Schedules of Dayworks Carried Out Incidental to Contract Work

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					Edition: March 2011                                                                     Special Conditions of Contract

                                     SPECIAL CONDITIONS OF CONTRACT


CONTENTS

     1.    General
     2.    Definitions and Interpretation
     3.    Abbreviations
     4.    Referenced Documents
     5.    Schedule of Rates
     6.    Lump Sum
     7.    Contractor’s Warranties
     8.    Security
     9.    Evidence of Contract
     10.   Subcontracting
     11.   Provisional Sums and Provisional Quantities
     12.   Latent Conditions
     13.   Information Documents
     14.   Damage to Persons Other Than Works
     15.   Insurance
     16.   Approvals and Notices
     17.   Costs of Testing
     18.   Progress and Programming of Work
     19.   Times for Commencement and Practical Completion
     20.   Alternatives Proposed by the Contractor
     21.   Valuation of Variations
     22.   Rise and Fall
     23.   Goods and Services Tax
     24.   Overheads and Profit
     25.   Certificates and Payments
     26.   Payment of Workers and Subcontractors
     27.   Notification of Claims
     28.   Arbitration
     29.   Waiver of Conditions
     30.   Collusive Arrangements
     31.   Disclosure of Contract
     32.   Builders Licence
     33.   Construction Industry Training Fund
     34.   Evaluation of Contractor's Performance
     35.   Delegations
     36.   Contractor’s Safety and Environmental Obligations
     37.   Severance
     38.   Workforce Participation and Skills Development
     39.   Partnering
     40.   National Code of Practice for the Construction Industry.
     41.   Building and Construction OHS Accreditation Scheme

     Annexure to the General Conditions of Contract

1.         GENERAL

These Special Conditions of Contract delete, amend or add to the clauses in the General Conditions of Contract. In
the event of an inconsistency, these Special Conditions of Contract shall take precedence over the General
Conditions of Contract to the extent of that inconsistency.

2.         DEFINITIONS AND INTERPRETATION

"Schedule of Prices" means the schedule in respect of the work for which the Principal has accepted a lump sum,
showing prices for items of work to be done and materials to be supplied including any provisional sums and
provisional quantities, and may also include quantities and rates.




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"Schedule of Quantities and Prices" means the schedule in respect of the work for which the Principal has
accepted a lump sum, which has been prepared by the Contractor and shows the Contractor's estimated quantities of
work or materials, together with corresponding prices.

"Includes" or “including” shall not be interpreted as a word of limitation.

3.           ABBREVIATIONS

The class of any plant referred to in the Specification shall be as designated in AS 2868 "Classification of
Machinery for Earthmoving, Construction, Surface Mining and Agricultural Purposes".

The following abbreviations may be used in the Contract documents:

      AS                         Australian Standard (includes joint NZ and/or ISO standards)
      ASTM                       American Society for Testing and Materials
      DTEI                       Department for Transport, Energy and Infrastructure
      ETSA                       ETSA Corporation
      NATA                       National Association of Testing Authorities
      SAWater                    SAWater Corporation
      Telstra                    Telstra Corporation Ltd
      TP                         DTEI Test Procedure

4.           REFERENCED DOCUMENTS

Unless stated otherwise, a reference to a document in this Contract shall be a reference to the edition of that
document current at the date 14 days prior to the date of submission of tender.

5.           SCHEDULE OF RATES

5.1          General

This Clause applies where a Schedule of Rates (which includes a Schedule of Rates for Variations and a Schedule of
Rates for Dayworks) forms part of the Contract.

5.2          Schedule of Rates

Work will be paid for by the unit of measurement listed in the Schedule of Rates.

The following limits of accuracy shall apply to this Contract:
       (a) where indicated in the Schedule of Rates as either a ± percentage of, or a ± number of, the quantity, that
           percentage or number shall apply;
       (b) where not indicated on the Schedule of Rates, the limit of accuracy shall be ± 10% of the quantity stated.

The rates and amounts in the Schedule of Rates are deemed to include the cost of:
       (a) all survey, inspection, measuring and testing necessary to comply with the Specification (unless specified
           otherwise); and
       (b) all works, services, fees, charges, minor items and incidentals associated with or necessary for the proper
           execution of the work under the Contract whether or not such items are specifically referred to in the
           Contract.

The last paragraph of Clause 3.3 “Adjustment for Actual Quantities – Schedule of Rates” of the General Conditions
of Contract is deleted and replaced with the following:

             Where an item for an element of work does not appear in the Schedule of Rates, the cost thereof shall be
             deemed to be included in the rate or price for the item associated with that element of work. Where there is
             no item associated with that element of work the cost thereof shall be deemed to be included in the rates or
             prices generally. Where any item in the Schedule of Rates is unpriced by the Contractor all costs
             applicable to that item shall be deemed to be included elsewhere in the Schedule of Rates.

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5.3       Schedule of Rates for Variations

If a Schedule of Rates for Variations has been prepared for this Contract, it may be used to value work which has
been ordered in lieu of, or as additional to, the items of work specified. It will be used to value the work where the
Superintendent determines that the variation is of a similar nature to that described in the Schedule of Rates for
Variations.

5.4       Schedule of Rates for Daywork

Further to Clause 41 “Daywork” of the General Conditions of Contract, if a Schedule of Rates for Daywork has
been prepared for this Contract, the rates in the Schedule of Rates for Daywork are deemed to be approved by the
Superintendent and shall be used for the purposes of calculating payment for any work ordered to be carried out by
Daywork pursuant to this Contract and not specifically detailed as an item in the Schedules or applicable under the
Schedule of Rates for Variations. Plant rates are deemed to be inclusive of operators and maintenance. The
requirement for the Contractor to supply supervision of Daywork ordered shall be agreed between the Contractor
and the Superintendent prior to the work commencing.

The rates in the Schedule of Rates for Daywork shall include for transport of equipment to the site. Payment for
additional transport costs for items of plant which are taken off the site during the Contract will only be considered
where the accepted program clearly indicates the period of time that the Contractor intended that item of plant to be
on the site. The Contractor shall submit rates for approval and inclusion in the Schedule of Rates for Daywork if
additional items of plant are brought on to the site during the course of the Contract.

6.        LUMP SUM

6.1       General

If a Lump Sum forms part of the Contract, the Lump Sum shall be deemed to include the cost of all works, services,
fees, charges, minor items and incidentals associated with or necessary for the proper execution of the Works
relating to the Lump Sum part of the Contract whether or not such works, services and incidentals are specifically
referred to in the Contract.

6.2       Schedule of Prices or Schedule of Quantities and Prices

If a Schedule of Prices or Schedule of Quantities and Prices has been prepared for this Contract the amounts in these
Schedules shall include the cost of all survey, inspection, measuring and testing requirements of the Specification
relating to the Lump Sum part of the Contract.

The total of all items included in the Schedule of Prices or Schedule of Quantities and Prices shall, on addition, equal
the Contract Sum for the Lump Sum part of the Contract excluding GST.

The amounts included in the Schedule of Prices and the Schedule of Quantities and Prices:
      (a) are to be used for the purpose of valuing variations if and in so far as the Superintendent determines that those
          amounts are applicable to the variation; and
      (b) may be used at the discretion of the Superintendent as a guide in valuing the work for progress payments.

Any errors discovered in the Schedule of Prices or Schedule of Quantities and Prices shall be brought to the
attention of the other party as soon as practicable after discovery. The error shall be corrected in a manner agreed to
between the Contractor and the Superintendent or, in the event of failure to agree, in the manner determined by the
Superintendent so that in any event the total of all items in the Schedule of Prices or Schedule of Quantities and
Prices continues to equal the Contract Sum for the Lump Sum part of the Contract.

7.        CONTRACTOR’S WARRANTIES

The Contractor acknowledges that the Principal is relying on the Contractor’s advice, skill and judgement in the
execution and completion of the work under the Contract. The Contractor warrants to the Principal that:
      (a) the Contractor has investigated the Site and its surroundings and has informed itself of the nature of the work
          and materials and construction plant necessary for the execution of the Works, the facilities at the Site, the
          means of access and egress from the Site and transport facilities for deliveries and execution of works at the
          Site and the constraints thereon applying;



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      (b) has relied solely upon its own assessment, skill, expertise and enquiries in respect of all information relevant
          to the risks, contingencies and other circumstances having an effect on determining the Contract Sum.

8.        SECURITY

If security is in the form of an unconditional undertaking, the undertaking shall not include an expiry date.

Clause 5.4 "Time for Lodgement of Security” of the General Conditions of Contract is deleted and replaced with the
following:

          Security shall be lodged within 14 days of the Date of Acceptance of Tender. Where a Contractor has failed
          to lodge the necessary Security in accordance with the requirements of this Contract, the Principal may
          deduct an amount equivalent to the required Security from any payment due to the Contractor and hold this
          amount as retention.

9.        EVIDENCE OF CONTRACT

9.1       Formal Instrument of Agreement

The first paragraph of Clause 6.2 "Formal instrument of Agreement" of the General Conditions of Contract is
deleted and replaced with the following:

          If stated in the letter of acceptance, the Principal will prepare a Formal Instrument of Agreement and the
          Contractor shall execute all copies in the manner described in the letter.

