SoPC Section (or Clause)

Nature of Revision

Description of Revision

Drafting Change (shown in bold)

21.1.3 (and Clause) Compensation on Termination for Authority Default

New guidance on mezzanine debt at s. 21.1.3.4

New small changes to Required Drafting

Reference is made to the classification of mezzanine debt for the purposes of the Contract.

Footnote 297 provides guidance on caps on losses of profit for Sub-Contactors.

"Sub-Contractor Breakage Costs"

means Losses that have been or will be reasonably and properly incurred by the Contractor as a direct result of the termination of this Contract, but only to the extent that:

(a) the Losses are incurred in connection with the Project and in respect of the provision of Services or the completion of Works, including:

(i) any materials or goods ordered or Sub-Contracts placed that cannot be cancelled without such Losses being incurred;

(ii) any expenditure incurred in anticipation of the provision of services or the completion of works in the future;

(iii) the cost of demobilisation including the cost of any relocation of equipment used in connection with the Project; and

(iv) redundancy payments; and

(b) the Losses are incurred under arrangements and/or agreements that are consistent with terms that have been entered into in the ordinary course of business and on reasonable commercial terms [and [ ]]; and

(c) the Contractor and the relevant Sub-Contractor has each used its reasonable endeavours to mitigate the Losses;