Plant hire - Water Corporation

General conditions of
contract for hire of plant
December 2012 Version
2012 Water Corporation
Except as permitted under the Copyright Act 1968 (Cth), no part of this publication
may be reproduced, stored in a retrieval system, or transmitted in any form or by
any means electronic, mechanical, photocopying, recording or otherwise, without
the prior written permission of the Water Corporation.
Inquiries should be addressed to the Manager Contracts.

Contents
1. Interpretation .................................................................................... 1
2. Nature of Contract .............................................................................. 3
3. Responsibilities and Obligations of the Contractor ................................... 3
3.1 Hire ....................................................................................... 3
3.2 Plant ..................................................................................... 5
3.3 Operator ................................................................................ 5
3.4 Compliance ............................................................................ 5
4. Responsibilities and Obligations of the Principal ...................................... 6
5. Formal Instrument of Agreement .......................................................... 6
6. Service of Notices ............................................................................... 6
7. Principals Representative and Contractor’s Representative and Operators .. 7
7.1 Principal’s Representative......................................................... 7
7.2 Contractor’s Representative...................................................... 7
7.3 Contractor’s Operators ............................................................. 7
8. Parking ............................................................................................ 7
9. Assignment and Engagement of Subcontractors ..................................... 7
10. Directions and Variations ..................................................................... 8
10.1 Directions .............................................................................. 8
10.2 Variations .............................................................................. 8
11. Stand Down of Plant ........................................................................... 8
11.1 Standby ................................................................................. 8
11.2 Stand Down ........................................................................... 8
12. Transport Charges .............................................................................. 8
13. Dependent Plant ................................................................................. 8
14. Warranty ........................................................................................... 9
15. Liability ............................................................................................ 9
15.1 Limitation of Liability ............................................................... 9
15.2 Indemnity by Contractor .......................................................... 9
16. Insurance .......................................................................................... 10
16.1 Public Liability Insurance .......................................................... 10
16.2 Insurance of Employees ........................................................... 10
16.3 Motor Vehicle Third Party Insurance .......................................... 11
16.4 Proof of Insurance ................................................................... 11
16.5 Notification of Death or Injury .................................................. 11
17. Payment ............................................................................................ 11
17.1 Claims for Payment ................................................................. 11
17.2 Payment ................................................................................ 11
17.3 Daily Work Dockets ................................................................. 11
17.4 Time and Place for Payment ..................................................... 11
17.5 Interest on Overdue Payments ................................................. 12
17.6 Right to Deduct Moneys from Payments ..................................... 12
17.7 Goods and Services Tax ........................................................... 12
18. Termination, Default, Suspensions and Frustration ................................. 12
18.1 Termination Other than Due to Default ...................................... 12
18.2 Termination Due to Default by Either Party ................................. 13
18.3 Suspension for Convenience ..................................................... 14
18.4 Insolvency ............................................................................. 14
18.5 Frustration ............................................................................. 15
18.6 Preservation of Other Rights ..................................................... 15
19. Dispute Resolution .............................................................................. 15
19.1 Notice of Dispute .................................................................... 16
19.2 Conference ............................................................................. 16
19.3 Elevation Clause ..................................................................... 16
19.4 Instituting Proceedings ............................................................ 16
19.5 Summary Relief ...................................................................... 16
20. Severability ....................................................................................... 17
21. Civil Liability Act 2002 ......................................................................... 17
ANNEXURE Part A ..................................................................................... 18

1. Interpretation
