Compensation

41.10  If either the Delay Event is a Delay Event referred to in Clause 41.11(a) or there is an event referred to in Clause 41.11(b) (each a "Compensation Event"), Project Co's sole right to compensation shall be as provided for in Clauses 41.10 to 41.14 inclusive.  To avoid doubt, no other Delay Event (or event referred to in Clause 41.3 pursuant to which Project Co incurs a loss or expense) shall entitle Project Co to receive any compensation save as otherwise expressly provided in:

(a)  Part 22 of the Schedule (Variation Procedure) in the case of a Delay Event referred to in Clause 41.3(a) (Works Change) (subject always to the provisions of Clause 39 (Changes in Law)); or

(b)  Clause 39 (Changes in Law) in the case of a Delay Event referred to in Clause 41.3(g) (Discriminatory and NHS Specific Changes in Law).

41.11  For the purposes of Clause 41.10, a Compensation Event means either: 

(a)  any Delay Event referred to in Clause 41.3(b) (Breach), Clause 41.3(c) (Execution of nonproject related works) or Clause 41.3(d) (Opening up of Works) for which, in each case, it has been agreed or determined pursuant to this Clause that Project Co is entitled to an extension of time; or

(b)  in the period prior to the Actual Completion Date, in circumstances where there is no delay in completion of the Facilities, any breach by the Board and/or any Board Party of any of the Board's express obligations under this Agreement (including any delay in the Board giving access to the Site pursuant to Clause 14 (Nature of Land Interests) or any obstruction of the Ancillary Rights afforded to Project Co pursuant to Clause 14 (Nature of Land Interests) by the Board or any Board Party) to the extent in each case that any such breach is not caused, or contributed to, by Project Co or any Project Co Party or the occurrence of the circumstances described in Clause 15.4 to the extent that such circumstances are not caused, or contributed to, by Project Co or any Project Co Party.

41.12  Subject to Clause 41.13, if it is agreed, or determined, that there has been a Compensation Event, and Project Co has incurred loss and/or expense as a direct result of such Compensation Event, Project Co shall be entitled to such compensation as would place Project Co in no better or no worse position than it would have been in had the relevant Compensation Event not occurred.  Project Co shall promptly provide the Board's Representative with any additional information he may require in order to determine the amount of such compensation.136

41.13  Project Co shall take all reasonable steps so as to minimise the amount of compensation due in accordance with this Clause 41 in relation to any Compensation Event and any compensation payable shall:

(a)  exclude any amounts incurred or to be incurred as a result of any failure of Project Co (or any Project Co Party) to comply with this Clause; and

(b)  be reduced by any amount which Project Co will recover under any insurance policy (or would have recovered if it had complied with the requirements of this Agreement or of any policy of insurance required under this Agreement) which amount, to avoid doubt, shall not include any excess or deductibles or any amount over the maximum amount insured applicable to any such insurance policy.

41.14  The amount of any compensation due to Project Co under this Clause 41 shall be agreed between the parties or, failing agreement, determined pursuant to Part 26 of the Schedule (Dispute Resolution Procedure).

 




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136 Boards need to determine on a project specific basis when this compensation will be paid. Clause 41 to be amended as appropriate.  Project Co should be in no better and no worse a position as a result of the chosen payment method.