Notwithstanding any other provision of the Contract, and without prejudice to any other right or remedy which the
Principal may have, if the Contractor has failed to execute a correctly prepared Formal Instrument of Agreement in
accordance with the requirements of this Contract, the Principal may withhold payment until the Contractor properly
executes both copies of the Formal Instrument of Agreement.

9.2       Entire Agreement

This Contract constitutes the entire agreement of the parties in respect of the matters dealt with in this Contract and
supersedes all prior agreements, understandings, representations or negotiations in respect of the matters dealt with
in this Contract. Any modification of this Contract must be in writing and signed by each Party.

9.3       Joint and Several Liability

The obligations of the Contractor, if more than one person, under this Contract, are joint and several and each person
constituting the Contractor acknowledges and agrees that it will be causally responsible for the acts and omissions
(including breaches of this Contract) of the other as if those acts or omissions were its own.

10.       SUBCONTRACTING

Clause 9.2 “Subcontracting” of the General Conditions of Contract is deleted and replaced with the following:

          For the purposes of this Clause only:
                    "Subcontract" means a contract between the Contractor and a third party whereby the third party
                    (in this Clause called "subcontractor") agrees to perform work on the Site, or supply plant,
                    materials or services comprising part of the work under the Contract; and
                    "Secondary subcontract" shall have the meaning ascribed to that term in AS 2545: 1993
                    Subcontract Conditions.

          The Contractor shall not without the written approval of the Superintendent, which approval shall not be
          unreasonably withheld, subcontract or allow a subcontractor to assign or enter into a secondary subcontract
          for any of the work under the Contract.

          With a request for approval, the Contractor shall provide to the Superintendent:
               (a) particulars in writing of the work to be subcontracted and the name and the address of the
                   proposed subcontractor;



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             (b) where the proposed subcontract sum for the particular work is greater than $1,100,000, an
                 unpriced copy of the subcontract document, which shall incorporate either:
                         AS 2545 Subcontract Conditions and contain no amendments to those subcontract
                          conditions other than those necessary to reflect the head contract Conditions of Contract; or
                         other Subcontract Conditions approved by the Superintendent;
             (c) where the proposed subcontract sum for the particular work is less than or equal to $1,100,000,
                 written confirmation that the terms and conditions of the proposed subcontract are consistent with
                 those in the head contract Conditions of Contract;
             (d) a written warranty, the breach of which shall be deemed to be a substantial breach of contract for
                 the purposes of Clause 44.2 of the General Conditions of Contract, that the subcontract will be
                 entered into in accordance with the requirements of this Clause; and
             (e) any other information which the Superintendent reasonably requests, including the proposed
                 subcontract documents without prices.

         Within 14 days after a request by the Contractor for approval, the Superintendent shall advise the
         Contractor of approval or the reasons why approval is not given.

         Approval may be conditional upon the subcontract including:
             (a) provision that the subcontractor shall not assign or enter into a secondary subcontract for any of
                 the work under the Contract without the consent in writing of the Contractor; and
             (b) provisions which may be reasonably necessary to enable the Contractor to fulfil the Contractor's
                 obligations to the Principal.

11.      PROVISIONAL SUMS AND PROVISIONAL QUANTITIES

Clause 11 “Provisional Sums” of the General Conditions of Contract is deleted and replaced with the following:

         “Provisional sum” includes principal controlled allowances, prime cost items and contingency sums.

         “Provisional quantity” includes provisional items.

         Work identified as a provisional quantity or as a provisional sum in an applicable payment schedule shall
         only be carried out at the direction of the Superintendent. The valuation of any provisional work carried
         out shall be determined in accordance with Clause 40.5. Where the provisional work is carried out by a
         subcontractor and there is no applicable rate in the payment schedules, the Contractor shall be entitled to
         payment for profit and attendance calculated by reference to the percentage or methodology stated in the
         Annexure.

         In the event of any provisional sum being greater or less than the amount directed by the Superintendent to
         be expended against the provisional sum, the amount unexpended or the amount of the difference shall be
         taken into account in determining the final amount payable under the Contract.

         In the event of any provisional quantity being greater than or lesser than the provisional quantity actually
         carried out, the value of the difference between the provisional quantity and the actual quantity shall be
         taken into account in determining the final amount payable under the Contract.

         The limit of accuracy for provisional quantities and provisional sums is ± 100% of the quantity or sum
         stated.

         The Contractor is not entitled to overheads and profit related to provisional sums and provisional quantities
         that are not expended.

12.      LATENT CONDITIONS

For the purpose of determining whether physical conditions are a Latent Condition, the determination shall be made
on the premise that the Contractor is competent and experienced in the work which is the subject of the Contract.

13.      INFORMATION DOCUMENTS


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13.1     Information Documents

Where a document is designated as an “information document” or “for information only”, the Principal does not
warrant, guarantee, assume any duty of care or other responsibility for or make any representation about the
accuracy, adequacy, suitability or completeness of such documents and the Contractor acknowledges that it has
taken this into account.

13.2     Reports of Investigation

The Principal may have carried out investigations for the primary purposes of project planning, estimating,
feasibility studies and obtaining statutory approvals. Any such investigations have not been undertaken for the
primary purpose of determining methods of construction and the Contractor is deemed to have taken this intent into
consideration.

Reports of these investigations will contain factual information (e.g. traffic counts, bore logs) and may contain
interpretations / opinions (e.g. projected traffic growth, a recommendation concerning geometric design). Where
these reports (or part thereof) are included in the appendices to this Contract or referenced in this Contract, the
Contractor may rely upon factual information contained in the reports. However, the use of any interpretations /
opinions is entirely at the risk of the Contractor and the Principal accepts no liability for interpretations / opinions
contained within a report or the completeness of a report.

13.3     Geotechnical Investigation

Where geotechnical investigations (including pavement investigations) have been provided by the Principal, the
investigations have been carried out by competent personnel. Factual information (e.g. bore logs, test results) from
the investigation is considered to be a true record of the investigations and tests conducted.

The investigations relate only to the specific locations tested as shown in the document. Sub-surface conditions may
vary between test locations or at depths below which testing has been carried out.

The level of any groundwater present has been recorded in any bore logs at the time of conducting the investigation.
The Contractor is deemed to have taken into account the variation in groundwater levels and moisture condition that
will occur with seasonal changes or as a result of other factors.

If the Contractor undertakes any geotechnical investigation, the Contractor shall provide all details of the
investigation to the Superintendent within one week of the Date of Acceptance of Tender, if the details have not
been provided beforehand.

14.      CARE OF WORK AND DAMAGE TO PERSONS AND PROPERTY OTHER THAN WORKS

The following is added to Clause 16.3 “Excepted Risks” of the General Conditions of Contract:

         (g)       act of terrorism.

Subclause (iv) of Clause 17.1 “Indemnity by Contractor” of the General Conditions of Contract is deleted from this
Contract.

15.      INSURANCE

15.1     Insurance Provided by the Contractor

Where the Contractor has the obligation to effect and maintain insurance, the Contractor shall produce such
evidence to the Principal at the time of signing the Formal Instrument of Agreement.

15.2     Principal Arranged Insurance

Where the Principal has the obligation to effect and maintain insurance, the Contractor shall bear or pay any excess
or deductible which is applicable to any claim made under any of the policies of insurance effected under Clauses 18
or 19 of the General Conditions of Contract, except where the claim is with respect to loss or damage which is the
direct consequence, without fault or omission on the part of the Contractor, of an Excepted Risk defined in Clause
16.3 of the General Conditions of Contract.




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If the Contractor considers that any insurance provided by the Principal does not adequately cover the Contractor’s
liabilities, it is the responsibility of the Contractor to take out and pay for any additional insurance that the
Contractor considers necessary.

16.        APPROVALS AND NOTICES

Unless stated otherwise, where the Specification requires the Contractor to seek approval or an acceptance, the
Superintendent is responsible for the decision whether to grant the approval or acceptance. Where requested, the
Contractor shall provide evidence or supporting information to demonstrate that the use of any proprietary product
or commencing any activity would not be detrimental to the quality or performance of the Works. The provision of
an approval is at the sole discretion of the Superintendent.

A request for approval or acceptance shall constitute a HOLD POINT.

Granting of the approval or acceptance shall not, in whole or in part, absolve the Contractor from responsibility for
the satisfactory performance or execution of the work subject to the approval or acceptance.

Where this Contract requires the Contractor to provide notice, samples, advice, plans, documentation, records, test
results or other information, this shall be provided to the Superintendent, unless stated otherwise.

A joint inspection means an inspection with the Contractor and Superintendent present.

17.        COSTS OF TESTING

Clause 31.7 “Costs of Testing” of the General Conditions of Contract is deleted and replaced with the following:

           If testing is carried out to fulfil a requirement of the Specification for the purpose of verifying conformance
           with the Contract, the costs of and incidental to that testing shall be borne by the Contractor.

