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Perform21

FEDERATION OF PROPERTY SOCIETIES


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Perform21

T I T I
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FEDERATION OF PROPERTY SOCIETIES

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E M E E M E
D DPublic Sector Partnering Contract
Public Sector Partnering Contract

F.P.S
The Federation of Property Societies
ACKNOWLEDGEMENT

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ACKNOWLEDGEMENT

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The PSPC contract has been written by The PSPC contract has been written by

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Roger Knowles and Mike Wills Roger Knowles and Mike Wills

A R A of

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of

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Knowles Management Services Knowles Management Services

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Vistorm House Vistorm House
3200 Daresbury Park 3200 Daresbury Park

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Warrington Warrington
WA4 4BU WA4 4BU

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Perform 21 Support Team Perform 21 Support Team

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Tel: 08707 609 2121 Tel: 08707 609 2121

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and published by

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and published by

D BLISS
Vistorm House
3200 Daresbury Park
Warrington
BLISS
Vistorm House
3200 Daresbury Park
Warrington
Tel: 08707 530 710 Tel: 08707 530 710

Copyright of all and every part of this publication Copyright of all and every part of this publication
is owned by Knowles (Holdings) Ltd and all rights are reserved is owned by Knowles (Holdings) Ltd and all rights are reserved
CONTENTS

DOCUMENT REF COLOUR REF

Introductory Notes PSPC Brown

Partnering Agreement PSPC P Lime Green

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Option 1 Term Maintenance

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Measure and Value PSPC 1 Dark Blue

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Option 2 Term Maintenance

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Target Cost with Cost Reimbursable PSPC 2 Red

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Option 3 Authority Design

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Lump Sum PSPC 3 Dark Green

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Option 4 Contractor Design
Lump Sum PSPC 4 Orange

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Option 5 Authority Design

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Target Cost with Cost Reimbursable PSPC 5 Grey

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Option 6 Contractor Design
Target Cost with Cost Reimbursable PSPC 6 Purple

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Option 7 Subcontract

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Lump Sum PSPC 7 Light Blue

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Option 8 Subcontract
Target Cost with Cost Reimbursable PSPC 8 Dark Red

Option 9 Professional Services PSPC 9 Light Green

Option 10 Prestart Agreement PSPC 10 Pink

Schedule of Costs
For use with Option 2, 5, 6, or 8 PSPC SC Sky Blue

Fluctuation Rules PSPC F Gold


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FEDERATION OF PROPERTY SOCIETIES

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INTRODUCTORY NOTES

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SECTOR PARTNERING CONTRACT

The Public Sector Partnering Contract is made up from the following documents:

Document Ref

Partnering Agreement PSPC P

Available Options/Schedule/Rules

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Option 1 Term Maintenance
Measure and Value PSPC 1

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Option 2 Term Maintenance

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Target Cost With Cost Reimbursable PSPC 2

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Option 3 Authority Design
Lump Sum PSPC 3

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Option 4 Contractor Design

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Lump Sum PSPC 4

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Option 5 Authority Design

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Target Cost With Cost Reimbursable PSPC 5

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Option 6 Contractor Design

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Target Cost With Cost Reimbursable PSPC 6

Option 7 Subcontract

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Lump Sum PSPC 7

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Option 8 Subcontract
Target Cost With Cost Reimbursable PSPC 8

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Option 9 Professional Services PSPC 9

Option 10 Prestart Agreement PSPC 10

Schedule of Costs
For use with Option 2, 5, 6 or 8 PSPC SC

Fluctuation Rules PSPC F

INTRODUCTORY NOTES PSPC

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Introduction

To procure construction projects in the public sector in accordance with government guidelines, the
principles of Best Value and Partnering need to be applied. Whilst there is convincing evidence that Best
Value and Partnering severely reduce disputes it would be foolish to conclude that they will be eliminated
entirely. Notwithstanding the application of Best Value and Partnering therefore the Authority and
Contractor should enter into a formal contract. It is not considered appropriate to employ a form of contract
which is complex with procedures which may be at variance with the principles of Best Value and Partnering.
This entirely new Public Sector Partnering Contract merely sets out the basic rights and obligations of the
parties making it clear which party carries the essential matters of risk.

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Procedures Manual

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The contract can be used with any formal or informal procedures which relate to Partnering and Best Value.

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Partnering Agreement

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The Partnering Agreement has been designed for use on all contracts which adopt Partnering and Best Value
and should be used with the following Options.

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Term Maintenance Options 1 and 2

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Authority or Contractor Design Options 3, 4, 5 and 6

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Subcontract Options 7 and 8

Professional Services Option 9

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Term Maintenance

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Term Maintenance contracts may be either Lump Sum Option 1 or Target Cost With Cost Reimbursable
Option 2

Design

Authority Design contracts may be either Lump Sum Option 3 or Target Cost With Cost Reimbursable
Option 5

Contractor Design

Contractor Design contracts may be either Lump Sum Option 4 or Target Cost With Cost Reimbursable
Option 6

Subcontract

The Subcontract may be either Lump Sum Option 7 or Target Cost With Cost Reimbursable Option 8

INTRODUCTORY NOTES PSPC

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Professional Services

The Professional Services contract Option 9 is suitable for use where the Authority wishes to enter into
contract with a professional services provider.

