Wednesday, 19 June 2019
Austroads and the Australian Procurement and Construction Council (APCC) have released new General Conditions of Contract for Construction, titled National Capital Works 4 (NCW4).
APCC and Austroads developed the new General Conditions of Contract to improve the efficiency of project delivery and reduce the potential for contractual disputes by driving greater consistency in the contractual conditions and clauses used by members.
It is important to note that NCW4 is primarily for public sector use and ‘Construct Only’ contracts with special conditions to be considered at the jurisdictional level.
Teresa Scott, APCC Executive Director, said “Having new standard General Conditions of Contract will have many benefits, such as reducing the cost of doing business with Government and the potential for contractual disputes.”
“NCW4 will mitigate the need for tenderers to seek legal advice regarding the myriad of contract conditions currently in use. It will also be easier for contractors to transfer their skills and experience between jurisdictions,” Teresa said.
Nick Koukoulas, Austroads Chief Executive said, “NCW4 adopts contemporary contract drafting practice and addresses legislation such as security of payment, personal property securities, GST and work health and safety.”
“As owners of NCW4, Austroads and APCC will be able to keep NCW4 current and relevant through annual reviews and industry consultation,” Nick said.
It is expected that each state and territory will amend the NCW4 to address local legislation and policy and publish a State based NCW4. The APCC website will host both the Master version and links to State versions.
NCW4 is accompanied by:
- Explanatory Notes that provide more background and explanation for each clause in NCW4
- Annexure A: Contract Particulars
- Annexure B: Commercial Framework.
There are also optional documents agencies can adopt:
- Annexure C: Subcontracting Framework (optional)
- Annexure D: Alternative Dispute Resolution (optimal)
- Conditions of Subcontract for Construction.
APCC and Austroads members have been widely consulted on the draft NCW4. In addition, an industry consultation took place in May-June 2018.