In the Contract, except where the context otherwise requires:
Item means an Item in Annexure Part A;
Bid
Contract
means the written offer by the Contractor to
perform the Contract;
means the agreement between the Principal and
the Contractor of which these Conditions form
part;
Contractor means the contractor stated in Item 3;
Day
means calendar day;
Designated
site
means the site stated in Item 5 or as otherwise
notified to the Contractor by the Principal;
Dispute Has the meaning in clause 19
Documents
Legislative
requirements
includes information stored by electronic and
other means;
includes:
a) Acts, Ordinances, regulations, by-laws, orders,
awards and proclamations of the Commonwealth and
the State or Territory applicable to the Contract; and
b) certificates, licences, consent, permits, approvals
and requirements of organisations having
jurisdiction applicable to the Contract;
Long term
hire
Mobilisation
and
demobilisation
charge
Normal rate
Notice of
acceptance
Operating
licence
means a period of hire exceeding 5 consecutive
working days;
means the price to be charged by the Contractor,
as stated in Item 6, to mobilise the plant to the
designated site and to demobilise the plant from
the designated site;
means the rate for the plant and Operator(s)
when the plant is operated during working hours,
as stated in Item 6;
means the written acceptance of the bid by the
Principal;
means the licence issued, from time to time, to
the Principal under the Water Services Licensing
Act 1995 (WA);
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Operator
Overtime
Overtime rate
Period for hire
Period of hire
Plant
means the Contractor (if the Contractor intends to
operate the plant) or the person provided and
remunerated by the Contractor to operate the
plant;
means the time that the plant is operated outside
of the working hours stated in Item 7;
means the rate stated in Item 6 for the plant
when the plant is operated outside working hours
as stated in Item 7;
means the period stated in Item 9 during which
the plant is to be available for hire to the
Principal;
means the period commencing from the date that
the Principal advises the Contractor in writing to
mobilise the plant;
means the items of plant specified in the Schedule
of Plant;
Principal means the principal stated in Item 1;
Purchase
order:
Schedule of
plant
Short term
hire
Standby rate
Standby time
Transport
charge
Working day
means a purchase order issued by the Principal
means the schedule headed Schedule of Plant as
adjusted or amended by the plant details listed in
the Purchase Order.
means a period of hire of equal to or less than 5
consecutive working days;
means the hire rate for the plant, stated in Item
6, that is payable during standby time;
means that part of the working hours during
which the plant is on standby at the designated
site but no work is available and excludes time
that the plant is at the designated site on other
than working days and is not required for hire by
the Principal;
means, if more than one designated site is stated
in Item 5 and subject to clause 12, the price
stated in Item 6, to be charged by the Contractor,
to transport the plant from one designated site to
another designated site;
means Monday to Friday, excluding Statutory or
Public Holidays and days designated by the
Principal as rostered days off;
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Working
director
means a working director of the Contractor
pursuant to the Workers’ Compensation and
Injury Management Act 1981 (WA);
Working hours
means the hours of the Principal's normal working
day at the designated site(s) as stated in Item 7,
during which the plant is required for hire by the
Principal;
and like words have a corresponding meaning.
In the Contract:
a) the law governing the Contract, its interpretation and any agreement to arbitrate
is the law of the State or Territory stated in Item 4, or if the State or Territory is
not stated, the law of the State or Territory where the Contract is to be
performed;
b) the clause and subclause headings in these General Conditions of Contract shall
not form part of, nor be used in, the interpretation of the Contract;
c) words in the singular include the plural and words in the plural include the
singular, according to the requirements of the context. Words importing a gender
include every gender;
d) if the time for giving any notice, making any payment or doing any other act
required or permitted by the Contract, falls on a Saturday, Sunday or Statutory
or Public Holiday, then the time for giving the notice, making the payment or
doing the other act shall be deemed to be on the day next following which is not
a Saturday, Sunday or Statutory or Public Holiday; and
e) unless otherwise provided, prices are in Australian dollars and payments shall be
made in that currency at the place in Item 21.
2. Nature of Contract
The Contractor shall provide the plant, including Operator(s) where required, in
accordance with the Contract.
The Contract is constituted by those documents listed in Item 8.
The Contractor shall perform the Contract to that standard of care and skill to be
expected of a contractor who regularly acts in the capacity in which the Contractor
is engaged and who possesses the knowledge, skill and experience of a contractor
qualified to act in that capacity.
3. Responsibilities and Obligations of the Contractor
3.1 Hire
The Contractor shall:
a) make the plant available to the Principal during the period for hire stated in
Item 9 at the rates and prices stated in Item 6;
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) when directed by the Principal under clause 4 a) shall mobilise the plant to
the designated site(s);
c) demobilise the plant from the designated site(s) on the termination of the
period for hire stated in Item 9 or as directed in writing by the Principal
under subclause 18.1; and
d) only claim charges at b) and c) above once at the start and completion of
the period of hire unless otherwise directed by the Principal.
