Department of Defence - Design Services Subcontract (DSSC-1 2003) - for use with MCC-1 2003

PROJECT NUMBER: [INSERT PROJECT NUMBER]

PROJECT NAME: [INSERT PROJECT NAME]

DESIGN SERVICES SUBCONTRACT

(DSSC-1 2003)

(FOR USE WITH MCC-1 2003)

[LAST AMENDED:20 FEBRUARY 2013 - PLEASE REMOVE PRIOR TO EXECUTION]

Legal\30921648.31

Department of Defence - Design Services Subcontract (DSSC-1 2003) - for use with MCC-1 2003

Table of Contents

FORMAL AGREEMENT

CONDITIONS OF SUBCONTRACT

1.Glossary of terms, interpretation AND MISCELLANEOUS

1.1Glossary of Terms

1.2Interpretation

1.3Miscellaneous

2.Role of the consultant

2.1Engagement

2.2Standard of Care

2.3Authority to Act

2.4Knowledge of the Contractor's Requirements

2.5Notice of Matters Impacting on the Services or the MCC Works

2.6Coordination with Other Contractors

2.7Access to Consultant's Premises

2.8Conflict of Interest

2.9Subcontracting

2.10Statutory Requirements

2.11Change in Statutory Requirements or Variance with Subcontract

2.12Consultant Deed of Covenant and Novation

2.13The Environment

3.Role of the CONTRACTOR

3.1Information and Services

3.2Additional Information

3.3Access

3.4Making of Decisions

4.Personnel

4.1Contractor's Representative

4.2Replacement of Contractor's Representative

4.3Parties' Conduct

4.4Key People

4.5Removal of Persons

4.6Project Review

5.Insurance

5.1Consultant Insurance Obligations

5.2Insurance by Contractor

5.3Failure to Insure

5.4Period of Insurance

5.5Notice of Potential Claim

5.6Cross Liability

6.DESIGN AND Documentation

6.1Contractor's Documents

6.2Consultant's Design

6.3Contractor's Representative may Review Design Documentation

6.4No Obligation to Review

6.5Copies of Design Documentation

6.6Licence over Design Documentation

6.7Intellectual Property Warranties

6.8Intellectual Property Rights

6.9Contractor Material

6.10Resolution of Ambiguities

6.11Access to Premises and Project Documents

6.12Measurements and Dimensions

6.13Design Certification

6.14Samples

6.15Work Health and Safety Management

7.Quality

7.1Quality Assurance

7.2Non-Complying Services

7.3Reperformance of the Non-complying Services

7.4Project Plans

8.Time

8.1Progress

8.2Programming

8.3Consultant Not Relieved

8.4Suspension

8.5Delays Entitling Claim

8.6Claim

8.7Conditions Precedent to Extension

8.8Extension of Time

8.9Reduction in Extension of Time

8.10Unilateral Extensions

8.11Acceleration

9.Variation

9.1Variation Price Request

9.2Variation Order

9.3Cost of Variation

9.4Rates and Prices

9.5Omissions

10.Payment

10.1Payment Obligation

10.2Payment Claims

10.3Conditions Precedent

10.4Payment Statements

10.5Payment

10.6Payment on Account

10.7Completion Payment Claim and Notice

10.8Release after Completion Payment Claim and Notice

10.9Interest

10.10Correction of Payment Statements

10.11Right of SetOff

10.12Payment of Workers

10.13GST

10.14Security of Payment Legislation

10.15Accounting Records

10.16Cost Allocation Advice

10.17Facilities and Infrastructure Accounting

10.18DEMS and GFIS

11.Termination

11.1Preservation of Rights

11.2Consultant Default

11.3Contents of Notice of Default

11.4Termination for Insolvency or Breach

11.5Contractor's Entitlements after Termination

11.6Consultant's Entitlements after Termination

11.7Termination for Convenience

11.8Costs

11.9Termination of Managing Contractor Contract

11.10Consequences Following Managing Contractor Contract Termination

11.11Copies of Project Documents

12.Dispute resolution

12.1Notice of Dispute

12.2Expert Determination

12.3The Expert

12.4Not Arbitration

12.5Procedure for Determination

12.6Disclosure of Interest

12.7Costs

12.8Conclusion of Expert Determination

