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By Greg Goldfayl

This moment variation of Construction agreement Administration focuses in particular at the major building contracts in Australia: ABIC MW - 2003 significant works agreement and AS4000 -1997 basic stipulations of agreement. Greg Goldfayl demystifies the jargon of agreement types and interprets it into simple English, making the problems fascinated by agreement management available to readers with out felony training.

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This may present as failure to meet one or more of the project objectives in terms of time, quality and cost – depending on the nature of the contract. Contractors, therefore, are routinely required to provide financial security for the performance of their contractual obligations. Security commonly comprises either an up-front cash deposit, or the retention of a percentage of all payments to which the contractor becomes entitled, or a combination of both, up to a fixed percentage of the contract sum.

2). The parties must not do or permit, by action or omission on their part, anything that might affect an insured party’s entitlement under an insurance policy (clause E8). AS4000: clause 17 The alternative stated in item 21(a) of annexure part A, applies; or, if nothing is stated, Alternative 1 applies (clause 17). Under Alternative 1, ‘Contractor to insure’, the Contractor must take out public liability insurance before commencing the work under the Contract. The insurance must be in the joint names of the Principal and the Contractor, and must cover the Principal, the Contractor, the Superintendent and all subcontractors (all known as ‘the insured’).

Quantities in the schedule of rates are estimates. 4; and see Chapter 6). SPECIAL CONDITIONS It may be necessary to add a special condition to a standard contract. This may be due to some unique feature of the project, or to the way in which it is to be carried out. It may equally be due to a particular requirement of the owner, to the economic circumstances of the time, or to a particularly lengthy project. Under MW-1, there are three categories of special condition: two specific and one general.

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