Principal Contractor
A person or company appointed to be responsible for the management and control of a workplace for the purpose of a construction project and meeting occupational health and safety requirements of a construction site, as required by the relevant State or Territory WHS and OHS legislation.
Principal’s Project Requirements (Employer’s Requirements)
Often a defined term in standard construction contracts (eg AS4300-1995), this term is frequently used to define the documents which form part of the contract and to set out, amongst other things, the purpose for which the Works are intended.
Privilege
The legal rules protecting a person's right not to disclose certain documents to a court. Common illustrations of privilege include legal professional privilege, without prejudice privilege and privilege over documents created for the purposes of litigation.
Privity of Contract
The general legal principle that only those persons who are parties to a contract may enforce it.
Process Contract
A contract that operated during the pre-award phase of a procurement process as a separate contract between competitive tenderers and the tender inviter. In contrast, the main contract that is awarded to the successful tenderer when its bid is accepted.
Professional Indemnity Insurance
A policy of insurance taken out in relation to loss or damage caused by a person or persons acting in breach of its duty to act in a professional capacity.
Progress Certificate
A certificate generally issued by the Superintendent or the Certifier, to the builder and the principal, which certifies the amount of work completed and the amount for which the builder is entitled to payment from the principal.
Progress Claim
A claim made by the builder seeking payment of money from the principal proportionate to the amount of work completed to date. Progress claims are frequently made on a monthly basis.
Performance Bond
A written guarantee or pledge by a person to guarantee the performance obligation of another (eg to properly complete construction or comply with the terms of a Contract). If there is a failure to perform then the bonding party will make good up to the amount of the bond. (See Insurance Bond, Guarantee, Performance Guarantee and Bank Guarantee)
Preferred Bidder (Preferred Tenderer)
The bidder or tenderer selected by the principal following a tender process. The preferred bidder is invited to enter into a contract for the Works or Services the subject of the Tender.