           If further testing is carried out as result of a direction by the Superintendent, costs of and incidental to
           testing shall be borne by the Principal or shall be valued under Clause 40.5 and paid by the Principal to the
           Contractor unless:
                (a) the test shows that the material or work is not in accordance with the Contract;
                (b) the test is in respect of work under the Contract covered up or made inaccessible without the
                    Superintendent’s prior approval where such was required; or
                (c) the test is consequent upon a failure of the Contractor to comply with a requirement of the
                    Contract.

18.        PROGRESS AND PROGRAMMING OF THE WORK

18.1       Contractor’s Program

Further to Clause 33.2 “Contractor’s Program” of the General Conditions of Contract, the Contractor acknowledges
that:
       (a) the provision of a Contractor’s Program to the Superintendent is solely for the purpose of monitoring the
           performance of the Contractor and the progress of the Contract;
       (b) the Superintendent owes no duty to the Contractor to review the Contractor’s Program for accuracy or
           compliance with the requirements of this Contract;
       (c) the Superintendent’s receipt, review, comment, request for change, endorsement, approval, acceptance or
           deemed acceptance in relation to the Contractor’s Program:
                     does not affect the time for carrying out any obligation of the Principal or Superintendent under
                      this Contract or impose additional obligations on the Principal or Superintendent;
                     shall not be interpreted as a direction of the Superintendent unless it is specifically identified, in
                      writing, as a direction; and
                     shall not constitute the granting of an extension of time;
       (d) the display of a critical path on a Contractor’s Program shall not, by itself, necessarily constitute evidence
           of the critical path; and


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       (e) the Superintendent may use the Contractor’s Program to assist with a determination regarding an extension
           of time or a variation, but is under no obligation to do so.

In the event that the actual time or resources vary from those stated in the Contractor’s Program, this shall not:
       (a) constitute any amendment to the Contract Sum; or
       (b) give any grounds for the Contractor to claim any amendment of the Contract Sum,
unless provided for elsewhere under the Contract.

The form of the Contractor’s Program and the timing of the provision of the Contractor’s Program shall be in
accordance with the requirements of the Specification.

The Contractor shall revise the Contractor’s Program whenever there is any material change to the scope of work,
sequence of activities, resources allocated, methodology employed, milestone dates or completion dates that occur
during the execution of the work under the Contract. The revised Contractor’s Program shall be furnished to the
Superintendent.

The Contractor’s Program shall not include programming activities or methodologies which have the effect of
creating false criticality or inhibiting an efficient response to changed circumstances.

18.2       Working Hours

The working hours and working days referred to in Clause 32 “Working Hours” of the General Conditions of
Contract are those nominated in Schedule 20 “Working Time”. The Superintendent’s approval of a change to the
working hours or working days specified in the Contract may be conditional. These conditions may include
precluding the execution of work requiring surveillance by the Superintendent or an obligation for the Contractor to
meet the additional costs incurred by the Superintendent as a consequence of the changed working hours or working
days. The Contractor acknowledges that other restrictions to the working hours or working days may apply (either
under this Contract or by law) and the Contractor is deemed to have allowed for any such restrictions.

19.        TIMES FOR COMMENCEMENT AND PRACTICAL COMPLETION

19.1       Extension of Time for Practical Completion

The Contractor shall not be entitled to an extension of time for Practical Completion in respect of a delay referenced
in Clause 35.5 “Extension of Time for Practical Completion” of the General Conditions of Contract, unless within
28 days after the time when a competent and experienced contractor should have reasonably become aware of the
cause of the delay, the Contractor has notified the Superintendent of the possible delay or has given the
Superintendent the written claim for an extension of time for Practical Completion.

Notwithstanding Clause 35.5 “Extension of Time for Practical Completion” of the General Conditions of Contract,
in the event of concurrent delays caused by more than one event, the resulting delay to the work under the Contract
shall be apportioned by the Superintendent according to the contribution of each respective cause.

The Superintendent may extend the time for Practical Completion for any reason without a claim for an extension of
time from the Contractor.

The Contractor is not entitled to an extension of time for inclement weather where the delay is less than 4 hours.

19.2       Limit on Liquidated Damages

Clause 35.7 “Limit on Liquidated Damages” of the General Conditions of Contract is deleted from this Contract.

19.3       Bonus for Early Completion

Clause 35.8 “Bonus for Early Practical Completion” of the General Conditions of Contract is deleted from this
Contract.

20.        ALTERNATIVES PROPOSED BY THE CONTRACTOR




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The Contractor may propose an alternative to a requirement specified in the drawings or Specification by giving
written notice to the Superintendent. The Contractor shall provide the following information associated with the
proposal:
       (a) the reason for the proposal;
       (b) the effect of the proposal on the work under the Contract;
       (c) the effect of the proposal on the Program;
       (d) the cost effect to the Principal of the proposal;
       (e) a written statement stating that the proposed change will not adversely affect the functional integrity,
           performance standards or quality standards of the Works; and
       (f) any other information that the Superintendent requests.

The Superintendent may approve or reject any proposal and will be under no obligation to approve any such
proposal for the convenience of, or to assist, the Contractor. The approval or rejection is at the absolute discretion
of the Superintendent.

The Contractor shall bear all costs:
       (a) associated with proposing a change;
       (b) reasonably incurred by the Principal in assessing the proposal (such costs to be a debt due from the
           Contractor to the Principal); and
       (c) associated with carrying out the proposal if it is approved by the Superintendent.

Unless otherwise agreed, the Contractor shall not be entitled to make any claim against the Principal arising out of
or in connection with the change.

21.        VALUATION OF VARIATIONS

Where the Contract prescribes specific rates or prices to be applied in determining the valuation of a variation, those
rates and prices shall be used if and in so far as the Superintendent reasonably determines that those rates are
applicable to the variation.

22.        RISE AND FALL

This Contract is not subject to adjustment for rise and fall of costs.

22.        RISE AND FALL

22.1       General

The Principal will pay or deduct an amount for rise and fall on the bituminous binder, polymer modified binder and
cutter used in this Contract. Adjustment of payment for rise and fall will not be paid for any other part of the work
or supply of materials under this Contract.

This amount will be determined by the following formula:

Amount =             EVbit x Abit+ EVPMB x APMB + EVcut x Acut

where:
           EVbit =            Effective Value for C170/C320 Bituminous Binder
           Abit =             Cost Adjustment Factor for C170/C320 Bituminous Binder
           EVPMB =            Effective Value for Polymer Modified Binder
           APMB =             Cost Adjustment Factor for Polymer Modified Binder
           EVcut =            Effective Value for Bituminous Cutter
           Acut =             Cost Adjustment Factor for Bituminous Cutter




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Where the Cost Adjustment Factor is positive, the amount calculated for rise and fall shall be added to the value of
the payment to be made in respect of the progress certificate or the final certificate.

Where the Cost Adjustment Factor is negative, the amount calculated for rise and fall shall be subtracted from the
value of the payment to be made in respect of the progress certificate or the final certificate.

22.2     Calculation of The Effective Value

The Effective Value is the value of C170/C320 bituminous binder, Polymer Modified Bitumen and Cutter (as
applicable) incorporated into the work included in the progress certificate or the final certificate, less the Effective
Value in respect of previous progress payments, disregarding any increase or decrease under this Clause.

22.3     Calculation of the Cost Adjustment Factors

The Cost Adjustment Factor will be determined by the following formulae:

                           Bn - Bo 
                   Abit =          
                           Bo 
                             PMBn- PMBo 
                   APMB =               
                                 PMBo   
                           Cn - Co 
                   Acut =          
                           Co 

where:

Bn =     Current Bitumen Index Number, which shall be the Published List Selling Price for C170/C320 bitumen
from the bitumen supplier for the work, applicable at the date that the work subject of the certificate was carried out.

Bo =     Base Bitumen Index Number, which shall be the Published List Selling Price for C170/C320 bitumen from
the bitumen supplier for the work, applicable at the date of close of tenders.

PMBn = Current Polymer Modified Bitumen Index Number, which shall be the Published List Selling Prices for
polymer modified bitumen from the bitumen supplier for the work under the Contract, applicable at the date that the
work subject of the certificate was carried out.

PMBo = Base Polymer Modified Bitumen Index Number, which shall be the Published List Selling Prices for
polymer modified bitumen from the bitumen supplier for the work under the Contract, applicable at the date of close
of tenders.

Cn = Current Cutter Index Number, which shall be the Published List Selling Prices for the cutter from the supplier
for the work under the Contract, applicable at the date that the work subject of the certificate was carried out.

Co = Base Cutter Index Number, which shall be the Published List Selling Prices for the cutter from the supplier for
the work under the Contract, applicable at the date of close of tenders.

Where the Contractor sources bituminous products from more than one supplier, the appropriate Index Number from
each supplier shall be used to calculate Rise and Fall for that proportion of the bituminous product supplied by that
supplier.

The base index numbers shall be as listed in Schedule 7 “Published List Selling Prices of Bituminous Products”.

22.4     Cost Adjustment on Work Completed After the Date for Practical Completion

Where a payment is made to the Contractor in respect of any work under the Contract executed subsequent to the
Date for Practical Completion then an amount for rise and fall for any such work will be calculated using Bn, PMBn
and Cn applicable at the Date for Practical Completion.

