13.5.1 The issue of who should bear latent defects risk in Assets transferred to the Contractor by the Authority should be addressed on a project specific basis as it depends on the type of Assets involved.
13.5.2 In transferring latent defects risk from the Authority to the Contractor in respect of existing buildings, particular issues will arise where:
• the relevant building is large and/or complex;
• there is any significant doubt as to the building's structural stability; or
• the Project involves minor additions to an existing building,
and it may prove better value for money for the Authority to agree to share such risks with the Contractor.
Ordinarily, where land is concerned, ground conditions risk should be borne by the Contractor (with the benefit of surveys provided to it which it can rely on). Where however it is not feasible to get surveys done (e.g. where it is not possible to survey for contamination under the footprint of a building or to check for possible contamination coming onto the Site from an adjoining property not owned by the Authority) it may be better value for money for the Authority to bear or share such risk..8
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8 This is of general application in that it may not prove value for money for the Authority to seek to transfer this or latent defects risk in respect of any asset which the Contractor is not afforded the opportunity to survey (see Section 15.3.2. (Scope of Relief Events)). Fossils and antiquities are dealt with in Section 15.1.4 (Supervening Events).