Standards Australia invites public comment on a draft of its new
general conditions for use in construction contracts, called AS
11000 - 2015. Once published, this Australian Standard is intended
to replace the current and popular AS 2124 – 1992 and AS 4000
– 1997.
The proposed changes are summarised in a statement by Standards
Australia.
Overall, we consider the proposed changes represent a step
forward towards balanced, fair and commercially efficient risk
allocation. However, as with all new proposals, there are still a
few areas which in our view, require attention:
- Sub-clause 42.10 (and possibly others) may require amendment to
accommodate relevant provisions of the Personal Property Securities
Act 2009. In some instances, that Act ("PPSA") may
entitle another secured creditor to seize the things which, under
that clause (as essentially, a retention of title clause), the
Principal may retain as security for payment by the Contractor. For
more
