AS4000:2025 - General Conditions of Contract

What is the definition of a Latent Condition?

Physical conditions on the site and its near surrounds, including contamination or artificial things excluding weather conditions, which differ materially from physical conditions which should reasonably have been anticipated by a competent contractor at the time of the Contractor’s tender if the competent contractor had inspected:

1. all written information made available by the Principal to the Contractor for the purpose of tendering;

2. all information influencing the risk allocation in the Contractor’s tender and reasonably obtainable by the making of reasonable enquiries; and

3. the site and its near surrounds;

What is the clause and requirements from the Contractor when a Latent Condition is issued?

Clause 25 - Latent Conditions

Clause 25.1 - Notification

• As soon as practiceable after the Contractor becomes aware of a latent condition, and where possible before the Laten Condition is di

What is a Compensable Cause?

1. Any act, default or omission of the Superintendent, the Principal or its consultants, agents or other contractors (not employed by the Contractor) and;

2. Any of those causes listed in Item 31 (The specification particular. Clause 34.9 - Compensation for Delays catches this)

   1. The Superintendent must assess & certify, in accordance with Clause 41.3 (Superintendents Decision), as moneys due from the Principal to the Contractor, compensation calculated in accordance with this Clause 34.9 for every day:

      1. Which is the subject of an EOT for a Compensable Cause; and

      2. For which the Contractor gives the Superintendent a claim for compensation for delays in accordance with Clause 41.1 (Communication of Claims)

   2. Compensation is to be calculated as:

      1. Cost incurred by the Contractor that would not have been incurred but for the days the subject of the relevant EOT

      2. Any damages suffered by the Contractor as a consequence of the delays the subject of the relevant EOT but only to the extent the Compensable Cause was a breach of contract by the Principal

DAB Decision?

Dispute Avoidance Board Agreement Decision

Deed of Guarantee, Undertaking & Substitution?

A Deed issued in accordance with Clause 5.6 - Deed of guarantee, undertaking and substitution

• If

  • a party is a related or subsidiary corporation (as defined in the Corporations Act 2001 (Cth)); and

  • a form of Deed of Guarantee, Undertaking & Substitution was included in the tender documents

• that party must, within 14 days after receiving a written request from the other party, provide the Deed of Guarantee, Undertaking & Substitution duly executed and enforceable.