12.9Agreement with Expert

12.10Determination of Expert

12.11Executive Negotiation

12.12Arbitration Agreement

12.13Arbitration

12.14MCC Dispute Procedures

12.15MCC Disputes

12.16Procedure for MCC Disputes

12.17Further Procedures

12.18Proportional Liability

12.19Continuation of Services

13.Notices

13.1Notice of Variation

13.2Notices of Other Claims

13.3Prescribed Notices

13.4Continuing Events

13.5Time Bar

13.6Other Provisions Unaffected

13.7Address for Service

13.8Receipt of Notices

14.WOL

14.1General Obligations

14.2Consultation

14.3WOL Proposals

14.4Reporting

14.5Commissioning and Handover

14.6Post Occupancy Evaluation

14.7Rights and Obligations Not Affected

15.General

15.1Workplace Gender Equality

15.2Indigenous Opportunities

15.3Safe Base Alert State System

15.4IT Equipment

15.5Protection of Personal Information

15.6Moral Rights

15.7Freedom of Information

15.8Long Service Leave

15.9Assignment

15.10Publicity

15.11Classified Information

15.12Manual of Fire Protection Engineering and Building Code of Australia Certification

16.BUILDING CODE 2013

[INSERT IF THE CONSULTANT WILL BE ENGAGING IN "BUILDING WORK" AS DEFINED IN THE BUILDING CODE 2013 IN FORCE PURSUANT TO THE FAIR WORK (BUILDING INDUSTRY) Act 2012 (CTH)]

16.1General

16.2Responsibility not Affected

16.3Notice of Effect on Compliance with Building Code 2013

16.4Records

16.5Access and Documents

16.6Project Agreements

17.COMMERCIAL-IN-CONFIDENCE INFORMATION

17.1General

17.2Commercial-in-Confidence Information

18.FAIR WORK PRINCIPLES

18.1General

18.2Responsibility not Affected

SUBCONTRACT PARTICULARS

ANNEXURE 1 – COMPLETION

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Department of Defence - Design Services Subcontract (DSSC-1 2003) - for use with MCC-1 2003

FORMAL AGREEMENT

This Subcontract is made on day of

PartiesThe contractor set out in the Subcontract Particulars(Contractor)

The consultant set out in the Subcontract Particulars(Consultant)

A.The Commonwealth of Australia (Commonwealth) and the Contractor entered the Managing Contractor Contract (as described in the Subcontract Particulars) for the design and construction of the MCC Works (as described in the Subcontract Particulars).

B.The Contractor wishes to subcontract certain obligations under the Managing Contractor Contract in relation to design to the Consultantunder this Subcontract.

C.The Contractorand the Consultant promise to carry out and complete their respective obligations in accordance with:

(a)the attached Conditions ofSubcontract; and

(b)the other documents referred to in clause 1.1 of the Conditions of Subcontract as constituting theSubcontract.

SIGNED as an agreement.

Executedby the Contractor by or in the presence of:
Signature of Director
______/
Signature of Secretary/other Director
Name of Director in full /
Name of Secretary/other Director in full
Executed by the Consultantby or in the presence of:
Signature of Director /
Signature of Secretary/other Director
Name of Director in full /
Name of Secretary/other Director in full

CONDITIONS OF SUBCONTRACT

1.Glossary of terms, interpretation AND MISCELLANEOUS

1.1Glossary of Terms

Unless the context otherwise indicates, whenever used in thisSubcontract, each word or phrase in the headings in this clause 1.1 has the meaning given to it under the relevant heading.

Accredited Building Surveyor

A person who is:

(a)a building surveyor accredited by the Australian Institute of Building Surveyors; or

(b)from time to time nominated in the MFPE as having the capacity to certify compliance with the requirements of the MFPE and the Building Code of Australia for Commonwealth projects similar to theMCC Works.

