Aug 29, 2013 - Australian Standard® Conditions of Contract. The purpose of this ... maintenance and services (Superinte
STANDARDS ALERT
29 August 2013 Australian Standard® Conditions of Contract The purpose of this Standards Alert is to advise users of a recent decision of the Supreme Court of Victoria, WTE Co-generation and Visy Energy Pty Ltd v RCR Energy Pty Ltd and RCR Tomlinson Ltd [2013] VSC 314 which relates to the interpretation of a dispute resolution clause. The dispute resolution clause considered by the court included the following wording: ‘In the event the parties have not resolved the dispute then within a further 7 days a senior executive representing each of the parties must meet to attempt to resolve the dispute or to agree on methods of doing so.’ The court found that the requirement for the parties to meet to agree on methods of resolving the dispute amounted to an agreement to agree on the method of dispute resolution to be employed and was not therefore enforceable due to its inherent uncertainty. Standards Australia Limited intends to review all dispute resolution clauses within its current suite of standard form contracts in light of this decision. In the meantime, we recommend that before entering into any standard form contract, users seek legal advice on the inclusion of a suitable dispute resolution clause to suit their particular circumstances. This recommendation is relevant to each of the following:
AS 2124-1992 General conditions of contract; AS 2160.1-1998 Contract for the design and construction of a swimming pool or spa – Concrete swimming pool or spa; AS 4000-1997 General conditions of contract; AS 4122-2010 General conditions of contract for consultants; AS 4300-1995 General conditions of contract for design and construct; AS 4303-1995 General conditions of subcontract for design and construct; AS 4305-1996 Minor works contract conditions (NB - This publication is designated ‘available superseded’); AS 4901-1998 Subcontract conditions; AS 4902-2000 General conditions of contract for design and construct;
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AS 4903-2000 Subcontract conditions for design and construct; AS 4904-2009 Consultants agreement – Design and construct; AS 4905-2002 Minor works contract conditions (Superintendent administered); AS 4906-2002 Minor works contract conditions (Principal administered); AS 4910-2002 General conditions of contract for the supply of equipment with installation; AS/NZS 4911-2003 General conditions of contract for the supply of equipment without installation; AS 4912-2002 General conditions of contract for the periodic supply of goods; AS 4915-2002 Project management – General conditions; AS 4916-2002 Construction management – General conditions; AS 4917-2003 Construction management trade contract – General conditions; AS 4919-2003 General conditions of contract for the provision of asset maintenance and services (Superintendents version); AS 4920-2005 General conditions of contract for the provision of asset maintenance and services (Principal’s version); AS 4921-2003 General conditions of contract for the provision of asset maintenance and services (short version).
For further information about this Standards Alert please contact Julia Vardill, Standards Australia Limited, on (02) 9237 6051. Australian Standard® brand standards are available through SAI Global Limited www.saiglobal.com/shop
