrelationtotheclaim.
Inaddition,clause10.
14(e)oftheConditionsofContractcontainsprovisionsintendedtoensureconfidentialityofDefenceinformationintheeventthatanadjudicationapplicationismadeandDefenceprovidesinformationinresponsetothatapplication.
AproformanoticefromtheConsultantrequestingDefence'sconsenttodivulgeinformationinrelationtoaSecurityofPaymentLegislationadjudicationapplicationandaproformanoticefromDefencetotheConsultantinresponsetothisrequesttitled'RequestforconsenttodivulgeinformationinrelationtoaSecurityofPaymentLegislationadjudicationapplication'and'ResponsetorequestforconsenttodivulgeinformationinrelationtoaSecurityofPaymentLegislationadjudicationapplication'(respectively)isprovidedinVolume5[insertlink].
DefencepersonnelandagentsofDefencesuchastheContractAdministratormustensurethattheyarefamiliarwiththerequirementsofthesecurityofpaymentlegislation(ifany)whichappliestothecontractstheyareadministering.
Toassistwiththatfamiliarisation,thefollowingdiscussionprovidesanoverviewofthelegislation.
SecurityofPaymentLegislationInresponsetodecadesoflobbyingbysubcontractorgroupsseekingsecurityforthepaymentofsubcontractors,legislationhasbeenenactedinallStatesandTerritoriesdirectedatsecuringprogresspaymentsforcontractors,subcontractors,consultantsandsuppliersinthebuildingandconstructionindustry.
Thecurrentsecurityofpaymentlegislationisasfollows:BuildingandConstructionIndustrySecurityofPaymentAct1999(NSW),whichappliestocontractsenteredintoafter26March2000;BuildingandConstructionIndustrySecurityofPaymentAct2002(Vic),whichappliestocontractsenteredintoafter31January2003;BuildingandConstructionIndustryPaymentsAct2004(Qld),whichappliestocontractsenteredintoafter1October2004;ConstructionContractsAct2004(WA),whichappliestocontractsenteredintoafter1January2005;ConstructionContracts(SecurityofPayment)Act2004(NT),whichappliestocontractsenteredintoafter1July2005;BuildingandConstructionIndustrySecurityofPaymentAct2009(Tas),whichappliestocontractsenteredintoafter17December2009;BuildingandConstructionIndustry(SecurityofPayment)Act2009(ACT),whichappliestocontractsenteredintoafter1July2010;andBuildingandConstructionIndustrySecurityofPaymentAct2009(SA),whichappliestocontractsenteredintoafterthecommencementdateofthisAct(althoughthelegislationhasnotcomeintooperationasat20May2011).
Apartfromsomeverylimitedtypesofcontractswhichareexcludedfromthelegislation,thelegislationineachjurisdictionappliestoallcontractsfortheperformanceofconstructionworkandrelatedgoodsandservicesinthatjurisdiction.
Thatis,theNewSouthWaleslegislationappliestoallcontractsforconstructionworkandrelatedgoodsandservicesperformedinNewSouthWales,andtheWesternAustralianlegislationappliestoallcontractsforconstructionworkandrelatedgoodsandservicesperformedinWesternAustralia,andsoon.
Thedefinitionofconstructionworkandrelatedgoodsandservicesinallthelegislationisverywideinscope,althoughtherearesomedifferencesinthewordingofthedefinitionineachregime.
Universally,thedefinitioncapturesactivitiessuchastheconstruction,alteration,repair,restoration,maintenance,extensionordemolitionofbuildingsandstructures,roadworks,powerlines,aircraftrunways,railways,pipelines,reservoirsandmore.
Italsoincludestheinstallationofheating,lighting,airconditioning,ventilation,powersupply,drainage,sanitation,watersupply,securityandcommunicationsystems,andfireprotection,aswellastheerection/dismantlingofscaffolding,prefabricationofcomponents,andpaintinganddecorating.
Thelegislativeregimesalsoextendtothesupplyofrelatedgoodsandservicesforconstructionwork.
Thistermisalsowidelydefinedineachregime,andcapturesmaterialsandcomponentstoformpartofanybuilding,structureorworkarisingfromconstructionwork;plantormaterialsusedinconstructionwork,theprovisionoflabour,architectural,engineering,quantitysurveyinganddesignservices.
Thewidedefinitionhasanumberofconsequences.
Forinstance,theNewSouthWaleslegislationwillapplytoacontractforarelatedgoodorservicesifthatgoodorserviceistobeusedinconstructionworkbeingperformedinNewSouthWales,eventhoughthatgoodorserviceisbeingsuppliedorperformedoutsideofNewSouthWales.
Thesameconsequencesariseinrespectoftheotherjurisdictionswithsecurityofpaymentlegislation.
IfthesecurityofpaymentlegislationappliestotheServices(ortheprovisionofanyrelatedgoodsandservices)undertheContract,itislikelythatitwillalsoapplytosubcontractswhichtheConsultantlets.
Insuchcircumstances,DefencewillberequiredtocomplywiththerelevantsecurityofpaymentlegislationinrespectofpaymentstotheConsultant,andtheConsultantwillalsoberequiredtocomplywiththeprovisionsofthesecurityofpaymentlegislationintheadministrationofitssubcontracts(towhichthesecurityofpaymentlegislationapplies).
LegislationinNewSouthWalesandVictoriagivesasubconsultantanentitlementtoobtainpaymentofadjudicatedamountsoutofmoneythatispayableorbecomespayablebyDefencetotheConsultantincircumstanceswhere:anadjudicatorhasdeterminedthatanamountispayablebytheConsultanttothesubconsultant;thatadjudicatedamounthasnotbeenpaid;thesubconsultanthasobtainedjudgmentfortheadjudicatedamountandadebtcertificatehasbeenissued;anoticeofclaimisgiventoDefence(whichnoticeoperatesasanassignmentoftheobligationofDefencetopaymoneyowedtotheConsultant).
InNewSouthWales,therelevantlegislationistheContractorDebtsAct1997(NSW),andinVictoriaitistheBuilding&ConstructionIndustrySecurityofPaymentAct2002(Vic).
Althoughthesecurityofpaymentlegislationissimilarinintentandobjectives,eachStateandTerritorysecurityofpaymentlegislationisdifferentandhasitsowncomplexities.
AdviceontheimpactofthesecurityofpaymentlegislationonaparticularcontractshouldbesoughtfromtheDirectorateofConstructionContracts,ifnecessary.
Giventheshorttimeframesprovidedforunderthesecurityofpaymentlegislationgenerally,thisadviceshouldalwaysbesoughtasamatterofutmosturgency.
AchievingthepurposeofthelegislationThesecurityofpaymentlegislationineachjurisdictioniscommoningrantingastatutoryentitlementtoprogresspayments.
Thelegislationisalsocommoninprovidingaprocessofrapidadjudicationofpaymentdisputeswiththegoalofobtainingaquick,interim,determinationofthosedisputesandthepaymentofanyamountwhichisdeterminedbytheadjudicatorasbeingpayable.
Thedeterminationdoesnotfinallydecidetherightsoftheparties.
Theymaycontinuetopursuethoserightsthroughcourt,arbitrationoranyotherdisputeresolutionprocess.
Significantlyhowever,exceptinVictoria,orinveryrareinstanceswhereastayofthedeterminationmightbeobtained,whereaclaimantisdeterminedbyanadjudicatortobeentitledtopaymentofanamount,thatamountmustbepaidnowbytheotherparty,despitethedisputedentitlementbeingreferredtocourt,arbitrationorotherdisputeresolutionprocess.
TheVictorianlegislationstandsaloneinpermittingsecuritytobegivenintheformofabankguaranteeorpaymentintoadesignatedtrustaccountasanalternativetopaymentofadeterminedamounttotheclaimant.
ThesecurityofpaymentlegislationinNewSouthWales,Victoria,Queensland,Tasmania,theAustralianCapitalTerritoryandSouthAustraliaalsoincludesastatutoryprocessforthemakingofprogresspaymentclaimsandrespondingtothem.
Thisstatutoryprocessexistsalongsideandisinadditiontoanycontractualprovisionsdealingwiththemakingofprogressclaimsandrespondingtothem.
Thestatutoryprocessinvolves:theclaimantmakingapaymentclaimwhichisstatedtobeaclaimundertherelevantAct;therespondentrespondingtothepaymentclaimwithinaverylimitedtimeframe(10businessdays)bywayofapaymentschedule.
Ifaclaimantdisputestheamountthattherespondentproposestopayinrespectoftheclaim,itcanreferthedisputetotherapidadjudicationprocess.
CompliancewiththestatutoryprocedureistheonlywayforaclaimanttoaccesstherapidadjudicationprocessinthoseStatesandTerritory.
Enliveningthestatutoryprocessformakingprogresspaymentclaimsandrespondingtothemisatthesolediscretionofaclaimant,anditisonlyaclaimantwhocanreferadisputetotherapidadjudicationprocess.
ThesecurityofpaymentlegislationinWesternAustraliaandtheNorthernTerritorydoesnotprovideasimilarstatutoryprocess.
Thecontractalonegovernstheprocessbywhichprogresspaymentsareclaimedandresponsesmade,althoughthelegislationimpliestermsaboutthosemattersintothecontractifthewrittencontractissilentaboutthem.
If,asaresultofthatcontractualclaimandresponseprocess,thereisadisputeaboutpayment,thatpaymentdisputecanbereferredbyeitherpartytotherapidadjudicationprocessforinterimdetermination.
Disputesaboutthereturnofretentionofmoneyandsecuritymayalsobereferredbyeitherpartytoadjudication.
WhereprojectsaretobeundertakeninNewSouthWales,Victoria,Queensland,Tasmania,theAustralianCapitalTerritoryandSouthAustralia,itisextremelyimportantthattheContractAdministratorunderstandshowandwhenprogresspaymentsaretobeclaimedandrespondedtounderthestatutoryprocessinthoseStatesandTerritory,andthetimeframesinvolved.
TherearepotentiallyseriousimplicationstoDefenceunderthesecurityofpaymentlegislationinthoseStatesandTerritoryiftherequirementsandtimeframesarenotstrictlyfollowed.
Nonetheless,thefollowingdiscussionisalsoimportanttoprojectsinotherjurisdictionsbecausethestatutoryprocessformakingpaymentclaimsandrespondingwhichexistsinNewSouthWales,Victoria,Queensland,Tasmania,theAustralianCapitalTerritoryandSouthAustraliahasbeenincorporatedintoclause10oftheConditionsofContractandisthereforereflectedincontractualobligations.