22       RISE AND FALL


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22.1       General

The Principal will pay or deduct an amount for rise and fall on the Contractor’s construction works. This amount
will be determined by the following formula:

           Amount =           EVbit x Abit + EVnonbit x Anonbit

where:

           EVbit =            Effective Value for Bituminous Works

           EVnonbit =         Effective Value for Non-Bituminous Works

           Abit =             Cost Adjustment Factor for Bituminous Works

           Anonbit =          Cost Adjustment Factor for Non-Bituminous Works.

Where the Cost Adjustment Factor is positive, the amount calculated for rise and fall shall be added to the value of
the payment to be made in respect of the progress certificate or the final certificate.

Where the Cost Adjustment Factor is negative, the amount calculated for rise and fall shall be subtracted from the
value of the payment to be made in respect of the progress certificate or the final certificate.

22.2       Calculation of The Effective Value

The Effective Value appropriate to the type of work under consideration is the value of work included in the
progress certificate or the final certificate less all of the following:
       (a) the Effective Value in respect of previous progress payments, disregarding any increase or decrease under
           this Clause;
       (b) the value of any work included on the basis of actual cost or current prices;
       (c) the value of any work which any clause of this Contract provides is not subject to adjustment for rise and
           fall in costs;
       (d) the value of any work which is subject to adjustment for rise and fall in costs on a different basis from that
           provided for by this Clause.

22.3       Calculation of the Cost Adjustment Factors

For Bituminous Works, the Cost Adjustment Factor will be determined by the following formula:

                        Ln - Lo        Pn - Po        Mn - Mo        Bn - Bo 
            Abit = C L           + CP            CM            CB          
                        Lo             Po             Mo             Bo 

For Non-Bituminous Works, the Cost Adjustment Factor will be determined by the following formula:

                           Ln - Lo        Pn - Po        Mn - Mo        Fn - Fo 
            Anonbit = C L           + CP            CM            CF          
                           Lo             Po             Mo             Fo 

where:

A=         Cost Adjustment Factor appropriate to the type of work.

CL, CF, CM, CP, CB = the Content Factors listed in Schedule 8 "Rise and Fall Content Factors".

Ln =     Current Labour Index Number, which shall be the Index Number for the TOTAL HOURLY RATES OF
PAY EXCLUDING BONUSES, Private Sector for South Australia, applicable to the quarter immediately preceding
the quarter in which falls the last day of the period in which the work the subject of the certificate was carried out.
This index shall be obtained from Australian Bureau of Statistics Catalogue No. 6345.0, table 3.



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Lo =     Base Labour Index Number, which shall be the Index Number for the TOTAL HOURLY RATES OF PAY
EXCLUDING BONUSES, Private Sector for South Australia, applicable to the quarter immediately preceding the
quarter during which tenders closed. This index shall be obtained from Australian Bureau of Statistics Catalogue
No. 6345.0, table 3.

Fn =      Current Petroleum Index Number, which shall be the Fueltrac IPIP Commercial (off road) diesel Price
Index for Adelaide (issued by Fueltrac Pty Ltd, Suite 336/58, High St, Toowong, Queensland, 4066), applicable to
the month immediately preceding the month in which falls the last day of the period in which the work the subject of
the certificate was carried out. The Principal will provide the index value to the Contractor.

Fo =     Base Petroleum Index Number, which shall be the Fueltrac IPIP Commercial (off road) diesel Price Index
for Adelaide (issued by Fueltrac Pty Ltd, Suite 336/58, High St, Toowong, Queensland, 4066), applicable to the
month immediately preceding the month during which tenders closed. The Principal will provide the index value to
the Contractor.

Mn = Current Materials Index Number, which shall be the Price Index of CONSTRUCTION MATERIAL
MINING (Series ID A2309126F), applicable to the quarter immediately preceding the quarter in which falls the last
day of the period in which the work the subject of the certificate was carried out. This index shall be obtained from
Australian Bureau of Statistics Catalogue No. 6427.0, Materials used in Manufacturing Industries, Table 12 & 13
(time series spreadsheet).

Mo = Base Materials Index Number, which shall be the Price Index of CONSTRUCTION MATERIAL MINING
(Series ID A2309126F), applicable to the quarter immediately preceding the quarter during which tenders closed.
This index shall be obtained from Australian Bureau of Statistics Catalogue No. 6427.0, Materials used in
Manufacturing Industries, Table 12 & 13 (time series spreadsheet).

Pn =     Current Plant Index Number, which shall be the Price Index for RENTAL AND HIRING SERVICES
(EXCEPT REAL ESTATE) (66), applicable to the quarter immediately preceding the quarter in which falls the last
day of the period in which the work the subject of the certificate was carried out. This index shall be obtained from
Australian Bureau of Statistics Catalogue No. 6427.0, table 21.

Po =    Base Plant Index Number, which shall be the Price Index for RENTAL AND HIRING SERVICES
(EXCEPT REAL ESTATE) (66), applicable to the quarter immediately preceding the quarter during which tenders
closed. This index shall be obtained from Australian Bureau of Statistics Catalogue No. 6427.0, table 21.

Bn =    Current Bitumen Index Number, which shall be the Published List Selling Price for C170 bitumen from the
bitumen supplier for this Contract, applicable at the date that the work subject of the certificate was carried out.

Bo =    Base Bitumen Index Number, which shall be the Published List Selling Price for C170 bitumen from the
bitumen supplier for this Contract, applicable at the date of close of tenders.

Any Index Numbers referred to in this Clause as being published by the Australian Bureau of Statistics shall be the
numbers as first published for any particular period by the Australian Bureau of Statistics. For the purposes of this
Clause, the indexes shall not be subject to alteration following publication of any revised, amended or corrected
numbers without the direction in writing of Principal.

22.4     Cost Adjustment on Additional Works

Where the Contractor, at the request of the Superintendent, submits a price or prices for any works which are:
         (a)   in the opinion of the Superintendent, not of the same class of works provided for in the payment
               schedules; or
         (b)   where there are no scheduled rates for such works;

and the Superintendent subsequently orders such works to be executed by the Contractor as extra works at such
price or prices, then an amount for rise and fall for any such work carried out on or before the Date for Practical
Completion shall be calculated with the following adjustment:

         the words "the quarter in which the Contractor submitted the price or prices", will be substituted for the
         words: "the quarter during which tenders closed", in the definition of the terms Lo, Fo, Mo, Po and Bo.

23.      GOODS AND SERVICES TAX


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Rates and/or prices included in payment schedules shall be exclusive of GST. Payment from the Principal to the
Contractor will include the GST payable. The Contractor shall raise tax invoices.

23.          GOODS AND SERVICES TAX

23.1         General

Rates and/or prices included in payment schedules shall be exclusive of GST. Payment from the Principal to the
Contractor will include the GST payable.

23.2         Recipient Created Tax Invoice

For the purposes of this Clause only:

"Recipient" means the Principal.
"Supplier" means the Contractor.
"Supplies" means the Works.
       (a)       The Recipient may issue tax invoices in respect of the specified Supplies;
       (b)       The Supplier will not issue tax invoices in respect of the Supplies;
       (c)       The Supplier acknowledges that it is registered for GST when it enters into the agreement and that it
                 will notify the Recipient if it ceases to be registered;
       (d)       The Recipient acknowledges that it is registered for GST when it enters into this agreement and that it
                 will notify the Supplier if it ceases to be registered for GST or if it ceases to satisfy any of the
                 requirements of the determination at Schedule 1 of Goods & Service Tax Ruling GSTR 2000/10 –
                 Recipient Created Tax Invoices.

The Recipient shall be responsible for issuing Recipient Created Tax Invoices, and Adjustment Notes in respect of
adjustment events known to the Recipient. The Supplier shall notify the Recipient of details of any adjustment
event not otherwise known to the Recipient. Recipient Created Tax Invoices shall accompany Progress Payments.

24.          OVERHEADS AND PROFIT

Rates and amounts in all schedules shall be deemed to allow for all overheads and profit.

24.          OVERHEADS AND PROFIT

24.1         General

For the purpose of this Clause only, “Adjusted Direct Cost” means the Contract Sum less onsite overheads, offsite
overheads, profit and any provisional sums and provisional quantities.

Items have been included in the Schedule of Rates or Schedule of Prices for onsite overheads, offsite overheads and
profit. All other rates and amounts in the Schedule of Rates or Schedule of Prices shall be deemed not to allow for
all profit and overheads, unless otherwise noted.

Onsite overheads are defined as those recurrent costs, which by the normally accepted standards of accounting, are
incurred by the Contractor on site but cannot be directly attributed to a specific item of work. This includes, but is not
limited to, items such as rent and maintenance of site office accommodation, general site office administration,
security, power, water rates and telephone expenses as defined with more particularity in Schedule 4 “Schedule of
Overheads and Profit”.

Offsite overheads are defined as those costs, which by the normally accepted standards of accounting, are incurred by
the Contractor offsite but cannot be directly attributed a specific item of work. This includes, but is not limited to,
items such as rent and maintenance of head office accommodation, general head office administration and director’s
salaries as defined with more particularity in Schedule 4.

The percentages for overheads and profit in Schedule 4 shall equate to the respective amounts in the Schedule of
Rates or Schedule of Prices divided by the Adjusted Direct Cost.

