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 circumstances.
This system imposes a significant positive obligation on the principal.
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 business days.
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.