Act of Prevention

Any one of:

(a)a breach of the Subcontractby theContractor;

(b)any other act or omission of theCommonwealth, the Contractor,the MCC Contract Administrator, theContractor's Representativeor an Other Contractorengaged by theContractor; or

(c)a Variation the subject of a direction by the Contractor's Representative.

Approval

Any licence, permit, consent, approval, determination, certificate, notice or other requirement of any Commonwealth, State, Territory or local authority, body or other organisation having any jurisdiction in connection with theSite, the MCC Worksor the Services or under any other applicable Statutory Requirement, which must be obtained or satisfied to:

(a)carry out the Services; or

(b)service, occupy and use the completed MCC Works, to the extent that the Services are relevant to such satisfaction.

ASEE

Assistant Secretary Environment and Engineering.

Award Date

The date on which the Formal Agreement, to which these Conditionsof Subcontractare attached, has been completed and signed by the Contractorand the Consultant.

Brief

The documents referred to in the Subcontract Particulars.

Building Code 2013 [INSERT IF THE CONSULTANT WILL BE ENGAGING IN "BUILDING WORK" AS DEFINED IN THE BUILDING CODE 2013 IN FORCE PURSUANT TO THE FAIR WORK (BUILDING INDUSTRY) Act 2012 (CTH)]

Building Code 2013 in force pursuant to the Fair Work (Building Industry) Act 2012.

Building Code of Australia

The Building Code of Australia that applies in the State or Territory where the MCC Works are located, as amended from time to time, produced and maintained by the Australian Building Codes Board on behalf of the Commonwealth Government and each State and Territory Government.

Change of Control

In relation to theConsultant, where a person who did not (directly or indirectly) effectively Control the Consultant at the Award Date, either alone or together with others, acquires Control of the Consultant.

Claim

Includes any claim for an increase in the Fee, for payment of money (including damages) or for an extension of time:

(a)under, arising out of, or in any way in connection with, theSubcontract, including any direction of theContractor's Representative;

(b)arising out of, or in any way in connection with, the MCC Works,the Services or either party's conduct before theSubcontract; or

(c)otherwise at law or in equity including:

(i)by statute;

(ii)in tort for negligence or otherwise, including negligent misrepresentation; or

(iii)for restitution.

Code Monitoring Group[INSERT IF THE CONSULTANT WILL BE ENGAGING IN "BUILDING WORK" AS DEFINED IN THE BUILDING CODE 2013 IN FORCE PURSUANT TO THE FAIR WORK (BUILDING INDUSTRY) Act 2012 (CTH)]

Has the meaning in the Building Code 2013 and the Building Code 2013 - Supporting Guidelines for Commonwealth Funding Entities.

Commissioning and Handover Plan

The commissioning and handover plan prepared by the Consultant and finalised under clause7.4, which must set out in adequate detail the procedures the Consultant will implement to manage the Services from a commissioning and handover perspective to ensure:

(a)the timely, efficient and comprehensive commissioning of the MCC Works (including the inspection and testing process); and

(b)the smooth handover of the MCC Works to the Commonwealth,

in accordance with the Subcontract, the Contractor's Commissioning and Handover Plan and the Commissioning, Handover and Takeover Guidelines.

Commissioning, Handover and Takeover Guidelines

The guidelines set out in the Schedule of Collateral Documents.

Commonwealth

Commonwealth of Australia.

Commonwealth Procurement Rules

The Commonwealth Procurement Rules issued under Regulation 7 of the Financial Management and Accountability Regulations 1997 (Cth).

Completion

The point in time when, in respect of a Milestone:

(a)the Design Documentationhas been completed in accordance with theSubcontract;

(b)the Serviceshave been completed in accordance with theSubcontract; and

(c)the Consultant has done everything which the Subcontractrequires it to do as a condition precedent to Completion, including those things described in Annexure 1 and in the Subcontract Particulars.

Consultant

The person named in the Subcontract Particulars.

