Procuring agencies should determine on a project specific basis:
• Reporting requirements - The Major Project Skills Guarantee Explanatory Guide provides that reporting intervals should be specified in the Major Projects Skills Guarantee Compliance Plan and should include certain mandatory reporting requirements. The PV Standard Project Deeds require reports on compliance to be provided:
- as specified in the Major Projects Skills Guarantee Compliance Plan and otherwise at a frequency of not less than quarterly until Commercial Acceptance;
- 12 Months after Financial Close; and
- at Commercial Acceptance.
• Consequences for non-compliance - The Major Project Skills Guarantee Explanatory Guide provides that compliance arrangements for the Major Project Skills Guarantee are to be specified in contracts and a failure to comply with the Major Project Skills Guarantee will constitute a breach of contract. The PV Standard Project Deeds provide that a failure by Project Co to comply with the Major Projects Skills Guarantee Compliance Plan will result in liquidated damages being payable at the Date of Commercial Acceptance (the formula for calculating the liquidated damages should be set out in the Payment Schedule) and a Major Default if the failure is not cured within 20 Business Days. However, procuring agencies are to determine on a project specific basis whether and what consequences should apply if Project Co fails to comply with the Major Project Skills Guarantee.
The PV Standard Project Deeds clauses have been included based on the MPSG Clauses and accordingly only apply to the Works, notwithstanding the Major Project Skills Guarantee Explanatory Guide provides that the value of the Services must be included as part of the overall value of the Project Deed and in the calculation of the deemed estimated overall project labour hours and the minimum 10 per cent requirement. Procuring agencies should consult with the Department of Economic Development, Jobs, Transport and Resources to determine on a project specific basis whether the Major Project Skills Guarantee will apply to the Services and if so, include appropriate amendments, including the timing of reports and the consequences of a failure to comply.