20.4  HANDOVER PROVISIONS FOR ASSETS WHICH TRANSFER TO THE AUTHORITY

20.4.1  Provisions dealing with the transfer of the Assets will need to be set out in the Contract. These will have to deal with:

•  the condition of the Assets, any rectification works, their cost and how they are paid for (see Sections 11 (Maintenance) and 23 (Surveys on Expiry and Termination));

•  any design life requirement after the Expiry Date;

•  inspection prior to handover;

•  checking any rectification works have been done;

•  provision for any assignment of warranties, contracts and other rights relating to the Project; and

•  any disputes in connection with the above.

20.4.2  Other relevant issues include how employees should be dealt with, as they will often transfer to any successor contractor or the Authority.

20.4.3  To the extent that employees are being transferred, then the Contract should contain restrictions on the ability of the Contractor to alter either the number of employees or their terms and conditions as the end of the Contract approaches (such as in the last 2 to 3 years of the Contract).

20.4.4  A general further assurance provision is usually included in relation to termination, such as the following:

The Contractor shall take all reasonable steps and co-operate fully with the Authority and any successor contractor so that any continuation in the Service is achieved with the minimum of disruption and so as to prevent or mitigate any inconvenience or risk to health or safety of the employees of the Authority and members of public.