47.9  Design Sub-Contractor Collateral Warranty58

To the extent that any Design Sub-Contractor is engaged after the date of this Contract:

(a)  the Service Provider shall, unless otherwise required by the Authority, use reasonable endeavours to procure that on entering into a sub-contract, the Design Sub-Contractor enters into a collateral warranty with the Authority;

(b)  any collateral warranty from the Design Sub-Contractor shall impose no greater obligations upon the Design Sub-Contractor than are imposed on it under the sub-contract entered into;

(c)  the Service Provider shall obtain the prior written approval of the Authority to the terms of the sub-contract prior to the commencement of the obligations of the Design Sub-Contractor, such approval not to be unreasonably withheld or delayed.

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58  Where a Design Sub-Contractor has been appointed at financial close, an executed collateral warranty should be a completion document.  No form of collateral warranty is included in the Model Contract but it should be based on the Authority Sub-Contractor Direct Agreement.