Required drafting for such a right of step-in is as follows:
18.2 Authority Step-In
(a) If the Authority reasonably believes that it needs to take action in connection with the Service:
(i) because a serious risk exists to the health or safety of persons or property or to the environment;1and/or
(ii) to discharge a statutory duty; and or
(iii) because an Emergency has arisen,
then the Authority shall be entitled to take action in accordance with paragraphs (b) to (d) below.
(b) If paragraph (a) applies and the Authority wishes to take action, the Authority shall notify
the Contractor in writing of the following:
(i) the action it wishes to take;
(ii) the reason for such action;
(iii) the date it wishes to commence such action;
(iv) the time period which it believes will be necessary for such action; and
(v) to the extent practicable, the effect on the Contractor and its obligation to carry out the Works and/or provide the Service during the period such action is being taken.
(c) Following service of such notice, the Authority shall take such action as notified under paragraph (b) above and any consequential additional action as it reasonably believes is necessary (together, the "Required Action") and the Contractor shall give all reasonable assistance to the Authority while it is taking such Required Action. The Authority shall provide the Contractor with notice of completion of the Required Action and shall use reasonable endeavours to provide such advance notice, as is reasonably practicable, of its anticipated completion.
(d) Where the Required Action has been taken otherwise than as a result of a breach by the Contractor, the Authority shall undertake the Required Action in accordance with Good Industry Practice and shall indemnify the Contractor against all direct losses2 where it fails to do so.
means an event causing or, in the reasonable opinion of the Authority, threatening to cause death or injury to any individual, or serious disruption to the lives of a number of people or extensive damage to property, or contamination of the environment, in each case which prevents:
(a) the normal operation of the Facility; and/or
(b) the Service operating under normal circumstances; and, in each case, requires the mobilisation of the emergency services.
means that degree of skill, care, prudence and foresight and operating practice which would reasonably and ordinarily be expected from time to time of a skilled and experienced operator (engaged in the same type of undertaking as that of the Contractor or, in the case of the Soft Services, the relevant Authority Related Party) or facilities management contractor or building contractor or any sub-contractor under the same or similar circumstances.
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1 Other considerations may be important in other projects, such as those involving national security. The MOD will normally require a similar right to step in under their provisions dealing with ''Measures in a Crisis" (see MOD Standard Form PF2 contract clauses 71 and 73).
2 The parties may wish to define ''direct loss''. (see footnote 8 in Clause 14.3 (b) (Indemnity).