The Value per Day for overheads shall be determined by the following formulae:


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        P  ADC                               
 Don =  on                                    
        100  CP                              

         Poff  ADC                            
 Doff = 
         100  CP                              
                                                
                                               
where:
           D on =    Value per day for onsite overhead;
           D off =   Value per day for offsite overhead;
           Pon =     Percentage for onsite overheads stated in Schedule 4;
           P off =   Percentage for offsite overheads stated in Schedule 4;
           ADC = Adjusted Direct Cost;
           CP =      Period stated in Schedule 4 (in days).

No payment will be made for overheads and profit related to provisional sums and provisional quantities that are not
expended.

24.2       Payment of Overheads for Delay

The Principal will pay the Contractor an additional amount for onsite overheads and offsite overheads when an
extension of time is granted as a direct result of:

       (a) a breach of a provision of the Contract or out of any other act or omission on the part of the Principal or the
           Superintendent or employee, consultant, other contractor or agent of the Principal; or

       (b) a variation directed by the Superintendent.

The amount for each day of delay will be the summation of D on and D off as calculated in accordance with Clause 24.1.

Onsite overheads and offsite overheads will not be paid for any extension of time granted as a result of weather.

24.3       Payment for Variations

24.3.1     General

Except as provided for under Clause 40.3 “Pricing the Variation” of the General Conditions of Contract, payment
for overheads and profit on variations will be made in accordance with this Clause.

24.3.2     Variations Not Resulting in an Extension of Time

An amount for profit, onsite overheads and offsite overheads will be paid on all variations, calculated in accordance
with the following formula:

     Pp  P  VS                                  Pp  P  P                             V           
 A=                                                                                                      
             off                                              on   off                                 V
                                                                                                          
          100                                               100                                           
where:
           A =       Amount payable for profit, onsite overheads and offsite overheads;
           Pp =      Percentage for profit stated in Schedule 4;
           Pon =     Percentage for onsite overheads stated in Schedule 4;
           P off =   Percentage for offsite overheads stated in Schedule 4;
           VS =      Valuation of that part of the variation performed by subcontractor, supplier or consultant,
                     excluding the Contractor’s overheads and profit;



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         VV =      Valuation of that part of the variation which is not included in VS, excluding the Contractor’s
                   overheads and profit.

In determining the value of VS and VV, the Superintendent shall not include an expense incurred by the Contractor
for which the Principal has already made payment in the onsite and / or offsite overheads.

24.3.3   Variations Resulting in an Extension of Time

If a variation results in an extension of time, payment for profit and overheads shall be made in accordance with
Clause 24.3.2 above, except that the amount paid for overheads shall be reduced to the extent of any payment made
for off site overheads and onsite overheads in accordance with Clause 24.2.

25.      CERTIFICATES AND PAYMENTS

25.1     Unfixed Plant and Materials

If the Contractor has claimed payment for plant or materials intended for incorporation into the Works, but not yet
incorporated into the Works, the Superintendent may direct the Contractor to supply ownership certificates and
receipts establishing to the satisfaction of the Superintendent that the Principal is the owner of the plant and
materials free of any lien or charge and that the Contractor has paid for the plant and materials.

25.2     Certificate of Practical Completion

Where the Works include a road, for the Works to be reasonably capable of being used for their intended purpose,
the first coat of any pavement marking and any sundry works (such as lighting, secondary paving, safety barrier and
road furniture) must be complete where this work is included in the Contract.

25.3     Final Payment Claim

The following is added to the first paragraph of Clause 42.7 “Final Payment Claim” of the General Conditions of
Contract:

         However, the Superintendent shall not be obliged to issue the Final Certificate until the Contractor has
         finally and satisfactorily executed and completed all work under the Contract and fulfilled all of its other
         obligations under the Contract (other than those which have been referred to dispute resolution under
         Clause 47).

26.      PAYMENT OF WORKERS AND SUBCONTRACTORS

Notwithstanding Clause 43 (b) of the General Conditions of Contract, the Contractor shall provide the specified
statutory declarations when requested by the Superintendent.

27.      NOTIFICATION OF CLAIMS

The text of Clause 46.1 “Contractor’s Prescribed Notice” of the General Conditions of Contract is deleted and
replaced with the following:

         With the exception of:
             (a)       any payment claim under Clause 42.1, Clause 42.5 and Clause 42.6;
             (b)       any claim for an extension of time under Clause 35.5(a); and
             (c)       any decision pursuant to Clause 46.4,
         the Principal shall not be liable upon any claim by the Contractor in connection with the Contract or arising
         out of or related to the subject matter thereof (including claims in relation to a Superintendent’s direction or
         failure to issue a direction or otherwise at law) unless within 28 days after the first day upon which a
         competent and experienced contractor could reasonably have been aware of the claim, the Contractor has
         given to the Principal and to the Superintendent the prescribed notice.

         To dispute the granting of, of failure to grant an extension of time pursuant to a claim made by the
         Contractor under Clause 35.5, the Contractor must comply with this Clause 46. The 28 days within which
         to provide a Prescribed Notice shall commence from the date of the Superintendent’s determination under
         Clause 35.5, or if no determination is made, shall commence 56 days after the initial claim is made.

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           Failure of the Contractor to comply with the provisions of this Clause 46.1 or to communicate a claim in
           accordance with the relevant provisions of the Contract shall be grounds for invalidating the claim.
           Nothing in this Clause 46 shall limit the operation of any other provision of the Contract which requires the
           Contractor to give notice to the Superintendent in order to preserve a right against the Principal.

           The prescribed notice is a notice in writing which shall be headed “Prescribed Notice” and at a minimum,
           shall include detailed particulars of:
           (a)      the breach, act, omission, direction, approval or circumstances on which the claim is based;
           (b)      an outline of the legal and contractual basis of the claim;
           (c)      the quantum or likely quantum of the claim or proposed claim
           (d)      the facts relied upon by the Contractor in support of the claim (including an updated Contractor’s
                    Program where appropriate), in sufficient detail to permit verification and / or audit by the
                    Superintendent; and
           (e)      whether or not an extension of time is claimed.

           The Superintendent shall notify the Contractor within 7 days if, in the Superintendent’s opinion, the
           prescribed notice contains insufficient particulars. If within 28 days of giving the prescribed notice the
           party giving the notice does not notify the other party and the Superintendent of particulars of the claim, the
           prescribed notice shall be deemed to be the claim.

           Within 56 days of receipt of the prescribed notice the Superintendent shall assess the claim and notify the
           parties in writing of the decision and include the amount of that assessment in the next payment certificate
           issued pursuant to Clause 42.

28.        ARBITRATION

Arbitration shall be conducted in accordance with rules 5 to 18 of the Rules of the Institute of Arbitrators and
Mediators Australia for the Conduct of Commercial Arbitrations.

29.        WAIVER OF CONDITIONS

A waiver by either party in respect of a breach of a provision of this Contract by the other party is not a waiver in
respect of any other breach of that or any other provision. The failure of either party to enforce at any time any of
the provisions of this Contract shall not be interpreted as a waiver of that provision.

30.        COLLUSIVE ARRANGEMENTS

30.1       Contractor’s Warranties

The Contractor warrants that, prior to the close of tenders, the Contractor had no knowledge of the tender price of
any other tenderer and had not directly or indirectly communicated the Contractor’s tender price to any other
tenderer.

The Contractor warrants that, except as disclosed and as agreed with the Principal in writing, the Contractor:
       (a) has not made any arrangement or arrived at any understanding to pay money to, or confer any benefit upon,
           any other tenderer or any trade or industry association (above the published standard fee) in respect of this
           Contract;
       (b) has not made any allowance in the Contractor’s tender price on account of a contract, arrangement or
           understanding of a kind referred to in this Clause; and
       (c) will not pay any money or confer any benefit on any other tenderer or any trade or industry association of
           the kind referred to in this Clause.

30.2       Reliance upon Warranties

The Contractor acknowledges that it is aware that the Principal entered this Contract in reliance upon the warranties
in this Clause. If any matter warranted in this Clause is found not to be true or not to be correct, in addition to any
other rights that the Principal may have, the Contractor will be in fundamental breach of this Contract (such breach
going to the root of this Contract).

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31.      DISCLOSURE OF CONTRACT

The Contractor agrees to disclosure of this Contract in accordance with Department of Premier and Cabinet Circular
27 (PCO27)."Disclosure of Government Contracts", available from:
http://www.premcab.sa.gov.au/dpc/publications_circulars.html. The Contractor’s attention is drawn to the Freedom
of Information Act 1991. No exemption from the provisions of this Act applies to this Contract.

32.      BUILDERS LICENCE

Where required by the Building Work Contractors Act 1995, the Contractor shall hold an appropriate Builders
Licence. Evidence of compliance with this Clause shall be submitted to the Superintendent on request.

33.      CONSTRUCTION INDUSTRY TRAINING FUND

Attention is drawn to the Construction Industry Training Fund Act 1993 which imposes a levy of 0.25% of the value of
building and construction works in South Australia. The Contractor shall pay the levy, calculated on the basis of the
Contract sum less any Provisional Sums, Provisional Quantities and Principal controlled amounts. The Principal will
not make separate payment to the Contractor for the levy, the cost of which is deemed to be included in the Contract
Sum. Proof of payment of the levy may be required prior to the first or any progress payment being made under this
Contract.

