Standard Business Terms

1.       Preamble

These conditions apply to the Proposal to which they are appended.

Where the offer in the main body of the Proposal conflicts with these conditions, the terms offered in the Main Proposal will apply to the extent of the conflict.

Reference to the Client in these conditions will be seen to mean the Client or the Client’s Authorised Representative (e.g. Managing Contractor, Project Director, Project Manager, etc).

2.       Terms of Engagement

The Terms of Engagement will be in accordance with AS 4122 (2010) General Conditions of Contract for Engagement of Consultants.

In the event that there is a delay between the formal execution of these or any other Terms of Engagement / Professional Services Agreement / Consultancy Agreement by either/or both parties and the required commencement date by RGC for the Works, an interim Letter of Intent, issued by the Client, shall form an interim Letter of Intent for an Agreement and instruction to formally commence Works. The interim Letter of Intent shall satisfy both Parties requirements for the formal commencement of and associated scope of the works and shall commit to the receipt and remittance of progress claims. 

 3.       Scope of works

As per the proposal briefing documents stated in Section 6: Standard Business Terms, Item 1: Scope of Works.   

4.       Total Project Hours

This Proposal is based upon the maximum hours stated in table 2.01: Scope Description, Hours and Fees, to complete the nominated scope of works of this Proposal. Delays in the delivery of the scope of works and or changes to the scope of works that are outside of RGC’s control and or effort expended in excess of the agreed maximum nominated hours shall form the basis of further fee negotiations with the client.

5.       Validity

The Proposal will remain valid for a period of 14 days from the date of Proposal. The engagement will not come into effect until it has been formally accepted. The engagement will commence from the date of the Letter of Acceptance from the Client to RGC Consulting Pty Ltd.

6.        Fee Proposal

6.1.     Lump Sum Fee Basis

The Fee offered is to undertake the scope of work as set out in the Proposal.

All costs are indicated in Australian Dollars (AUD)

Disbursements are also chargeable to the Client however the costs of word processing, phone, fax, photocopying will be included in the lump sum fee unless otherwise stated in the Proposal.

6.2.     Time and Expenses Basis

For engagements on a Time and Expenses basis the fee will be charged based on the hours worked to undertake the Scope of Work multiplied by unit hourly charge rates given in the Proposal, plus all Disbursements.

6.3.     Disbursements

The Fee does not include the cost of Disbursements which will be an additional charge to the Client unless specifically stated otherwise in the Proposal. Disbursements will include costs for Travel, Products and/or Services required by the

Client to be coordinated by RGC Consulting but not covered by the Scope of Work. For example, this may include printing costs in excess of that stated in the Proposal, travel beyond that nominated, transfer or translation of computer files.

Disbursements will be charged at cost plus a 5% administration fee.

Nominated travel, associated labour costs and expenses are excluded in this proposal. Any travel shall be recoverable from the Client at cost plus a 5% administration fee.

Travel expenses are confined to:

1)     Economy Class Airfares on prescribed business

2)     Accommodation, meals, airport parking, transport, transfers and labour on prescribed business outside the Brisbane Head Office area with the approval of the Client, or as otherwise negotiated.

7.       Location of Works

The fee proposal is based on the works being carried out from the Head Office of RGC Consulting Pty Ltd in Brisbane, Australia for the Nominated project location.

8.       Documentation

Allowances have been made to produce three (3) sets of Client documents for any single report or trade package. Further copies of any such documentation is recoverable at cost as a Disbursement.

9.       Notice of Matters Likely to Change the Scope or Timing of services

If the Client of RGC Consulting becomes aware of any matter which may change or has changed the scope, or timing of Services of the Project, then written advice will be given to the other party as soon as practicable, and as far as practical, prior to the time for the Services to be performed. The notice will contain, as far as practicable, the circumstances, particulars of the change and the cause, even if the full extent of the impact of the charge is not known. The other party will respond in writing to such notice within 14 days advising their determination.

10.    Scope Variations

Should the client or other approved entity extend or vary the agreed scope of works as pert this proposal either verbally or in writing RGC shall calculate fees for the additional works on a time charge basis. Fees shall be calculated and charged to the client in accordance with Table 3.01 Schedule of Hourly Rates.

