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Capping suppliers' liability in ICT contracts
On 16 August 2006, the Minister for Communications, Information Technology and the Arts released the:
Guide to limiting supplier liability in ICT contracts with Australian Government agencies (File size: 1Mb); and- Quick reference to limiting supplier liability in ICT contracts with Australian Government agencies (File size: 234Kb).
The guide and associated quick reference publication were prepared after extensive public consultation, and within the context of the Australian Government procurement policy framework. The guide builds on the 
Finance Circular 2006/03 Limited Liability in Information and Communications Technology Contracts which states that:
“Australian Government policy is that the liability of ICT suppliers contracting with agencies should, in most cases, be capped at appropriate levels. Unlimited liability should only be required when there is a compelling reason”.
The guide sets out an approach to estimating appropriate limits on liability, describes how to identify and manage risk, and includes case studies that illustrate how to implement the ICT capping liability policy.
While the publications are intended to give procurement officers advice on how to implement the ICT capping liability policy, they may also be of interest to ICT suppliers that do business with Australian Government agencies.
For any inquiries regarding the guide and companion to the guide or to request a hard copy please email cappingliability@dcita.gov.au.