PaymentClaimUndertheNewSouthWales,Victorian,Queensland,Tasmanian,AustralianCapitalTerritoryandSouthAustralianlegislation,aconsultantisentitledtosubmitapaymentclaimunderthestatutoryprocessfromeachreferencedate.
Relevantly,"referencedate"meansthedateforsubmittingpaymentclaimsstatedinthecontract.
Clauses10.
2(a)and10.
2(b)oftheConditionsofContractprescribethe"referencedates"forthepurposesofthiscontract.
ItisveryimportantthattheContractParticularsbecompletedbecause,intheabsenceofanystateddate,thereferencedatewillbe,forthepurposesoftheNewSouthWales,Queensland,Tasmanian,AustralianCapitalTerritoryandSouthAustralianlegislation,thelastdayofeachmonthinwhichworkwasperformedorrelatedgoodsandservicessupplied,andundertheVictorianlegislation,itwillbe20businessdaysafterworkwasperformedorrelatedgoodsandservicessupplied.
Therearecertainstatutoryrequirementsforavalidpaymentclaim:itisinwritingandaddressedtotherespondent(i.
e.
Defence);itclearlyidentifiesordescribestheconstructionworkorrelatedgoodsandservicestowhichitrelates;itstatestheamountclaimedaspayable;anditstatesthatitismadeundertherelevantlegislation.
Sofaraspossible,theserequirementshavebeenincorporatedintoclause10oftheConditionsofContractandintheproformapaymentclaimsetoutintheScheduleofCollateralDocuments.
Whethertheelementsdescribedin(b)and(c)aresatisfieddependsonwhatdetailtheConsultantprovidesinitsclaim.
Whethertheelementdescribedin(d)issatisfieddependsontheConsultanttickingtherelevantboxintheproformaor,iftheproformaisnotused,includingthestatementprescribedbythelegislationthatitisaclaimundertheapplicablesecurityofpaymentlegislation.
Statutorypaymentclaimscanonlybeservedwithinaperiodprescribedunderthecontract,orwithin12months(exceptinSouthAustraliaitis6months)aftertheconstructionworkorsupplyofrelatedgoodsandservicesthesubjectofthepaymentclaimwerecarriedoutorsupplied,whicheveristhelater.
TheContractAdministratormustcarefullyexaminealldocumentationreceivedbytheclaimanttoidentifywhetheritisavalidpaymentclaimundertheContractand,iftheNewSouthWales,Victorian,Queensland,Tasmanian,AustralianCapitalTerritoryorSouthAustraliansecurityoflegislationapplies,ifitisavalidclaimundertherelevantlegislation.
Iftheclaimisnotvalid,thatfactandthereasonwhytheContractorAdministratorsaystheclaimisnotvalid(whetherundertheContractorunderthelegislation)mustbesetoutinthepaymentstatementwhichrespondstotheclaim(discussedbelow).
PaymentStatementThemostimportantfeatureoftheprogressclaimregimesetupbytheNewSouthWales,Victorian,Queensland,TasmanianandAustralianCapitalTerritorysecurityofpaymentlegislationistheneedforarespondenttoissueapaymentschedulewithin10businessdaysofreceivingapaymentclaimmadeundertherelevantsecurityofpaymentlegislation.
InSouthAustralia,apaymentschedulemustbeprovidedwithinthetimerequiredbytherelevantcontractorwithin15businessdaysafterthepaymentclaimisserved,whicheverisearlier.
Clause10.
4oftheConditionsofContractprovidesforthedeliveryofapaymentschedule(calledpaymentstatement)within10businessdaysofreceiptofapaymentclaim.
ThisreflectsthetimeperiodwithinwhichapaymentschedulemustbeissuedundertheNewSouthWales,Victorian,Queensland,TasmanianandAustralianCapitalTerritorylegislationandrequiredinaccordancewiththeSouthAustralianlegislation.
ForcontractssubjecttotheNewSouthWales,Victorian,Queensland,Tasmanian,AustralianCapitalTerritoryorSouthAustraliansecurityofpaymentlegislation,itisvitalthatapaymentscheduleisissuedwithinthattimeperiod.
Ifapaymentscheduleisnotservedwithinthattimeperiod,Defencewillbecomeliableunderthelegislationtopaythefullamountoftheclaim(asastatutorydebt)ontheduedatefortheprogresspaymenttowhichtheclaimrelates.
TheConsultantwillbeentitledtorecovertheunpaidportionoftheclaimasadebtinsummaryproceedings,andDefencecannotbringanycrossclaimorraiseanydefenceinrelationtomattersarisingundertheContractinthoseproceedings.
TheConsultantisalsogivenastatutoryrighttosuspendtheworkundertheContractbygivingwrittennoticeofsuspensionandisnotliableforanylossordamagesufferedbyDefenceasaresultofthatsuspension.
Regardlessofwhetherornotapaymentclaimcomplieswiththecontractualorstatutoryrequirementsforavalidpaymentclaim,theContractorAdministratormustnonethelessissueapaymentscheduleinresponsetotheclaim.
AContractorAdministratormustnotrefusetodealwiththeclaimbecauseinhisorherviewthepaymentclaimisinvalid.
Thereasonforthatisbecause,onastrictinterpretationoftheNewSouthWales,Victorian,Queensland,Tasmanian,AustralianCapitalTerritoryandSouthAustraliansecurityofpaymentlegislation,ifapaymentscheduleisnotissued,Defencebecomesliabletopaythewholeoftheamountclaimed.
Whilethatliabilitymaybeabletobeultimatelyresistedifthepaymentclaimisinfactinvalid,itisclearlypreferabletonothavetoarguetheissueinthefirstplace,andthiscanbeachievedbyissuingapaymentschedulewithintime.
ThisneedtoissueapaymentschedulehasbeenreinforcedintheDefencecontractsbyincludingacontractualrequirementthatapaymentschedulebeissued(clause10.
4oftheConditionsofContract).
TheNewSouthWales,Victorian,Queensland,Tasmanian,AustralianCapitalTerritoryandSouthAustralianlegislationdoesnotprescribeaformatforapaymentschedule,exceptthatitmust:identifythepaymentclaimtowhichitrelates;statetheamountofthepayment,ifany,thattherespondentproposestomake(thisisknownasthe'scheduledamount');andifthescheduledamountislessthantheclaimedamount,statethereasonswhyitisless.
Asnotedintheearlierdiscussionofclause10.
4,theContractorAdministratormustensurethatallreasonsforreducingthepaymentclaimed,withholdingpaymentorrefusingthepaymentclaimedaresetoutinthepaymentstatement.
Whilesettingoutthereasonsisarequirementofclause10.
4oftheConditionsofContractandreflectsgoodpracticeinanyevent,itiscriticalwheretheNewSouthWales,Victorian,Queensland,Tasmanian,AustralianCapitalTerritoryorSouthAustraliansecurityofpaymentlegislationapplies.
Inthosejurisdictions,iftheConsultantsubsequentlydisputesthepaymentscheduleandrefersthedisputetoadjudication,Defencewillbelimitedtomakingsubmissionsonthereasonsforreductionthatwereincludedinthepaymentschedule.
IftheContractAdministratorcomplieswithclause10.
4oftheConditionsofContractandusestheproformapaymentstatementthatisincludedintheScheduleofCollateralDocuments,itshouldensurethatDefencemeetstherequirementsandtimeframeofthelegislationinrelationtothedeliveryofpaymentschedules.
Ofcourse,aswiththeConsultant'scompletionofthepaymentclaim,muchdependsontheinformationthatisinsertedintotheproformadocument.
AdjudicationUponreceiptofanadjudicationapplication,theContractAdministratormustimmediatelynotifytheDirectorateofConstructionContractsandseeklegaladvice.
Defencehasonlyaveryshorttimeframewithinwhichtorespondtotheadjudicationapplication:inNewSouthWales,Victoria,QueenslandandSouthAustralia,thetimeforsubmittingaresponseisthelaterof5businessdaysafterreceivingacopyoftheapplicationor2businessdaysafterreceivingnoticeofanadjudicator'sacceptanceoftheapplication;inWesternAustralia,thetimeforsubmittingaresponseis14daysafterreceiptofanadjudicationapplication;intheNorthernTerritory,thetimeforsubmittingaresponseis10workingdaysafterreceiptofanadjudicationapplication;inTasmania,thetimeforsubmittingaresponseis10businessdaysafterreceiptofanadjudicationapplicationor5businessdaysafterreceivingnoticeofanadjudicator'sacceptanceoftheapplication;intheAustralianCapitalTerritory,thetimeforsubmittingis7businessdaysafterreceiptofanadjudicatorapplicationor5businessdaysafterreceivingnoticeofanadjudicator'sacceptanceoftheapplication.
Clause10.
15-AccountingRecordsThisclauserequirestheConsultanttokeepaccurateandup-to-dateaccountingrecordsinrelationtoVariationsandallotheramountspayabletotheConsultant(otherthanasspecifiedfortheoriginalFee).
ThisisrequiredinorderthattheConsultantcansubstantiateanyclaims,andtheContractAdministratorcanbeproperlyandfullyinformedthroughtheperusalofproperaccounts,whenconsideringanypaymentclaimsmadebytheConsultant.
ThisclauseobligestheContractortoassisttheCommonwealthtoreportonanaccrualbasis.
Compliancewiththisclauseisaconditionprecedenttotheentitlementtosubmitapaymentclaimunderclause12.
2oftheConditionsofContract.
TheContractormustprovidetheContractAdministratorwithaccurateinformationwhichapportionsmonthlycostsagainstbuildings,infrastructureandexpensesforallworkcompletedinthepreviousmonth.
SuchinformationistobeprovidedinaformatapprovedbytheContractAdministrator.
Clause10.
16-CostAllocationAdviceThisclauseobligestheConsultanttoassisttheCommonwealthtoreportonanaccrualbasis.
Compliancewiththisclauseisaconditionprecedenttotheentitlementtosubmitapaymentclaimunderclause10.
2oftheConditionsofContract.
TheConsultantmustprovidetheContractAdministratorwithaccurateinformationwhichapportionsmonthlycostsagainstbuildings,infrastructureandexpensesforallServicescompletedinthepreviousmonth.
SuchinformationistobeprovidedinaformatapprovedbytheContractAdministrator.
Clause10.
