Transport Contract to Ease Burden

The CMPA has released a standard form contract to assist quarry owners comply with transport regulations.

Since 1 May 2007 all users of owner driver vehicles throughout Victoria have been required by the Owner Drivers and Forestry Contractors Act 2005 to have a contract with the owner-driver.

The new pro-forma contract has been designed to comply with the legal requirements and ease quarrying and extractive industry business costs. With approval from the ACCC, it is designed as a template for negotiation between quarry owners/operators and transport owner-drivers.

According to the association the contract’s clarity on the division of responsibility and the obligations of the supplier and the owner-driver removes issues stemming from what were previously often oral agreements. Furthermore the contract assists compliance with road transport Chain of Responsibility laws which cover the transport of materials.

It is expected the contract will only require simple tailoring to suit individual circumstances and in doing so will remove a substantial cost burden for CMPA members and at the same time improve business efficiency.

Once familiar with the contracts, it is expected that owner drivers can likewise reduce their business costs when tendering for new contracts with CMPA members.

“Having one contract with terms well known by both parties will result in a much higher level of efficiency,” CMPA Chairperson Mr Grant Phillips said.

“The contract allows for the use of an agreed system of dispute resolution which it is anticipated will enable the majority of disputes to be settled expeditiously and at a low cost,” Mr Phillips said.

“If disputes do arise it is expected that mediators or arbitrators will also soon be familiar with the contract’s contents which may assist in streamlining this process.

“The Small Business Commissioner of Victoria, who has responsibilities under the Act, has stated that one of the purposes of the Act is to encourage owner drivers to become more efficient businesses by forcing them into a clear contractual situation, the CMPA believes that this contract will assist them in achieving that aim,” Mr Phillips said.

The owner-driver contract complements the major contract for construction work that the CMPA has also developed and is currently before the ACCC for approval.

For any enquiries, contact Sarah Andrew on 03 5781 0655
Email: sarah.andrew@cmpavic.asn.au

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