2.44.2  Compensable Change in Mandatory Requirements

A Compensable Change in Mandatory Requirements will occur in the circumstances set out below.

Given that the Development Phase represents a relatively short period of time during the Term, Project Co can assess the likelihood, and therefore can bear the risk, of a General Change in Law occurring during the Development Phase. The State retains General Change in Law risk during the Operational Phase.

Project Specific Changes in Law and Changes in Policy are State-retained risks as they are largely within the State's control. If a Compensable Change in Mandatory Requirements occurs, the change will be treated as a State Initiated Modification, and relief and compensation will be provided in accordance with Item 14, Table 1 of the Change Compensation Principles. Project Co is also entitled to an extension of time to the Date for Acceptance if the Compensable Change in Mandatory Requirements meets the requirements for an Extension Event. However, it will not be an Intervening Event as the State's position is that Project Co will not, as a matter of course, be entitled to relief from its obligations during the Operational Phase and any specific relief will need to be addressed as part of the Modification process.

Certain changes in Laws or Standards will not give rise to any entitlements. These are specifically referred to as exclusions to the definition of Compensable Change in Mandatory Requirements. Changes in these excluded Laws and Standards are considered to be 'business as usual' risks that should be accepted by Project Co.