Development of AS 11000 has been cancelled

On 4 April 2017 Standards Australia announced that the development of the draft AS 11000 General Conditions of Contract has been cancelled due to a lack of stakeholder support.

In September 2013, Standards Australia commenced a review of AS 2124-1992, AS 4000 – 1997 and the suite of Australian Standards relating to the general conditions.

It was intended that AS 11000 would merge and supersede AS 2124—1992 and AS 4000—1997 and provide a more user friendly and balanced risk allocation than the AS 2124 and AS 4000 suites.

Some of the key changes that were proposed in the draft AS 11000 included:

• an overarching obligation of good faith, on both parties
• the introduction of “early warning procedures” which are aimed at resolving issues as soon as practicable;
• the requirement that the contractor include a critical path programme in a time linked bar chart format which was to be revised at agreed stages to account for actual progress;
• the replacement of “qualifying cause of delay” definition used in AS 4000 with “causes of delay”;
• a distinction between “delay damages” and “delay costs”;
• provision for “prospective variations”;
• the requirement for the contractor to use AS 11002-2015 subcontract conditions as to its subcontract conditions;
• better alignment with Security of Payment legislation; and
• expansion of the dispute resolution provisions in AS 4000 and AS 2124 including resolution by contract facilitation or dispute resolution board.

Despite the efforts of Standards Australia to produce in the AS 11000 a more user friendly and balanced approached; AS 11000 “was not supported by the full spectrum of interests.”

As a result, Standards Australia has ceased work on the AS 11000.  According to Standards Australia, any further development on AS 11000 will require further stakeholder representation and consultation.

In the meantime AS 2124—1992 and AS 4000—1997 will continue to operate with amendments being made by the parties to address key risk issues and the requirements of legislation.

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