Standards Australia has released the new AS 11000: General Conditions of Contract in draft form. Under the proposed revision, the two existing and widely used Standards of AS 2124: 1992 and AS 4000: 1997 are to be merged into a new suite of Standards, AS 11000: General conditions of contract.
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. The new draft Standard preserves the same risk allocation as that which underlies the existing Standards, but there are significant differences proposed for the new Standard (see summary below). Accordingly, when finalised and released, it will likely have broad implications for all participants in these industries who, we foreshadow, will seek to tailor their own amendments.
The draft Standard can be accessed from the Standards Australia website. It is open for public comment until 27 March 2015 and is expected to be finalised and released this year. We will profile the final form once released.
Please contact us if you have any questions about how the changes might affect your business.
Summary of Significant Changes
Click here to view table.