16.2  DEFINITION OF CHANGE IN LAW

16.2.1  The Contract should specify that the Contractor is expected to comply with all relevant law and should contain a mechanism for handling the effects of a change in law.

Required drafting for change in law is as follows:

16.2  "Change in Law"

means the coming into effect after the date of this Contract of:

(a)  Legislation, other than any Legislation which on the date of this Contract has been published:

(i)  in a draft Bill as part of a Government Departmental Consultation Paper;

(ii)  in a Bill;

(iii)  in a draft statutory instrument; or

(iv)  as a proposal in the Official Journal of the European Union;1

(b)  any Guidance;2 or

(c)  any applicable judgment of a relevant court of law which changes a binding precedent.3

"Legislation"

means any Act of Parliament or subordinate legislation within the meaning of Section 21(1) of the Interpretation Act 1978, any exercise of the Royal Prerogative, and any enforceable EU right within the meaning of Section 2 of the European Communities Act 1972 (as amended), in each case in the United Kingdom.4




__________________________________________________________________________________________

1  This presumes that such legislation is foreseeable in all projects. A more general foreseeability requirement is also included in the definition of "Qualifying Change in Law" in Section 16.6.8 below.

2  Such as the health sector guidance. Whether this is required will depend upon the sector concerned.

3  This drafting is intended to deal with changes in interpretation of law, which should not be defined more widely.

4  Schedule 1 paragraph 4 (Definitions) - Legislation includes any re-enactment, amendment, consolidation or replacement of legislation.