17-FacilitiesandInfrastructureAccountingThisclauseobligestheConsultanttoassisttheCommonwealthinbringingallcompletedfacilitiesandinfrastructuretoaccount.
Compliancewiththisclauseisaconditionprecedenttotheentitlementtosubmitapaymentclaimunderclause10.
2oftheConditionsofContractandmustbedonepriortocompletionoftheServices.
TheConsultantmustprovideacostreporttotheContractAdministratorsettingoutdetailsoftheportionoftheFee,themattersspecifiedintheContractParticularsandanyothermattersrequiredbytheContractAdministrator.
Clause10.
18-DEMSandGFISThisclauseobligestheConsultanttoassisttheCommonwealthtocomplywithitsDefenceEstateManagementSystem(DEMS)obligationsanditsGeographicalFacilitiesInformationSystem(GFIS)obligations.
Compliancewiththisclauseisaconditionprecedenttotheentitlementtosubmitapaymentclaimunderclause10.
2oftheConditionsofContract.
TheConsultantmustprovidetotheContractAdministratorthefollowinginformation:DEMSInformation-beinginformationregardingthemaintenanceandoperationofbuildings,plantandequipment(includingcostsforreplacement,maintenancerequirements,thedesignlifeoftheassetandwarranties);andGFISInformation-beinginformationregardingthemaintenanceandoperationofbuilding,plantandequipment(includingSiteplansforallDSGcontrolledpropertiesshowingthephysicallocationofallbuildings,services,propertydetailsandtopography,incompliancewithCommonwealthstandardsforthedeliveryofsuchinformation,atthetimesstatedinthatclause.
CLAUSE11-TERMINATIONGeneralThisclausesetsouttheprocedurewhichmustbefollowedifDefenceiscontemplatingterminatingtheContractbeforetheConsultant'sobligationshavebeenfullydischarged.
TheserightsareexpressedtobeexercisedbyDefenceratherthantheContractAdministrator.
Thisisdeliberate;terminationisaveryseriousmatterandisnottobecontemplatedwithoutappropriatestrategicconsideration(includingspecialistlegalandotheradvice).
Forthisreason,adetailedanalysisofthisclauseisbeyondthescopeoftheManual.
Havingsaidthat,bywayofsummary,theContractprovidesforthreecategoriesofcircumstancesinwhichDefencemayhavetherighttoterminatetheContract:fordefault(clauses11.
2and11.
3oftheConditionsofContract);forinsolvencyoftheConsultant(clauses11.
4-11.
5oftheConditionsofContract);andfortheCommonwealth's"convenience"(clause11.
7oftheConditionsofContract).
Eachofthesecategorieshasitsownproceduresandconsequences.
Theseareoutlinedbelow.
Clause11.
1-PreservationofRightsThepurposeofthisclauseistopreventtheterminationprovisionsinclause11oftheConditionsofContractfrombeingreadorinterpretedasa"code".
Thatis,thisclauseseekstoensurethat,whilsttheContractcreatesarighttoterminatetheContractinaccordancewithclause11oftheConditionsofContract,bothpartiesalsohaveaccesstoanycommonlawrightsorremediesintheeventofdefault(subjecttotheexpresstermsofclause11oftheConditionsofContract).
Clause11.
2-ConsultantDefault;Clause11.
3-ContentsofNoticeofDefaultIftheConsultantdoesanyofthethingslistedinclauses11.
2(a)-11.
2(g)oftheConditionsofContract(notethecatch-allreferenceinparagraph(g)tosubstantialbreachesnototherwisesetoutinparagraphs(a)-(f)),DefenceisentitledtoissueawrittennoticetotheConsultantnotifyingitofitsdefaultundertheContract.
Suchanoticeshouldbepreparedwithappropriatelegaladviceandmustbeinaccordancewithclause11.
3oftheConditionsofContract-assuchthereisno'proformanotice'provided.
Clause11.
4-TerminationforInsolvencyorBreachDefencehasarightofimmediateterminationbywrittennoticeforboth:anunremediedbreachthesubjectofanoticeunderclause11.
3oftheConditionsofContract;andtheoccurrenceofan"InsolvencyEvent"(asdefinedinclause1.
1oftheConditionsofContract).
Suchanoticeshouldbepreparedwithappropriatelegaladviceandmustbeinaccordancewithclause11.
4oftheConditionsofContract-assuchthereisno'proformanotice'provided.
Clause11.
5-Commonwealth'sEntitlementsAfterTerminationWheretheContracthasbeenterminatedunderclause11.
4oftheConditionsofContract,theConsultantmustdocertainthingsto"handover"theContract.
Thesearesetoutinclause11.
5oftheConditionsofContract.
DefenceshouldnotmakeanyfurtherpaymentstotheConsultantuntilithassatisfiedallclaimswhichithasagainsttheConsultantarisingoutofthetermination.
Thiscouldincludethecostofre-tenderingtheproject,andanyadditionalcostpayabletothenewconsultanttocompletethisproject.
Clause11.
6-Consultant'sEntitlementsafterTerminationIfDefencehasrepudiatedtheContractandtheConsultanthasvalidlyterminatedthecontractinresponse,theConsultant'sentitlementtoclaimwillbelimitedtoanamountdeterminedinaccordancewithclause11.
8oftheConditionsofContract(seebelow).
ThisclauseexpresslypreventstheConsultantfromclaiminganamountinsuchcircumstancesviaaquantummeruitaction.
Underthegenerallaw,theConsultantcouldhavetherighttoelecttorecoveronthebasisofeitherdamagesoraquantummeruit,andwouldnaturallychoosethebasiswhichresultedingreatercompensationfortheConsultant.
Again,ifanyallegationismadethatDefencehasrepudiatedtheContract(and,therefore,thatclause11.
6oftheConditionsofContractapplies),urgentlegaladviceshouldbesought.
Clause11.
7-TerminationforConvenience;Clause11.
8-CostsExercisingthepowertoterminatefor"convenience"should,asstatedabove,notbeconsideredwithoutappropriatestrategicandlegaladvice.
ShouldDefencewishtoexerciseitsrightthenitmustprovidewrittennoticetotheConsultantstatingitsintentiontodoso.
Suchanoticeshouldonlybepreparedwithappropriatelegaladviceandmustbeinaccordancewithclause14.
7oftheConditionsofContract-assuchthereisno'proformanotice'provided.
UsersshouldnotethattheConsultantwillbeentitledtopaymentinaccordancewithclause11.
8oftheConditionsofContractifDefenceexercisesitsrighttoterminateunderclause11.
7oftheConditionsofContract.
Theamountofthatpayment,althoughalimitationonthecompensationpayable,couldneverthelessbesignificant.
Clause11.
9-CopiesofProjectDocumentsAfterCompletionorterminationoftheContractunderclause11oftheConditionsofContract,theConsultantmayretainonecopyoftheProjectDocumentsifrequiredtodosotocomplywithaStatutoryRequirementorqualityassurancesystem,aslongastheConsultantcomplieswiththerequirementsofclause11.
9oftheConditionsofContract.
ThatrequirestheConsultanttogivewrittennoticeoftherequirementwithwhichithastocomply,maintainconfidentialitytotheContractAdministratorandtakeallstepswhichtheContractAdministratormayrequiretomaintainconfidentiality.
Aproformanoticetitled'NoticeofrequirementtoretaincopyofProjectDocumentsafterTermination'isprovidedinVolume5[insertlink].
CLAUSE12-DISPUTESGeneralThisclausesetsoutaprocedurefortheresolutionofdisputes.
Thisprocedureisoutlinedintheflowcharttitled'Flowchart5:Disputes'setoutinVolume4[insertlink].
Essentially,thereare4steps:commencingtheprocess(clause12.
1oftheConditionsofContract);expertdetermination(clauses12.
2-12.
10oftheConditionsofContract)-notethisstageonlyappliesifthedisputeordifferencerelatestoadirectionoftheContractAdministratorunderoneoftheclausesspecifiedintheContractParticulars(essentiallyacertifyingfunction);ifnot,thepartiesaretoproceeddirectlytoexecutivenegotiation;executivenegotiation(clauses12.
11and12.
12oftheConditionsofContract);andarbitration(clauses12.
12and12.
13oftheConditionsofContract).
Theintentoftheprovisionsisthat:disputesberesolvedattheearlieststagepossible;andtotheextentpossible,disputesnotbethesubjectofcourtproceedings.
Clause12.
1-NoticeofDisputeWhereadisputeordifferencearises,eitherDefenceortheConsultantmaygivenoticeinwritingtotheContractAdministratorandtheotherpartyspecifyingthedisputeordifference,particularsoftheparty'sreasonsforbeingdissatisfiedandthepositionwhichthepartybelievesiscorrect.
Clause12.
2-ExpertDeterminationAsnotedabove,theContractAdministratorisexpressed(underclause4.
1oftheConditionsofContract)toactasagentofDefence(andnotasacertifier)whenexercisingallitsfunctionsundertheContract.
Ifthiswerenotthecase,thentheContractAdministratorwouldberequiredtoexerciseanumberofthosefunctionsasacertifier.
ThiscouldmeanthattheContractAdministrator(whowilltypicallybeaDefenceconsultant)mighthavetoactindependentlyofDefencewhenexercisingthosefunctions.
AsagentandundertheDIPTermsofEngagement,theContractAdministratorhastoactinaccordancewithDefence'sdirections.
ToaffordtheConsultantameasureofcomfortthattheContractAdministratorisactinginaccordancewiththeContract,disputesarisingoutofcertaindirectionsoftheContractAdministratormustbereferredtoexpertdetermination,ifthepartiescannototherwiseresolvethedisputewithin14days.
ThefunctionstowhichtheprocedureappliesarethosereferredtointheContractParticularsandlistedbelow:clause2.
11(e)oftheConditionsofContract-valuationofextracostsincurredasaresultofcarryingoutinstructionsinnoticeinrelationtochangeinStatutoryRequirementsorvariancewiththeContract;clause8.
4(b)(ii)A1oftheConditionsofContract-determinationoftheincreaseintheFeeduetotheextracostsincurredasaresultofsuspensionnotcausedbytheConsultant'sfailuretocarryoutitsobligationsinaccordancewiththeContract;clause8.
8oftheConditionsofContract-determinationofreasonabletimebywhichtoextendtheDateforCompletion;clause8.
9oftheConditionsofContract-assessmentofwhethertheextensionoftimeshouldbereducedduetocontributiontoorfailuretomitigatedelaybytheConsultant;clause9.
