| When drafting a contract it is important to ensure provisions that protect the interests of the Australian Government are included. These same provisions frequently also offer protection to the contractor. In most entities, contract provisions are reviewed or drafted by the legal area within the acquiring entity. However, to facilitate effective contract negotiations and management of the contract, it is important that key stakeholders, including the contract manager, understand the intent and consequences of all the provisions included in the contract. The more common provisions (in alphabetical order) generally included in public sector standard form contracts43 relate to: | When drafting a contract it is important to ensure provisions that protect the interests of the Australian Government are included. | |
| • Access and disclosure • Assistance provided to the contractor • Commonwealth specific clauses44 • Confidential information • Conflict of interest • Contract variations • Disclosure of information (confidentiality) • Dispute resolution • Insurance • Intellectual property rights | • Key personnel • Liabilities and indemnities • Payments • Penalties and incentives • Securities and guarantees • Sub-contracting • Termination and contract end dates • Transition arrangements • Warranties and fitness for purpose. |
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| Each of these matters is discussed below. This list of common provisions is not definitive and other provisions may need to be drafted to suit the particular contractual arrangement.
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43 Standard form contracts and supporting documentation (currently for low risk, non-IT procurement of goods and services, with an estimated value of less than $80,000) can be accessed from the Procurement Document Library on the Austender website at <https://www.tenders.gov.au/?event+public.document list>. SourceIT Model contracts can be accessed from the Department of Finance and Deregulation website at <https://www.finance.gov.au/procurement/ict-procurement/index.html>.
44 For example, clauses that relate to certain Commonwealth policies and obligations that interact with procurement such as security, fair work principles, and privacy. A full list of procurement connected policies and obligations are set out in the Department of Finance and Deregulation website, <http://www.finance.gov.au/procurement/>, Procurement Connected Policies guide. This Guide also contains links to model tender and contract clauses relating to the policies. CAC Act bodies are subject to policies where applied under a General Policy Order.