GC21 Edition 2 - Role of authorised person
Updated: 15 Feb 2014
View a summary of the roles and actions of the authorised person in a GC21 contract, along with corresponding clauses and sample letters.
View the tasks the authorised person is responsible for in a GC21 construction contract and corresponding contract clauses.
You can also view corresponding sample letters to correspond with the contractor. The sample letters are available for download from the GC21 page.
Additional roles, actions and responsibilities are included in the Preliminaries section of the contract documents.
Contract framework
Roles and relationships
| Specific roles and actions | Clause | Sample letter |
|---|---|---|
| General responsibilities | ||
| Give instructions to the contractor concerning the works and anything connected with the works. | 1 | 01 |
| Authorised persons | ||
| Arrange the appointment of the principal’s authorised person if not stated in the contract information (CI). | 2 | 02A |
| Inform the contractor of changes to the names of persons appointed under the role of authorised person. | 2 | 02B, 02C |
| Inform the contractor of persons delegated to perform any functions of the authorised person. | 2 | |
| Request the contractor nominate its authorised person if not stated in the contract information (CI). | 2 | 02D |
| Early warning | ||
| Promptly inform contractor of anything that may affect time, cost or quality. Investigate how to avoid or minimise any adverse effect on the works. | 5 | |
| Evaluation and monitoring | ||
| Decide and agree on participation in evaluation and monitoring meetings. | 6 | |
| Arrange and attend regular meetings. Undertake actions as agreed at the meetings. | 6 |
The contract
| Specific roles and actions | Clause | Sample letter |
|---|---|---|
| Advise the contractor that a particular work method is part of the scope of work. | 8 | 08A |
| Request the contractor advise the effects of using a particular work method or perform particular temporary work. | 8 | 08B |
| Instruct the contractor to use a particular work method or perform particular temporary work. | 8 | 08C |
Statutory and government requirements
| Specific roles | Clause | Sample letter |
|---|---|---|
| Ensure licences listed in CI item 14 that principal will arrange are obtained and paid for. | 12 | |
| Monitor contractor compliance with responsibility to obtain its necessary licences. | 12 | |
| Code of practice and implementation guidelines | ||
| Direct the contractor on course of action following a change advised by the contractor that may affect the Code of Practice for Procurement or Code of Practice for the Building and Construction Industry. | 13 | |
| Compliance with NSW Government requirements | ||
| Monitor contractor compliance with provision of systems and plans for WHS, workplace relations, quality management, environmental management, training management and Aboriginal participation, as applicable, by the specified times. | 15 | 15B |
| Review above systems and plans for compliance and respond. Check for compliance with any re-issued plans and systems. | 15 | 15A |
| Arrange for auditing as required to assess satisfactory implementation of the contractor’s WHS, quality management and environmental management systems and plans. | 15 | |
| Working hours and working days | ||
| Agree to a change to working hours and working days. | 18 | 18 |
| Long service levy | ||
| Receive and review contractor’s evidence of long service levy payment. | 20 |
Management duties
| Specific roles and actions | Clause | Sample letter |
|---|---|---|
| Monitor contractor compliance with provision of initial and updated contract program, by the specified times. | 22 | 22A |
| Receive and review contractor’s submitted programs for compliance and suitability. Until initial program is provided, instruct, if necessary and appropriate that tender program is the contract program until the contractor submits a contract program. | 22 | 22B, 22C |
| Request contractor to demonstrate that it is achieving scheduled progress where progress is not in accordance with the contract program and instruct the contractor to take all reasonable steps to achieve scheduled progress where it cannot adequately demonstrate it is achieving scheduled progress. | 22 | 22D, 22E, 22F |
| Care of people, property and others | ||
| Determine that urgent action is required to avoid death, injury, loss or damage, instruct the contractor to take necessary action, and if no action is taken by the contractor, take the required action. | 26 | 26A, 26B, 26C |
| Insurance | ||
