(a) Each material sub-contract must include:139
(i) a covenant requiring entry into a side deed (if requested by government) and for the assignment, at government's option, of the benefit of the material sub-contract to government if the project agreement is terminated;
(ii) an undertaking from the sub-contractor to provide such consents and information as may be required under the project agreement in respect of its employees (employee-related requirements, including personnel screening processes for sensitive projects such as education, health and corrective service projects will be more fully detailed in the project agreement on a project-specific basis); and
(iii) provisions recognising and permitting government to exercise its Step-in Rights and any of its rights arising as a result of an Event of Default or Default Termination Event and various other rights expressly identified in the project agreement as affecting the subcontract.
(b) In addition, the main construction and operating contracts must include:
(i) an undertaking from the sub-contractor to rectify any defects;
(ii) an undertaking from the sub-contractor to provide such bonds, guarantees, warranties and manuals as are required by the private party;140 and
(iii) provisions which give full effect to the provisions of the project agreement relating to intellectual property and moral rights.
___________________________________________________________________
139 These reflect government's minimum requirements and are not intended to be an exhaustive list of material sub-contract requirements. Additional requirements or amendments to the requirements may apply on a project by project basis.
140 Bonding and guarantee requirements must at a minimum reflect government requirements under the project agreement in respect of the relevant sub-contract.