Public comment on the new draft General Conditions of Contract close in a matter of weeks.

The new standard, AS11000, will replace AS 2124-1992 and AS 4000-1997, revising the suite of standards related to general conditions of contract. According to Standards Australia, the objective of AS 11000 is to provide general guidance for legal contracts in all sectors of industry, including construction, engineering, health, manufacturing and infrastructure.

According to Professor Ian Bailey, Chair of the Technical Committee MB-010 which has drafted the proposed standard:

‘The proposed new general conditions of contract in AS 11000 provide a broadly balanced approach to risk allocation in language which is focused on brevity and certainty. They include a new early warning procedure based upon  an express good faith obligation, which is intended to assist in the management and resolution of issues under contracts’.

AS 11000 is not intended to alter the risk allocation principles that currently apply in AS 2124 and AS 4000. There are, however, several significant changes in relation to:

1. Good faith;
2. Early warning procedures;
3. Dispute resolution;
4. Security of Payment legislation;
5. Service by email;
6. Subcontracts;
7. The role of the Superintendent;
8. Delays;
9. Extensions of time;
10. Insurance excess;
11. Principal’s risks;
12. Unfixed plant and materials.

Details of the proposed changes may be found in Standards Australia’s Statement.

To download a copy of AS 11000 and make a comment see Standards Open for Comment.

For more information please contact Daren Anderson.