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Contract administration

17 October 2017

Contract administration is the active management throughout the life of a contract to ensure a seller’s performance is satisfactory, stakeholders are well informed and all contract requirements are met. The table below describes our approach to the administration of key contract activities.​​


Performanc​e management

The Clean Energy Regulator will:

  • Monitor the performance of sellers against the contract obligations and key performance indicators.
  • Maintain a record of progress against milestones and timeframes.
  • Provide regular performance summary reports to stakeholders/senior management.
  • Determine if performance requirements have been met and respond to performance issues.
  • Implement required procedural and process changes to limit potential for issues to arise again.

Relationship management

The Clean Energy Regulatory aims to build positive relationships with all Emissions Reductions Fund participants.

We will work closely with sellers to ensure that successful outcomes are achieved and contractual obligations are met.​

Stakeholder management

A critical role for the Clean Energy Regulator is to establish and maintain open and constructive lines of communication to ensure that stakeholders are kept informed about relevant contract matters and developments in a timely manner.

Classified information and records management

Contracts are commercial-in-confidence documents which contain confidential and sensitive information. Only authorised personnel will have access to documents and information will be provided on a need-to-know basis. All contracts, documentation and records of correspondence between parties will be managed and maintained in accordance with our record management policy.

Contract variation

Any variation of the contract needs to be agreed to in writing by both parties. The Clean Energy Regulator will ensure that the person agreeing to an amendment on behalf of the seller has the authority to do so.

Delivery and payment

Participants who have a contract with the Clean Energy Regulator will deliver ACCUs according to the delivery schedule in their contract, and will then be paid at the price agreed to at auction and set out in the contract.

The Clean Energy Regulator will expedite payment of invoices within the specified period.

Dispute resolution

During the contract management phase, a disagreement becomes a dispute when it is not possible for the parties to resolve it without resorting to a formal resolution mechanism. All dispute resolution processes will be case managed. The procedure for dispute resolution is detailed in clause 12 of the Code of Common Terms.

Quality assurance review

Periodic reviews of the contract administration function will be undertaken.

The purpose of a quality assurance review is to assess the effectiveness of the way contracts are being managed and to identify areas where improvements are required.

Novation and assignment

Novation or assignment of the contract requires the prior consent of both parties, except where the seller assigns or charges the contract by way of mortgage or charge to an authorised deposit-taking institution or where the buyer novates or assigns its rights to the Commonwealth or another Commonwealth agency acting on behalf of the Commonwealth.

Contract close-out

Contract close-out occurs once all contractual obligations have been met. At the completion of any contractual arrangement, the Clean Energy Regulator should undertake an evaluation of the overall performance of the contract and of the management of the contract. Such an evaluation should inform the development and management of ongoing or future contracts.


A contract can be terminated​ by the seller or the Clean Energy Regulator.

There are a number of different circumstances in which a party’s right to terminate is activated. The decision to issue a termination notice by the Clean Energy Regulator will only be made in consultation with the Clean Energy Regulator legal team.

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