| Receive contractor’s workers compensation certificate of currency and review for suitability and adequacy. Monitor that insurance currency is maintained. | 27 | 27A |
| Request other insurance policies required to be taken out by the contractor and review for compliance. Notify the contractor where the principal objects to an insurer or a condition of the policy. Monitor that insurance currency is maintained and proof has been provided. | 27 | 27B, 27C |
| Provide policies of insurance taken out by principal (a reference to website address containing the policies may be sufficient). | 27 | |
| Takeout insurance if the contractor fails to do so and recover costs from contractor. | 27 | |
| Instruct the contractor on the action to take after significant damage or destruction has occurred. | 27 |
Subcontractors, suppliers and consultants
| Specific roles and actions | Clause | Sample letter |
|---|---|---|
| Request the contractor provide the names and addresses of subcontractors and unpriced copies of subcontracts. Review subcontracts for compliance with the specified provisions. | 28, 29 | 29A, 29B |
| Request alternatives to preferred subcontractors. | 29 | 29C |
| Request and review subcontractor’s warranties. | 30 |
Carrying out the works
Starting
| Specific roles and actions | Clause | Sample letter |
|---|---|---|
| Start-up workshop | ||
| Convene a start-up workshop within 28 days after the date of contract. Decide and agree on participation. Attend , chair and minute the start-up workshop as appropriate. | 32 | 32 |
| Security | ||
| Receive and review the contractor’s completion and post-completion undertakings for compliance with the required value and specified format. | 33 | 33A |
| If required, reduce the amount held as an undertaking. | 33 | 33D |
| Return the undertakings by the specified times. | 33 | 33B, 33C |
| If required, make a demand against an undertaking. | 33E | |
| Site access | ||
| Ensure sufficient Site access has been notified. | 34 | |
| Where only partial access has been given, notify access to remaining parts of the site when available in accordance with the contract. | 34 | |
| Engagement and role of valuer | ||
| If a valuer must be engaged under CI item 50A, (or it is agreed to engage one) obtain a list of valuers (refer to NSW Procurement) and agree with contractor on a valuer. Failing agreement with the contractor, request the person named in contract information to select the valuer. | 35 | 35A, 35B |
| Engage the valuer jointly with the contractor. | 35 | 35C |
The site
| Specific roles and actions | Clause | Sample letter |
|---|---|---|
| Promptly review the contractor’s notice of an adverse site condition, obtain any further information required and notify the contractor if you agree or not with the claim. Note if the contractor provides only verbal notice, direct it to the requirement to provide written notice and the required information to avoid the potential loss of entitlements. | 37 | 37A, 37B |
| If it is agreed an adverse site condition has been discovered, promptly determine if a variation is required, and if required, instruct it. Negotiate details of resolution of site condition to avoid unnecessary and disputed costs. | 37 | 37C, 48C |
| Assess claims taking into account the specified restrictions on entitlements. | 37 | |
| Faults | ||
| Promptly review the contractor’s notice claiming a fault and determine if you agree. Advise the contractor if not. Promptly take steps to resolve the fault if you agree. | 38 | |
| Determine whether a variation is required to resolve the fault. If so instruct the variation. | 38 | |
| Assess claims taking into account the specified restrictions on entitlements. | 38 |
Design
| Specific roles and actions | Clause | Sample letter |
|---|---|---|
| Design by contractor and contractor’s documents | ||
| Coordinate design review if specified. | 39 | |
| Promptly review and respond to a contractor’s request for a variation due to its consideration that a departure from the principal’s design is required. | 39 | 39 |
| Submitting contractor’s documents | ||
| Monitor contractor’s compliance with its obligation to progressively submit contractor’s documents. | 40 | |
| Promptly review documents and notify any faults, errors and omissions. Where none are identified, it is recommended contractor be advised with reference to a list of documents it provided that ‘the principal has no comments’. | 40 | 40A, 40B |
| Innovation | ||
| Promptly review the contractor's innovation proposal for completeness with regard to specified inclusions. If not complete, advise the contractor to provide the missing information. | 41 | 41 |