3(b)oftheConditionsofContract-determinationofamountforVariations,usingratesandpricesintheTableofVariationRatesandPrices(totheextentapplicableoritisotherwisereasonabletousethem);clause9.
3(c)(ii)oftheConditionsofContract-determinationofareasonableamountforVariationswhereratesinTableofVariationRatesandPricesareinapplicableandthepartiescannototherwiseagree;clause10.
4oftheConditionsofContract-issueofpaymentstatements;clause11.
8(a)oftheConditionsofContract-assessmentofamountstobepaidbyDefencetotheConsultantuponterminationbyDefencefor"convenience";andclause15.
3(e)oftheConditionsofContract-valuationofreasonablecostsincurredasaresultofcarryingoutinstructionsinnoticerelatingtoalteredlevelofSAFEBASE.
BecausethisdefaultlistisdesignedtopickupmostofthefunctionsinwhichtheContractAdministratorperformsatypeofcertifierrole,itshouldnotbealteredwithoutappropriateadvice.
Clause12.
3-TheExpert;Clause12.
4-NotArbitration;Clause12.
5-ProcedureforDetermination;Clause12.
6-DisclosureofInterest;Clause12.
7-Costs;Clause12.
8-ConclusionofExpertDetermination;Clause12.
9AgreementwithExpertTheseclausessetouttheprocedurestobefollowedinconductingtheexpertdetermination.
ThesewillbesupplementedbytheagreementbetweenDefence,theConsultantandtheexpertwhichisrequiredtobeexecutedunderclause12.
9oftheConditionsofContract.
AdetailedanalysisoftheseprovisionsisbeyondthescopeoftheManual.
Almostinevitably,complexfactualandlegalissuesmustbeconsideredbythepartiesbeforeanexpertdetermination.
Ifanyissuesarise(includingarequestbyeitherparty,ortheexpert,toaltertheseprocedures),appropriatespecialistadviceshouldbesought.
Clause12.
10-DeterminationofExpertThisclauseprovidesthatthepartiesagreetobeboundbythedeterminationoftheexpertunlesseitherpartygivesanoticeofappealtotheotherpartywithin21daysofthedetermination.
Legaladviceshouldbesoughtwithrespecttothecontentsofanynoticeofappeal.
Clause12.
10(b)oftheConditionsofContractprovidesthatthedeterminationoftheexpertwillbesubstitutedfortherelevantdirectionoftheContractAdministrator.
Clause12.
11-ExecutiveNegotiationBeforeadisputeissubmittedtoarbitration,itmustfirstbereferredforexecutivenegotiation(i.
e.
theprocessdescribedinclause12.
11oftheConditionsofContract)inanattempttoresolveit.
TheExecutiveNegotiators(beingtheCommonwealthandtheConsultant'sExecutiveNegotiatorslistedintheContractParticulars)arerequiredtoundertake"genuineandgoodfaithnegotiations"toresolvethedisputeorifthedisputeordifferencecannotberesolved,toagreeuponaproceduretoresolvethedispute.
Executivenegotiationappliesto:appealsfromdeterminationsofexperts;anddisputeswhichdonothavetobefirstreferredtoexpertdetermination(i.
e.
alldisputesotherthanthosereferredtoinrelationtoclause12.
2oftheConditionsofContractabove).
Clause12.
12-ArbitrationAgreementThisclauserequiresalldisputesnotresolvedbyexecutivenegotiationtobereferredtoarbitration,bythegivingofwrittennoticebyeitherparty.
Legaladvicemustbeobtainedforthepreparationofthearbitrationnotice.
Clause12.
13-ArbitrationArbitrationisamethodofdisputeresolutionwhichpartiescanagreetosubmitto.
Unlikeexpertdetermination,theprocessofarbitrationismoreformal,ispartlygovernedbylegislationandcanproducefinalandbindingoutcomes.
Thepartiesarealsoabletoagreeontheprocedurewhichwillgovernthearbitration.
Defencehassoughttodothisinclause12.
13oftheConditionsofContractinordertoprovideaprocedurefocusedonachievingqualitydecisionsbothefficientlyandcosteffectively.
Becausearbitrationsresultinformalandbindingawards,appropriateandspecificlegaladvicemustbetakeninpreparationforanyarbitration.
Accordingly,nofurthergeneralguidanceisprovidedhere.
Clause12.
14-ProportionalLiabilityAnumberofAustralianjurisdictionshavenowimplementedproportionalliabilitylegislation.
SuchproportionalliabilitylegislationhasthepotentialtodisruptandimpactontheriskallocationsetoutintheContract,includingprovisionsinrespectof:governinglawoftheContract(clause1.
2(a)oftheConditionsofContract);jointandseveralliability(clause1.
2(d)oftheConditionsofContract);andarbitration(clause12.
13oftheConditionsofContract).
Inessence,theproportionalliabilityregimeallowsapartytoreduceitsliability,includingliabilityunderacontract,totheamountthatacourtconsidersjusthavingregardtotheextentofitsresponsibilityfortheunderlyinglossanddamage(excludingpersonalinjury),notwithstandingthatitmayhaveassumedresponsibilityforthefullamountofthatlossanddamageundertheexpresstermsoftherelevantcontract.
Itisunclearwhetherornot,incalculatingtheproperamountinlightofaperson'sresponsibilityforlossordamage,acourtwilltaketheexpressprovisionsoftherelevantcontractintoaccount.
Courtscommonlymakefindingsastothedegreetowhichplaintiffsandvariousdefendantshavecontributedtothelossanddamage,especiallyincircumstanceswherethereare"contributionproceedings"onfootbetweenvariousdefendants.
Thedifferencewithproportionalliabilitylegislationisthattheburdenof:locatingandjoiningpartiestotheactionwhichmayhavebeenresponsibleforthelossanddamage;andtheriskthatsuchpartiesmaybeimpecuniousorotherwiseinaccessible,willusuallyrestwiththeplaintiffratherthantheotherdefendants.
Underthewordingofatleastsomeproportionalliabilitylegislation,theobligationsoffinancialguarantors,performancebondissuersandinsurersdonotappeartofallwithintheambitofthelegislationandwillnotbeaffected.
TheproportionalliabilitylegislationisnewandcomplexlegislationwhichisnotidenticalineachStateandTerritory.
Asaresult,legaladviceconcerningitspotentialoractualimpactshouldbeobtained.
Clause12.
15-ContinuationofServicesThisclausemakesitclearthattheConsultantisnotentitledtosuspendorceaseitsactivitiesandotherobligationsundertheContractonthegroundsthatthepartiesareindisputeinrelationtoaparticularissueormatterundertheContract.
ThiswouldbesubjecttoanysuspensionvalidlyimplementedundertheSecurityofPaymentLegislation.
CLAUSE13-NOTICESGeneralThisclauseaimstoensurethatclaimsforextramoneyaredealtwithpromptlythroughouttheprojectandnot"bankedup".
Itdoesthisbybarring,underclause13.
5oftheConditionsofContract,anyclaimswhichhavenotbeenmadeinaccordancewiththerelevantprovisionsofclause13.
1oftheConditionsofContract(inthecaseofallegedVariations)orclauses13.
2-13.
4oftheConditionsofContract(inthecaseofotherclaims).
Contractadministrationstaffwhoareinanydoubtastowhetheraclaimhasbeenmadeinaccordancewithclause13oftheConditionsofContract(includingastothetimeframesforsubmissionofnotices)shouldseekappropriateadviceimmediately.
ItshouldbenotedthattheactionsofaContractAdministratororDefenceinrespectoftimebar/notificationprovisionscanaffectthestandingofaparticularprovisionatlaw(i.
e.
throughestoppelorwaiver).
Suchactionmaybeassimpleasproceedingtoconsiderthemeritsoftheclaimnotwithstandingnon-compliancewithtimebars.
Thatis,ifbyDefence'sortheContractAdministrator'sactions,itcouldbearguedbytheConsultantthatDefenceortheContractAdministratorrepresentedtotheConsultantthatitwasnotgoingtorelyuponthoseprovisions,thenDefenceortheContractAdministratormaynotbeabletorelyonthematalaterdate.
Insuchcircumstances,Defencemaybenolongerabletosubsequentlyrejecttheclaiminrelianceonthatclauseorclauses.
Accordingly,contractadministrationstaffmustcarefullyconsidertheiractionsuponreceiptofaclaim.
Itisstronglysuggestedthat-intheabsenceofexceptionalcircumstanceswhichmust,inanycase,bethesubjectofspecialistadvice-theexpresswordingoftheContractbeappliedtoprotectDefence'sposition.
Thiscanbedonebyusingtheproformanotices.
TherearecertainsecurityissuesassociatedwiththeuseofprojectdocumentmanagementsoftwaresystemssuchasAconexorequivalents.
AdvicefromtheDirectorateofConstructionContractsshouldbesoughtbeforeincorporatingsoftwareandsuchsystemsintheContract.
Aspecialconditionmayberequired.
Clause13.
1-NoticeofVariationThisclausedealswiththesituationwheretheConsultantclaimsthatadirection,otherthanoneframedasa"VariationOrder",constitutesaVariation(andthereforemayentitletheConsultanttoextrapaymentunderclause9oftheConditionsofContract).
ThismayarisebecausetheContractAdministrator,inissuingadirection,hasnotappreciatedthatitrepresentsachangeintheServicesandthereforeaVariation.
Clause13.
1(a)oftheConditionsofContractrequirestheConsultanttonotifytheContractAdministratorwithin7daysofreceivingadirectionifitbelievesthedirectionconstitutesaVariationandnoVariationOrdernoticehasbeenissued.
Aproformanoticetitled'NoticeofVariation'isprovidedinVolume5[insertlink].
TheConsultantmustalsoprovideawrittenclaimunderclause13.
1(b)oftheConditionsofContractwithin21daysofsubmittingitswrittennoticeunderclause13.
1(a)oftheConditionsofContract.
Thisclaimmustincludethedetailsrequiredunderclause13.
3(b)oftheConditionsofContract.
Aproformanoticetitled'ClaimforVariation'isprovidedinVolume5[insertlink].
Clause13.
2-NoticesofOtherClaimsWheretheConsultantwishestomakeaClaimagainstDefenceinrespectofanydirectionbytheContractAdministratororinrespectofanyotherfact,matterorthing(includingabreachoftheContractbyDefence)underorinconnectionwiththeContractortheServices,otherthanthosewhichinvolve:anextensionoftimeunderclause8.
