Media Release - Government and the building and construction sector jointly release ‘Risk Allocation of Subsurface Conditions’ Practice Note

Through collaborative efforts, the Australasian Procurement and Construction Council (APCC) and the Australian Construction Industry Forum (ACIF) are pleased to announce the joint release of the Practice Note titled 'Risk Allocation of Subsurface Conditions'. This document exemplifies the collaborative mission of APCC and ACIF to pave joint pathways for enhancing productivity within the building and construction industry in Australasia. The inception of this paper arose from the ACIF-APCC Strategic Forum and shaped by an acknowledgement of the profound influence that subsurface conditions can exert on project timelines, cost projections, and the overall feasibility of a project. By addressing these challenges, industry and government are empowered with the tools and the understanding to navigate the complexities of subsurface conditions in construction projects across Australasia.  This practice note taps into the vast knowledge and expertise of the building and construction sector and government construction procurement and delivery. It aims to guide construction procurement professionals, contractors, and other stakeholders in risk allocation related to subsurface conditions and provides strategies for effectively managing the likelihood of potential latent conditions. The paper also outlines principles for assessment and contractual treatment of latent conditions and explores management options. In its exploration of subsurface conditions, the practice note outlines how to allocate risk, how to manage the likelihood of a potential latent condition and how to assess and manage the contractual treatment of latent conditions. The APCC and ACIF are committed to fostering improvements and continued success of construction and infrastructure projects, and this practice note is a testament to their dedication to the improvement in the construction industry. The launch marks a significant step forward in addressing subsurface risks in the building and construction sector, promoting best practice among industry and government in Australasia.  For media enquiries or further information please contact Teresa Scott, Executive Director, APCC on 02 6285 2255 or James Cameron, Executive Director, ACIF on 1300 854 543. The practice note can be read below. 

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