| Consider a contractor's innovation proposal and determine whether to accept it, with or without conditions. Notify the contractor accordingly. | 41 |
Construction
| Specific roles and actions | Clause | Sample letter |
|---|---|---|
| Setting out the works and survey | ||
| Provide additional set-out information that is available following contractor request. | 42 | |
| Promptly assess the effect of any (alleged) error notified by the contractor. An instruction to rectify an error may not be necessary if the contractor is able to rectify it to the principal’s satisfaction. | 42 | |
| Receive and review the ‘as built’ survey provided by the contractor. | 42 | |
| Testing | ||
| Monitor the contractor’s obligation to carry out witness testing with prior notification to the principal. Attend witness testing to verify compliance with contract. | 44 | |
| Instruct the contractor to test a part of the works as appropriate, especially critical elements and where work of concern is to be covered up in order to ensure the works comply with the contract. | 44 | 44 |
| Defects | ||
| Monitor the contractor’s system to identify and promptly make good defects for which it is responsible and notify the principal for other defects | 45 | |
| Issue defect notices instructing the contractor to make good identified defects within reasonable periods. It is recommended that for defects identified prior to completion (except where the defect affects safety or is likely to be covered over) consider allowing the contractor to have the defect rectified to suit its program. | 45 | 45A, |
| It is recommended that the AP should proceed to have any defects made good by others where the contractor has failed to make good the defect within the time specified in the defect notice unless the contractor proposes an acceptable alternative arrangement prior to the end of the time period for rectification. | 45 | 45B, 45C |
| Acceptance with defects not made good | ||
| It is recommended that the AP should only consider this alternative approach with the agreement in wring of the client and support of its manager. | ||
| Where appropriate to accept defective work, propose defined terms and a substantiated deduction to the contractor taking into account the reduction in value to the principal. | 46 | 46A, 46B |
Changes to work and time
| Specific roles and actions | Clause | Sample letter |
|---|---|---|
| Valuation of changes | ||
| On receipt of any claim, check for compliance with clause 68.4. If claim does not comply request contractor to resubmit. | 47 | 47D |
| Attempt to negotiate an agreement on the contractor’s claim, if an entitlement exists, and claim is reasonable. | 47 | |
| Refer any unagreed claim to a valuer if engaged or it is agreed to engage one. | 47 | 47A, 47B |
| Where no valuer is used, and AP considers no entitlement exists, advise the contractor. | 47 | 47E |
| Assess any other unagreed claim in accordance with the specified clauses and within the 28-day time limit. | 47 | 47C |
| Identify and assess any reduction in cost or time that the principal is entitled to. | 47 | 47C |
| Adjust the contract price or contract completion date(s) as agreed, assessed or determined. | 47 | |
| Variations | ||
| Determine whether a variation must be instructed or (preferably) a proposed variation can be requested. | 48 | |
| Request the contractor submit a proposal for a proposed variation within a nominated time. | 48 | 48A |
| Attempt to negotiate an agreement on the cost and time effects of a proposed variation. If agreed, instruct the contractor to carry out the variation and adjust the contract price or contract completion date(s) as agreed. | 48 | 48B |
| Instruct a required variation or alternatively instruct the additional work to be carried out by dayworks. | 48 | 48C, 48D |
| Assess the contractor’s claim for an instructed variation/dayworks or determine any applicable deductions. | 48 | |
| Consider a variation proposed by the contractor for its convenience, if it offers benefits to the client. If agreed, direct the variation It is recommended that any acceptance be subject to conditions that limit the contractor’s entitlements. | 48 | 48E, 48C |
| Respond promptly to a notification by the contractor that a variation is necessary. If agreed, instruct the variation. | 48 | 48F, 48C |
| Changes in statutory requirements | ||
| Consider contractor’s notification of statutory changes that require a change to the work under the contract and notify contractor if its assertion is accepted or not. | 49 | 49A, 49B |
| If contractor’s assertion is accepted, negotiate and attempt to agree on effects of change. | 49C | |
