CONTEXT Note to drafters: This section should set out a description of the procurement to which the LRA relates, including the procurement objectives and the procurement environment. For further guidance on establishing the context, refer to Annex A and Chapter 3.3 of the. […INSERT DETAILS AS REQUIRED…] Table 1 Contract Liability Risk Log – Note to drafters: The Contract Liability Risk Log at Table 1 should address at least the nine standard liability risks outlined below. Additional project specific liability risks can be included should they not fall within the standard liability risks and specific contractual drafting should be included in the contract if necessary to address them. The worked examples provided below are provided as examples only. Drafters should refer to Annex A for guidance on Risk Categories and the Likelihood and Consequence ratings, and Residual Risk Level evaluations in accordance with the Standard Risk Matrix. Risk Source Category Impact Controls and/or Treatment Likelihood Consequence Residual Risk Level The contractor Schedule Rare Moderate Low Lack of Re-tendering costs of Tender allows for evaluation of fails to complete expertise in finding alternative experience and capacity of key Cost the contract the company supplier to complete personnel. Performance estimated at $6m (inc (e.g. the Unproven Tender allows for assessment of project office costs). contractor goes solution maturity of the tendered solution. into liquidation) Costs of keeping existing Financial Tender allows for evaluation of equipment operating for Note to drafters: viability of financial viability and projected longer estimated at $24m Related liability the company viability if contract is awarded. for 2 years. cap losses – Payment schedule is designed to suffered by the reflect the value delivered to the Commonwealth Commonwealth (i.e. it is not other than those referred to in the other liability Bank guarantee will be obtained to caps secure contract performance and any mobilisation payment paid.
CONTEXT Note to drafters: This section should set out a description of the procurement to which the LRA relates, including the procurement objectives and the procurement environment. For further guidance on establishing the context, refer to Annex A and Chapter 3.3 of the. […INSERT DETAILS AS REQUIRED…] Table 1 – Contract Liability Risk Log Note to drafters: The Contract Liability Risk Log at Table 1 should address at least the nine standard liability risks outlined below. Additional project specific liability risks can be included should they not fall within the standard liability risks and specific contractual drafting should be included in the contract if necessary to address them. The worked examples provided below are provided as examples only. Drafters should refer to Annex A for guidance on Risk Categories and the Likelihood and Consequence ratings, and Residual Risk Level evaluations in accordance with the Standard Risk Matrix. Risk Source Category Impact Controls and/or Treatment Likelihood Consequence Residual Risk Level The contractor fails to complete the contract (e.g. the contractor goes into liquidation) Note to drafters: Related liability cap – losses suffered by the Commonwealth other than those referred to in the other liability caps Lack of expertise in the company Unproven solution Financial viability of the company Schedule Cost Performance Re-tendering costs of finding alternative supplier to complete estimated at $6m (inc project office costs). Costs of keeping existing equipment operating for longer estimated at $24m for 2 years. Tender allows for evaluation of experience and capacity of key personnel. Tender allows for assessment of maturity of the tendered solution. Tender allows for evaluation of financial viability and projected viability if contract is awarded. Payment schedule is designed to reflect the value delivered to the Commonwealth (i.e. it is not Bank guarantee will be obtained to secure contract performance and any mobilisation payment paid. Rare Moderate Low