Consultant Deed of Covenant

A consultant deed of covenant in the form set out in the Schedule of Collateral Documents.

Consultant Design Certificate

The certificate set out in the Schedule of Collateral Documents.

Consultant's Representative

The person named in the Subcontract Particulars or any other person from time to time appointed as Consultant's Representative in accordance with clause4.4.

Contamination

The presence in, on or under land, air or water of a substance (whether a solid, liquid, gas, odour, heat, sound, vibration or radiation) at a concentration above the concentration at which the substance is normally present in, on or under land, air or water in the same locality, that presents a risk of Environmental Harm, including harm to human health or any other aspect of the Environment, or could otherwise give rise to a risk of non-compliance with any Statutory Requirement for the protection of the Environment.

Contractor

The person named in the Subcontract Particulars.

Contractor Material

All material provided to the Consultant by the Contractor, including documents provided in accordance with clause6 and any other documents, equipment, machinery and data (stored by any means).

Contractor's Commissioning and Handover Plan

The commissioning and handover plan described in the Subcontract Particulars, amended as approved under the Managing Contractor Contract.

Contractor's Environmental Management Plan

The environmental management plan described in the Subcontract Particulars, amended as approved under the Managing Contractor Contract.

Contractor's Program

Any program, as amended from time to time, prepared by or on behalf of the Contractor setting out the times for the completion of the whole or any part of the Services and the MCC Works.

Contractor's Representative

The person nominated in the Subcontract Particulars or any other person nominated by the Contractor from time to time under clause 4.2 to replace that person.

Contractor's Site Management Plan

The site management plan described in the Subcontract Particulars, amended as approved under the Managing Contractor Contract.

Contractor's Work Health and Safety Plan

The work health and safety plan described in the Subcontract Particulars, amended and reviewed in accordance with the Managing Contractor Contract.

Control

Includes:

(a)the ability to exercise or control the exercise of the right to vote in respect of more than 50% of the voting shares or other form of voting equity in a corporation;

(b)the ability to dispose or exercise control over the disposal of more than 50% of the shares or other form of equity in a corporation;

(c)the ability to appoint or remove all or a majority of the directors of a corporation;

(d)the ability to exercise or control the exercise of the casting of a majority of the votes cast at the meetings of the board of directors of a corporation; and

(e)any other means, direct or indirect, of dominating the decision making and financial and operating policies of a corporation.

Date for Completion

The date or period of time (if any) specified in the Subcontract Particulars for Completion of a Milestone,as adjusted under theSubcontract.

Defence

Department of Defence.

Defence Environmental Management System

The environmental management system applicable to the Site (if any) available from the Commonwealth's regional environmental officer.

Defence Environmental Plan

The environmental plan applicable to the Site (if any) available from the Commonwealth's regional environmental officer.

Defence Environmental Requirements

The Defence Environmental Management System and Defence Environmental Plan which relate to the Site, the MCC Works or the Services and includes any procedures, instructions, requirements and standing orders which have been developed or issued under the Defence Environmental Management System or Defence Environmental Plan (as the case may be).

Defence Requirements

Includesall policies, plans, manuals, guidelines, instructions (including departmental procurement policy instructions) and other Commonwealth or Department of Defence requirements which are, or may become, applicable to the Site, the MCC Worksor theServices. To the extent that any of the requirements would require or suggest the insertion of provisions into this Subcontract, then:

(a)those provisions will be incorporated by reference into this Subcontract; and

(b)any ambiguity, discrepancy or inconsistency arising out of the incorporation by reference will be resolved by theMCC Contract Administrator.

Delivery Phase

Has the meaning given to it in the Managing Contractor Contract.

Delivery Phase Fee

The amount specified in the Subcontract Particulars as adjusted, subject to clause 13.5 (if applicable), under the Subcontract.

Delivery Phase Services

The professional services for the Delivery Phasedescribed in, or reasonably to be inferred from, the Brief.