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3.2 Plant
The Contractor shall:
a) ensure that the plant and all parts of the plant are kept and maintained in
good repair, condition and working order and shall pay for all maintenance,
servicing, repairs, fuels, lubricants, spare parts and other items necessary
to maintain and keep the plant and all parts of the plant in good repair,
condition and working order, except that if the plant is hired without an
Operator the Principal shall arrange and pay for refuelling;
b) ensure that all plant is cleaned of soil and plant material prior to entering
and leaving the designated site, by either brushing, gouging and/or
scraping to remove any compacted soils or plant material, accompanied
and followed by jetting with compressed air/water to remove all soil and
plant residue; and
c) carry out refuelling of plant solely at the plant refuelling location notified in
writing by the Principal to the Contractor. As far as practicable, all
refuelling and maintenance of plant shall be carried out outside normal
working hours and the Contractor shall provide spill mats to prevent
spillage of fuel and lubricants onto the ground beneath the plant.
3.3 Operator
Where required under the Contract the Contractor shall provide Operator(s) who
shall:
a) provide and use all safety and protective equipment necessary for the safe
operation of the plant and the safety of the Operator(s);
b) be qualified (and licensed if required by law), skilled and competent to
operate the plant;
c) use reasonable skill and care in operating the plant; and
d) conform to the acceptable standards of behaviour and dress appropriately.
3.4 Compliance
The Contractor shall:
a) comply with all directions of the Principal given pursuant to a provision of
the Contract;
b) as soon as practicable after becoming aware of any matter or circumstance
which may adversely affect or has adversely affected the scope, timing or
performance of the Contract, give written notice to the Principal detailing
the matter or circumstance and its anticipated effect on the Contract;
c) except as provided in Item 10, bear the cost of all fees and charges
required to comply with legislative requirements incurred in connection
with performing the Contract;
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d) when on the Principal’s premises, sites or designated sites and when using
the Principal’s facilities, comply with all of the Principal’s directions,
procedures and policies relating to occupational health, safety and security
requirements, which are available on request;
e) comply with and ensure that its Operators comply with the requirements of
the Handbook for Contractors, the risk level being as stated in Item 11;
f) when stated in Item 12 comply with the requirements of the Principal’s
Clearance to Work Procedure;
g) perform the Contract in a manner that shall not contravene, nor cause the
Principal to contravene, the Operating Licence; and
h) obtain all necessary permits, licences and approvals, give all notices
required to be given and pay all fees, deposits and taxes in connection with
the plant and provide evidence of compliance to the Principal on request.
4. Responsibilities and Obligations of the Principal
The Principal shall:
a) direct the Contractor in writing as to the date and time that plant is to be
mobilised to the designated site(s);
b) notify the Contractor in writing of the plant refuelling location prior to the
mobilisation of the plant;
c) pay the Contractor in accordance with the Contract;
d) provide the Contractor with such access to premises, sites or designated
site(s) of the Principal as is reasonably necessary for the Contractor to perform
the Contract; and
e) provide timely direction to the Contractor in response to a notice from the
Contractor under subclause 3.4 b).
5. Formal Instrument of Agreement
If required at Item 13 a formal instrument of agreement shall be sent to the
Contractor with the notice of acceptance. The Principal and the Contractor shall
execute the formal instrument of agreement within 28 days of the date of the
notice of acceptance. The Principal may extend the time under this clause by
written notice to the Contractor. Notwithstanding any other provision of the
Contract, the Contractor shall not be entitled to payment until such copies are
properly executed and returned by the Contractor.
6. Service of Notices
A notice shall be deemed to have been given when it is received by the person to
whom it is addressed or is delivered to the address of that person stated in the
Contract or last communicated in writing by that person to the person giving the
notice, whichever is the earlier.
The Principal and the Contractor shall each notify the other of a change of
address.
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7. Principals Representative and Contractor’s Representative
and Operators
7.1 Principal’s Representative
The person named in Item 14, or such person as the Principal substitutes by
written notice to the Contractor, shall act as the Principal to exercise functions of
the Principal for the purposes of the Contract.
7.2 Contractor’s Representative
The person named in Item 15, or such person as the Contractor substitutes by
written notice to the Principal, shall act as the Contractor’s representative under
the Contract and any reasonable direction given by the Principal to the
Contractor’s representative shall be binding. The Contractor shall not substitute
the Contractor’s representative, without the prior consent of the Principal, which
consent shall not be unreasonably withheld.
7.3 Contractor’s Operators
If the Principal reasonably considers any of the Contractor’s Operators are acting
dishonestly, in an unprofessional manner or negligently or are otherwise not
suitable to perform the Contract, the Principal may direct the Contractor to
replace those Operators and the Contractor shall comply at its own cost.
