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Road Construction Contract
C6830 General Conditions of Contract
USER GUIDE
INSTRUCTIONS FOR USE
The General Conditions of Contract are based on the Australian Standard AS 2124 - 1992
published by Standards Australia.
This guide is intended to be a guide only for any of the parties to a Contract using these
General Conditions but do not form part of the Contract.
Amendments have been made, where necessary, to conform to the specific requirements of
the Queensland Department of Main Roads and Government legislation.
In this User Guide, the text comprising the General Conditions of Contract has been printed
only on the left hand pages. The opposite right hand pages contain a brief commentary on
and/or description of selected clauses.
The original issue of this User Guide was produced in 1996 and referred to the August 1996
version of the Road Construction Contract (RCC), which was then current. There have been
several subsequent versions of the RCC (viz. December 1999, November 2001,
February 2002 and January 2004). The User Guide has therefore been revised to
incorporate and comment on all of the important changes made to the RCC up to, and
including, the September 2005 version.
In practice, no changes are to be made to the General Conditions of Contract unless
authorised by General Manager (Engineering & Technology).
Department of Main Roads General Conditions of Contract
Road Construction Contract User Guide
General Conditions of Contract
1 CONSTRUCTION OF CONTRACT quantities in the Schedule of Rates and
The law governing the Contract, its interpretation, adding GST; or
any agreement to arbitrate and the conduct of any (c) where the Principal accepted a lump sum
arbitration or litigation, is the law of the State of and rates, the aggregate of the sums
Queensland. referred to in paragraphs (a) and (b),
Unless otherwise provided, prices are in Australian including provisional sums but excluding any
currency and payments shall be made in Australian additions or deductions which may be required to
currency at the place stated in Item 1 of the be made under the Contract;
Annexure. ‘Contractor means the person bound to execute
Communications between the Principal, the the work under the Contract;
Superintendent and the Contractor shall be in the ‘Date of Acceptance of Tender means the date
English language. which appears on the notice in writing of
Measurements of physical quantities shall be in acceptance of the tender;
Australian legal units of measurement within the ‘Date for Practical Completion means —
meaning of the National Measurement Act 1960,
as amended from time to time. (a) where Item 2 or Item 21 of the Annexure
Where provisions in the General Conditions of provides a date for Practical Completion,
Contract are expressed to be alternatives and the the date;
Contract fails to state which alternative applies, the (b) where Item 2 or Item 21 of the Annexure
first alternative shall apply. provides a period of time for Practical
Where the Contractor is 2 or more persons, the Completion, the last day of the period,
Contract shall be binding upon them jointly and but if any extension of time for Practical
severally. Completion is granted by the Superintendent or
Any provision of the Contract which purports to or allowed in any arbitration or litigation, it means
has the effect of limiting or excluding a liability of the date resulting therefrom;
the Principal shall be construed as limiting or ‘Date of Practical Completion means —
excluding that liability only to the extent permitted (a) the date certified by the Superintendent in
by law. a Certificate of Practical Completion
2 INTERPRETATION issued pursuant to Clause 42.5, to be the
In the Contract, except where the context otherwise date upon which Practical Completion was
requires — reached; or
‘Constructional Plant means appliances and (b) where another date is determined in any
things used in the execution of the work under arbitration or litigation as the date upon
the Contract but not forming part of the Works; which Practical Completion was reached,
that other date;
‘Contract means the agreement between the ‘day means calendar day;
Principal and the Contractor; ‘Drawings means the drawings referred to in the
‘Contract Duration means the number of Contract and any modification of such drawings
calendar days between the Date of Acceptance of notified to the Contractor by the Superintendent
Tender and the Date for Practical Completion, and includes such other drawings as may from
or, where a period of time is provided in item 2 time to time be supplied to the Contractor by the
of the General Conditions of Contract Annexure Superintendent, or the use of which has been
Part A then it shall mean the period of time; permitted by the Superintendent, for the purposes
‘Contract Sum means — of the Contract;
(a) where the Principal accepted a lump sum, ‘GST means the goods and services tax imposed
the lump sum which includes the GST; or under the GST Legislation. A reference to an
(b) where the Principal accepted rates, the amount of GST is reference to the GST liability
sum ascertained by calculating the in respect of the supply in question;
products of the rates and the corresponding
Page 1 of 39
C6830
September 05
Department of Main Roads General Conditions of Contract
Road Construction Contract User Guide
1 CONSTRUCTION OF CONTRACT
The law of the Contract is now stated as the law of the State of Queensland. The place for payments is specified in Item
1 of Part A of the Annexure.
Note that where Clauses have Alternatives, the first Alternative applies unless specified otherwise, usually in Part A of
the Annexure. Clauses which have Alternatives are Clauses 18, 19, 42.4 and 47.2.
2 INTERPRETATION
The Clause contains definitions of common or important terms. Further definitions are found in the body of the
Contract.
Contract Sum: The "Contract Sum" always remains the same as originally specified in the Contract and includes
Provisional Sums (to which Clause 11 applies). The Contract Sum is never adjusted, but the amount payable under the
Contract may vary subject to approved variations, the final value of Provisional Sums and the extended value of items
in the Schedule of Rates.
