[Note: This Project Deed assumes that rectification and the commercial incentives for rectification of Defects in Maintained Assets will be addressed in the Services Specification and the Abatement Regime. Care should be taken to ensure that the Abatement Regime is calibrated accordingly. Where this is not feasible, refer to Guidance Notes for more information on project specific amendments.]
During the Operational Phase if:
(a) there is a Defect in a Maintained Asset; and
(b) that Defect is not a Performance Failure and does not give rise to a Performance Failure,
the Defect will be deemed to be a Service Failure under [Note: insert [#] reference to Services Specification.], except that:
(c) if the Defect is required to be rectified in accordance with clause 24.3(l), without limiting clause 24.4(m), that Defect will only become a Service Failure if Project Co fails to rectify the Defect in accordance with clause 24.3(l); or
(d) if the State accepts or rectifies (or engages others to rectify) the Defect in accordance with clause 27.6, that Defect will not be a Service Failure. [Note: The expectation is that a catch all for Defects will be included as a Service Failure in the Services Specification. The catch all needs to be consistent with the above risk allocation. See Guidance Notes for further detail.]