Where the Contractor proposes to replace any of its Operators for any reason, or
is directed by the Principal to replace any of the Operators, the Contractor shall
before replacing the Operators, promptly give to the Principal written notice of the
proposed replacement Operators. If the Principal informs the Contractor that any
of the proposed replacement Operators are unacceptable, then the Contractor and
the Principal shall meet as soon as possible and negotiate, in good faith, to agree
acceptable replacement Operators.
8. Parking
The Principal shall not provide parking facilities for the Contractor or any of the
Contractor’s personnel or Operators at the Principal’s premises.
9. Assignment and Engagement of Subcontractors
Neither party shall, without the prior written approval of the other, and except on
such reasonable terms and conditions as are determined in writing by the other,
assign the Contract or any payment or any other right, benefit or interest
thereunder.
The Contractor shall not subcontract any part of the Contracts without the prior
written approval of the Principal, which approval shall not be unreasonably
withheld. Where approval to subcontract is granted by the Principal, the
subcontract shall be subject to the terms and conditions of the Contract to the
extent that they apply. Any such subcontracting shall not relieve the Contractor
from any liability or obligation under the Contract. Approval may be conditional
upon any subcontract including a provision that the subcontract shall exclude part
1F of the Civil Liability Act (WA). The Contractor shall if requested by the Principal
provide copies of the proposed subcontract documents without prices.
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10. Directions and Variations
10.1 Directions
Except where the Contract otherwise provides, a direction may be given orally but
the Principal shall as soon as practicable confirm it in writing.
If the Contractor in writing requests the Principal to confirm an oral direction, the
Contractor shall not be bound to comply with the direction until the Principal
confirms it in writing.
10.2 Variations
The Principal may vary the Contract in any way it deems necessary provided that
the variation is within the general scope of the Contract, including but not limited
to:
a) adding or removing items of plant from the Schedule of Plant; and
b) varying the working hours to include overtime, payable at the overtime
rate in Item 6.
The Contractor shall not vary the Contract without a prior written instruction from
the Principal.
All variations shall be valued in accordance with the Contract rates or prices,
where applicable. If the rates or prices in the Contract are not applicable to the
variation, then the Principal and the Contractor shall agree reasonable rates or
prices.
11. Stand Down of Plant
11.1 Standby
The Principal shall pay the Contractor the standby rate during standby time.
11.2 Stand Down
The Principal may stand down the plant or any part of the plant by notice to the
Contractor or the Operator, to permit maintenance, servicing or repairs.
The Principal shall not pay for any period of stand down.
12. Transport Charges
The Principal shall only pay the transport charge:
a) where the plant is on short term hire; or
b) where the plant is on long term hire, if the Principal requires the plant to
be relocated to another designated site stated in Item 5.
13. Dependent Plant
8

If an item of plant (primary plant) is not available for use due to the non-availability
of a piece of equipment or item of plant upon which it depends for its safe and
effective operation, the Principal shall not pay for the period of time that the primary
plant is not available for use.
14. Warranty
The Contractor represents and warrants that it has good title to the plant.
15. Liability
15.1 Limitation of Liability
Notwithstanding any other provision of the Contract:
a) the Principal’s total liability to the Contractor for all claims (other than
claims for personal injury or death) arising out of, or in connection with,
the Contract (other than the obligation to pay under subclause 4 c)) is
limited to the greater of:
i) the amount stated in Item 17 a); or
ii) any amounts the Principal is able to recover under any insurances
taken out under the Contract;
b) the Contractor’s total liability to the Principal for all claims (other than
claims for personal injury or death) arising out of or in connection with the
Contract is limited to the greater of:
i) the amount stated in Item 17 b); or
ii) any amounts the Contractor is able to recover under any insurances
taken out under the Contract, or which it would have been able to
recover if the insurances had been taken out, or which it would have
been able to recover under the insurances, in either case, but for any
act, failure or omission by the Contractor;
c) neither party is liable to the other for any indirect, consequential, special,
contingent or penal loss or damage, including but not limited to loss of use,
loss of profit, loss of revenue or cash flow, loss of reputation, loss of
opportunity or loss of anticipated savings.
