Guidance Note - This clause sets out the circumstances in which a Participant will be entitled to exercise Default rights under the Agreement. These circumstances are limited to Wilful Default (clause 24.1(a)), the material breach of a specified list of clauses of the Agreement which are fundamental to the operation of the alliance (clause 24.1(b)) and any Insolvency Event.

The inclusion of the events of Default listed in clause 24.1(b) is not intended to diminish the collective assumption of risk and responsibility of the Participants for delivery of the Project under the Agreement. Rather, the specified clauses which, if materially breached by a Participant, will lead to Default rights under the Agreement are limited to those clauses which are to be complied with by each Participant on an individual basis and which are fundamental to the operation of the alliance (i.e. making available records under clause 17.3 and providing access for inspection and audit under clause 17.4). The Project Owner needs to consider the appropriateness of the specified list of clauses in clause 24.1(b) for the Project.

Please note that clause 24.1(b) should be read in conjunction with clause 24.2 which provides that a Participant will be a Defaulting Participant for the purposes of clause 24.1(b) if the Participant has committed a material breach of a clause specified in clause 24.1(b), except in circumstances where the ALT has determined that that Participant will not be allocated responsibility for the performance of the obligation under the relevant clause. The ALT should consider these matters as soon as practicable following entry into the Agreement.