6.  DELAYS DUE TO CONTRACTOR DEFAULT

6.1  If a Deliverable does not satisfy the Test Success Criteria or a Milestone is not Achieved due to the Contractor's Default, the Authority shall promptly issue a Non-conformance Report to the Contractor categorising the [Test Issues] as described in the Testing Procedures or setting out in detail the non-conformities of the Deliverable where no testing has taken place, including any other reasons for the relevant Milestone not being Achieved and the consequential impact on any other Milestones.  The Authority will then have the options set out in Clause 6.1.

6.2  The Authority may at its absolute discretion (without waiving any rights in relation to the other options) choose to:

6.2.1  issue a Milestone Achievement Certificate conditional on the remediation of the [Test Issues], or the non-conformities of the Deliverable where no testing has taken place, in accordance with an agreed Correction Plan; and/or

6.2.2  [if the [Test Issue] is a Material Test Issue:

6.2.2.1  refuse to issue a conditional Milestone Achievement Certificate as specified in Clause 6.2.1; and

6.2.2.2  the escalate the matter in accordance with the Dispute Resolution Procedure and if the matter cannot be resolved, exercise any right it may have under Clause 55.1 (Termination for Cause by the Authority); and/or]

6.3  Where Schedule E4 (Charging and Invoicing) does not identify the payment of [Delay Payments] in respect of a Milestone, the Authority reserves its rights.  Otherwise [Delay Payments] are provided as the primary remedy for the Contractor's failure to Achieve the relevant Milestone Date and it shall be the Authority's exclusive financial remedy except where:

6.3.1  the Authority is otherwise entitled to or does terminate this Agreement for the Contractor's Default or for a Force Majeure Event; [or]

6.3.2  the failure to Achieve the Milestone exceeds a period of [six] months after the relevant Milestone Date

6.4  Where the Authority issues a conditional Milestone Achievement Certificate as specified in Clause 6.2.1, it can, in its absolute discretion, elect to revise the failed Milestone Date and any subsequent Milestone Date.

6.5  Any Correction Plan shall be agreed before the issue of a conditional Milestone Achievement Certificate unless the Authority is willing to agree otherwise.  In the latter case the Contractor shall submit a Correction Plan for approval by the Authority within 10 Working Days of receipt of the Non-conformance Report.