Standards Australia have once again pushed back the release date
of the AS11000 contract after receiving negative feedback on the
draft version from industry stakeholders. The contract is intended
to replace AS2124-1992 and AS4000-1997, which form the basis of
many major government construction projects in Queensland. Clauses
which may be of concern to principals include:
Clause 2.1 (Good faith)
Each party to the contract is obliged to act in good faith
towards each other. This clause can trigger a number of issues.
Broadly speaking, good faith in legal relationships imposes a
general standard of fair dealing between parties, particularly
relevant when negotiating, performing agreements and resolving
disputes. However, there is no clear line in the sand. The
expression "good faith" is undefined in the Contract, and
therefore the scope of this this obligation is unclear.
Clause 2.2 (Early warning system)
Each party is required to give immediate written notice to each
other when they become aware of an event or circumstance which may
impact upon time, cost, scope or quality. Unless this notice is
given, the party cannot make a claim for the event or
This system imposes a significant positive obligation on the
Clause 37.9 (EOT claims)
The Superintendent is required to assess all extension of time
claims, or request more information from the Contractor, within 20
A further draft is expected to be released to the public in
mid-2017, with the final version being published at the end of that
year. Kaden Boriss Legal will keep you informed of further
developments as the roll-out of AS11000 continues.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
If an owner wants to remove a caveat, issuing a lapsing notice is a quick and easy way to shift the problem to the caveator.
Some comments from our readers… “The articles are extremely timely and highly applicable” “I often find critical information not available elsewhere” “As in-house counsel, Mondaq’s service is of great value”
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).