| If agreement cannot be achieved, determine if a variation is required to address the issue. If so, instruct the variation. | 49 | 48C |
| Assess any claim by the contractor with regard to changes in statutory requirements. | 49 | |
| Changes to contractual completion dates | ||
| Determine if contractor has complied with conditions applicable to an EOT claim. If not claim cannot be considered unless contractor can comply. | 50 | 50A |
| If conditions have been satisfied, assess the number of days extension of time a contractor is entitled to and extend the time for completion. | 50 | 50B |
| Extend the contractual completion date(s) without a claim where this reduces a significant risk to the principal. | 50 | 50C |
| Assess a reduction in time where a change results in less time required for completion. | 50 | 50D |
| Delay costs and liquidated damages | ||
| Assess delay cost entitlements at the relevant specified rate whether under a claim or otherwise due to an extension of time. | 51 | |
| Determine and notify a reduced delay cost rate where early use has been taken of part of the works. | 51 | 51A |
| If liquidated damages apply, assess the deduction due to liquidated damages in accordance with the contract if the contractor fails to achieve completion by the relevant contractual completion date. | 51 | |
| Determine and notify a reduced delay cost rate where early use has been taken of part of the works. | 51 | 51B |
| Acceleration | ||
| If required, instruct the contractor to accelerate progress of the works in the form of an acceleration notice. | 52 | 52A |
| Consider the contractor’s proposal to either achieve the required acceleration or its advice that the acceleration cannot be reasonably achieved. | 52 | 52B |
| Agree, where possible on the criteria or terms applying to the success of the acceleration and payment for acceleration before the contractor proceeds. | 52 | |
| Adjust the contract price as agreed if the agreed acceleration is achieved. | 52 | |
| Principal’s suspension | ||
| Instruct the contractor to suspend progress of part of or all the works. | 53 | 53A |
| Instruct the contractor to resume progress. | 53 | 53B |
| Assess the contractor’s claim where the suspension resulted from the contractor’s act or omission. | 53 | |
| Contractor’s suspension | ||
| It is recommended that the AP respond promptly to a notice by the contractor that it intends to suspend work. | 54 |
Payment
| Specific roles and actions | Clause | Sample letter |
|---|---|---|
| The contract price – provisional sums | ||
| Notify details for a provisional sum work and instruct the contractor to carry out the work. | 55 | 55A, 55B |
| Instruct the contractor to carry out the work subject to provisional quantity. | 55 | 55C |
| Pre-payment | ||
| Determine if a claim for pre-payment complies with the contract and, if it does, pay the amount claimed. | 57 | |
| Return pre-payment undertakings when the prepayment amount has been fully repaid. | 57 | |
| Payment claims | ||
| Request information to support a payment claim. | 58 | 58A |
| Notify agreement to pay for unincorporated materials. | 58 | 58B |
| Payments | ||
| Receive payment claim, assess the amount to be paid and issue a payment schedule within 10 business days in accordance with the Security of Payments Act. Arrange for payment of completion amount. The assessment must take into account non-compliance with the listed obligations. | 59 | 59A |
| Make payment within 15 business days of receiving the payment claim. | 59 | 59B, |
| It is recommended any payment complaints from employees, subcontractors or suppliers be discussed with your senior executive. | 59 | 59C, 59D, 59E |
| Completion amount | ||
| Retain Completion Amount when payments exceed 50% of contract price, subject to any retention against a payment being no greater than 50% of that payment | 60 | |
| Subject to the contractor’s claim, release the completion amount retention after completion of the whole of the works or applicable milestone. | 60 | |
| Final payment | ||
| Receive final payment claim, assess the amount to be paid and issue a final payment schedule within 10 business days in accordance with the Security of Payments Act. Arrange for payment of completion amount. | 61 | 61 |
| If no final payment claim is made, issue a final payment schedule. | 61 | |
| Make payment within 14 business days of issuing the final payment schedule. | 61 | |
| Interest on late payments | ||
| Pay interest on late payments. | 62 | |
| Set-off | ||
| Withhold, deduct or set-off a sum claimed, including a debt due, from any sum to which the contractor is entitled under the contract or an undertaking. | 63 | 63 |
