10.6.2  Defects liability

(a)  In some jurisdictions, there is a specified limited defects liability period during which the private party must rectify all defects which exist at Completion33 or which are discovered during the specified defects liability period. In these jurisdictions, it is intended that the defects liability period will operate in addition to the private party's maintenance obligations under the Services Specifications.

(b)  In other jurisdictions, the private party will have an obligation to rectify all defects which exist at Completion, or which are discovered during the operating term.

(c)  In each case, where the private party fails to rectify defects, government may either direct rectification by the private party (in which case a further defects liability period will apply to such defect, if paragraph (a) applies) or may itself rectify (or have a third party rectify) such defects at the private party's cost. Such amount shall be a debt due and payable by the private party to government. Government may set off such amount against amounts owing to it or make a demand for such amount under any performance bond provided in respect of the project.  

(d)  Nothing in section 10.6.2 will affect the private party's obligations to deliver the Contracted Services to the Services Specifications or government's right to abate payments.

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33  Defects other than minor defects referred to in section 10.6.1 will have been rectified as a condition precedent to Completion.