6oftheConditionsofContract;paymentunderclause10.
2oftheConditionsofContractoftheoriginalFeespecifiedintheContractParticulars;oraVariationinstructedinaccordancewithclause9.
2oftheConditionsofContractortowhichclause13.
1oftheConditionsofContractapplies,itmustsubmitnoticesasrequiredbyclause13.
3oftheConditionsofContract.
NotethatwheretheClaimisallegedtoariseinconnectionwithaprovisionoftheContract,theConsultantisrequiredtosubmitaClaimunderclause13oftheConditionsofContractinadditiontoanynoticeorotherdocumentrequiredundertherelevantprovision(seealsoclause13.
6oftheConditionsofContract).
Clause13.
3-PrescribedNoticesUnderclause13.
3(a)oftheConditionsofContracttheConsultantmustissueaninitialwrittennoticecontainingcertaindetailswithin21daysofthefirstoccurrenceofthethinguponwhichtheClaimisbased.
Aproformanoticetitled'InitialNoticeofClaim'isprovidedinVolume5[insertlink].
Clause13.
3(b)oftheConditionsofContractsetsouttheprovisionsrelatingtoafurthernoticewhichmustbeissuedwithin21daysofgivingthenoticeunderclause13.
3(a)oftheConditionsofContract.
Aproformanoticetitled'NoticeofClaim'isprovidedinVolume5[insertlink].
Clause13.
4-ContinuingEventsTheConsultantistosubmitanoticeofcontinuingevents,every28daysafterthewrittenClaimunderclauses13.
1(b)or13.
3(b)oftheConditionsofContractwassubmitted,ifthedirectionorfact,matterorthinguponwhichtheClaimisbased(ortheconsequencesthereof)arecontinuing.
AlthoughthisdocumentcontainsthesameinformationasaClaimunderclause13.
3(b)oftheConditionsofContract,aseparateproformanoticetitled'Noticeofcontinuingevents',isprovidedinVolume5[insertlink]forclarity.
Pleaserefertotheparagraphbelowfornoticerequirements.
Clause13.
5-TimeBarAsstatedabove,thepurposeofthisclauseistoensurethattheConsultantcomplieswiththenoticeprovisions.
FailuretodosowillbartheConsultantfrommakinganyclaimagainstDefenceinrelationtothatdirection,fact,matterorthing,ortheconsequences.
Again,ifcontractadministrationstaffareinanydoubtaboutwhetheranallegedclaimhasbeenbarredbyclause13.
5oftheConditionsofContract,appropriateadviceshouldbesoughtimmediately.
Clause13.
6-OtherProvisionsUnaffectedAsnotedaboveinrelationtoclause13.
2oftheConditionsofContract,wheretheConsultantseekstomakeaClaiminrespectofanallegedentitlementundertheContract,ithastosubmitaseparatenoticeunderclause13oftheConditionsofContractinadditiontoanynoticerequiredundertherelevantprovision.
Thisismadeclearinclause13.
6oftheConditionsofContract.
Clause13.
7-AddressforServiceThisclauserequiresthatanynoticetobegivenundertheContractmustbeinwritingandmustbedeliveredtotheaddresssetoutintheContractParticularsorlastnotifiedinwritingtothepartygivingthenotice.
Thiscanbebywayofpersonaldelivery,byprepaidpostorfax(notemail).
Anoticemustbesignedbyoneofthepersonsidentifiedinthisclause.
Clause13.
8-ReceiptofNoticesThisclausesetsoutthedatesuponwhichanoticewillbedeemedtohavebeengivenandreceiveddependingontheformofservicechosen.
Thisisespeciallyimportantgiventheimportance(notedabove)oftimeinrelationtonoticesunderclause13oftheConditionsofContractandelsewhere.
CLAUSE14-WOLClause14.
1-GeneralObligationsThewholeoflife(WOL)provisionsaredesignedtoencouragetheConsultanttopreparetheDesignDocumentationandcarryouttheServicesinsuchawayastomaximisetheWorks'WOLpotentialandvalueforDefence.
TheWOLObjectivesaredefinedinclause1.
1oftheConditionsofContract.
Clause14.
2-ConsultationThisclauseobligestheConsultanttoattendmeetingswithOtherContractorsforconsultationanddiscussionregardingtheprogressofDesignDocumentationandtheServicesagainsttheWOLObjectives.
Primarily,theOtherContractorswillinvolveDefence'smaintenancecontractors(i.
e.
theCMCContractors).
TheContractAdministratormustnotifytheConsultantofanysuchmeetingsitistoattend.
ThereisnoexpresslimitundertheContractonthenumberofmeetingswhichtheContractAdministratormayscheduleandrequireattendanceat.
TheConsultantisnotentitledtoanyadditionalmoneyforpreparingforandattendingmeetingsasinvolvementinrespectofWOLisafundamentalobligationwhichtheConsultantisdeemedtohaveincludedinitstenderedFee.
Clause14.
3-WOLProposalsDefenceisentitledtomakeproposalsregardingWOLissues.
TheConsultantisalsoobligedunderclause14.
3(a)oftheConditionsofContracttouseitsbestendeavourstoidentifyandrecommendproposalsformaximisingtheachievementofWOLObjectives.
Clause14.
4-ReportingTheConsultantisrequiredtosubmitaperformancereportwhenrequestedbytheContractAdministrator.
Aproformanoticetitled'RequestforConsultanttosubmitperformancereport'isprovidedinVolume5[insertlink].
Clause14.
5-CommissioningandHandoverTheclauserequirestheConsultanttoensurethattheDesignDocumentationcomplieswithCommissioning,HandoverandTakeoverGuidelines,itsCommissioningandHandoverPlan,andincludesinformationnecessarytoallowsmoothcommissioningandhandoveroftheWorks.
TheContractAdministratormayrequiretheConsultanttoprovidespecificassistancetoDefencetofacilitatehandoverandcommissioningandmayalsorequiretheConsultanttomeetwiththeContractAdministratorandOtherContractorsorotherpersonstoensurethattheyhavesufficientinformationtooperateandmaintaintheWorks.
Clause14.
6-PostOccupancyEvaluationTheConsultantcanberequiredtoassisttheContractAdministratororanOtherContractortocarryoutapostoccupancyevaluationtoreviewtheextenttowhichtheachievementoftheWOLObjectiveshasbeenmaximisedinthedesignandconstructionoftheWorks.
TheContractAdministrator(orOtherContractor)istothenprepareareporttoDefence,withtheassistanceoftheConsultant,containingthedetailsoftheextentofcompliancewiththeWOLObjectivesanddefects.
ThisreportshouldcontainsufficientdetailtoenableDefencetoevaluatetheoverallWOLperformanceoftheConsultantinanysubsequenttenders.
Clause14.
7-RightsandObligationsNotAffectedThepurposeofthisclauseistomakeitclearthattherightsandobligationsofthepartiesundertheContractgenerallyarenotalteredoraffectedbytheWOLobligationsinclause14oftheConditionsofContract.
ThisisparticularlyrelevantinthisContractwheretheConsultantassumesresponsibilityforfitnessforpurpose.
CLAUSE15-GENERALClause15.
1-EqualOpportunityforWomenAsrequiredundertheCommonwealthProcurementGuidelines,underclause15.
1oftheConditionsofContracttheConsultantisexpresslyrequiredtocomplywiththeobligationsundertheEqualOpportunityforWomenintheWorkplaceAct1999(Cth)(EOWWAct).
Generally,theEOWWActrequirescertainemployers(whichmayormaynotincludetheConsultant)todevelopandimplementequalopportunityforwomenintheirworkplaceprogramsandtoissuepublicreportsontheoutcomesofsuchprograms.
Clause15.
1(a)oftheConditionsofContractrestrictsthesubconsultantswhichtheConsultantmayengageundertheContracttothosewhohavenotbeennamedbytheDirectorofEqualOpportunityforWomenintheWorkplaceAgencyasanemployerwhodoesnotcomplywiththeEOWWAct.
Clause15.
2-IndigenousOpportunitiesThisclauseisanoptionalclausewhichdoesnotapplyunlesstheContractParticularsstatethatitdoesapply.
TheapplicabilityofthisclausewillgenerallybedeterminedatthetimeoftenderingfortheContract.
SeefurtherguidanceinVolume2.
TheConsultantisrequiredtomaintainandcomplywithitscurrent,approvedIndigenousTraining,EmploymentandSupplierPlan(ITESPlan).
TheConsultantisalsorequiredtoreportandtoco-operatewiththeCommonwealth(includingtheDepartmentofEducation,EmploymentandWorkplaceRelations)inrelationtotheIndigenousOpportunitiesPolicy(IOP)andtheConsultant'sITESPlan.
ThisclausealsoallowstheCommonwealthoranypersonauthorisedbyittoreportontheConsultant'scompliancewithitsITESPlanandpublishanyinformationcontainedintheITESPlan.
Clause15.
3-SafeBaseAlertStateSystemTheConsultantandsubconsultantsarerequiredtocomplywiththelevelofSAFEBASEAlertStateSystemsetoutintheContractParticulars(i.
e.
notifiedattimeoftenderorsubsequentlynegotiated).
However,compliancewithahigherorlowerlevelofSAFEBASEforanyparticularperiodoftimeinordertoreflecttheapplicableSAFEBASElevels(orindividualmeasures,suchasrestrictionswhichmayapplytoaparticularcategoryofpersonnel)attherelevantestablishment,mayberequired.
Clause15.
3(c)oftheConditionsofContractrequirestheConsultantandanysubconsultantstoattendanysecuritybriefingsatwhichtheirpresenceisrequestedbytheContractAdministrator.
TheConsultantwillbeentitledtoanincreaseintheFeeforanyextracostsreasonablyincurredasaresultofsuchadirection.
TheContractAdministrator'sdeterminationoftheincreasetotheFeeunderclause15.
3(e)oftheConditionsofContractistheonlyamounttowhichtheConsultantisentitled.
Clause15.
4-ITEquipmentThisclauseoutlinestheobligationsoftheConsultanttoensurethatnoviruseswillbeintroducedintoDefence'ssystemasaresultoftheServices.
Additionally,theConsultantassignsthebenefitsofanywarranties,givenwiththeITEquipment,toDefence.
Clause15.