34.      EVALUATION OF CONTRACTOR’S PERFORMANCE

At any time the Superintendent may undertake an evaluation of the Contractor’s (and any subcontractor’s)
performance and compliance with the requirements of the Contract using the current version of the Principal's
relevant Contract Performance Evaluation Procedure. A copy of the procedure will be made available to the
Contractor if requested. The evaluation, which will include reasons for any below acceptable scores, will be
forwarded to the Contractor when completed. If the Contractor disagrees with the evaluation, they may forward a
request to the Superintendent for a review, along with reasons why it should be reviewed. Following reasonable
consideration of the request, the Superintendent’s decision will be final. The evaluation may be taken into account in
the assessment of future tenders with the Principal or other government agencies.

35.      DELEGATIONS

Where in the General Conditions of Contract it is a requirement that approval in writing or a notice in writing be
given by the Principal or an action be taken by the Principal, the powers, duties, discretions and authorities vested in
the Principal under the clauses of the General Conditions of Contract listed may alternatively be exercised by those
delegates of the Principal as set out in the following tables:



                                                  SCC TABLE 35.1
It is hereby declared that the powers, duties, discretions and authorities vested in the Principal under the clauses
listed in this table may alternatively be exercised by the Director Contracting and Procurement.
Clause                   Function
2                        Issue of the notice in writing of acceptance of the tender.
5.3                      Approve or disapprove the form of security.
5.4                      Accept the lodgement of security (and to approve of time extension of same).
5.7 and 5.8              Release security and retention moneys.
5.10                     Request the lodgement of a deed of guarantee.
6.2                      Prepare and forward a Formal Instrument of Agreement.
7                        Notify any change of address.
19                       Approve insurer and terms of Public Liability insurance.
42.8                     Release retention moneys and/or security.




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                                                  SCC TABLE 35.2
It is hereby declared that the powers, duties, discretions and authorities vested in the Principal under the clauses
listed in this table may alternatively be exercised by the Executive Director.
Clause                    Function
3.1                       Pay the Contractor for work.
5.5                       Recourse to security.
8.7                       Approve any proposed media release by the Contractor.
9.1                       Assign the Contract or approve the assignment by the Contractor.
10.1                      Provide a list of subcontractors in the tender documents for Selected Subcontractor Work.
11                        Pay for provisional sums expenditure.
14.3                      Reimburse for fees or charges payable.
15                        Pay for protection of people or property and recover cost.
18                        Approve insurer and terms of Contract Works insurance.
21.2                      Effect and maintain insurance and refuse payment for failure to provide evidence of
                          compliance with insurance requirements.
23                        Obligations regarding providing a Superintendent and the Superintendent’s exercise of
                          functions.
30.3                      Recover the cost of having defective work rectified by others.
31.7                      Pay for the cost of testing in certain circumstances.
33.1                      Provide or furnish information.
35.6                      Deduction or repayment of Liquidated Damages.
36                        Pay for extra costs or delay costs incurred.
37                        Recover the costs of rectifying defects.
38                        Recover the cost of cleaning up.
39                        Recover the cost of taking urgent action to protect work.
40.2                      Pay the cost of the Contractor providing details of proposed variations.
40.5                      Pay the cost of variations directed by the Superintendent.
42.1                      Pay the amount due to the Contractor shown on a payment certificate received from the
                          Superintendent.
42.3                      Deduct retention moneys.
42.4                      Pay for unfixed plant and materials.
42.9                      Pay interest on overdue payments.
42.10                     Set-off of moneys owing.
42.11                     Recourse to retention moneys and/or security.
43                        Withhold payment for failure to provide evidence of payment; or pay workers or
                          subcontractors direct.
44.4 (i), (ii) or (iii)   Suspend payment.
44.4                      Withhold payment.
44.6                      Pay any surplus or recover any deficiency.
44.9                      Respond to a show cause notice.
44.11                     Take work out of the hands of the Contractor if the Contractor becomes insolvent.
45                        Pay moneys owing if the Contract is frustrated.
46.2                      Dispute a Superintendent’s direction.
47.1                      Serve a notice of dispute.
47.2                      Give a written response to a notice of dispute; or serve a notice of dissatisfaction.
48                        Waive any term of the Contract.



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                                                  SCC TABLE 35.3
It is hereby declared that the powers, duties, discretions and authorities vested in the Principal under the clauses
listed in this table may alternatively be exercised by the Superintendent.
Clause                   Function.
8.3                      Supply copies of documents to the Contractor.
15                       Provide for protection of people or property.
21.1                     Request evidence that insurance has been effected.
27.1                     Give possession of Site.
27.2                     Give notice requiring access and provide names of authorised persons.
30.3                     Have defective work rectified by others.
30.5                     Accept defective work in certain circumstances.
31.8                     Allow access to test material or work.
39                       Take urgent action to protect work.
44.5                     Complete the work taken out of the hands of the Contractor; and Take possession of the
                         Contractor’s Constructional Plant.



36. CONTRACTOR’S SAFETY AND ENVIRONMENTAL OBLIGATIONS

The Contractor acknowledges the importance that the Principal places on care of the environment and the provision
of a safe workplace. The Contractor must comply with all requirements of the Contract, applicable Australian
Standards and all relevant law relating to protection of the environment and occupational, health, safety and welfare.

The Contractor must ensure, in connection with the execution of the work under the Contract, the health and safety
of all persons including without limitation, members of the public, the Superintendent, the Principal’s employees,
consultants and agents and the Contractor’s employees, subcontractors and agents.

The Contractor must perform its obligations under this Contract in an environmentally responsible manner so as to
protect and preserve the environment (including from harm or damage arising from or in connection with the
carrying out of the work under the Contract except to the extent such harm or damage was a direct and unavoidable
result of carrying out and completing the work under the Contract in accordance with the Contract).

The Contractor, except to the extent prohibited by law, must indemnify and keep indemnified the Principal against
any loss that the Principal suffers or incurs arising out of or in any way in connection with a failure by the
Contractor to comply with any of its environmental or safety obligations.

37.      SEVERANCE

Each word, phrase, sentence, paragraph and clause of this Contract shall not be construed so as to infringe the
provisions of the law governing the Contract. Where a word, phrase, sentence, paragraph or other clause or
provision of this Contract would otherwise be unenforceable, illegal or void, the effect of that provision shall so far
as possible, be limited and read down so that it is not unenforceable, illegal or void. If a part of this Contract is
found to be unenforceable, invalid, illegal or void, that part may be severed in such manner that the remaining part
of the Contract is enforceable to the greatest extent permitted by law.

38.      WORKFORCE PARTICIPATION AND SKILLS DEVELOPMENT

(a) An objective of this Contract is to increase the employment and training of Apprentices and Trainees,
    Aboriginal people and Local People with Barriers to Employment (the “Target Group”) and to Upskill people
    engaged directly in connection with the performance of the Contract.
(b) The Contractor formally declares its intent to work in conjunction with the South Australian Government to
    meet the South Australian Government’s policy targets by employing and training people from the Target



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       Group, including through on-site work by subcontractors and Upskilling people engaged directly in connection
       with the performance of the Contract.
(c) Without limiting other remedies available to the Principal, the Contractor acknowledges that failure to comply
    in part or in whole with the requirements of this clause may be a factor that will be taken into account in the
    award of future contracts by the South Australian Government.

38.       WORKFORCE PARTICIPATION AND SKILLS DEVELOPMENT

38.1      General
(a) An objective of this Contract is to increase the employment and training of Apprentices and Trainees,
    Aboriginal people and Local People with Barriers to Employment (the “Target Group”) and to Upskill people
    engaged directly in connection with the performance of the Contract.
(b) The Contractor formally declares its intent to work in conjunction with the South Australian Government to
    meet the South Australian Government’s policy targets by employing and training people from the Target
    Group, including through on-site work by subcontractors and Upskilling people engaged directly in connection
    with the performance of the Contract.
(c) Without limiting other remedies available to the Principal, the Contractor acknowledges that failure to comply
    in part or in whole with the requirements of this clause may be a factor that will be taken into account in the
    award of future contracts by the South Australian Government.
38.2      Target
(a) The Contractor must, subject to this clause 38, ensure that:
        (i)     the number of On-site Hours performed by people in the Target Group (engaged by either the
                Contractor or its subcontractors) (the “Target Group Component”) is no less than 11% of the Total
                Project Hours; and
        (ii)    the sum of:
                A.    the Target Group Component; and
                B.    the number of hours of Upskilling provided to people engaged directly in connection with the
                      performance of the Contract (engaged by either the Contractor or its subcontractors) (the
                      “Upskilling Component”),
                is no less than 15% of the Total Project Hours (the “Target Hours”); and
        (iii)   the On-site Hours performed by Aboriginal people is equivalent to up to 2% of the Total Project
                Hours.
(b) In reporting performance against this clause, and in calculating whether the Contractor has met the targets in
    clause 38.2 (a), the following provisions apply:
        (i)     hours cannot be double counted;
        (ii)    On-site Hours performed by Aboriginal people must be reported separately but also contribute to the
                Target Group Component;
        (iii)   Upskilling provided up to 6 months prior to the Date of Acceptance of Tender and prior to the Date
                for Practical Completion can be included in the Upskilling Component;
        (iv)    on-Site Upskilling provided to people in the Target Group should be included in the Target Group
                Component, rather than in the Upskilling Component. On-Site Upskilling provided to all other
                categories of worker engaged directly in connection with the performance of the Contract can be
                included in the Upskilling Component; and
        (v)     off-Site Upskilling hours provided to all categories of worker (other than Cadets) engaged directly in
                connection with the performance of the Contract can be included in the Upskilling Component.
(c) The Contractor will seek, but is not obliged, to achieve performance by Apprentices and Trainees of On-site
    Hours equivalent to 50% of the Target Hours or more.
38.3      Reporting
(a) The Contractor
        (i)     must submit to the Superintendent:


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               A.      for Tier 1 Contracts - a Workforce and Skills Development Plan no later than 10 Business Days
                       after the Date of Acceptance of Tender and before it commences any on-Site work under the
                       Contract;
               B.      for Tier 2 Contracts - a Workforce and Skills Development Strategy no later than 15 Business
                       Days after the Date of Acceptance of Tender and before it commences any on-Site work under
                       the Contract,
               each of which must contain the information required by and be in the form set out in the Workforce
               Participation in Government Construction Procurement Implementation Guidelines For Contractors
               and Contracting Agencies from time to time which can be accessed at
               http://www.dtei.sa.gov.au/wpgcp (the “Implementation Guidelines”) (unless the Superintendent has
               approved in writing another form);
       (ii)    must submit to the Superintendent:
               A.      a Workforce Participation and Skills Development Interim Report no later than 10 Business
                       Days after the end of each quarter (with the first quarter commencing on the date the
                       Contractor commences on-Site work under the Contract); and
               B.      a Workforce Participation and Skills Development Final Report no later than 20 Business Days
                       after the Date of Practical Completion,
               each of which must contain the information required by and be in the form of the appropriately
               entitled spreadsheet which can be accessed at www.dtei.sa.gov.au/wpgcp (unless the Principal has
               approved in writing another form)
       (iii)   must (and must ensure that its subcontractors) keep records of compliance with this clause including
               (without limitation) records of the following information:
               A.      details of the On-site Hours worked by people in the Target Group;
               B.      the total On-site Hours for all workers; and
               C.      details of the Upskilling provided to people engaged directly in connection with the
                       performance of the Contract, including the hours undertaken, the name and date of the course
                       and the name of the registered training organisation or university;
       (iv)    must report in accordance with the Implementation Guidelines; and
       (v)     must (and must ensure that its subcontractors) keep records of compliance with this clause and
               provide the Superintendent with such assistance, including the provision of information, as it may
               reasonably require in connection with it carrying out an audit of the Contractor’s compliance with this
               clause 38.
(b) If this Contract is a Tier 2 Contract, the Contractor must:
       (i)     appoint a person to be responsible for coordination of the Workforce and Skills Development
               Strategy; and
       (ii)    seek to use Aboriginal owned and/or managed enterprises where possible.
(c) The Contractor must (and must ensure that its subcontractors) do not contravene the Privacy Act 1988 (Cth).
    This may require the Contractor (or its subcontractor) to obtain a person’s consent prior to disclosing that
    person’s personal information in connection with this clause.
38.4     Definitions
For the purpose of this clause 38 only:
       “Aboriginal person” means a person who identifies as being Aboriginal and/or is considered by members of
       his or her community as being Aboriginal. This definition includes Torres Strait Islander people;
       “Apprentice/Trainee” means a person (who may be either an apprentice or a trainee) undertaking training in
       a trade or declared vocation under a training contract as provided for in the Training and Skills Development
       Act 2008 (SA) whether on a full-time or part-time basis;
       “Building Contract” means a contract for construction of residential, commercial, industrial or institutional
       facilities;
       “Business Day” means any day other than a Saturday, Sunday or public holiday in South Australia;




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       “Cadet” means a person undertaking a cadetship or scholarship incorporating formal tertiary professional or
       technical education that results in a nationally recognised building and construction qualification whether on
       a full-time or part-time basis;
        “Civil Construction Contract” means a contract for construction of earthworks, road works, rail works
       pilings, power stations, dams, drainage or other water resource management works;
       “Contract Duration” means the period commencing on the Date of Acceptance of Tender and ending on the
       Date for Practical Completion;
       “Implementation Guidelines” has the meaning given to it in clause 38.3(a)(i);
       “Local person with barriers to employment” includes any person residing in a South Australian
       Government region in which the Site is located (or any other South Australian Government region) and who
       is unemployed or experiencing difficulty in finding or maintaining suitable employment having regard to his
       or her skill level, level of experience, age, place of residence or family or caring responsibilities. A Local
       Person with Barriers to Employment includes a job seeker residing in South Australia who:
       (a)    has registered with Job Search, Centrelink or a Job Services Australia provider;
       (b)    has registered with the Disability Employment Network;
       (c)    is a holder of a Job Seeker ID; or
       (d)    is a skilled migrant job seeker holding a General Skilled Migrant Visa;
       “On-site Hour” means an hour of work performed by a person on the Site;
       “Target Group” has the meaning given to it in clause 38.1(a);
       “Target Group Component” has the meaning given to it in clause 38.2(a)(i);
       “Target Hours” has the meaning given to it in clause 38.2(a)(ii);
       “Tier 1 Contract” means a contract with a Contract Sum (exclusive of GST) between $5,000,000 and
       $50,000,000 (both inclusive) and a Contact Duration of six months or more;
       “Tier 2 Contract” means a contract with a Contract Sum (exclusive of GST) greater than $50,000,000 and a
       Contact Duration of six months or more;
       “Total Project Hours” means:
       (a)    the number of hours approved in writing by the Principal as representing the estimated total On-site
              Hours required to execute the work under the Contract; or
       (b)    in the absence of an approval under the preceding paragraph, the estimated total On-site Hours
              required to execute the work under the Contract, determined using the following formula:
              (i)     if the Contract is a Building Contract:
                      Total Project Hours = (Contract Sum x 0.3)/42; or
              (ii)    if the Contract is a Civil Construction Contract:
                      Total Project Hours = (Contract Sum x 0.15)/42;
       “Upskilling” means
       (a)    the training of workers where such training is a prerequisite to those workers obtaining a nationally
              recognised building and construction competency or qualification; or
       (b)    the upskilling of professional workers engaged in tertiary or technical qualifications,
       provided the training/upskilling is provided by a training organisation registered by a State or Territory
       training authority and listed on the NTIS (as defined in the Higher Education Support Act 2003 (Cth)) or an
       Australian university (as defined in the Higher Education Support Act 2003 (Cth)).
       Upskilling includes on-job structured training within which:
       i)     competencies are specified and lead to the attainment of a nationally recognised qualification;
       ii)    learning is planned, organised and sequenced in order to develop the apprentice/trainee/cadet to
              achieve workplace competence;
       iii)   methods of training delivery appropriate to the achievement of competence are chosen;
       iv)    quality training resources are used to assist the apprentice/trainee/cadet to learn; and

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         v)        assessment events are planned and undertaken at appropriate points throughout the traineeship.
         Upskilling cannot be achieved through simple work experience other than for Cadets.
         Notwithstanding this definition, Upskilling includes on-Site work performed by Cadets, but does not include
         any other training undertaken by Cadets; and
             “Upskilling Component” has the meaning given to it in clause 38.2(a)(ii)B.

39.           PARTNERING

39.1          General

This Clause only applies where the Parties agree to establish and implement a “partnering” process.

Without derogating any other requirement of this Contract, the parties acknowledge the mutual benefits of
establishing and maintaining a working relationship based on the following principles:
       (a)        mutual recognition of each party’s objectives and goals for the project;
       (b)        regular and open communication between the parties at all times;
       (c)        mutual respect of persons engaged by each party; and
       (d)        dealing with any matter that may affect the proper execution and timely completion of the work under
                  the Contract expeditiously.

39.2          Partnering Process

The objectives of the partnering process are to:
       (a) further the understanding of each party’s goals and objectives by the other party;
       (b) gain an understanding of the organisational structure of the contracting parties;
       (c) further the understanding of the expectations of other project stakeholders (such as councils and local
           residents);
       (d) identify key issues, constraints and potential barriers to the success of the project;
       (e) facilitate the establishment of strategies to address key issues and barriers;
       (f) agree on lines of authority and communication and establish a Communication and Issues Resolution
           mechanism; and
       (g) Identify team performance objectives and formulate a joint evaluation mechanism for on-going
           consideration and review.

Partnering workshops will be held at contract start-up, regularly during the term of the Contract and at Contract
completion. When appropriate, an external facilitator will be engaged for the workshops. The costs of running
workshops and engaging a facilitator will be shared equally between the Contractor and Principal. Other costs of
compliance with this Clause incurred by the Contractor are deemed to be included in the Contract Sum.