Completion
| Specific roles and actions | Clause | Sample letter |
|---|---|---|
| Early use | ||
| Where use or occupation of a part of the works is required before completion, notify the contractor with the date use is required of that part of the works referenced in the notice. | 64 | 64 |
| Review that the contractor has provided all the required documents and things. | 64 | |
| Completion | ||
| Consider a request from the contractor to agree that completion has been achieved. Liaise with the contractor and, if defect-free completion has been achieved, agree on an appropriate date. | 65 | 65A, |
| Issue a completion notice (certificate) to the contractor stating the actual completion date. | 65 | 65B |
| Close-out workshop | ||
| Liaise with the contractor and convene a close-out workshop within 21 days of completion of the whole of the works. | 66 | |
| Liaise with the contractor and agree on who should attend. | 66 | |
| Defects after completion | ||
| If defects are discovered, issue a defect notice instructing the contractor to make good specified defects within a given period. | 67 | 67A |
| Proceed to have any defects made good by others where the contractor has failed to make good the defect within the time specified in the defect notice. | 67 | 67B |
| Where necessary, instruct a variation in connection with any defect instead of requiring the defect to be made good. | 67 | 67C |
Claim and issue resolution
Claim resolution
| Specific roles and actions | Clause | Sample letter |
|---|---|---|
| Determine whether or not the information included in a claim is sufficient for the principal to assess the claim, including the information listed in clause 68.4. If not, advise the contractor why the claim cannot be assessed. | 68 | |
| Refer the claim to the valuer if engaged or it is agreed with the contractor to engage a valuer. | 68 | |
| If a valuer is not used, assess the claim within 28 days of receipt and either negotiate to reach agreement with the contractor or reject the claim. Note the time period can be extended by negotiation. | 68 | 68 |
Issue resolution
| Specific roles and actions | Clause | Sample letter |
|---|---|---|
| Notification of issue | ||
| Ensure the principal’s senior executive has been appointed. | 69 | 69A, 69B, 69C |
| Receive contractor’s notice of issue and ensure the senior executive has received a copy. It is recommended that the AP consult promptly with the senior executive. A position paper may be required. | 69 | |
| Where appropriate, give notice of an issue to the contractor and send a copy to the contractor’s senior executive. It is recommended that the AP consult with its senior executive before taking this action. | 69 | 69D |
| Resolution by senior executives | ||
| Assist the senior executive in resolution of the issue, when and as requested. | 70 | 70A, 70B, 70C |
| Expert determination | ||
| Assist the person nominated in CI item 52 in engaging an expert and preparing submissions to the expert for expert determination, as requested. | 71 | 71 |
| If applicable, arrange payment of the amount determined by the expert within 28 days after the principal receives the determination. If an amount is owed by the contractor, it is recommended that the AP promptly issue a demand for payment. | 71 | |
| Parties to perform the contract | ||
| Instruct the contractor to continue working. | 72 | 72 |
Termination
| Specific roles and actions | Clause | Sample letter |
|---|---|---|
| Termination for contractor’s default or insolvency | ||
| Alert the senior executive to a contractor’s default and seek its guidance. Inform the client. Assist the senior executive or other representative of the principal in the issue of notices and other required actions. Maintain a complete record of all discussions, correspondence, instructions and actions. | 73 | 73A, 73B, 73C, 73D, 73E |
| Termination for principal’s convenience | ||
| Assist the senior executive or other representative of the principal in the issue of notices and other required actions. Maintain a complete record of all discussions, correspondence, instructions and actions. | 74 | 74 |
| Termination for principal’s default | 74 | |
| Alert the senior executive where access will be delayed beyond 3 months. | 75 | |
| Alert the senior executive if a notice is received from the contractor requiring the principal to remedy its default. Assist the senior executive or other representative of the principal in the resolution of the principal’s default | 75 | 75 |
Related resources
Find more resources on the construction category page.