MAJOR WORKS
Handshake Agreements Out, Formal Contracts In
In the volatile economic environment that Members find themselves in it is particularly important to put agreements in writing, reports SARA H ANDREW, CMPA Project Manager.
THE industry has relied for too long on agreements sealed only with a handshake, or orally and oft en without even a written order form for the supply of material or the contracting of owner driver services.
Two standard form contracts released by the CMPA in 2007 to address this issue are intended to improve efficiency, productivity and reduce uncertainty in quarry material supplier’s business relationships with purchasers and also owner drivers.
The primary contract is that titled, “General conditions of contract for the supply of quarry materials for major road, bridge or associated construction works”, which considers major works to be those valued $80,000 or more.
The development of the “Conditions of contract for the hiring of cartage contractors to transport quarry materials” has been undertaken using the same principles as the major contract and was precipitated by the requirement of the Owner Drivers and Forestry Contractors Act 2005 for a regulated contract for use in employing owner drivers.
This second contract assists in compliance with the National Chain of Responsibility in the Road Transport Laws by clarifying responsibility for various facets of the delivery of material.
While we recommend use of the standard forms as guidance only, and there is certainly no compulsion for any CMPA Member, contractor or owner driver to use them as is, or amended, we do believe the forms can deliver greater business efficiency. We are concerned therefore that there has been only limited interest in the standard forms.
Standard forms were designed to provide clarification in dealings which have in many cases, been subject to misunderstanding or dispute. We have made every effort to ensure the forms are scrupulous in detail and fairness and function to streamline business operations for all parties.
We have also incorporated the payment procedure set out in the Building Industries Security of Payment Act 2002 which if adopted by suppliers as required by law, should ensure prompt and fair payment from contractors and a fair dispute resolution system.
It is important suppliers and contractors understand that the standard forms are a template and not a contract to mandate what happens between the parties.
The form covers as many situations as could be identified. If any provision is not relevant to a particular contractual situation it is expected that the template will be amended. This is emphasised by the fact that there are a number of items in an attachment which have to be negotiated. While there are default amounts suggested for these items some may be completely removed if they are not relevant.
This procedure also reduces the risk of the use of the contracts being alleged to be anti-competitive. Any amount of money or time periods – basic issues in competition – are not set by the template but are left to be negotiated.
The development of the owner drivers contract has been undertaken using the same principles as the major contract and was precipitated by the requirement of the Owner Drivers and Forestry Contractors Act 2005 for a regulated contract for use in employing owner drivers.
Both contracts are available to Members in hard copy free of charge (and at $90 for an electronic version), however it would be appreciated if some contribution could be made towards the development of the contracts if they are utilised.
ALLSTONE QUARRIES
Allstone Quarries is a Bendigo based family operation who has been active members of the CMPA since the associations’ inception in 2000.
The success of the current company is due to the hard work of Graham and Lynette Bird who started as G & L Bird Contracting in 1970. In the 90s Bird’s Mobile Crushing was established, introducing them into the mobile crushing business working throughout Victoria and New South Wales.
After many years of servicing both small and large contracts the Bird family had gained a widely known and respected reputation, renowned for their first rate customer service and high quality products and results.
Exposure from major jobs in Victoria and New South Wales and a desire to better serve their wider community led to the formation of Allstone Quarries in 1999. This enabled the company to have a permanent place of business, choosing Bendigo as their ideal location.
Allstone Quarries now operates a basalt quarry located in the Central Victorian town of Newbridge, a tertiary gravel quarry at Castlemaine, Growmaster affiliated nursery, and a retail landscaping site at Eaglehawk.
Along with their hard rock quarry and nursery, the company also offers a concrete recycling facility which enables products that would otherwise end up as landfill to be reused. The Newbridge quarry today is capable of producing some 4,000 tonnes of crushed basalt each day and is a single bench operation. Ever increasing demand has also seen the expansion of their transport fleet.
Tim and Wes maintain very active roles within the organisation with Wes overseeing the running of the quarries as Operations Manager, and also the plant and equipment used within the companies. Tim holds the role of General Manager along with supervising the sales and administration sides of the business.
As noted earlier this issue, Tim was elected as CMPA Chairperson for the next 12 months. This is greatly appreciated and we look forward to working with Tim over this time.
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