28.2.3  Terms and conditions of material sub-contracts

(a)  Each material sub-contract must include:135

(i)  a covenant requiring entry into a side deed (if requested by government) and for the assignment, at government's option, of the benefit of the material sub-contract to government if the project agreement is terminated;

(ii)  an undertaking from the sub-contractor to provide such consents and information as may be required under the project agreement in respect of its employees (employee-related requirements, including personnel screening processes for sensitive projects such as education, health and corrective service projects will be more fully detailed in the project agreement on a project-specific basis); and

(iii)  provisions recognising and permitting government to exercise its Step-in Rights and any of its rights arising as a result of an Event of Default or Default Termination Event and various other rights expressly identified in the project agreement as affecting the sub-contract.

(b)  In addition, the main construction and operating contracts must include:

(i)  an undertaking from the sub-contractor to rectify any defects;

(ii)  an undertaking from the sub-contractor to provide such bonds, guarantees, warranties and manuals as are required by the private party;136 and

(iii)  provisions which give full effect to the provisions of the project agreement relating to intellectual property and moral rights.

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135  These reflect government's minimum requirements and are not intended to be an exhaustive list of material sub-contract requirements.  Additional requirements or amendments to the requirements may apply on a project by project basis.

136  Bonding and guarantee requirements must at a minimum reflect government requirements under the project agreement in respect of the relevant sub-contract.