However, nothing in this clause shall be read or applied so as to purport to
exclude, restrict or modify, or have the effect of excluding, restricting or
modifying the application in relation to the supply of any goods or services
pursuant to the Contract of all or any of the provisions of the Trade Practices Act
1974 as amended and in force from time to time or any relevant State Act or
Territory Act which by law cannot be excluded, restricted or modified.
15.2 Indemnity by Contractor
Subject to Clause 15.1, and except in circumstances constituting an indemnity
under subsection 175AA(7) of the Workers’ Compensation and Injury Management
Act 1981 (WA), the Contractor shall indemnify the Principal against:
a) loss of or damage to property of the Principal; and
9

) claims by any person against the Principal in respect of personal injury or
death or loss of or damage to any other property;
arising out of or in consequence of the performance of the Contract by the
Contractor but the Contractor’s liability to indemnify the Principal shall be reduced
proportionally to the extent that the act or omission of the Principal or the
employees, agents or other contractors of the Principal contributed to the loss,
damage, death or injury. The indemnity under this Clause 15.2 shall not apply to
the extent that the liability of the Contractor is limited by another provision of the
Contract or exclude any other right of the Principal to be indemnified by the
Contractor.
16. Insurance
16.1 Public Liability Insurance
The Contractor shall maintain a public liability insurance policy for an amount in
respect of any one claim or series of claims arising from the one original cause of
not less than the sum stated in Item 18. The policy shall be maintained until the
Contractor completes the performance of the Contract. The policy shall cover the
Contractor in respect of liability to the Principal and third parties in respect of any
claim for loss of or damage to property or death or injury to any person arising
from the acts or omissions of the Contractor, its employees and subcontractors in
the course of the performance of the Contract and shall extend to indemnify the
Principal as one of the class of persons constituting the Insured but not in respect
of liability to the extent that the loss, damage, death or injury is due to or results
from an act or omission of the Principal.
16.2 Insurance of Employees
Before the Contractor commences the performance of the Contract, the
Contractor shall insure against statutory and common law liability for death of or
injury to persons employed by the Contractor. The insurance cover shall be
maintained until the Contractor completes carrying out the Services.
Where permitted by law, the insurance policy or policies shall be extended to
provide indemnity for the Principal’s statutory liability to the Contractor’s
employees.
The Contractor shall ensure that all subcontractors have similarly insured their
employees.
However, if the Contractor:
a) is a natural person and provides services to the Principal pursuant to this
Contract, the natural person shall be covered under the Principal’s workers’
compensation insurance against liability for death or injury arising out of or
in connection with the performance of the Contract; or
b) has a working director (without workers’ compensation insurance
coverage) and that working director provides services to the Principal
pursuant to this Contract, the working director shall be covered under the
Principal’s workers’ compensation insurance against liability for death or
injury arising out of or in connection with the performance of the Contract.
10

Further to 16.2 a) and 16.2 b) above, if requested by the Principal and
notwithstanding termination or completion of the Contract, the Contractor shall
promptly provide all information requested by the Principal which the Principal
requires in order for the Principal’s insurer to determine the premiums for the
Principal’s workers’ compensation insurance coverage, including an estimate of
the value of its services for the Principal as a percentage of its total work (which
information shall not be used for any other purpose and shall be kept
confidential).
16.3 Motor Vehicle Third Party Insurance
Before the Contractor commences the performance of the Contract, the Contractor
shall effect and maintain for the duration of the Contract, a motor vehicle third
party liability policy to cover damage to motor vehicles and other property, for an
amount in respect of any one occurrence of not less than the sum in Item 19.
16.4 Proof of Insurance
Prior to commencement of the period of hire of the plant and whenever
subsequently requested in writing by the Principal, the Contractor shall provide
the Principal with satisfactory evidence to demonstrate that the insurances
referred to above have been effected and are being maintained.
Insurance shall not limit liabilities or obligations under other provisions of the
Contract.
16.5 Notification of Death or Injury
The Contractor shall notify the Principal:
(a) of any injury to or death of any of its Personnel or other person whilst
carrying out the Services, forthwith upon its occurrence; and
(b) any other circumstances or incidents arising or occurring, which may give
rise to a claim against the Principal, within 48 hours of its occurrence
17. Payment
17.1 Claims for Payment
At the times stated in Item 20, the Contractor shall submit written claims for
payment accompanied by such information and documentation as is reasonably
required by the Principal to verify the claim.
