Guide to Limiting Supplier Liability in ICT Contracts with Australian Government Agencies 

The Second Edition of the Guide to Limiting Supplier Liability in ICT contracts with Australian Government Agencies [PDF 1.82 MB] provides ICT procurement officers with detailed guidance on the application of the ICT Liability Policy contained in Finance Circular 2006/03 and offers tools to help agencies determine appropriate levels of supplier liability based on assessments of risk.

Managing risk and determining commercially realistic levels of supplier liability is a key factor in achieving value-for-money in ICT procurement.  Insisting on unlimited supplier liability or unjustifiably onerous supplier liability can significantly reduce competition in the Government ICT procurement market, as many ICT suppliers, particularly smaller suppliers, are unable to accept such liability.  High levels of supplier liability can also result in agencies paying a higher procurement price, as suppliers may cost the expense of excessive insurance into final contract prices.

For any questions or feedback about the Guidebook itself, please email ICTSMEprocurement@innovation.gov.au. 

For any questions about the application of the ICT Liability Policy to ICT procurement and Finance Circular 2006/03, please email procurementagencyadvice@finance.gov.au.