more milestone at $50k a week for 26 Poor Contract allows for liquidated dates are not met weeks ($1.3m) management damages. skills Note to drafters: cost of keeping existing Contract allows for termination for Related liability equipment in operation Unproven default if delay reaches liquidated cap liquidated estimated at $6m for – solution damages cap. damages 26 weeks Contractor Bank guarantee will be obtained to The maximum delay that damages secure contract performance. the project will accept is 26 supplies Deed of guarantee and indemnity weeks. Contract could be before they requires parent to ensure terminated if the liability are accepted performance by contractor. cap is reached or under clause 13.3. The contractor Cost Potential claims against the Rare Moderate Low Unsafe work Contract contains indemnities from injures or kills Commonwealth by practices the contractor in respect of people in the contractor employees, Commonwealth and contractor Unsafe course of Commonwealth employees employees and third party death or contractor performing the or third parties. personal injury. premises contract or as a Estimated Maximum Liability is uncapped. result of defects Lack of Probable Loss scenario is in supplies after technical Contract requires contractor to 10 people are killed as a acceptance expertise in have insurance. result of an accident, performing estimated claims cost of Note to drafters: Contractor required to be the work, Related liability $45m ($4.5m per person). appropriately licensed and comply leading to cap none as – with WHS requirements. Legal fees and other defects in third party Commonwealth supplies Contract includes obligations to claims for death, management overheads, comply with safety procedures personal injury, estimated cost of $3m. while on Commonwealth property. disease or
more milestone dates are not met Note to drafters: Related liability cap – liquidated damages Poor management skills Unproven solution Contractor damages supplies before they are accepted at $50k a week for 26 weeks ($1.3m) cost of keeping existing equipment in operation estimated at $6m for 26 weeks The maximum delay that the project will accept is 26 weeks. Contract could be terminated if the liability cap is reached or under clause 13.3. Contract allows for liquidated damages. Contract allows for termination for default if delay reaches liquidated damages cap. Bank guarantee will be obtained to secure contract performance. Deed of guarantee and indemnity requires parent to ensure performance by contractor. The contractor injures or kills people in the course of performing the contract or as a result of defects in supplies after acceptance Note to drafters: Related liability cap – none as third party claims for death, personal injury, disease or Unsafe work practices Unsafe contractor premises Lack of technical expertise in performing the work, leading to defects in supplies Cost Potential claims against the Commonwealth by contractor employees, Commonwealth employees or third parties. Estimated Maximum Probable Loss scenario is 10 people are killed as a result of an accident, estimated claims cost of $45m ($4.5m per person). Legal fees and other Commonwealth management overheads, estimated cost of $3m. Contract contains indemnities from the contractor in respect of Commonwealth and contractor employees and third party death or personal injury. Liability is uncapped. Contract requires contractor to have insurance. Contractor required to be appropriately licensed and comply with WHS requirements. Contract includes obligations to comply with safety procedures while on Commonwealth property. Rare Moderate Low