17.2 Payment
The Contractor’s payment shall be determined in accordance with Item 6.
17.3 Daily Work Dockets
The Operator shall submit to the Principal for verification, a daily work docket on
the Contractor's stationery which shows for that day the actual hours of work
(including any hours of overtime), hours of standby time, hours of stand down of
the plant, and any transport charges.
17.4 Time and Place for Payment
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On receipt of a claim for payment, the Principal shall assess the claim and within
the times and at the place stated in Item 21 the Principal shall pay the Contractor
the amount due and payable. If the Principal does not pay the amount of the
claim the Principal shall, either with the payment or not later than the time for
payment, provide the Contractor with a written statement of the reason for any
difference between the amount claimed and the amount paid or to be paid.
Payment of moneys shall not be evidence of the value of work or an admission of
liability or evidence that the services have been executed satisfactorily but shall
be a payment on account only.
17.5 Interest on Overdue Payments
If any moneys due and payable to either party remain unpaid after the date upon
which, or the expiration of the period within which, they should have been paid,
then interest shall be payable thereon at the rate stated in Item 22 from but
excluding the date upon, which or the expiration of the period within which they
should have been paid to and including the date upon which the moneys are paid.
17.6 Right to Deduct Moneys from Payments
The Principal may elect that moneys due and owing otherwise than in connection
with the subject matter of the Contract also be due to the Principal pursuant to
the Contract.
17.7 Goods and Services Tax
The parties confirm that they are both registered for GST pursuant to the GST Act
and that should either of them cease to be so registered it shall inform the other
at the earliest opportunity.
Unless otherwise agreed with the Principal in relation to the Contract, the Contractor
shall not issue tax invoices by way of claims for payment and hereby agrees that the
Principal shall issue Recipient
Created Tax Invoices setting out all relevant details required under the GST Act and
related rulings, including the amount to be paid on account of GST for all payments
made under the Contract.
If the Contractor fails to provide to the Principal an Australian Business Number, the
Principal shall deduct “Pay As You Go” tax, at the top marginal rate from any
payment due to the Contractor under the Contract and remit the amount of that tax
to the Australian Taxation Office for the benefit of the Contractor.
18. Termination, Default, Suspensions and Frustration
18.1 Termination Other than Due to Default
The Principal shall endeavour to give notice of a likely termination date for the
period of hire but either party may terminate the period of hire by providing the
other party with 1 days notice for long term hire or 1 hours notice for short term
hire.
If due to a cause or causes beyond the reasonable control of both parties, the
performance of the Contract becomes impossible then, unless the parties
12

otherwise agree, the Contract shall thereupon be deemed to be frustrated and
Clause 18.5 shall apply.
18.2 Termination Due to Default by Either Party
If either party:
(a) commits a substantial breach of the Contract including, but not limited to,
failure to:
i) make a payment due and payable pursuant to the Contract;
ii) provide evidence of insurance;
iii) comply with a reasonable direction of the Principal;
iv) use the materials or standards of work required by the Contract;
v) maintain any quality assurance system required under the Contract; or
vi) provide plant required under the Contract with due expedition and
without delay; then
b) the other party may give to the party who committed the breach, a written
notice to show cause which shall:
i) state it is a notice given under clause 18.2 of these General Conditions
of Contract;
ii) specify the alleged breach with reasonable details;
iii) require the party who committed the breach to show cause in writing
why the party giving the notice should not exercise a right referred in
this clause 18.2; and
iv) specify the date by which the party who committed the breach shall
show cause (which date shall be not less than 7 clear days after the
notice is given to that party).
If by the time stated in a notice given under this subclause 18.2 the party who
committed the breach fails to show reasonable cause the other party may, by
further written notice, terminate the Contract or suspend the party’s obligations to
perform the Contract.
If the Contract is terminated pursuant to this subclause 18.2, the rights and
liabilities of the parties shall be the same as they would have been at common law
had the defaulting party repudiated the Contract and the other party had elected
to treat the Contract as at an end and recover damages.
If a party suspends performance of the Contract pursuant to this subclause 18.2,
that party shall lift the suspension if the other party remedies the breach. If the
party in default fails, within a reasonable time, to remedy the breach the other
party may, by further written notice, terminate the Contract.
