Contract requires contractor to (other than Maximum Probable Loss of Lack of have insurance. supplies) in the $75m. technical Contractor has appropriate systems course of expertise in to minimise accidental loss and performing the performing damage, theft, fire etc. contract the work Contractor has risk of Defence Note to drafters: Inadequate Related liability property while in its possession and an or unsafe cap loss of or – contractor obligation to take reasonable care of damage to storage Defence property otherwise. Defence facilities property (other Contractor liable for loss or damage to Inadequate or than supplies) Defence property caused by defective unsafe supplies during defect rectification contractor period or by contractor default after transport defect rectification period. practices Contractor has obligations to keep GFF Accidents etc. in good repair. and natural disasters The contractor Cost Cost for loss of or damage Rare Moderate Low Unsafe work Tender allows for evaluation of damages the to third party or practices skills and experience of the key property of a third Commonwealth property personnel. Lack of party or (other than Defence technical Contract contains an indemnity from Commonwealth property) estimated at expertise in property (other Maximum Probable Loss of the contractor in respect of third party performing than Defence $25m. property damage. the work property) in the
(other than supplies) in the course of performing the contract Note to drafters: Related liability cap – loss of or damage to Defence property (other than supplies) Lack of technical expertise in performing the work Inadequate or unsafe contractor storage facilities Inadequate or unsafe contractor transport practices Accidents etc. and natural disasters Maximum Probable Loss of $75m. Contract requires contractor to have insurance. Contractor has appropriate systems to minimise accidental loss and damage, theft, fire etc. Contractor has risk of Defence property while in its possession and an obligation to take reasonable care of Defence property otherwise. Contractor liable for loss or damage to Defence property caused by defective supplies during defect rectification period or by contractor default after defect rectification period. Contractor has obligations to keep GFF in good repair. The contractor damages the property of a third party or Commonwealth property (other than Defence property) in the Unsafe work practices Lack of technical expertise in performing the work Cost Cost for loss of or damage to third party or Commonwealth property (other than Defence property) estimated at Maximum Probable Loss of $25m. Tender allows for evaluation of skills and experience of the key personnel. Contract contains an indemnity from the contractor in respect of third party property damage. Rare Moderate Low