5-ProtectionofPersonalInformationThisclausecontainsdetailedprovisionsrelatingtothehandlingofpersonalinformationasdefinedinthePrivacyAct1988(Cth).
Personalinformationisanyinformationaboutapersonwhoseidentityisapparentorascertainablefromtheinformation.
TheclauseessentiallyrequirestheConsultanttohandlepersonalinformationaccordingtothesameruleswhichDefencemustobserveunderthePrivacyAct.
Inaddition,theConsultantmustobtaintheContractAdministrator'swrittenconsentpriortodisclosinganypersonalinformationorusingpersonalinformationforapurposeotherthanmeetingtheConsultant'sobligationsundertheContract.
TheContractAdministratorshouldexercisecautioninconsideringanysuchrequestunderclause15.
5(a)(iii)oftheConditionsofContractandmustobtainlegaladvicebeforeapprovingarequest-assuchthereisnoproformaresponsetosuchrequest.
Clause15.
5(a)(x)oftheConditionsofContractrequirestheConsultanttoensurethatanysubconsultantisboundbysubstantiallysimilartermsasthoseoutlinedinclause15.
5oftheConditionsofContract.
TheContractAdministratorshouldbearthisinmindinreviewinganysubcontractingarrangementsproposedbytheConsultant.
Underclause15.
5(a)(xiii)oftheConditionsofContract,theConsultantindemnifiesDefenceforanyloss,liabilityorexpensesufferedorincurredbyDefencearisingoutofanybreachbytheConsultantorsubconsultantsoftheobligationsunderclause15.
5oftheConditionsofContract.
Inrelationtothis,theConsultanthasconsiderablenotificationobligationsunderclause15.
5(c)oftheConditionsofContract.
Aproformanoticetitled'NoticeofbreachofPrivacyPrinciples'isprovidedinVolume5[insertlink].
TheContractAdministratorshouldobtainlegaladviceifitreceivesanotificationfromtheConsultantunderclause15.
5(c)oftheConditionsofContract.
Clause15.
6-MoralRightsCertainworkswhichattractcopyrightprotectionarealsoprotectedbyMoralRights.
ThesearerightsundertheCopyrightAct1968(Cth)andareadditionaltotraditionalcopyright.
Unlikecopyright,MoralRightscannotbeassigned,licensedorwaived.
MoralRightsattachtoindividualauthorsandnotorganisationssuchascompanies.
Anauthor'sMoralRightsinrespectofaworkare:therighttobeidentifiedasauthorofthatwork;therighttopreventauthorshipoftheworkbeingfalselyattributedtosomeoneelse;andtherightnottohavetheworksubjectedtoderogatorytreatment.
Inanextremecase,anauthormayexercisethethirdrightinthelistabovetolimithowDefencecouldusematerialcreatedbythatauthor.
Asanexample,anarchitectwhopreparedadesignforabuildingmayclaimthatchangestothedesignsubsequentlyrequiredbyDefenceamounttoaderogatorytreatmentoftheoriginaldesign.
ThisriskexistsdespitethebroadlicencewhichtheConsultantgrantstoDefenceunderclause6.
8oftheConditionsofContract,asMoralRightscannotbelicensed.
ThisclauseisaimedatprotectingDefenceandotherpartiesengagedontheprojectagainstanyliabilitytotheConsultant(ortoindividualswhoareauthorsofworksundertheagreement)forbreachofaperson'sMoralRightsinrespectofanyProjectDocumentsbyreleasingDefenceandotherpartiesengagedontheproject(aslistedinclause15.
6(a)(i)oftheConditionsofContract)fromliabilityforcertainactswhichmayotherwisebeinbreachofanindividual'sMoralRights.
TheclausealsoputsinplaceamechanismwhichrequirestheConsultanttoobtainMoralRightsConsentdocumentsonbehalfofDefence.
TheseconsentsmustfollowtheproformadocumentssetoutintheScheduleofCollateralDocumentstitled'MoralRightsConsent'and'MoralRightsConsent(formultipleauthors)'(respectively).
ItiscriticalthatthisprocedureisfollowedinrelationtoeachandeveryindividualwhomaycreateProjectDocuments,regardlessofwhetherthoseindividualsareemployedbytheConsultant.
Clause15.
7-FreedomofInformationThisclauseisrequiredundertheCommonwealthProcurementGuidelines.
Furtherguidanceisprovidedatwww.
defence.
gov.
au.
Clause15.
8-LongServiceLeaveThisclauseonlyappliesifanyrelevantLongServiceLeaveLegislationappliestotheServices.
ItprovidesthattheConsultant:mustcomplywithanyrelevantLongServiceLeaveLegislation;mustpayanylevy,charge,contributionorassociatedamountinrespectoftheServicesrequiredbyanyrelevantLongServiceLeaveLegislation;andsuchamountspaidaredeemedtobeincludedintheFee.
TherelevantLongServiceLeaveLegislationissetoutinclause15.
8(d)oftheConditionsofContract.
Clause15.
9-AssignmentThisclausepreventstheConsultantfromassigning,inanyway,anypartoftheContractwithouttheapprovalofDefence.
ThisclausealsoincorporatesabroaddefinitionofassignmenttoincludeachangeofcontroloftheConsultant.
Clause15.
10-PublicityTheeffectofthisclauseistopreventtheConsultantfromdisclosinganymattersabouttheContracttothemedia,withoutthepriorwrittenapprovaloftheContractAdministrator.
ProformanoticesfortheConsultant'srequestandtheContractAdministrator'sresponsetitled'Requestto[furnishinformation/issuedocumentorothermaterial]'and'Responsetorequestto[furnishinformation/issuedocumentorothermaterial]'(respectively)areprovidedinVolume5[insertlink]forthesepurposes.
Clause15.
11-ClassifiedInformationThisclauseallowstheCommonwealthtorequest,andwheresorequested,theConsultanttocomplywiththeCommonwealth'ssecurityclearanceprocessincludingobtainingthelevelofsecurityclearancerequestedbytheCommonwealthandcomplyingwithallsecuritypoliciesandproceduresnotifiedbytheCommonwealthfromtimetotime.
Thisclausedovetailswiththeconfidentialitytermsstatedinclause1.
3(f)oftheConditionsofContractandreiteratestheprohibitionontheConsultantofdisclosinganyClassifiedInformationunlessdisclosureisstrictlyinaccordancewiththeDefenceSecurityManualandfirstapprovedinwritingbytheContractAdministrator,onsuchtermsorconditionsastheContractAdministratorthinksfit.
SuchconditionscouldincluderequiringanyrecipientofClassifiedInformationtoobtainalevelofsecurityclearanceandenterintoadeedinaformacceptabletotheCommonwealth.
Proformanoticestitled'RequestforapprovaltodiscloseClassifiedInformation'and'[Approval/Rejection]ofdisclosureofClassifiedInformation'areprovidedinVolume5[insertlinks]forthesepurposes.
ClassifiedInformationisdefinedinthisclauseasanyCommonwealthdocumentmarkedwithanationalsecurityclassificationandanyinformationordocumentthattheConsultantknowsoroughttoknowissubjectto,oroughttobetreatedinaccordancewith,theprovisionsoftheDefenceSecurityManual.
TheConsultantmusthandleandstoreClassifiedInformationinitspossessionorcontrolstrictlyinaccordancewiththeprovisionsoftheDefenceSecurityManual.
Clause15.
12-ManualofFireProtectionEngineeringandBuildingCodeofAustraliaCertificationThisclauserequirestheConsultanttoobtaincertificationsfromanAccreditedBuildingSurveyor.
Seethedefinitionof"AccreditedBuildingSurveyor"inclause1.
1oftheConditionsofContract.
TheConsultantisrequiredtoprovidetheContractAdministratorwithwrittencertificationfromanAccreditedBuildingSurveyor:atthetimethatitsubmitsanyDesignDocumentationunderclause6.
2oftheConditionsofContract,thattheDesignDocumentationcomplieswiththeMFPEandtheBuildingCodeofAustralia;priortoissueofanyDesignDocumentationforthepurposesofengagingaContractor,thattheDesignDocumentationcomplieswiththeMFPEandtheBuildingCodeofAustralia;andpriortoCompletion(asdefinedintheConstructionContract)oftheWorksoraStageoraSection(asthecasemaybeandasdefinedintheConstructionContract)thattheWorksortheStageortheSectioncomplieswiththeMFPEandtheBuildingCodeofAustralia.
IftheConsultanthasbeengrantedanydispensationbytheAssistantSecretaryEstatePolicyandEnvironment(ASEPE),thisisalsotobesetoutinthecertification,identifyingtheextenttowhichitemsinparagraphs(a)to(c)donotapply.
ThisclausealsoensurestheMFPEprevailsovertheBuildingCodeofAustraliatotheextentofanyinconsistencies.
CLAUSE16-NATIONALCODEOFPRACTICEFORTHECONSTRUCTIONINDUSTRYGeneralRefertoNationalCodeofPracticefortheConstructionIndustryandtheGuidelinesatwww.
deewr.
gov.
au/building.
Clause16.
1-GeneralThisclauserequirestheConsultanttoensurethatitcomplieswiththeNationalCodeandthe2009GuidelinesintheperformanceoftheServices.
TheConsultantmustalsoensurecompliancewiththeNationalCodeandthe2009GuidelinesbyitsRelatedEntitiesandallsubconsultantsengagedintheServices.
Further,theConsultantmustensureallsubcontractsimposeobligationsonsubconsultantsequivalenttotheobligationssetoutinclause16oftheConditionsofContract,andintheformsetoutintheProformaNationalCodeSubcontractProvisionssetoutintheScheduleofCollateralDocuments.
Clause16.
2-ResponsibilitynotAffectedThisclausemakesitclearthatcompliancewiththeNationalCodeandtheGuidelinesshallnotrelievetheConsultantofitsotherobligationsundertheContractorotherwisearisingoutoforinconnectionwiththeServices.
Clause16.
3-NoticeofEffectonCompliancewithNationalCodeandGuidelinesThisclauserequirestheConsultanttoimmediatelygivetheCommonwealthareportinwritingifanyproposedchangestotheContractaffecttheConsultant'scompliancewiththeNationalCodeandtheGuidelines,settingouttheextenttowhichtheConsultant'scompliancewiththeNationalCodeandtheGuidelineswillbeaffected.
Aproformanoticetitled'NoticeofeffectoncompliancewithNationalCodeandGuidelines'isprovidedinVolume5[insertlink].
Clause16.
