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Handbook
based on AS 21241992 Users manual for lump sum contract

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SAA HB571994

USERS MANUAL
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FOR

LUMP SUM CONTRACT

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Executive Director Construction Industry En gineerin g Services Gro up Limited, Melbou rne

National Public Works Council


PUBLISHED BY STANDARDS AUSTRALIA (STANDARDS ASSOCIATION OF AUSTRALIA) 1 THE CRESCENT HOMEBUSH NSW 2140

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LLB., Dip. Comm. Law, F.I.Arb.A.

for and on behalf of

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Prepared by

Based on AS 2124 1992

John L. Pilley

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National Public Works Council 1994

Except where the Copyright Act otherwise allows, no part of this publication may be reproduced, stored in a retrieval system in any form or transmitted by any means without prior permission in writing of National Public Works Council and Standards Australia.

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First published as SAA HB571994.
ISBN 0 7262 9143 9

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iii

Table of Contents
Table of Reference to Standard Forms
Sectio n 1 GENERAL OVERVIEW Part 0 Part 1 Part 2
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vii 1 3 6 16 21 33 38 39 41 42 44 69 76 86 88 90 95 99 121 126 129 133 138 140 143 149 153 157

Preface and Introduction Basic Contract Law

Contract Terms Expressed and Implied Rights and Obligatio ns of the Parties Overview o f AS 2124 1992

Part 3 Part 4

Commen tary on Examples

Section 2

GUIDELINES AND COMMENTARY


Part 6 Part 7 Part 8 Part 9 Part 10 Part 11 Part 12 Part 13 Part 14 Part 15 Part 16 Part 17 Part 18 Part 19 Part 20 Part 21 Part 22 Part 23 Part 24 Principals and Principals Agents Details of the Contract

NPWC Special Con ditions of Contract Commercial Decision Making Execution of the Contract Assign ment and Su bcontracting Supply of Documents Discrepancies in Docu ments The Role of the Superintendent an d the Superintendents Representative Time Practical Completion Paymen ts Variations Contractors Representativ e and Contractors Emplo yees Selected and Nominated Subcontractors Latent Co nditions Statutory Requirements Insurance Arrangemen ts

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Valuation of Variations

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Part 5

Introduction to Section 2

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Part 25

Defects before Practical Co mpletion The Power of the Principal to Effect Work on Default by the Contracto r Defects after Practical Completion The Defects Liability Period and Rectification of Defects Final Payment and Final Certificate Notification of Claims Disputes an d Dispute Resolution Separable Portion s of the Works Security, Retention Moneys and Performance Undertak ings

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Part 26

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169 172 175 182 186 194 197 207 219 221

Part 27 Part 28 Part 29 Part 30


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Default or Insolvency of the Contractor

Part 31 Part 32 Part 33 Part 34

Summary of Management Requirements

Subcon tract Con ditions AS 2545 1993

Section 3

PROFORMA NOTICES

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Prefa ce

It i s w ritten in an easy -to -read s tyle a nd, wh ere pos sible, avoids usin g u n n ece ssary lega lese. It is in ten ded fo r use b y those invol ved i n the administ ration of a contra ct to wh ich AS 2 124 1992 , Gener al Co nditions of Co ntract, applie s.
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This User s Man u a l h as b ee n p repa red for mem ber aut horities of NPWC wh o p rev io u sly used NPWC .3 as their ge neral condi tions of c ontract. A ppropria te co mp ar iso ns o f the re levant pro vi sions of NP W C.3 with AS 2124 1992 are includ ed in th i s Man u al.

Sectio n 2 of the Manual c ontains the gu idelines and c ommentar y on th e ad min i stration of AS 2124 1992, Gener al Co nditions of Co ntract. Sectio n 3 of the Manual c ontain s t he recommended profor ma notices for u se u n d er A S 212 4 1992.

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( PA GE vi I N T HE HA RD COP Y I S B L ANK )

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Sectio n 1 o f th e Man u al co n tains a gene ral con tractual overvie w.

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Th is Use rs Manual h as been p repared by t he Natio nal Publ ic W orks Coun cil fo r an d o n behal f of its mem bers.

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HB 57-1994 (Reference Use Only), User's manual for lump sum contract based on AS 2124-1992
This is a free 6 page sample. Access the full version at http://infostore.saiglobal.com.

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