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New Government Contracts
The New Government Contract Forms (latest edition 2008) published on the Department Finance website have had a major impact on how the construction industry on the public side operates, both in respect of achieving fully complete design in advance of procurement and greatly adding to the burden of post contract administration.
Given the current recession, some tenders have not fully reflected the risks transferred to the contractors under these contracts and it is inevitable that some contractors will be involved in serious financial challenges should their failure to adequately cater for the cost of those risks come to fruition. Due to misunderstandings on both sides, tender competitions have had to be rerun and contractors have made unintentional errors in their tenders.
MMP are fully versed on the new contracts and procurement procedures and have commenced a number of projects using the new suite of documents.
Our experience ranges from budgeting and preparation of tender documentation, operation of the new procurement procedures including Specialist Novated subcontracts, and post contract administration under the new procedures.
MMP research on these contracts hasallowed us provide a comprehensive course review for both sides of the industry on the use of these contracts. We can advise public sector clients on issues they may have on implementing the new forms.
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