Coonan releases guide on reducing liability in ICT contracts

IT Minister Helen Coonan today 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 said 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 said.

"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/procurement and industry development.