course of Inadequate Contractor liable for damage to performing the or unsafe Commonwealth property caused by contract contractor defective supplies during defect storage Note to drafters: rectification period or by contractor facilities Related liability default after defect rectification cap none as Inadequate – period. third party or unsafe property claims contractor Contract requires contractor to and the loss of transport have insurance. or damage to practices non-Defence Liability is uncapped. Accidents Commonwealth etc. and Property cannot natural be capped disasters The contractor Cost The Commonwealth may Unlikely Moderate Medium Unsafe work Tender allows for evaluation of causes a third be liable to pay the third practices skills and experience of the key party to suffer party for pure economic personnel. Lack of pure economic loss the third party suffers. technical Contract contains an indemnity in loss in the course Cost for pure economic expertise in respect of third party claims. of performing the loss to third party estimated performing Losses referred to in the indemnity contract at Maximum Probable Loss the work includes economic loss, however, Note to drafters: of $30m (as a result of pure economic loss is not excluded Related liability severing an underground from the liability caps and therefore power cable to an industrial cap losses – can be capped. suffered by the area). Contract requires contractor to Commonwealth have insurance. other than those referred to in the
course of performing the contract Note to drafters: Related liability cap – none as third party property claims and the loss of or damage to non-Defence Commonwealth Property cannot be capped Inadequate or unsafe contractor storage facilities Inadequate or unsafe contractor transport practices Accidents etc. and natural disasters Contractor liable for damage to Commonwealth property caused by defective supplies during defect rectification period or by contractor default after defect rectification period. Contract requires contractor to have insurance. Liability is uncapped. The contractor causes a third party to suffer pure economic loss in the course of performing the contract Note to drafters: Related liability cap – losses suffered by the Commonwealth other than those referred to in the Unsafe work practices Lack of technical expertise in performing the work Cost The Commonwealth may be liable to pay the third party for pure economic loss the third party suffers. Cost for pure economic loss to third party estimated at Maximum Probable Loss of $30m (as a result of severing an underground power cable to an industrial area). Tender allows for evaluation of skills and experience of the key personnel. Contract contains an indemnity in respect of third party claims. Losses referred to in the indemnity includes economic loss, however, pure economic loss is not excluded from the liability caps and therefore can be capped. Contract requires contractor to have insurance. Unlikely Moderate Medium