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Australia limits contract liability for IT companies

Australia limits contract liability for IT companies

Australia limits contract liability for IT companies

Australia

Australian IT Minister Helen Coonan has released a guide on how to limit liability in ICT contracts with federal government agencies and an accompanying quick-reference publication.

Both publications support the Australian government's new ICT liability policy which states that unlimited supplier liability is only included in ICT contracts when there is a compelling reason, it is no longer the norm.

Coonan says the policy will boost local industry development.

"Introducing caps on ICT supplier liability is good for business, especially smaller businesses, as reducing liability coverage will decrease the costs of tendering and doing business with the government," she says.

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

The guide includes a comprehensive risk management framework for agencies to set appropriate liability limits in ICT procurement contracts.

Electronic copies of the report are available from www.dcita.gov.au/ict


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