CONTRACT CONDITIONS
Contracts Committee
The Federation Mission Statement states as two of its prime objectives:
“To develop, adopt and promote fair, reasonable and standard industry terms and conditions in contract documentation based upon identifiable Australian standards”
&
“The introduction of a “zero retention” policy which has been adopted by other Federations overseas.”
| - | Each member of the Federation is clearly responsible for the negotiation and acceptance of whatever contract documentation they consider adequate to cover the applicable risks involved in undertaking specific contracts. The Federation promotes that members and their clients should wherever appropriate take advantage of the Australian Standard Conditions of Contract AS 4901-1998 SubContract Conditions and AS 4903 – 2000 SubContract Conditions for Design & Construct in respect of larger contracts and AS4949 in respect of smaller contracts. In order to assist members and their clients, the Federation has arranged for these documents to be suitably legally amended with industry specific Appendices Part 1 & 2 to reflect what the members have indicated that they consider to be the most appropriate conditions in relation to piling and foundation engineering work. |
| - | The Australian Standards AS 4901-1998, AS 4903 -2000 and AS4949 can be acquired from the Standards Association |
| - | The members of the Federation consider that the cost of monitoring and chasing retention monies held is a substantial overhead for most companies and , particularly on smaller contracts, does not in most cases, cover the cost of mobilisation back to site if defects are found and therefore does not fulfil the stated purpose of holding retention in the first place. Members of the Federation believe that in the event of a defect after leaving site, it is their own professional integrity which brings them back, not the possibility of losing the retention sum. This experience is similar to that of overseas organisations. |
| - | The Federation will be re appointing a new Contracts Committee with a representative from each of Queensland; New South Wales and Victoria/South Australia working in co operation with the Executive Director. Each committee will be required to establish a realistic Action Plan for initiatives that they consider achievable on an Annual basis and to report regularly to General Meetings on progress being made and assistance required from other members. |