11.     Contract Management for Construction, Maintenance or Capital Procurement

When the Scope of Work requires RGC Consulting to manage external contractors the following shall apply:

·         RGC Consulting will pass on all variations to cost and time resulting from delays generated by the Client.

·         RGC Consulting will pass on all costs associated with resolving disputes.

Quality assurance will be relied upon to provide desired construction quality outcomes, with provision included for a normal amount of site supervision. Where poor work quality or underperforming contractors or service providers require additional resources from RGC Consulting to manage and monitor the work the extra resources would be treated as a variation.

12.    Terms of Payment

Unless otherwise stated in the Proposal, the Client will be invoiced monthly based on the work delivered and within 14 days of the end of the month of lodgement of the invoice and which is same month as the delivery of such services. Retention deduction from the Fee is not applicable.

Retention deduction from the Fee is not applicable

RGC Consulting reserves the right to charge the Client commercial interest rates on all outstanding or overdue invoice payments.

13.    Termination of Service

If the Client terminates engagement of RGC Consulting prior to completion, then the Client shall pay actual costs incurred by RGC Consulting up to that time and the cost of any demobilization.

14.    Disputes

Should a dispute arise during the course of the engagement all parties should use best efforts acting in good faith to resolve the dispute. As a first step to resolution, two senior offices of both organisations who are not directly involved in the project will endeavour to resolve the dispute.

If the dispute cannot thereby be resolved the matter will be referred by either party for expert determination to a mutually agreed independent expert in the field. The costs of such expert determination shall be borne in proportion to the outcome of the determination.

15.    Fee Structure

15.1. Live Data

Fees are calculated on the basis that RGC are issued with live FF&E project data in a format suitable for upload into RGC’s FF&E software management systems i.e. MS Excel, MS Access.

All fee estimates assume that information will be provided to us in a user-friendly format, and that will not be required to review work papers more than twice i.e. one original review, and one time to check that requested updates have been processed.

15.2. Project Web Portal

Costs associated with accessing the client’s project web portal and/or fees for ongoing project data archiving shall be to the client’s account.

15.3. Document Transmittal

Where possible RGC shall transmit documentation electronically via email or the projects web portal. Where documents and/or reports are requested in hard copy, allowance has been made to produce three (3) sets of hardcopies. Further copies of any such documentation and/or reports shall recoverable at cost as a disbursement.

15.4. Design/Specification Iterations

Fees are calculated based on a maximum three (3) design iterations to any one location. Further drawing iterations issued by the architects and or other consultants requiring FF&E scheduling and documentation for the same locations shall be claimable by RGC in accordance with Table 3.01 Schedule of Hourly Rates.

15.5. Change Addenda

A Change Addenda in normalised data format must be supplied by the Architects or other Consultants with each reissue of drawings and/or briefing documents.

15.6. Stand-By Costs

RGC Consulting reserves the right to renegotiate the FF&E Fee Proposal should delays outside of RGC’s control prevent delivery and completion of the scope of works within the agreed project timeline.

The parties agree and acknowledge that:

•         RGC Consulting will allocate staff and resources to enable the prompt delivery of the Services in accordance with the Project Timeline;

•         RGC Consulting may have declined other briefs to enable it to deliver the Services in accordance with the Project Timeline;

•         Furthermore, RGC Consulting may not then be able to accept other briefs during the period of the delay; and

•         The Stand-By Cost amount is therefore a genuine estimate of the damages that RGC Consulting will suffer as a result of any delay to the commencement of the delivery of the Services

In the event that the delivery or performance of the Services by RGC Consulting is delayed or postponed by the Client due to causes beyond the control of RGC Consulting, then RGC Consulting will apply, in addition to the Lump Sum Fee, a Stand-By Fee of AUD$100.00 for each day the delivery of the Services by RGC Consulting is delayed or postponed.

15.7. Escalation

All fees are based on invoice remittances up to the date of Technical Completion of the project plus 90 calendar days. All works required, and fees claimed after this date will be escalated annually at a rate of 5.0% to account for increases in business and industry costs.

These terms were last revised on 08 Mar 2021

More Information

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