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A party who suspends performance of the Contract pursuant to this subclause
18.2 shall be entitled to recover any damages incurred by reason of the
suspension.
18.3 Suspension for Convenience
If the Principal considers that the suspension (other than under Clause 18.2) of
the whole or part of the Contract is necessary, the Principal shall direct the
Contractor to suspend the performance of the whole or part of the Contract for
such time as the Principal sees fit.
In the event that the Principal suspends the Contract or part of the Contract under
this subclause 18.3, then:
a) if the Principal directs the Contractor to leave the plant on the designated
site for the period of suspension, then the Principal shall pay the
Contractor the standby rate stated in Item 6 for that period of suspension,
except for any rostered day off stated in Item 16; or
b) if the Principal directs the Contractor to remove plant from the designated
site for the period of suspension, then
i) the Principal shall pay to the Contractor the mobilisation and
demobilisation charge stated in Item 6; and
ii) on resumption of the Contract after the period of suspension shall pay
to the Contractor the mobilisation and demobilisation charge stated in
Item 6.
18.4 Insolvency
If:
a) a party informs the other party in writing, or creditors generally, that the
party is insolvent or is financially unable to proceed with the Contract;
b) execution is levied against a party by a creditor;
c) a party is an individual person or a partnership including an individual
person, and if that person:
i) commits an act of bankruptcy;
ii) has a bankruptcy petition presented against him or her or presents his
or her own petition;
iii) is made bankrupt;
iv) makes a proposal for a scheme of arrangement or a composition; or
v) has a deed of assignment or deed of arrangement made, accepts a
composition, is required to present a debtor’s petition, or has a
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sequestration order made, under Part X of the Bankruptcy Act 1966
(Cwlth); or
(d) in relation to a party being a corporation:
i) notice is given of a meeting of creditors with a view to the corporation
entering a deed of company arrangement;
ii) the party enters a deed of company arrangement with creditors;
iii) a controller or administrator is appointed;
iv) an application is made to a court for the winding-up of the party and
not stayed within 14 days;
v) a winding-up order is made in respect of the party;
vi) it resolves by special resolution that the party be wound up voluntarily
(other than for a members’ voluntary winding-up); or
vii) a mortgagee of any property of the party takes possession of that
property;
then, the other party may, notwithstanding that there has been no breach of
contract and in addition to any other rights, terminate the Contract without giving
prior notice.
18.5 Frustration
If pursuant to Clause 18.1 or under the law governing the Contract, the Contract
is frustrated, the Principal shall pay the Contractor:
a) for hire executed up to the date of frustration, the amount not then paid
but which would have been payable up to the date of frustration;
b) costs reasonably incurred by the Contractor to that date in the expectation
of performing the Contract and not included in any prior payment by the
Principal; and
b) the reasonable cost of demobilising plant and returning the Contractor’s
employees and subcontractors to their home base.
18.6 Preservation of Other Rights
If a party breaches (including repudiates) the Contract, nothing in this clause shall
prejudice the right of the other party to recover damages or exercise any other
right or remedy.
If the Contract is terminated pursuant to subclause 18.2 or subclause 18.4 the
parties’ remedies, rights and liabilities shall be the same as they would have been
under the law governing the Contract had the defaulting party repudiated the
Contract and the other party elected to treat the Contract as at an end and
recover damages.
19. Dispute Resolution
15

19.1 Notice of Dispute
If a difference or dispute (together called a ‘dispute’) between the parties arises in
connection with the subject matter of the Contract then either party shall, by hand
or by registered post, give the other a written notice of dispute adequately
identifying and providing details of the dispute. A Contractor’s notice of dispute to
the Principal shall be delivered to the address stated in Item 2.
Notwithstanding the existence of a dispute, the parties shall, subject to clause 18
and subclause 19.5, continue to perform the Contract.
19.2 Conference
Within 14 days after receiving a notice of dispute, the parties shall confer at least
once to resolve the dispute or to agree on methods of doing so, including but not
limited to mediation, conciliation, binding expert determination and arbitration, of
the whole or any part of the dispute. At every such conference each party shall be
represented by a person having authority to agree to such resolution or methods.
All aspects of every such conference except the fact of occurrence shall be
privileged.
If the dispute has not been resolved nor a method of resolution been agreed
within 56 days of service of the notice of dispute, that dispute shall be dealt with
in accordance with subclause 19.3.
