29.5  RELATED ISSUES

29.5.1  Having stepped-in, in circumstances where there is no breach by the Contractor, the Authority should act in accordance with good industry practice and to the extent there is a failure to do so, then it should indemnify the Contractor for any effects (including for any detrimental effect on any termination payment). Liability amounts should be outside any indemnity cap (for both parties).

29.5.2  The Authority should not be particularly concerned about such an indemnity being required as the price for a right of step-in. This is because to the extent the Contractor is not in breach the Authority should honour the contractual structure and risk allocation in the Contract. If the Contractor is in breach, then the termination provisions should ordinarily be sufficient to protect the Authority (with no indemnity) without any additional involvement of the Authority through step-in.