6.10 Project Owner's Reserved Powers

Guidance Note - This clause expressly reserves certain decisions to be made under the Agreement for the unilateral decision-making of the Project Owner (rather than the ALT) and obliges the Participants to comply with any decision made by the Project Owner in respect of these matters. As set out in clause 1.3(c), the Project Owner will not be subject to the commitments made under clauses 3 and 4 when exercising the Project Owner's Reserved Powers under this clause 6.10.

The Project Owner needs to consider whether any additional reserved powers will be required for the Project to reflect any specific requirements of the Project Owner's VFM Statement.

(a) Notwithstanding the alliance relationship established under this Agreement, the NOPs acknowledge that the final decision on the following matters (Project Owner's Reserved Powers) are reserved for unilateral determination by the Project Owner:

(1) the decision to suspend all or part of the Works under clause 22;

(2) any decisions, directions or actions the Project Owner determines are necessary following any event which significantly impacts on the whole or any part of the Works or the achievement of the Project Owner's VFM Statement;

(3) any decisions or matters regarding any actual or threatened legal action, litigation or third party claims arising out of or in connection to this Agreement;

(4) any decision, direction or approval to enter into any Subcontract which is a suballiance or is otherwise not subject to a fixed price, in accordance with the Contracting Strategy;

(5) any other decision, direction, matter, approval or thing expressed under this Agreement as being at the discretion, or the like, of the Project Owner; and

(6) unless otherwise specified, the decision to terminate this Agreement where the Project Owner has such a right under this Agreement.

(b) The Participants agree to abide by and implement a decision by the Project Owner in respect of the Project Owner's Reserved Powers as though it was a decision of the ALT.

(c) The impact, if any, that the exercise of a Project Owner's Reserved Power has on any or all of:

(1) the TOC;

(2) the KRAs; and

(3) the Date for Practical Completion,

under this Agreement will be calculated in the manner prescribed by this Agreement, and if no manner is prescribed, as determined by the Project Owner following a recommendation from the ALT. If this Agreement does not specify the manner of calculation of the impact, if any, that the exercise of a Project Owner's Reserved Power has on the matters set out in this clause 6.10(c) and the ALT fails to reach agreement on the recommendation to be made to the Project Owner under this clause 6.10(c), then the Participants must comply with the procedure set out in Schedule 14 to resolve the issue.