Subcontractor Agreement Legal Review
Chain of Responsibility obligations cannot be ‘transferred’ or ‘outsourced’ through Third Party Logistics (3PL) arrangements or other contractual arrangements. All parties within the Chain of Responsibility retain their legal obligations at all times, regardless of any contractual arrangements in place.
It is crucial for an organisation to complete a critical review of their Subcontractor Agreements to ensure they are not in breach of the Chain of Responsibility target areas of:
- > Fatigue
- > Speed
- > Mass and dimension
- > Load Restraint
- > Vehicle Maintenance requirements
Contractual arrangements cannot put undue pressure on the party to meet unrealistic targets or KPIs that are in breach of Chain of Responsibility and the Heavy Vehicle National Law. If your contracts include penalties for missed targets, these must be analysed carefully to identify whether undue pressure is being applied and whether a potential breach of the legislation has occurred.
In addition to penalties, contracts cannot incentivise a party to breach the legislation for the purposes of commercial gain. If your contracts include bonus payments, these must also be analysed carefully to identify whether incentives (actual or implied) are in place.
Where the Subcontractor Agreement Legal Review identifies actual or potential breaches of the legislation, COR Australia can assist to re-define the contractual arrangement to remove the breach and ensure a compliant contractual arrangement and safe relationship between the supply chain partners involved.
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