The working assumption is that the roles will be held by different people. This addresses historical concerns about a lack of independence of roles, although it remains an option to appoint one person to both roles.
Instructions, Decisions and Review
The Certifier can review its own Decision unless it is a Final Decision. If unhappy with the Final Decision, a party can refer the matter to Dispute Resolution.
New Pricing Model: Target Cost
With the addition of the “Target Price” mechanism, there are now four pricing models for determining the Contract Price:
1. Lump Sum.
2. Measure and Value.
3. Cost Reimbursable.
4. Target Price.
The Target Price model allows the parties to agree on a target price for the project and divide equally the cost or savings of any deviation in the final price.
Final Account and Final Payment Claim
There is a prescribed process for dealing with the Interim and Final Account. This needs to take place before the Final Payment Claim can be submitted. The process includes a requirement to attempt to reach agreement on the Interim and Final Account. If no agreement is reached in respect to the Final Account, it can be determined by the Certifier.
Contractor's Liability Limit and Fault-based Indemnity
There are options in the Specific Conditions for the Contractor to limit liability. Contractor indemnities are now fault-based, meaning they only extend to losses resulting from Contractor negligence or breaches of the Contract.
Dispute Resolution
The dispute resolution processes have been simplified. The parties must first endeavour to promptly resolve disputes by good faith negotiation. If that fails, then there is the option but no requirement to go to mediation. Any dispute can be referred to arbitration.
Design Responsibilities
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