4-RecordsThisclauserequirestheConsultanttomaintainadequaterecordsofcompliancewiththeNationalCodeandthe2009GuidelinesbytheConsultant,itsRelatedEntitiesanditssubconsultants.
Clause16.
5-AccessandDocumentsThisclauserequiresthattheConsultantmust(andmustensurethatitsRelatedEntitiesandsubconsultants)providetheCommonwealthoranypersonauthorisedbytheCommonwealth(includingaworkplaceinspectorundertheFairWorkAct2009(Cth)orapersonoccupyingapositionintheOfficeoftheAustralianBuildingandConstructionCommissioner)withaccessto:inspectanywork,material,machinery,appliance,articleorfacility;inspectandcopyanyrecordrelevanttotheproject,theServicesortheWorks;andinterviewanyperson,asnecessarytodemonstratecompliancewiththeNationalCodeandtheGuidelines.
TheclausealsorequirestheConsultanttoproduce(andensurethatitsRelatedEntitiesandsubconsultantsproduce)anydocumentrequestedbytheCommonwealthoranypersonauthorisedbytheCommonwealth(includingaworkplaceinspectorundertheFairWorkAct2009(Cth)orapersonoccupyingapositionintheOfficeoftheAustralianBuildingandConstructionCommissioner)withinthespecifiedperiodinpersonbyfaxorbypost.
Clause16.
6-ProjectAgreementsThisclausereiteratesDefence'sstandardapproachtotheadoptionof"projectagreements"toanycontract.
Projectagreementsareindustrialagreementsthatapplytomultipleemployersengagedonaprojectandwhichareusuallyintendedtoapplyuniform,aboveawardconditions,toorforthebenefitofallemployeesengagedtoworkonaproject.
Thatis,theConsultantisrequiredtoacknowledgeandagreethatitcannotenterintoanyprojectagreementsinrespectoftheServices.
Further,theConsultantmustnotseektohaveanysubconsultantcomplywith,orapplythetermsof,anyprojectagreementorunregisteredwrittenagreement(anagreementwhichisnotanawardorcertifiedagreementbindingonthesubconsultant)enteredintobytheConsultant.
CLAUSE17-COMMERCIAL-IN-CONFIDENCEINFORMATIONClause17.
1-GeneralDefenceisandwillbesubjecttoanumberofrequirementsandpoliciesconcerninginternalandexternalscrutinyofitstenderingandcontractingprocessestoensuretransparency,accountabilityandvalue-for-money.
ThisclauseprovidesthattheConsultantacknowledgescertainpublicationsanddisclosurerequirements.
Clause17.
2-Commercial-in-ConfidenceInformationThisclauseisanoptionalclauseandthereforedoesnotapplyunlesstheContractParticularsstatethatitapplies.
"Commercial-in-ConfidenceInformation"isinformationprovidedbyaConsultantbeforeoraftertheAwardDatewheretheConsultanthasrequestedthatDefencekeepthespecificinformationconfidential.
TheConsultantmustmakesuchrequestinwritingtoDefenceinitstenderandmusthavesetoutthejustificationforkeepingsuchinformationconfidential.
IfDefenceagreestosuchrequest,suchinformationwillbedesignated'Commercial-in-Confidence'informationandkeptconfidential,subjecttothetypesofdisclosurereferredtoinclause17.
2(b)oftheConditionsofContract.
FurtherguidanceisprovidedintheTenderDocuments.
CLAUSE18-FAIRWORKPRINCIPLESGeneralThisclauseisanoptionalclausewhichappliesunlesstheContractParticularsstatethatitdoesnotapply.
TheapplicabilityofthisclausewillgenerallybedeterminedatthetimeoftenderingfortheContract.
SeefurtherguidanceinVolume2.
TheprovisionsoftheFairWorkAct2009(Cth)(FairWorkAct)establishabalancedframeworkforcooperativeandproductiveworkplacerelations.
TheFairWorkPrinciples,whichcameintoeffect1January2010,supportthecreationofqualityjobsbyensuringthatAustralianGovernmentprocurementdecisionsareconsistentwiththeFairWorkActanditsaims.
TherequirementsoftheFairWorkPrinciplesarealsointendedtooperate"inadditiontoandinparallelwith"theexistingCommonwealthProcurementGuidelinesandotherprocurementrelatedpoliciesoftheCommonwealth.
FurtherinformationisprovidedintheInvitationtoRegisterInterestandTenderDocuments.
Clause18.
1-GeneralThisclauserequirestheConsultanttoensurethatitcomplieswiththeFairWorkPrinciplesintheprovisionofitsServices.
Further,theConsultantisrequiredtoensure,asfaraspracticable,thatallsubconsultantscomplywiththeFairWorkPrinciples.
Clause18.
2-ResponsibilitynotAffectedThisclausemakesitclearthatcompliancewiththeFairWorkPrinciplesshallnotrelievetheConsultantofitsotherobligationsundertheContractorotherwisearisingoutoforinconnectionwiththeWorksortheServices.
ANNEXUREA-CONTRACTADMINISTRATOR'SFUNCTIONSCLAUSECONTRACTADMINISTRATOR'SFUNCTIONS1.
1Forthepurposesofthedefinitionof"ProjectDocuments",determineandrequestanymaterialinadditiontothematerialsetoutinthedefinitionofProjectDocumentsinclause1.
1oftheConditionsoftheContracttoformpartoftheProjectDocuments.
1.
1ReviewProjectPlansandprovideconsenttoproposedamendments(ifany)totheProjectPlans.
1.
1ReviewtheSiteManagementPlananddetermineadditionalmattersforinclusion.
1.
2(r)DeterminerelevantstandardsofAustralianStandardsandotherdocuments.
Requestcopiesasnecessary.
2.
5ReceivenoticeofmattersimpactingontheServicesortheWorks.
2.
7InspectthecarryingoutoftheServices,DesignDocumentationandProjectDocumentsandissuenoticestoConsultantauthorisingpersonstoaccesspremisesoccupiedbytheConsultantoritssubconsultantsforinspections.
2.
8(c)ReceivenoticeofconflictsofinterestfromConsultantandinstructtheConsultantonwhatstepstotaketoavoidorminimiseaconflictofinterestorriskofconflictofinterest.
2.
9(a)DeterminewhethertograntapprovaltotheConsultanttoappointasubconsultantthatisneithernamedintheContractParticularsnorisanAgreedSubconsultant.
2.
9(a)(v)DRequestevidenceofregistration,licensingandtrainingofsubconsultantsandensureitisreceived.
2.
9(a)(vi)DetermineifSubconsultantDeedofCovenantisrequiredandensureitisreceived.
2.
10(c)EnsurethatitreceivesfromtheConsultantcopiesofanydocumentsissuedbyanyauthority,bodyororganisationhavingjurisdictionovertheSite,theWorksortheServices,totheConsultant.
2.
11(d)InstructtheConsultanthowtoproceedwhentheServicesareaffectedbyachangeinaStatutoryRequirementorvariancebetweenaStatutoryRequirementandtheContract.
2.
11(e)DeterminewhethertheFeeistobeadjustedasadirectresultofsuchchangeorvariance,orarisingdirectlyfromtheContractAdministrator'sinstructionunderclause2.
11(d)oftheConditionsofContract.
2.
12(b)DetermineifConsultantDeedofCovenantisrequiredandensureitisreceived.
2.
13EnsurethatitreceivesimmediatenoticefromtheConsultantof:anynon-compliancewithclause2.
14oftheConditionsofContract(relatingtotheEnvironment);andbreachofStatutoryRequirementfortheprotectionoftheEnvironment;oranynotice,orderorcommunicationreceivedfromanauthorityfortheprotectionoftheEnvironment.
3.
2(c)and3.
2(d)ReceivenoticefromtheConsultantrequestingadditionalinformation,determinewhetheradditionalinformation,documentsorparticularsareneededbytheConsultant,andwhereneeded,useitsbestendeavourstoarrangetheprovisionoftheadditionalinformation,documentsorparticulars.
4.
1Confirmalloraldirectionsinwritingassoonaspracticable.
4.
2Comply,ifitisasubstituteContractAdministrator,withanythingdonebytheformerContractAdministratortotheextentthatitwouldhavebeenbound.
4.
4Make/revokeappointmentsofContractAdministrator'srepresentativesandnotifyConsultant.
4.
5(b)DeterminewhethertoapprovetheConsultant'skeypeople(andsubstitutes).
4.
6InstructtheConsultanttoremoveanypersonfromtheperformanceoftheServiceswhomtheContractAdministratorbelievesisguiltyofmisconductorisincompetentornegligent.
4.
7(a)Ifclause4.
7oftheConditionsofContractapplies,establishascheduleformeetingsbetweentheConsultant,theContractAdministratorandanyotherpersonnominatedbytheContractAdministrator(orrequesttheConsultanttoattendmeetingswhenrequired).
4.
7(b)Ifclause4.
7oftheConditionsofContractapplies,advisetheConsultantofanyadditionalmattersitsprogressreportistoinclude.
4.
7(c)Ifclause4.
7oftheConditionsofContractapplies,discusswiththeConsultant,thereportpreparedunderclause14.
4oftheConditionsofContract(andsuchothermattersastheContractAdministratormayrequire.
4.
7(d)Ifclause4.
7oftheConditionsofContractapplies,proposeandprovidequestionstotheConsultantinrelationtoanyreport.
4.
7(f)Ifclause4.
75oftheConditionsofContractapplies,prepareanagendaformeetingsunderthisclausepriortoeachmeeting.
4.
7(g)Ifclause4.
7oftheConditionsofContractapplies,prepareminutesofmeetingswiththeConsultantanddistributetoallattendees.
5.
1(a)Determinewhetherinsurancesarewithreputableinsurers,andontermsandsubjecttolimitswhicharesatisfactory.
5.
1(c)and5.
2(a)Whereitconsidersnecessary,receiveevidencefromtheConsultantofitsinsurancepoliciesanddeterminewhetheritissatisfiedofthecurrencyofthepolicies.
5.
1(d)DeterminewhethertograntconsenttotheConsultanttoallowaninsurancepolicytobecancelledortolapse.
Ensurethatitreceivesnoticeofanyeventwhichmayresultinaninsurancepolicylapsingorbeingcancelled.
5.
1(e)(v)Ensurethatitisinformedofanynoticeunderorinconnectionwithanyinsurance,includinganyclaim.
6.
3Review/rejectanyDesignDocumentationandprovidenecessarycomments.
