Change in Law - Section 14

46  Section 14 of SoPC deals with the definition and allocation of Changes in Law.  SoPC recommends that Discriminatory and Specific Changes in Law should be a Local Authority risk.  General Changes in Law are a Service Provider risk during the construction phase or to the extent the Change in Law is foreseeable and thereafter the capital consequences are a shared risk.  The Local Government Supplement to SoPC amplifies this approach and allocates Changes in Law relevant to Best Value to be for the cost of the Local Authority.  

47  The capital costs of a General Change of Law is shared in ratio's set out in the Model Contract.  This can be a bid back item or completed by the Local Authority after taking appropriate advice.

48  There is a new Section 14.9.3 (Changes in Tax Law) which clarifies that Authorities should not provide tax indemnities to contractors.

49  Section 14 of SoPC includes required drafting on Change in Law which has been incorporated into the Model Contract.