Latest Federal Guide To Limiting Supplier Liability In ICT Contracts

August 16th, 2006: Strap

The Minister for Communications, Information Technology and the Arts, Senator Helen Coonan, today released the Guide to limiting liability in Information and Communications Technology (ICT) contracts with Australian Government agencies, and an accompanying quick reference publication.

These publications support the Australian Government's new ICT liability policy that unlimited supplier liability is only included in ICT contracts when there is a compelling reason, rather than as the norm.

"The policy should provide a significant boost to local industry development. It is yet another example of the Government delivering for the Australian ICT industry-responding practically and pragmatically to their needs," Senator Coonan said.

The publications provide a comprehensive risk management framework for agencies to follow in setting appropriate liability limits in ICT procurement contracts.

"Introducing caps on ICT supplier liability is good for business, especially smaller businesses, as reducing the liability coverage required will decrease the costs of tendering and doing business with the Government," Senator Coonan said.

"These savings should also flow through to tendered prices, delivering better value for money for the Government and taxpayers."

The guide and associated quick reference publication were prepared after extensive public consultation and build on the Finance Circular 2006/03 Limited Liability in Information and Communications Technology Contracts released on August 14, 2006.

While the publications are mainly to help Australian Government agencies implement the ICT liability policy, they will also help ICT suppliers understand how the policy will be implemented.

"My department will continue to work closely with the Department of Finance and Administration and other stakeholders to ensure that ICT procurement practices and policies reflect the realities and the needs of Australian business," Senator Coonan said.

"These publications provide important guidance on Liability for the new Source IT contracts currently being finalised by the Special Minister of State, Gary Nairn."

Electronic copies of the report are available from the DCTIA

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