39.3          No Legal Responsibility

Nothing that occurs at any meeting, workshop or other process in connection with this Clause (whether oral, written
or by conduct) will:
       (a) relieve either party, or alter or affect their liabilities, rights, obligations or responsibilities under or arising
           out of this Contract; or
       (b) be construed as a direction by the Superintendent to do or not do anything.

Any minutes of any meeting or workshop held in connection with this Clause shall not form part of the Contract and
are for information only. If, at a meeting or workshop, the parties agree upon an amendment to the Contract or the
Superintendent issues a direction, the amendment or direction shall be clearly identified as such and documented
separately from any meeting minutes.

40.           NATIONAL CODE OF PRACTICE FOR THE CONSTRUCTION INDUSTRY



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1.   The Contractor must comply with the National Code of Practice for the Construction Industry (Code) and the
     Australian Government Implementation Guidelines for the National Code of Practice for the Construction
     Industry, August 2009 (Guidelines). Copies of the Code and Guidelines are available at
     www.deewr.gov.au/building.

2.   Compliance with the Code and Guidelines shall not relieve the Contractor from responsibility to perform the
     Contract, or from liability for any defect in the works arising from compliance with the Code and Guidelines.

3.   Where a change in the Contract is proposed and that change would affect compliance with the Code and
     Guidelines, the Contractor must submit a report to the Commonwealth specifying the extent to which the
     Contractor’s compliance with the Code and Guidelines will be affected.

4.   The Contractor must maintain adequate records of the compliance with the Code and Guidelines by:
     (a) the Contractor;
     (b) its Subcontractors;
     (c) consultants; and
     (d) its Related Entities (see Guidelines for meaning including Section 3.5 of the Guidelines).

5.   If the Contractor does not comply with the requirements of the Code or Guidelines in the performance of this
     Contract such that a sanction is applied by the Minister for Employment and Workplace Relations, the Code
     Monitoring Group or the Commonwealth, without prejudice to any rights that would otherwise accrue, those
     parties shall be entitled to record that non-compliance and take it, or require it to be taken, into account in the
     evaluation of any future tenders that may be lodged by the Contractor or a related entity in respect of work
     funded by the Commonwealth or its agencies.

6.   While acknowledging that value for money is the core principle underpinning decisions on Government
     procurement, when assessing tenders, the Contractor may give preference to subcontractors and consultants that
     have a demonstrated commitment to:
     (a) adding and/or retaining trainees and apprentices;
     (b) increasing the participation of women in all aspects of the industry; or
     (c) promoting employment and training opportunities for Indigenous Australians in regions where significant
         indigenous populations exist.

7.   The Contractor must not appoint a subcontractor or consultant in relation to the Project where:
     (a) the appointment would breach a sanction imposed by the Minister for Employment and Workplace
         Relations; or
     (b) the subcontractor or consultant has had a judicial decision against them relating to employee entitlements,
         not including decisions under appeal, and has not paid the claim.

8.   The Contractor agrees to require that it And its subcontractors or consultants and its related entities provide the
     Commonwealth or any person authorised by the Commonwealth, including a person occupying a position in the
     Office of the Australian Building and Construction Commissioner, with access to:
     (a) inspect any work, material, machinery, appliance, article or facility;
     (b) inspect and copy any record relevant to the Project the subject of this Contract; and
     (c) interview any person
     as is necessary to demonstrate its compliance with the Code and Guidelines.

9.   Additionally, the Contractor agrees that the Contractor and its related entities will agree to a request from the
     Commonwealth or any person authorised by the Commonwealth, including a person occupying a position in the
     Office of the Australian Building and Construction Commissioner, to produce a specified document within a
     specified period, in person, by fax or by post.

10. The Contractor must ensure that all subcontracts impose obligations on sub contractors equivalent to the
    obligations under these Contract Clauses




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41.      BUILDING AND CONSTRUCTION OHS ACCREDITATION SCHEME

Subject to the exclusions specified in the Building and Construction Industry Improvement (Accreditation Scheme)
Regulations 2005, the Contractor must maintain accreditation under the Australian Government Building and
Construction OHS Accreditation Scheme (the Scheme) established by the Building and Construction Industry
Improvement Act 2005 (BCII Act) while building work (as defined in section 5 of the BCII Act) is carried out.

The Contractor must comply with all conditions of Scheme accreditation


                                                 ____________




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                     ANNEXURE TO THE GENERAL CONDITIONS OF CONTRACT

Where a clause in the General Conditions of Contract refers to Annexure Part A for particular information, for the
purposes of that clause, that information shall be determined from the following table:

   Clause Referenced

   1                           The laws of South Australia shall apply to this Contract.

                               Payment under the Contract will be made at Adelaide, South Australia


   2                           The Commissioner of Highways
                               or Rail Commissioner
                               or Minister for Transport of 136 North Terrace, Adelaide, South Australia, 5000, is the
                               Principal.

                               The Manager, Contracts and Environment, of 77 Grenfell Street, ADELAIDE SA
                               5000, is the Superintendent.


   3.3(b)                      Refer to Clause 5.2 "Schedule of Rates" of the Special Conditions of Contract for the
                               limit of accuracy applying to rates in the Schedule of Rates.


   4.1 and 4.2                 A Bill of Quantities will not apply to this Contract.


   5.2                         The amount of security provided by the Contractor shall be $........................ and the
                               Principal is not required to provide security.


   5.5                         If the Principal intends to have recourse to retention moneys and/or to convert
                               security, it will give the Contractor 5 days prior notice.


   5.7                         Upon issue of the Certificate of Practical Completion, security and retention will be
                               reduced to 50%.


   5.9                         Interests on Security and retention moneys shall be owned in accordance with
                               Alternative 2.


   8.3                         The Principal will supply 5 copies of the documents.


   8.4                         The Contractor will supply 3 copies of the documents.

                               The Superintendent will notify the Contractor whether the documents are suitable or
                               not within 14 days.


   9.2                         The Superintendent’s approval of subcontractors shall be sought in accordance with
                               Clause 10 of the Special Conditions of Contract.


   11                          15% will be paid on work carried by a subcontractor where there is no applicable
                               rate for the provisional work.
                               OR
                               Clause 24 “Overheads and Profit” of the Special Conditions of Contract shall be
                               used to determine the percentage for profit and attendance where provisional work is
                               carried out by a subcontractor.



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Revision 0                                                                               Special Conditions of Contract


   Clause Referenced

   18                         Insurance of the Works will be provided by the Principal in accordance with
                              Alternative 2 of Clause 18 of the General Conditions of Contract. Refer also to:
                              http://www.dtei.sa.gov.au/documents/contractsandtenders/principal_arranged_insura
                              nce


   18(ii), 18(iii), 18(iv),   Not Applicable.
   18(v)


   19                         Public Liability Insurance will be provided by the Principal in accordance with
                              Alternative 2 of Clause 19 of the General Conditions of Contract. Refer also to:
                              http://www.dtei.sa.gov.au/documents/contractsandtenders/principal_arranged_insura
                              nce


   27.1                       Possession of Site is given at the Date of Acceptance of Tender.
                              OR
                              Possession of Site is given in accordance with the Site Access Schedule


   35.2                       The Date for Practical Completion is ......... calendar weeks after the Date of
                              Acceptance of Tender


   35.6                       The rate for the application of Liquidated Damages is $......... per working day.


   35.7                       Liquidated Damages are unlimited.


   35.8                       A bonus per day for early Practical Completion does not apply.


   36                         Except as provided elsewhere in the Contract, extra costs for delay and disruption
                              will not be paid to the Contractor


   37                         The Defects Liability Period is 12 months.


   41(f)                      The charge for overheads, profit, etc is deemed to be included in the rates in the
                              Schedule of Rates for Daywork
                              OR
                              The charge for overheads, profit, etc. for Daywork shall be determined in accordance
                              with Clause 24 of the Special Conditions of Contract


   42.1                       Times for Payment Claims shall be as agreed between the parties after acceptance of
                              tender


   42.1(ii)                   No payment will be made for unfixed plant and materials which are not incorporated
                              in the Works.
                              OR
                              Payment claims may be made for eg Prefabricated/precast components
                              notwithstanding that they are not incorporated in the Works….


   42.3                       Except as provided for under Clause 8 “Security” of the Special Conditions of
                              Contract, retention moneys are not required.




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Revision 0                                                                       Special Conditions of Contract


   Clause Referenced

   42.4                Payment for unfixed plant and materials shall be made in accordance with
                       Alternative 2 of Clause 42.4 of the General Conditions of Contract.


   42.9                Interest payable on overdue payment shall be calculated at 8% per annum.


   44.7                Delay by the Principal in excess of 3 months in giving possession of Site shall be a
                       substantial breach of contract.


   47.2                Dispute resolution shall proceed in accordance with Alternative 2 of Clause 47.2 of
                       the General Conditions of Contract.


   47.3                An arbitrator shall be nominated by The Chairperson for the time being of the
                       Institute of Arbitrators and Mediators Australia, South Australian Chapter, and
                       arbitration shall be held in South Australia.



                                          ____________




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DTEI 201X-xxx   Page 29

				
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