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ARTICLE · 30 NOVEMBER 2016

Construction Update— AS11000 contract delayed after negative feedback

A further draft is expected to be released in mid-2017, with the final version being published at the end of the year.

AustraliaReal Estate and Construction

Standards Australia have once again pushed back the release date of the AS11000 contract after receiving negative feedback on the draft version from industry stakeholders. The contract is intended to replace AS2124-1992 and AS4000-1997, which form the basis of many major government construction projects in Queensland. Clauses which may be of concern to principals include:

Clause 2.1 (Good faith)

Each party to the contract is obliged to act in good faith towards each other. This clause can trigger a number of issues.

Broadly speaking, good faith in legal relationships imposes a general standard of fair dealing between parties, particularly relevant when negotiating, performing agreements and resolving disputes. However, there is no clear line in the sand. The expression "good faith" is undefined in the Contract, and therefore the scope of this this obligation is unclear.

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