If Project Co is granted an extension of time to a Date for Acceptance then, if the Extension Event is a Compensable Extension Event or a Force Majeure Event, Project Co will be entitled to claim compensation in accordance with the Change Compensation Principles as determined by the Independent Reviewer (see section 3.3). However, to the extent the Compensable Extension Event or Force Majeure Event has given rise to loss or damage to the Project Assets and clauses 42.4 or 42.5 applies, Project Co's entitlement to claim any compensation in respect of that loss or damage to the Project Assets is as set out in clauses 42.4 or 42.5 respectively (see section 2.50).
Compensable Extension Events include acts or omissions of the State other than those that are Permitted Acts or contemplated by clause 7.1 where the Authority is acting in accordance with its statutory powers. Accordingly, procuring agencies should include any act that they are likely to undertake to be a Permitted Act in the Project Deed to ensure they are not exposed to costly delay claims when they carry out those acts. These should be carefully drafted so they can be taken into account by Respondents in their Proposal and should not include those things that are unlikely to occur.
If the Extension Event is required to be covered by the Insurances as part of an Insured Risk, Project Co will not be entitled to claim compensation from the State for that Extension Event unless Project Co can demonstrate that the compensation is not covered by the proceeds of such Insurance due to a State Insurance Breach (clause 43.10(b)). Refer to section 2.51.3.
If the State exercises its power under clause 26.10 to unilaterally extend the Date for Acceptance in respect of a Compensable Extension Event, a Force Majeure Event or a State Initiated Modification for which, but for the exercise by the State of its power Project Co would otherwise be entitled to an extension of time to a Date for Acceptance for the Compensable Extension Event, Force Majeure Event or State Initiated Modification, Project Co will be entitled to claim compensation for that Compensable Extension Event, Force Majeure Event or State Initiated Modification in accordance with the Change Compensation Principles (refer to section 3.3).