Design Documentation

All materialbrought, or required to be brought, into existence by the Consultantas part of, or for the purpose of, carrying out the Services including documents, drawings, specifications, reports, models, samples and calculations, equipment, technical information, plans, charts, tables, schedules, data (stored by any means), photographs and finishes boards.

direction

Any agreement, approval, authorisation, certificate, consent, decision, demand, determination, direction, explanation, failure to consent,instruction, notice, notification,order, permission, rejection, request or requirement.

Employees Liability Insurance

A policy of insurance covering the liability of the Consultant towards its employees at common law, for injuries arising out of or in the course of their employment, whether as an extension underWorkers Compensation Insurance or otherwise.

Environment

Includes:

(a)ecosystems and their constituent parts, including people and communities;

(b)natural and physical resources;

(c)the qualities and characteristics of locations, places and areas; and

(d)the social, economic, aesthetic and cultural aspects of a thing mentioned in paragraphs(a), (b) or (c).

Environmental Clearance Certificate

The Environmental Clearance Certificate issued by the Commonwealth relating to the MCC Works and any conditions incorporated in that certificate.

Environmental Harm

Any actual or threatened adverse impact on, or damage to, the Environment.

Environmental Incident

Any Environmental Harm or Contamination caused by or in relation to the Services.

Environmental Management Plan

The environmental management plan prepared by the Consultant and finalised under clause 7.4which sets out in adequate detail the procedures the Consultant will implement to manage the Services from an environmental perspective and which must describe how the Consultant proposes to ensure the Services will be performed consistently with and so as to maximise the achievement of:

(a)the Environmental Requirements;

(b)the Statutory Requirements;

(c)without limiting paragraph (b), the Energy Policy for Commonwealth Agencies, Commonwealth Procurement Rules and Defence Green Procurement Policy;

(d)the ESD Principles; and

(e)the Environmental Objectives,

and in accordance with the Subcontract and the Contractor's Environmental Management Plan.

Environmental Objectives

The Environmental Objectives are to:

(a)encourage best practice environmental management through planning, commitment and continuous improvement;

(b)prevent and minimise adverse impacts on the Environment;

(c)identify the potential for, and respond to, Environmental Incidents, accidents and emergency situations and take corrective action;

(d)identify and control possible environmental hazards associated with the MCC Works and the Services;

(e)establish procedures to ensure that no hazardous substance is stored on Commonwealth land without approval;

(f)recognise and protect any special environmental characteristics of the Site (including cultural heritage significance);

(g)define roles and responsibilities for personnel;

(h)ensure environmental training and awareness programmes are provided to employees;

(i)define how the management of the Environment during the Services is reported and performance evaluated;

(j)describe all monitoring procedures required to identify impacts on the Environment as a result of the MCC Works and the Services;

(k)implement complaint reporting procedures and maintain records of complaints and response to complaints; and

(l)establish and maintain programs and procedures for periodic Environmental Management Plan audits to be carried out.

Environmental Requirements

Includes:

(a)the Environmental Clearance Certificate;

(b)the Defence Environmental Requirements; and

(c)any other matter or requirement specified in the Subcontract Particulars.

ESD

Ecologically sustainable development.

ESD Principles

Means:

(a)efficient and effective use of natural resources in a way that maintains the ecological processes on which life depends;

(b)increased energy conservation and efficiency;

(c)sustainable use of renewable energy resources;

(d)reduction or elimination of toxic and harmful substances in facilities and their surrounding environments;

(e)improvements to interior and exterior environments leading to increased productivity and better health;

(f)efficiency in resource and materials utilisation, especially water resources;

(g)selection of materials and products based on their life-cycle environmental impacts;

(h)increased use of materials and products with recycled content;

(i)recycling of construction waste and building materials after demolition;

(j)reduction in harmful waste products produced during construction;

(k)facility maintenance and operational practices that reduce or minimise harmful effects on people and the natural environment;

(l)maintaining the cultural, economic, physical and social wellbeing of people and communities; and

(m)the additional specific matters (if any) relating to ESDspecified in the Subcontract Particulars.