Rights of approval

2.10  The variations protocol will deal with the process after the official hand over of the facilities and the commencement of services. Authorities will generally have an unfettered right to request changes in the operational period but have a more restricted ability to do so during the construction period. An authority usually has the absolute right to approve or reject changes to the services instigated by the contractor unless the change is required to comply with a qualifying change of law, in which case both parties will be obliged to agree and implement the change.

2.11  The SPV generally will not unreasonably refuse requests but should have the right to refuse a change order on the following grounds:

  if it requires the service to be performed in a way that infringes any law or is inconsistent with good industry practice;

  if it would cause any consent to be revoked (or cause a new consent required to implement the relevant change in service to be unobtainable);

  if it would materially and adversely affect the contractor's ability to deliver the service;

  if it would materially and adversely affect the health and safety of any person;

  if it would require the SPV to implement the change in service in an unreasonable period of time; and/or

  if it would (if implemented) materially and adversely change the nature of the project, including its risk profile.