7.00  TERMS OF REFERENCE

7.01  This Survey requires the Surveyor to warrant his findings and extend a duty of care to the Council and to second and third parties.  The Council recognises that extending such a duty to such parties may involve some costs and requires the Surveyor to state this as a separate item in the fee statement.  These duties are described in this Brief to enable the Surveyor to ensure that the Survey will be sufficiently robust to meet these future requirements.

7.02  The results of the Survey will be made available to various parties who may have an interest in the project including but not limited to the following:

(a)  The Council;

(b)  Communities and Local Government (CLG) and Homes and Communities Agency (HCA);

(c)  The Operator and all members of that Operator's consortium;

(d)  Potential funding institutions (as financing partners of the Operator's consortium);

(e)  Any Special Purpose Vehicle (SPV) set up by any Operator;

(f)  Any Sub-Contractor to the Operator or to other members of the Operator's consortium.

7.03  By the act of acceptance of the Survey commission, the Surveyor is deemed to have agreed to acknowledge that a professional duty of care will be owed to the Council and such second and third parties.  The duty of care owed by the Surveyor to the Council and such second and third parties is deemed to be equivalent.  This duty of care will be evidenced by a deed or deeds in a form or forms to be specified before execution of the contract by the Council with the Operator.  This form of deed will apply to both the Council and the other parties.

7.04  The Surveyor may be required to enter into a contract with the Council and other landlords in the form of a deed in order to obtain a 12 year limitation period having regard to the Law of Property (Miscellaneous Provisions) Act 1989 and Companies Act 1989. When the further contract to warrant the findings and to extend the duty of care is entered into, the Surveyor shall indemnify and keep indemnified the Council and the Bidders against any loss suffered by or any claims made against the Council and/or Bidders arising directly or indirectly from any defect, incorrect statement or omission contained in any report or other information whether written or supplied orally to the Council and the Bidders in connection with the contract.