19.3 Elevation Clause
If the parties are unable to resolve the dispute or agree a method of resolution in
accordance with subclause 19.2:
a) the dispute shall be referred to the General Manager Business Services, or
a duly authorised representative, of the Principal and the Chief Executive
Officer/Managing Director, or a duly authorised representative, of the
Contractor to resolve the dispute or agree a method of resolution;
b) the individuals, referred to in subclause 19.3 a), shall meet within 14 days
after referral of the dispute in an effort to resolve the dispute or agree a
method of resolution;
c) if the individuals referred to in subclause 19.3 b) agree at that meeting on
the method of resolution, they shall also nominate a timeframe for the
commencement and conclusion of the method of resolution; and
c) if the individuals referred to in subclause 19.3 b) are unable to resolve the
dispute or agree a method of resolution, each within 14 days of the dispute
being so referred, either party may give notice to the other stating that the
parties have been unable to resolve the dispute or agree a method of
resolution.
19.4 Instituting Proceedings
Neither party shall proceed to resolve a dispute by instituting court proceedings
until issuing to, or receiving from, the other party, a notice in accordance with
subclause 19.3 d).
19.5 Summary Relief
16

Nothing herein shall prejudice the right of a party to institute proceedings to
enforce payment due under the Contract or to seek injunctive or urgent
declaratory relief.
20. Severability
If any provision of the Contract is illegal, void, invalid or unenforceable for any
reason, all other provisions which are self-sustaining and capable of separate
enforcement shall, to the maximum extent permitted by law, be and continue to
be valid and enforceable.
21. Civil Liability Act 2002
Part 1F of the Civil Liability Act (WA) 2002 is excluded from application to this
Contract.
17

ANNEXURE Part A
To the Water Corporation General Conditions of Contract for Hire of Plant
Item
1 a) The Principal is:
(clause 1)
Water Corporation
ABN 28 003 434 917
b) The Principal’s address
is:
John Tonkin Water Centre
629 Newcastle Street
Leederville WA 6007
2 Principal's address for notice
of dispute only
(subclause 19.1)
Manager Contracts
Water Corporation
John Tonkin Water Centre
629 Newcastle Street
Leederville WA 6007
3 (a) The Contractor is:
As shown in the relevant Purchase Order
(clause 1)
(b) The Contractor's address As shown in the relevant Purchase Order
is:
4 The law applicable is that of
the State of:
Western Australia
(clause 1)
5 designated site(s):
(clause 1)
As shown in the request for quotation
and/or relevant Purchase Order
6 Hire Rates As shown in the Schedule of Plant or
otherwise accepted by the Principal
7 working hours
(clause 1)
From 06:00 hours to 17:00 hours Monday
to Friday
or as otherwise directed by the Principal
8 The Contract documents
are:
(clause 2)
9 Period for hire:
(Clause 1 and subclause
3.1)
The relevant Purchase Order and the
documents referred to therein.
These General Conditions of Contract
Special Conditions for the Hire of Plant
Schedule of Plant
Request for Quotation (where applicable)
Contractor’s quotation accepted by the
Principal.(where applicable)
As shown in the relevant Purchase Order
10 Fees and charges to
satisfy
Legislative
requirements payable
by the Principal:
(Clause 1 and
subclause 3.4c))
11 Risk level:
(subclause 3.4 e)
12 Compliance with clearance
to work procedure
(subclause 3.4 f)
Nil
Significant
No
18

13 Formal instrument of
agreement required
(clause 5)
14 The Principal’s
representative is: (subclause
7.1)
15 The Contractor's
representative is: (subclause
7.2)
17 a) The Principal's liability is
limited as follows:
(subclause 15.1)
b) The Contractor's liability
is limited as follows:
(subclause 15.1)
18 The amount of public liability
insurance shall not be less
than:
(subclause 16.1)
19 The amount of Motor vehicle
third party insurance:
(subclause 16.3)
20 Claims for payment shall be
made:
(subclause 17.1)
21 The times and place for
payment shall be:
(subclause 17.4)
22 The rate of interest on
overdue payments is:
(subclause 17.5)
No
As shown in the relevant Purchase Order
As shown in the relevant Purchase Order
$100,000
$100,000
$20,000,000
$20,000,000
Second last day of each month or as
otherwise agreed with the Principal
............................................................
Via EFT from the Principal’s address
6% per annum
19