Chapter 15: Supervening Events

STANDARDISATION OF PF2 CONTRACTS PROVISION

SOURCE OF CHANGE WHERE RELEVANT

EXPLANATION OF HOW PROVISION HAS CHANGED THE SoPC4 POSITION

Chapter 15: Supervening Events

Section 15.1.5 (Introduction)

Policy

This recognises (as does Section 13.3 (Benefit of Surveys and Reports) above) that, where they are providing land, Authorities should bear title risk , and contamination risk to the extent contamination cannot be surveyed .

Section 15.2.1.2 Compensation Events - Purpose and Scope)

Policy

The definition of "Compensation Event" has been amended to specify breach of warranty as well as of obligation. This is in recognition of the likelihood of there being Authority warranties in the Contract.

Clause 15.2 (Delays in Service Commencement Due to a Compensation Event)

Policy

Reference is made to delays to the Handover Date as well as to the Service Commencement Date. This is because, with soft services now to be left to the Authority, the Authority may need additional time after construction Handover, to mobilise soft services before Service Commencement.

Clause 15.2 (c) (Delays in Service Commencement Due to a Compensation Event)

Market up-date

An addition has been made at Clause 15.2(c) for the supply by the Contractor of information relating to the delay.

Section 15.3.3.2 (Consequences)

Market up-date

While there should generally be no extension of the term of the Contract if there is a delay, it has been recognised (particularly in waste projects) that where delays (such as for planning) are expected, special provisions for relief or termination may be needed.

Clause 15.3 (Consequences of a Relief Event)

Policy

Reference is made to Handover as well as Service Commencement. See Clause 15.2 above.

Clause 15.3(c) (Consequences of a Relief Event)

Market up-date

An addition has been made at Clause 15.3 (c) for the supply by the Contractor of information relating to the delay.

Clause 15.3(e) (Consequences of a Relief Event)

Market update

In Clause 15.3(e) it is made clear that deductions made during a Relief Event shall be disregarded for the purpose of the Authority's right to terminate this Agreement for a Contractor Default.