ACCC authorises Construction Material Producers Association's standard form contracts

The Australian Competition and Consumer Commission has issued a determination authorising*, subject to a condition, the Construction Material Producers Association to develop and publish two types of standard form contracts for its members, ACCC Chairman, Mr Graeme Samuel, said today.

The standard form contracts are for the CMPA's members to use as a starting point when negotiating contracts with:

• certain contractors for Victorian government authorities or private principals, for the supply of construction materials, and
• owner-drivers for the transport of construction materials.

The authorisation was granted subject to a condition that the CMPA conducts an independent review of the owner-driver's contract within six to 12 months of implementation.

"Concerns were raised by interested paries that the owner-driver's contract was unnecessarily complex and may operate to the detriment of owner drivers in Victoria in some circumstances," Mr Samuel said. "The CMPA is willing to work with interested parties in the future to continue to improve the owner-driver's contract.

"The ACCC is satisfied that the standard form contracts will result in public benefit. It considers that an independent review will provide all parties with a means for dealing with any issues that arise from the implementation of the owner-driver's contract.

"In addition, the ACCC considers that any anti-competitive detriment resulting from the arrangements will be limited as the standard form contracts do not contain indications of the prices that should be used and the CMPA's members are not required to use the standard form contracts."

The ACCC's determination will be available from the ACCC website.

Background

*Authorisation provides immunity from court action for conduct that might otherwise raise concerns under the competition provisions of the Trade Practices Act 1974. Broadly, the ACCC may grant an authorisation when it is satisfied that the public benefit from the conduct outweighs any public detriment. The ACCC conducts a comprehensive public consultation process and issues a draft determination before making a decision to grant or deny authorisation.