Monitoring of the Works

108  The Model Contract gives the Authority Representative a right of access to view the carrying out of the Works.  Following a viewing, if the Local Authority discovers defects or the Service Provider has failed to comply with the Authority Construction Requirements, the Local Authority can increase its monitoring and the Service Provider will pay the costs of the additional monitoring.

109  The Model Contract also gives the Local Authority the right to open up and inspect any part of the Works if it reasonably believes that such part is defective.  If the Works are not defective then the Service Provider is entitled to an extension of time but not to any compensation.  This may be viewed as unfair by bidders who request that it is a Compensation Event i.e. it is entitled to compensation for any losses incurred as well as an extension of time.  This may be better value for money than the bidder pricing for the unknown risk of the Local Authority opening up Works which are not defective.  However the Local Authority would not need to require the opening up of the Works if the Service Provider ensured that the Authority Representative (and the Independent Certifier) were given an opportunity to inspect all parts of the Works before they were covered up.