Professional Documents
Culture Documents
Dispensations
When the contractor finds that it
cannot persuade a subcontractor to
accept provisions XY&Z or to offer a
Warranty Deed, the contractor may
need to ask the principal to waive
some of the subcontracting
requirements. However, contractors
should not assume that the answer
will be either quick or favourable. The
principal is likely to seek advice from
its lawyers on the request for a
dispensation where:
the request involves an important
clause in a material contract; or
the principal does not have a clear
understanding of why the
requirement was prescribed in the
first place.
Whether a dispensation will be
granted may depend on a number of
factors, including:
the subcontract;
convenience;
submit to a particular kind of
dispute resolution regime and to
be bound by the outcome at the
top tier.
Often where the subcontract is
material the subcontractor must
provide a Warranty Deed to the
principal, in addition to the usual
Tripartite Deed dealing with the step
in scenario.
That is, depending on the terms of
the Head Contract, the subcontractor
may be required to sign 3 related
contracts:
Subcontract;
Warranty Deed; and
Tripartite Deed.
Risk Management
Management Identification
and Assessment
Insurance
This involves:
Penny Swain
Director
T +61 3 9606 3200
F +61 3 9606 3222
pswain@molinocahill.com.au
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