illness cannot Tender allows evaluation of be capped proposed system safety plan. Cost for loss of or damage Unlikely Major Medium Unsafe work Tender allows for evaluation of The contractor Cost to supplies owned by the practices skills and experience of the key loses or damages Commonwealth (other than personnel. Inadequate supplies owned by loss of use of the supplies) or unsafe Contract requires contractor to the estimated at Maximum contractor have insurance. Probable Loss of half the Commonwealth in storage total number of supplies Contractor has appropriate systems the course of facilities ($50m). to minimise accidental loss and performing the Inadequate damage, theft, fire etc. contract or unsafe Contractor has risk of supplies prior contractor Notes to to delivery and after delivery if transport drafters: contractor retakes possession. practices Related liability Contractor liable for loss or damage cap loss of or – Lack of caused by defects during defect damage to technical supplies. rectification period or caused by expertise in contractor default after defect performing Loss of use of rectification period. the work supplies is not to be captured Accidents here as that risk etc. and is captured natural above under disasters Risk 2. Unlikely Major Medium Unsafe work Tender allows for evaluation of The contractor Cost Cost for loss of or damage to practices skills and experience of the key loses or damages Defence property (other than personnel. Defence property supplies) estimated at
illness cannot be capped Tender allows evaluation of proposed system safety plan. The contractor loses or damages supplies owned by the Commonwealth in the course of performing the contract Notes to drafters: Related liability cap – loss of or damage to supplies. Loss of use of supplies is not to be captured here as that risk is captured above under Risk 2. Unsafe work practices Inadequate or unsafe contractor storage facilities Inadequate or unsafe contractor transport practices Lack of technical expertise in performing the work Accidents etc. and natural disasters Cost Cost for loss of or damage to supplies owned by the Commonwealth (other than loss of use of the supplies) estimated at Maximum Probable Loss of half the total number of supplies ($50m). Tender allows for evaluation of skills and experience of the key personnel. Contract requires contractor to have insurance. Contractor has appropriate systems to minimise accidental loss and damage, theft, fire etc. Contractor has risk of supplies prior to delivery and after delivery if contractor retakes possession. Contractor liable for loss or damage caused by defects during defect rectification period or caused by contractor default after defect rectification period. Unlikely Major Medium The contractor loses or damages Defence property Unsafe work practices Cost Cost for loss of or damage to Defence property (other than supplies) estimated at Tender allows for evaluation of skills and experience of the key personnel. Unlikely Major Medium