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Handbook
Subcontract conditions (AS 25451993)

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User guide

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SAA HB541994

SAA HB541994

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Handbook

Subcontract conditions (AS 25451993)

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User guide
Compiled by Mr John Pilley Construction Industry Engineering Services Group
First published as SAA HB54 1994.

PUBLISHED BY STANDARDS AUSTRALIA (STANDARDS ASSOCIATION OF AUSTRALIA) 1 THE CRESCENT, HOMEBUSH, NSW 2140
ISBN 0 7262 9067 X

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SAA HB54 1994

PREFACE
The purpose of this Handbook is to assist the users in the administration of a Subcontract, which uses AS 2545 1993 Subcontract conditions , by providing an explanation of the Clauses. The explanations, in helvetica typeface, are on the page facing the text of AS 2545 1993. The page number of the explanations is marked with the letter A.

This document was compiled by Mr John Pilley of the Construction Industry Engineering Services Group and checked by Mr Brian Farmer of Capital Insight Pty Ltd, under contract.

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Copyright STANDARDS AUSTRALIA 1994 Users of Standards are reminded that copyright subsists in all Standards Australi a publications. Except where the Copyright Act allows no part of this publi cati on may be reproduced, stored in a retri eval system in any form or transmitt ed by any means without pri or permission in wri ti ng fr om Standards Australi a.

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The Annex to this Handbook provides the most usual or recurring notices required in the administration of this Subcontract.

SAA HB54 1994

CONTENTS
Page 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 CONSTRUCTION OF SUBCONTRACT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 INTERPRETATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 NATURE OF SUBCONTRACT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 BILL OF QUANTITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 SECURITY, RETENTION MONEYS AND PERFORMANCE UNDERTAKINGS 9 EVIDENCE OF SUBCONTRACT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 SERVICE OF NOTICES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 SUBCONTRACT DOCUMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 ASSIGNMENT AND SECONDARY SUBCONTRACTING . . . . . . . . . . . . . . . 14 SELECTED AND NOMINATED SECONDARY SUBCONTRACTORS . . . . . . 14 PROVISIONAL SUMS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 LATENT CONDITIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 PATENTS, COPYRIGHT AND OTHER INTELLECTUAL PROPERTY RIGHTS 19 STATUTORY REQUIREMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 PROTECTION OF PEOPLE AND PROPERTY . . . . . . . . . . . . . . . . . . . . . . . 20 CARE OF THE WORK AND REINSTATEMENT OF DAMAGE . . . . . . . . . . . 20 DAMAGE TO PERSONS AND PROPERTY OTHER THAN THE WORKS . . . 21 INSURANCE OF THE WORKS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 PUBLIC LIABILITY INSURANCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 INSURANCE OF EMPLOYEES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 INSPECTION AND PROVISIONS OF INSURANCE POLICIES . . . . . . . . . . . 23 CLERK OF WORKS AND INSPECTORS . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 MAIN CONTRACTORS REPRESENTATIVE . . . . . . . . . . . . . . . . . . . . . . . . 24 DIRECTIONS BY OTHERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 SUBCONTRACTORS REPRESENTATIVE . . . . . . . . . . . . . . . . . . . . . . . . . 25 CONTROL OF SUBCONTRACTORS EMPLOYEES AND SECONDARY SUBCONTRACTORS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 SITE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 SETTING OUT THE WORKS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 MATERIALS, LABOUR AND CONSTRUCTIONAL PLANT . . . . . . . . . . . . . 27 MATERIALS AND WORK . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 EXAMINATION AND TESTING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 WORKING HOURS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 PROGRESS AND PROGRAMMING OF THE WORKS . . . . . . . . . . . . . . . . . . 31 SUSPENSION OF THE WORKS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 TIMES FOR COMMENCEMENT AND SUBSTANTIAL COMPLETION . . . . . 33 DELAY OR DISRUPTION COSTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 DEFECTS LIABILITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 CLEANING UP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 URGENT PROTECTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 VARIATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 DAYWORK . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 CERTIFICATES AND PAYMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 PAYMENT OF WORKERS AND SECONDARY SUBCONTRACTORS . . . . . . 43 DEFAULT OR INSOLVENCY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

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SAA HB54 1994

Page 45 46 47 48 49 TERMINATION BY FRUSTRATION . . . TIME FOR NOTIFICATION OF CLAIMS DISPUTE RESOLUTION . . . . . . . . . . . . WAIVER OF CONDITIONS . . . . . . . . . . SERVICES AND FACILITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 48 48 50 50 51 59 60 61 62 64 65

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ANNEXURE PART A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . APPROVED FORM OF UNCONDITIONAL UNDERTAKING . . . . . . . . . . . . . . . . ANNEXURE PART B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CERTIFICATE OF SUBSTANTIAL COMPLETION . . . . . . . . . . . . . . . . . . . . . . . GENERAL CONDITIONS OF TENDERING AND FORM OF TENDER . . . . . . . . . FORM OF FORMAL INSTRUMENT OF AGREEMENT FOR SUBCONTRACT . . . ANNEX 1 PROFORMA NOTICES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(PAGE 4A IN THE HARD COPY IS BLANK.)

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HB 54-1994 (Reference Use Only), Subcontract conditions (AS 2545-1993) - User guide
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