This guideline outlines a recommended approach for establishing appropriate limits on the liability of suppliers, for use by State agencies engaged in the procurement of Information and Communications Technology (ICT). A limit or ‘cap’ on a supplier’s liability refers to an arrangement within a contract where a supplier’s liability for damage or loss incurred by the agency is limited to a finite amount.
This guideline should be read in conjunction with the procurement guidelines available on wa.gov.au, in particular the Risk Management in the Procurement Context and Procurement Insurance Requirements guidelines. The WA Government Cyber Security Policy may also be relevant when considering the risk of the ICT procurement.
Advice from the Insurance Commission of Western Australia must be sought prior to proposing, or accepting, a limit on liability.
