6.5.1 The issue of who should bear latent defects risk in assets transferred to the Contractor by the Authority should be addressed on a project specific basis as it depends on the type of assets involved.115
6.5.2 In transferring latent defects risk from the Authority to the Contractor in respect of existing buildings, particular issues will arise where:
• the relevant building is large and/or complex;
• there is any significant doubt as to the building's structural stability; or
• the Project involves minor additions to an existing building.
Where land is concerned, however, ground conditions risk should be borne by the Contractor unless exceptional circumstances apply (e.g. the Contractor is prevented by the Authority from carrying out all relevant surveys).116
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115 It should be noted that the Latent Damage Act 1986 applies to England and Wales only. The relevant Northern Ireland legislation is the Limitation (Northern Ireland) Order 1989.
116 This is of general application in that it may not prove value for money for the Authority to seek to transfer this or latent defects risk in respect of any asset which the Contractor is not afforded the opportunity to survey (see Section 5.3.2.2). Fossils and antiquities are dealt with in Section 5.1.4 above.