29.6  RIGHTS OF ACCESS

29.6.1  An issue related to step-in rights (and at times confused with them) is that of rights of access of the Authority to the facilities.

29.6.2  This right exists in part to give the Authority the ability to monitor performance (see Section 10 (Payment Mechanism Management and Monitoring)) and carry out spot checks, to the extent required by the Contract.

Required drafting to deal with this is as follows:

Rights of Access

(a)  The Authority or a representative of the Authority may enter upon any property used by the Contractor to perform the Service, to inspect the construction, operation and maintenance of the Project and to monitor compliance by the Contractor with its obligations.

(b)  The Authority and a representative of the Authority may at all times enter upon any property used by the Contractor as training or workshop facilities and places where work is being prepared or materials being obtained for the Project.

(c)  The Contractor shall procure that satisfactory facilities are made available to the Authority and any representative of the Authority and that reasonable assistance is given for the purposes of paragraphs (a) and (b) above, subject to the Contractor's and Sub-Contractors' construction or operational requirements not being adversely affected and to reimbursement of any reasonable costs or expenses of the Contractor.

(d)  If the Authority is or becomes aware of a breach by the Contractor of its obligations under Clause 11.1 (Maintenance) then the Authority may exercise its right of access and remedy such breach and shall be entitled to recover any costs or expenses incurred from the Contractor as a debt.534

(e)  The Authority and its representative shall at all times comply with any health and safety requirements when exercising its rights under this Clause.

(f)  If the Authority or its representative causes material damage to any asset535 in exercising any right under this Clause, then the Authority shall be liable to the Contractor for the reasonable costs directly caused by such damage.




___________________________________________________________________________

534  The Authority should be careful in exercising this right owing to paragraph (f) and should not interfere with the obligations of the Contractor but instead rely on its other rights under the Contract

535  These are the physical assets referred to in the definition of "Assets".