Contract Value: The value of the contract excluding GST.
"Date for Practical Completion" means that date on which the Contractor is to achieve Practical Completion, taking into
account any extensions of time granted to the Contractor under Clause 35.5. There will be a separate Date for Practical
Completion for each Separable Portion.
"Date of Practical Completion" means the actual date on which the Contractor achieves Practical Completion. There
will be a separate Date of Practical Completion for each Separable Portion.
"day" and "month" wherever mentioned mean calendar day and calendar month, respectively.
"Practical Completion" means:
(a) the Works are complete except for minor omissions and minor defects which do not prevent the Works from
being reasonably capable of being used for their intended purpose, which the Superintendent determines the
Contractor need not promptly rectify and which will not prejudice the convenient use of the Works if not
rectified;
(b) all required tests have been carried out; and
(c) documents essential for use, such as instruction manuals and maintenance manuals have been supplied as required
by the Contract.
“provisional sum”. Note the distinction between a provisional sum and the amounts in a Schedule of Rates for items
described as “provisional”, “provisional quantity” or “if ordered, provisional quantity” or Schedule of Rates items with
a “P” or “PS” suffix.
A provisional sum may be contained as an item in a Schedule of Rates.
“Schedule of Prices” and “Schedule of Rates”. The total of the Schedule of Prices, plus GST if applicable, will be equal
to the Contract Sum. The Schedule of Prices may be comprised of the extended total value of a number of Schedules of
Rates for the various sections of work to be carried out. Note that the rates for the items in a Schedule of Rates should
not include GST.
“subcontractor" The definition has been simplified from that appearing in the 1996 version of the Contract and
extended so that it now includes suppliers or hirers of materials, plant or equipment.
Page 1A of 39
C6830
September 05
Department of Main Roads General Conditions of Contract
Road Construction Contract User Guide
‘GST Legislation means the A New Tax System Contractor is required to provide a unit rate in its
(Goods and Services Tax) Act 1999, associated tender;
legislation and any additional or substituted ‘Schedule of Rates means any schedule (other
legislation providing for a value added tax, than a Schedule of Prices) included in the
consumption tax, retail tax or other goods and Contract which, in respect of any section or item
services tax; of work to be carried out, shows the rate or
‘month means calendar month; respective rates of payment for the execution of
‘person includes a firm or body corporate or that work and which may also include lump
unincorporate or an individual; sums, provisional sums, other sums, quantities
and prices. The rates of payment should not
‘Practical Completion is that stage in the include an amount of GST in respect of the
execution of the work under the Contract work;
when — ‘Separable Portion means a portion of the work
(a) the Works are complete except for minor under the Contract described in the Contract as a
omissions and minor defects — Separable Portion or which the Superintendent
(i) which do not prevent the Works from has determined pursuant to Clause 35.4 shall be a
being reasonably capable of being Separable Portion;
used for their intended purpose; and ‘Site means the lands and other places to be
(ii) which the Superintendent determines made available as described in Item 4 of the
the Contractor has reasonable Annexure and any other lands and places made
grounds for not promptly rectifying; available to the Contractor by the Principal for
and the purpose of the Contract;
(iii) rectification of which will not ‘Specification means the specifications referred
prejudice the convenient use of the to in the Contract and any modification of such
Works; and specification thereafter directed or the use of
(b) those tests which are required by the which has been permitted by the Superintendent
Contract to be carried out and passed pursuant to powers contained in the Contract;
before the Works reach Practical ‘subcontractor includes a supplier or hirer of
Completion have been carried out and materials, plant or equipment;
passed; and ‘Superintendent means the person stated in Item
(c) documents and other information required 5 of the Annexure as the Superintendent or other
under the Contract which, in the opinion person from time to time appointed in writing by
of the Superintendent, are essential for the the Principal to be the Superintendent and
use, operation and maintenance of the notified as such in writing to the Contractor by
Works have been supplied; the Principal and so far as concerns the functions
‘Principal means the Principal stated in Item 3 exercisable by a Superintendents
of the Annexure; Representative, includes a Superintendents
Representative;
‘provisional sum includes monetary sum, ‘Superintendentss Representative means a
contingency sum and prime cost item, but does person appointed in writing by the
not include any amounts in a Schedule of Rates Superintendent under Clause 24;
for items described or marked “provisional”, ‘supply has the meaning given in the GST
“provisional quantity” or “if ordered, provisional Legislation;
quantity” (or similar) or any amounts for
numbered items in a Schedule of Rates which ‘Temporary Works means works used in the
include the suffix “P” or “PS”; execution of the work under the Contract but not
‘Schedule of Prices means a schedule (other forming part of the Works;
than a Schedule of Rates) which provides an ‘work under the Contract means the work which
itemised breakdown of the work under the the Contractor is or may be required to execute
Contract and which is priced by the Contractor in under the Contract and includes variations,
its tender, with the sum of the prices and the remedial work, Constructional Plant and
amount of GST totalling the Contract Sum and a Temporary Works;
Schedule of Prices may also include an itemised
table of work related tasks for which the
Page 2 of 39
C6830
September 05
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