58.3  Obligations

[Subject to clause 58A (Economic Test)], where a claim is made or proceeds of insurance are received or are receivable under any Physical Damage Policy in respect of a single event (or a series of related events) (the Relevant Incident) in an amount in excess of £[♦] (Indexed):

58.3.1  the Contractor shall deliver as soon as practicable and in any event within [28] days after the making of the claim a plan prepared by the Contractor for the carrying out of the works necessary (the Reinstatement Works) to repair, reinstate or replace (the Reinstatement Plan) the assets which are the subject of the relevant claim or claims in accordance with clause 58.4 (Works Carried Out) below.  The Reinstatement Plan shall set out:

(a)  if not the Building Contractor, the identity of the person proposed to effect the Reinstatement Works, which shall be subject to the prior written approval of the Authority; and

(b)  the proposed terms and timetable upon which the Reinstatement Works are to be effected (including the date that the Project will become fully operational), the final terms of which shall be subject to the prior written approval of the Authority, which approval shall not be unreasonably delayed;

58.3.2  provided that the Authority is satisfied that the Reinstatement Plan will enable the Contractor to comply with clause 58.4 (Works Carried Out) below within a reasonable timescale:

(a)  the Reinstatement Plan will be adopted;

(b)  the Contractor shall enter into contractual arrangements to effect the Reinstatement Works with the person identified in the Reinstatement Plan approved by the Authority;

(c)  prior to the earlier to occur of the Termination Date or the Expiry Date, any amounts standing to the credit of the Joint Insurance Account (the Relevant Proceeds) (together with any interest accrued) may be withdrawn by the Contractor from the Joint Insurance Account as required to enable it to make payments in accordance with the terms of the contractual arrangements referred to in clause 58.3.2(b) (Obligations) above, and to meet any other reasonable costs and expenses of the Contractor for the sole purposes of funding the Reinstatement Works and the parties shall operate the signatory requirements of the Joint Insurance Account in order to give effect to such payments.  Following the earlier to occur of the Termination Date and the Expiry Date, the Authority may withdraw amounts standing to the credit of the Joint Insurance Account for the purposes of funding any Reinstatement Works;

(d)  the Authority agrees and undertakes that, subject to compliance by the Contractor with its obligations under this clause, and provided that the Contractor procures that the Reinstatement Works are carried out and completed in accordance with the contractual arrangements referred to in clause 58.3.2(b) (Obligations), it shall not exercise any right which it might otherwise have to terminate this Agreement by virtue of the event which gave rise to the claim for the Relevant Proceeds284;

(e)  the Authority undertakes to use reasonable endeavours to assist the Contractor in the carrying out of the Reinstatement Plan; and

(f)  after the Reinstatement Plan has been implemented to the reasonable satisfaction of the Authority and in accordance with clause 58.4 (Works Carried Out) below the Authority shall permit withdrawal by the Contractor of any Relevant Proceeds then held in the Joint Insurance Account that have not been paid under clause 58.3.2(c) (Obligations) above, in respect of the Relevant Incident, together with any interest accrued;

(g)  subject to the provision of clause 56.1 (Contractor's Indemnity) the Contractor shall be solely responsible for the payment of any deficiency.

__________________________________________________________________________________________

284  This would apply if the definition of "Relief Events" did not cover the insured event giving rise to the issue of reinstatement.  If so, the Agreement may confirm that the concepts of Compensation and Relief Events will apply during the period of carrying out the Reinstatement Works so that, for example, any Authority breach will be treated as a Compensation Event during this period.