Guidance Note - This clause 10.6 provides for any losses, damages, costs and expenses suffered by the Project Owner arising out of any delay in reaching Practical Completion to be treated as Reimbursable Costs for the purposes of calculating the AOC under the Agreement. As an example, any costs incurred by the Project Owner in providing alternative arrangements for customers whilst the Works are being completed will be properly treated as cost of the Project (rather than a cost to the Project Owner), although the NOPs are not required to pay such costs directly. In this way, the clause operates as an "accounting" provision, rather than a "liability" provision.

It is expected that provision would be made for the risk of these costs being incurred by the Project Owner in the Risk & Contingency Provisions in the TOC. In addition, the Participants will otherwise be entitled to an adjustment to the TOC, the KRAs and the Date for Practical Completion, if the incurring of these costs arises as a consequence of an Adjustment Event.

Nothing in clause 10.6 will prevent the NOPs from being reimbursed any Reimbursable Costs, and paid Corporate Overhead and Profit, for completing the Works in accordance with the Agreement.

Guidance Note - This clause has been included to ensure that the Project Owner is able to specify those project costs which might otherwise be characterised as a "Consequential Loss" under the Agreement, but which the Project Owner may wish to recover in the event of a delay. For example, in the context of a rail infrastructure project, these losses might include bussing costs. Other specific losses that the Project Owner may wish to recover are Government overheads to remain on Site, or the cost of any advertising that may be required.