Hardware Acquisition and Maintenance Contract - Australian ...

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(h)Hints for usethe basis on which expenses will be paid.Each of the sections of this Schedule should be either completed with theappropriate information or marked as 'Not Applicable'.Items which require careful consideration when drafting include:(a)(b)(c)(d)GSTAll Service Charges and rates are expressed to be GST exclusive. Ifpayments are to be made on a GST inclusive basis, tax advice should besought as clause 30 is not appropriate for use with GST inclusiveamounts (refer to the relevant User Note - General Requirements for thisclause).Summary of Service ChargesThis table provides a summary of each of the Charges payable to theContractor under the Contract, including Installation, Hardware andMaintenance Charges. This table should reflect, in summary form, thedetails set out in each of the tables at sections 2, 3 and 4 of this Schedule.Hardware ChargesThe per unit costs of the Hardware should be inserted into this section 2,which allows for specific volume variations. These volume variationscan be amended by the parties to suit the requirements of the project.Hardware Maintenance Charges - fixed charge componentsThe table in section 4 should be used if the parties have agreed a fixedcharge for the Services. A fixed charge for particular Services will notchange unless the scope of the Services changes. This type of chargearrangement is appropriate where Services or components of Services areclearly definable.A fixed charge arrangement has the advantage of enabling both parties tounderstand the level of charges payable under the Contract. If a fixedcharge arrangement is agreed, both parties are responsible for managingthe scope of the Services and any dependencies. Any variation to theServices (and to the fixed charge) should be agreed through the changecontrol process set out in clause 21 of the Contract.Fixed charges may be broken down into Milestone payments and set outin section 7 of this Schedule.(e)Hourly and daily ratesTime and materials arrangements are appropriate where the scope of theServices or components of Services required are not readily definable atthe time of signing the Contract. A Contract may contain both fixed feeand time and materials components.If the parties have agreed that the Services will be provided on a time andmaterials basis, relevant hourly and/or daily rates for each personnel© Commonwealth of Australia 2012 page 8SourceIT | User Notes | Hardware Acquisition & Maintenance Contract - Schedules | Release version 2.3
category (or for all Key Personnel) should be included in the tables insections 5 and 6, as appropriate.Where time and materials is agreed as the payment basis, it is in theinterests of both parties that expectations as to costs are managed. Thiscan be achieved in part by including in both tables a maximum workeffort for each personnel category or Key Personnel member.Example:Personnel Daily Rate(ex GST)GSTComponentMaximum WorkEffort (Days)Charges(ex GST)GSTComponentProjectmanager1200 120 10 12,000 1,200Technician 800 80 17 13,600 1,360Sub total 25,600 2,560Add GST 2,560TOTAL $28,160Any changes to the estimated work effort should be managed through thechange control process in clause 21 of the Contract.(f)Milestone paymentsPayment of Service Charges against Milestones is a common way to helpensure that the Contractor delivers the Services and/or Deliverablesconsistent with the requirements of the Contract. It also has theadvantage for the Contractor of knowing precisely what it has to achievein order to receive payment. If Milestone payments are linked to thedelivery of particular Services or Deliverables, the Milestone dates setout in section 7 should be consistent with those set out in the Statementof Work.ExampleMilestone date Milestone/Deliverable MilestonePaymentGSTComponent5 February 2014 Project plan Accepted by Customer 12,000 1,20019 March 2014 Hardware Accepted by Customer 30,000 3,00026 March 2014 Hardware Installed and operational atall sites40,000 4,000Sub total 82,000 8,200© Commonwealth of Australia 2012 page 9SourceIT | User Notes | Hardware Acquisition & Maintenance Contract - Schedules | Release version 2.3
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Hardware Acquisition and Maintenance Contract - Australian ...

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