3  Building Contractor's Warranty And Liability

3.1  The Building Contractor warrants to the Authority that it has carried out and will continue to carry out its duties under the Building Contract in accordance with the Building Contract and that it has exercised and will continue to exercise, in carrying out the design of the Works, the level of skill and care reasonably to be expected from an appropriately qualified and competent professional designer providing those services in relation to a project of a similar size and scope to the Works.  In particular and without limiting the generality of the foregoing the Building Contractor covenants with the Authority that it has carried out and will carry out and complete the Works in accordance with the Building Contract and duly observe and perform all its duties and obligations thereunder;

3.2  The Building Contractor shall be entitled in any action or proceedings by the Authority to raise equivalent rights in defence of liability (except for set off or counterclaim as it would have against the Contractor under the Building Contract.  Upon the expiration of twelve (12) years from the date of completion of the Works in accordance with the Building Contract, the liability of the Building Contractor under this Deed shall cease and determine, save in relation to any claims made by the Authority against the Building Contractor and notified by the Authority to the Building Contractor in writing prior thereto.

3.3  The Building Contractor shall have no liability to the Authority in respect of any delay in the completion of the Works howsoever caused save to the extent that the liability arises under the Building Contract and the Authority shall have exercised its right to step in under clause 10 of this Deed.  Any claim in relation to a delay in completion of the Works but not otherwise will be extinguished to the extent that the Building Contractor has had deducted liquidated damages under clause [**            ] of the Building Contract.