To ensure fairness and value for money, other than for a Change Compensation Event that consists of capital works during the Development Phase of a Social Infrastructure Availability PPP Project, Project Co is required to carry out a tender process for the works or services (as applicable) in respect of a Change Compensation Event if the cost of a Change Compensation Event is likely to exceed $100,000 (CPI Indexed) in the State's reasonable opinion, or if the State notifies Project Co that it requires a tender process.

Project Co is not required to tender capital works during the Development Phase for Social Infrastructure Availability PPP Projects as the typically constrained nature of the Site and Principal Contractor requirements makes it impractical to have more than one D&C Contractor on the Site at the same time.

This clause may be amended on a project specific basis on Linear Infrastructure Availability PPP Projects where the only feasible solution is to engage the incumbent Key Subcontractor to carry out the relevant work. For example where during the Development Phase the work the subject of the Change Compensation Event has very significant interfaces with the Works so that the engagement of another Contactor would result in a retransfer of significant time and cost risk to the State.