Mon 02 Mar 2015

COMMENT SOUGHT ON AS11000:

CCF TAS is seeking comment from members on the draft of Standards Australia’s new AS11000:2015 general conditions of contract, which is intended to supersede AS 2124:1992 and AS 4000:1997.

Whilst the draft AS11000 contains some of the same risk allocation as AS2124-1992 and AS4000-

A summary of some of the key changes proposed in the draft AS11000 (compared with AS4000) are as follows:

  • an overarching obligation of good faith, which is not defined, on both parties
  • the inclusion of an ‘early warning system’ obliging parties to notify each other and the Superintendent of an event or circumstance that “may impact upon time, cost, scope or quality under the contract and may become an issue” (akin to the existing obligation in the NEC forms of contract)
  • all bills of quantity must be priced whether they form part of the contract or not, and the Contractor is not entitled to payment until the bills of quantity have been provided
  • the Contractor will be in substantial breach of contract if it engages subcontractors  for work over a specific value on terms other than the unamended AS11002-2015 (amendments needed to reflect the head contract are allowed, but nothing else)
  • the Contractor is entitled to an extension of time for any delay occurring before the Date for Practical Completion which is beyond their reasonable control
  • a party becoming aware of anything which will “probably cause delay to the work under the contract must promptly and within 5 business days give the Superintendent and the other party written notice of that cause and the estimated delay”.  If the Contractor gives the notice, it must also state whether it anticipates claiming an extension of time
  • the Superintendent must assess extension of time claims, or request more information from the Contractor, within 20 business days, failing which the date for practical completion will be extended by the period claimed
  • rates or prices in the contract are now deemed to include allowance for overheads and profit unless otherwise stated
  • notices can be served by email, meaning that parties must ensure that their administrative processes are sufficient to deal with issues such as security of payment claims.

More information is available on the Standards Australia website by clicking here.

CCF TAS members are invited to contact CEO Tony Cook to provide feedback on the draft standard.