FLOWCHART 7:
MCC-1 2003 (MANAGING CONTRACTOR CONTRACT)
DEFECTS
INSTRUCTION IN RESPECT OF DEFECTS
If, prior to the expiration of the Defects Liability Period for the Works or a Stage, the Contract
Administrator discovers or believes there is a Defect, the Contract Administrator may give the Contractor
an instruction specifying the Defect and doing one or more of the following [cl 9.6]:
CORRECTION
Requiring the Contractor to correct the Defect
(or any part of it) and specifying the time
within which this must occur [cl 9.6(a)].
VARIATION
Requiring the Contractor to carry out a
Variation (refer Flowchart 8) to overcome the
Defect (or any part of it) and specifying the
time within which this must occur [cl 9.6(b)].
ACCEPTANCE OF DEFECT
Advising the Contractor that the
Commonwealth will accept the work (or any
part of it) despite the Defect [cl 9.6(c)].
IS THE CONTRACTOR RESPONSIBLE
FOR THE DEFECT (OR RELEVANT PART)?
TIMING FOR ACTION
Contractor must correct the Defect or carry out the Variation
(whichever may be the case):
within the time specified in the Contract Administrator’s
instruction [cl 9.7(a)]; and
if after Completion (refer Flowchart 10), at times and in a
manner which cause as little inconvenience to the occupants of
the Works or a Stage as is reasonably possible [cl 9.7(b)].
IS THE CONTRACTOR RESPONSIBLE
FOR THE DEFECT (OR RELEVANT PART)?
YES
Contractor will not be entitled to
make a Claim for correcting the
Defect [cl 9.8(a)].
IS THE CONTRACTOR RESPONSIBLE
FOR THE DEFECT (OR RELEVANT PART)?
NO
YES
Contractor will be entitled to make a
Claim and the work involved in the
correction of the Defect will be
treated as if it were a Variation the
subject of a direction by the Contract
Administrator and valued in
accordance with clause 11.3 (refer
Flowchart 8) [cl 9.8(b)].
Contract Administrator will determine the value of
the Variation in accordance with clause 11.3 and
the cost of correcting the Defect (or the relevant
part) as if clause 9.8(b) applied [cl 9.9(b)(i)] and
the Contract Price will be adjusted, if the
difference between the valuation and the cost is:
positive, by an increase in the Contract
Price [cl 9.9(b)(ii)A]; or
negative, by a decrease in the Contract
Price [cl 9.9(b)(ii)B].
Expiry of Defects Liability Period
EXTENSION OF DEFECTS LIABILITY PERIOD
Where the Contractor is responsible for the Defect (or the relevant
part), the Defects Liability Period will be extended for the work
relating to the correction or Variation (whichever may be the case)
by the period set out in the Contract Particulars, with such
extension commencing upon completion of the correction of the
Defect (or the relevant part) or completion of the Variation [cl
9.11].
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YES
The amount determined by
the Contract Administrator
which represents the cost
of correcting the Defect (or
the relevant part) will be a
debt due from the
Contractor to the
Commonwealth [cl 9.10].
NO
Cost of the Variation will
be valued in accordance
with clause 11.3 (refer
Flowchart 8) [cl 9.9(a)].
NO