6.
10(c)Considerandprovidewrittenapproval(whereagreed)totheConsultanttoupgradeandrefineDCAPduetochangesassetoutinclause6.
10(b)oftheConditionsofContract.
6.
11(c)NotifytheConsultantofanyambiguity,discrepancyorinconsistencyitdiscoversintheContractoranyProjectDocument.
6.
11(d)InstructtheConsultantastothecourseitmustadoptifthereisanyambiguity,discrepancyorinconsistencyinthedocumentsdescribedinclause6.
11(c)oftheConditionsofContractwithin14daysofthenoticeunderparagraph(c).
6.
12(a)Considerwhethertorequest,atanytimeduringexecutionoftheServices,andforaperiodof10yearsfollowingtheCompletionofServices,inspectionoftheProjectDocumentsandcopiesoftheProjectDocuments.
6.
12(b)EnsurethatitreceivesasaconditionprecedenttoCompletion,acopyoftheinstalledversionofeachitemofsoftwarecomprisingtheITEquipmentincorporatedintheServicesandensurethatitreceivesacopyofalldocumentation,includinglicenceterms,warrantytermsandoperatingmanualsassociatedwitheachitemofsuchsoftware.
6.
14Ensurethatitrequestsandreceivestherelevantdesigncertificationsattherelevanttimes.
6.
16Ensurethatithasreceivednotificationofalloccupationalhealth,safetyandrehabilitationmatterswithin12hoursofsuchmatterarising.
7.
1(b)and7.
1(c)MonitorandaudittheConsultant'squalitysystemanddirecttheConsultantwithrespecttoanycomplianceornon-complianceofthatsystem.
7.
2ConsiderwhetheranyServiceshavenotbeenperformedinaccordancewiththeContractandinstructtheConsultantonhowtoproceedinrelationtoanynon-complyingServices.
7.
4EnsuretheProjectPlanshavebeensubmittedandreviewtheProjectPlansandanyrequestedamendmentstotheProjectPlans.
8.
2(a)DirecttheConsultanttoincludeanyreasonabledetailsintheprogramoftheServicesandensurethatitreceivestheprogramoftheServiceswithin14daysoftheAwardDate.
8.
2(c)Ensurethatitreceives,anddeterminewhethertoapprove,copiesofallprogramsrequiredtobeprovidedbytheConsultant.
8.
4(a)InstructtheConsultanttosuspend/recommencethecarryingoutofallorpartoftheServices.
8.
4(b)(ii)A1)DeterminetheamounttobepaidbyDefencetotheConsultantasaresultofasuspensionincertaincircumstances.
8.
6(a)Ensurethatitreceivesanyclaimsforanextensionoftime(within14daysofcommencementofanoccurrencewhichhas,orislikelyto,delaytheConsultant).
8.
6(b)Ensurethatitreceivesadditionalclaimsforextensionoftimeevery14daysafterthefirstwrittenclaimiftheeffectsofthedelaycontinuebeyond14days.
8.
8Determinetheamountoftime,ifany,bywhichtoextendanyrelevantDateforCompletionandnotifytheConsultantwithin21daysofreceivingtheConsultant'swrittenclaim.
8.
11Instruct,initsabsolutediscretion,theConsultanttoacceleratetheperformanceoftheServices.
9.
1IssueaVariationPriceRequestsettingoutdetailsofproposedVariationandensurethatitreceiveswrittennoticefromtheConsultantinresponsetotheVariationPriceRequest.
9.
2InstructtheConsultanttocarryoutaVariationbyissuingaVariationOrder.
9.
3DeterminethecostofaVariationinaccordancewithclause9.
3oftheConditionsofContract.
10.
2EnsurethatitreceivespaymentclaimsatthetimesrequiredfromtheConsultant.
Determinetheformatofsuchclaimsandwhetherevidenceattachedtotheclaimsissatisfactory(includingdetermininganysupportingdocumentationorinformationtobeprovidedandnotifyingtheConsultanttosetoutorattachsuchdocumentationorinformationineachpaymentclaim).
10.
3(a)(vii)Ensurethatitreceives,priortotheConsultantsubmittingapaymentclaim,dulyexecutedcopiesoftheConsultantDeedofNovation,andwithrespecttoapaymentclaimunder10.
7oftheConditionsofContract,anySubconsultantDeedofCovenant.
10.
3(c)(vi)and10.
3(c)(vii)IssueawrittennoticetotheConsultantidentifyingdocumentationorinformationwhichtheConsultantfailedtoprovidewithapaymentclaimunderclause10.
2(f)oftheConditionsofContract,specifyatimerequiredforprovisionofthatdocumentationandensurethatitisreceivedwithinthetimerequired.
10.
4IssueapaymentstatementtotheConsultant(andacopytotheCommonwealth)within10businessdaysofreceivingapaymentclaimoratanyothertimeiftheConsultantfailstosubmitaclaiminaccordancewithclause10.
2oftheConditionsofContract.
10.
10Correctormodifyanypreviouspaymentstatement.
10.
12Ensurethatitreceivesstatutorydeclarationsregardingpaymentofworkersandsubconsultants,andreceivesanydocumentaryevidencethatallworkersemployedbysubconsultantshavebeenpaidasaconditionprecedenttopayment.
10.
14(a)(ii)UnlessnotifiedbyDefencetotheConsultant,givepaymentstatementsandcarryoutallotherfunctionsofDefenceundertherelevantSecurityofPaymentLegislationastheagentofDefence.
11.
8DeterminethecostforworkcarriedoutpriortoterminationoftheContractinrelationtowhichtheConsultantwouldotherwisehavebeenentitledtopayment,andthecostofgoodsormaterials(ifany)reasonablyorderedbytheConsultantfortheServices.
11.
9EnsurethatitreceiveswrittennoticefromtheConsultantregardingtheConsultant'sbasisforretainingacopyofanyProjectDocumentsandinstructtheConsultantastoanystepsitmusttaketopreserveconfidentialityinanycopiesofProjectDocumentsretainedbytheConsultantafterCompletionortermination.
12.
1Ensurethatitreceivesnoticeofadispute.
13.
1(a)EnsurethatitreceivesnoticefromtheConsultantthatitconsidersadirectiongivenbytheContractAdministratortoinvolveaVariation(tobesubmittedwithin7daysofreceivingthedirectionandbeforecommencingtherelevantwork).
13.
1(b)EnsurethatitreceiveswrittenclaimfromtheConsultantsettingoutthedetailsrequiredbyclause13.
3(b)oftheConditionsofContractwithin21daysofreceivinganoticeunderclause13.
1(a)oftheConditionsofContract.
13.
2Ensurethatitreceivesnoticesrequiredunderclause13.
3oftheConditionsofContract.
13.
4Ensurethatitreceivesongoingnoticesasrequiredunderclause13.
3oftheConditionsofContractevery28daysafterthewrittenclaimwassubmittedunderclauses13.
1(b)or13.
3(b)oftheConditionsofContractuntilafterthedirectionorfact,matterorthinguponwhichtheClaimisbased,ortheconsequences,haveceased.
14.
2ScheduleanynecessarymeetingsbetweentheConsultantandOtherContractorstodiscussWOLconsiderationsastodesign,materialsandconstruction.
14.
3EnsurethatitreceivesrecommendationsregardingWOLconsiderationsfromtheConsultantandconsultswiththeConsultantaboutanyproposals.
14.
4Ensurethatitreceiveswrittenreportswhichithasrequestedandissuesanynecessaryrequirementsastoformandcontentofreport.
14.
5(b)ConferwiththeConsultantandissueanynecessaryinstructionstotheConsultantregardingassistancerequiredtofacilitatethecommissioningandhandover.
14.
5(c)ScheduleanymeetingsnecessarybetweentheContractAdministrator,theConsultant,suchOtherContractorsandanyotherpersonsnominatedbytheContractAdministratorforcommunicationofinformationnecessaryforoperatingandmaintainingtheWorks.
14.
6(a)Ensurethatitcarriesout(orprocuresanOtherContractortocarryout)aPostOccupancyEvaluationoftheWorks.
14.
6(b)(i)ReviewtheextenttowhichtheachievementoftheWOLObjectiveshasbeenmaximised.
14.
6(b)(ii)IssueareporttotheCommonwealthregardingWOLObjectivesandanyaspectsoftheWorkswhichdonotconformwiththerequirementsofaConstructionContract.
15.
2Whenclause15.
2oftheConditionsofContractapplies,ensureitconsultswiththeConsultantaboutthestepswhichithastakenforthepurposesofcomplyingwithclause15.
2(a)oftheConditionsofContract.
15.
3(b)RequesttheConsultantandsubconsultantstoattendsecuritybriefingswhenevernecessary.
15.
3(c)IssueawrittendirectiontotheConsultanttocomplywithahigher/lowerlevelofSAFEBASEthanrequiredintheContractParticulars.
15.
3(d)Determinetheextenttowhich,ifatall,theFeeistobeincreasedtoaccountforextracostsincurredasaresultofadirectionunderclause15.
3(c)oftheConditionsofContract.
15.
3(g)SchedulerehearsalsofSAFEBASEwhenevernecessary.
15.
5(a)(iii)PermittheConsultanttodisclosePersonalInformation.
15.
5(a)(iv)PermittheConsultanttotransferPersonalInformationoutsideAustraliaortoallowpartiesoutsideAustraliatohaveaccesstoit.
15.
5(a)(v)Ifnecessary,makedemandsorinquiriesoftheConsultantinrelationtothemanagementofPersonalInformation.
15.
5(a)(viii)DeterminewhetherrecordscontainingPersonalInformationreceived,createdorheldbytheConsultantaretobereturnedtoDefenceoraretobedeletedordestroyedattheendoftheContract.
15.
5(a)(xi)DirecttheConsultantinrelationtoenforcingsubconsultants'compliancewiththeConsultant'sdutiestowardsPersonalInformation.
15.
6(b)(v)EnsurethatitreceivesanyMoralRightsConsentprocuredbytheConsultant.
15.
6(b)(vi)Ensurethatitreceivesup-to-daterecordsastothedetailsofauthorsofDesignDocumentation.
15.
10DeterminewhethertoapprovethefurnishingofanyinformationorissuinganywrittenorprintedmaterialconcerningtheServicesortheWorksforpublicationinthemedia.
EnsurethatithasreferredtoitanyenquiriesfromthemediaconcerningtheServicesortheWorks.