Prestart Agreement

The Prestart Agreement Option 10 provides for the early appointment of the Contractor prior to signing the
main contract. This arrangement is intended to encourage the use of the skills which the Contractor can offer

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at a very early stage. There may be projects where the Contractor appointed under the main contract differs
from the Contractor who provides services under the Prestart Agreement.

Schedule of Costs

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The Schedule of Costs should be used where the contract provides for a Target Cost With Cost Reimbursable

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being Options 2, 5, 6 or 8.

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Fluctuation Rules

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The Fluctuation Rules are for use where the contract has been based upon a lump sum or Target Cost being

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subject to adjustment in respect of fluctuations in the cost to the Contractor of labour, materials and plant.

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Target Cost

Target Cost with Cost Reimbursable is provided in

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Option 2 Term Maintenance

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Option 5 Authority Design

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Option 6 Contractor Design

Option 8 Subcontract

Where Option 2 is used a separate Target Cost is fixed for each Order. To fix the Target Cost it will be
necessary to measure all the work. An adjustment to the Target Cost will be made if the Contractor incurs
additional costs as detailed in clause 23.0.

Where Options 5, 6 or 8 are used the Target Cost will be agreed by the parties and inserted into the Contract
before it is signed. The manner in which the Target Cost is calculated will be for the parties to agree
normally making use of the Priced Documents included in the contract. An adjustment to the Target Cost
will be made if the Contractor or Subcontractor incurs additional cost as provided for in the contracts.

INTRODUCTORY NOTES PSPC

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FEDERATION OF PROPERTY SOCIETIES

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PUBLIC SECTOR PARTNERING CONTRACT

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PARTNERING AGREEMENT

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DP S P C P
PUBLIC SECTOR PARTNERING CONTRACT

The Public Sector Partnering Contract is made up from the following documents:

Document Ref

Partnering Agreement PSPC P

Available Options/Schedule/Rules

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Option 1 Term Maintenance
Measure and Value PSPC 1

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Option 2 Term Maintenance

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Target Cost With Cost Reimbursable PSPC 2

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Option 3 Authority Design
Lump Sum PSPC 3

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Option 4 Contractor Design

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Lump Sum PSPC 4

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Option 5 Authority Design

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Target Cost With Cost Reimbursable PSPC 5

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Option 6 Contractor Design

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Target Cost With Cost Reimbursable PSPC 6

Option 7 Subcontract

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Lump Sum PSPC 7

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Option 8 Subcontract
Target Cost With Cost Reimbursable PSPC 8

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Option 9 Professional Services PSPC 9

Option 10 Prestart Agreement PSPC 10

Schedule of Costs
For use with Option 2, 5, 6 or 8 PSPC SC

Fluctuation Rules PSPC F

PARTNERING AGREEMENT PSPC P

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AGREEMENT
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PARTNERING AGREEMENT

This Partnering Agreement dated has been entered into by those listed in the Schedule of
Partners (the Partners) in Appendix Part 1 in relation to

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(the Site)

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The Partners agree to be bound by the Partnering Agreement, Terms and Conditions and Appendix.

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PARTNERING AGREEMENT PSPC P

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SIGNATURES

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TERMS AND CONDITIONS

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The Partners are those listed in the Schedule of Partners in Appendix Part 1.

The Partners agree as Follows:

1. Each Partner will work with the other Partners to achieve all the aims and objectives as set out in
the Partnering Charter in Appendix Part 2.

2. All Partners will deal fairly with each other and work together in a spirit of mutual trust, good faith
and co-operation and apply their agreed expertise in relation to the project.

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3. All Partners will use common information systems as far as reasonable.

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4. All Partners will carry out their work in the best interests of the Project.

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5. Each Partner will give an early notice to the other Partners when aware of any matter which may

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cause delay or impair performance in the achievement of the objectives set out in the Partnering
Charter.

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6. Each Partner will nominate a representative to work with the representatives of the other Partner(s).

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7. The Partners will select the members of the Core Group.

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8. The Core Group will act for the benefit of the Project and with this aim will take the high level

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decisions on behalf of the Partners, as set out in the Decision Making Process in Appendix Part 4.

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9. The Partners agree to comply with all procedures included in the Procedures Document in

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Appendix Part 6 together with any amendments which may be introduced from time to time.

10. The Partners agree to enter into one or more binding contracts in the form(s) indicated in Appendix

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Part 3 as appropriate, to which this Partnering Agreement will be appended.

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11. Where a Guaranteed Maximum Price is shown to be applicable in Appendix Part 5 all Partners will
constantly use their best endeavours to achieve the Guaranteed Maximum Price stated.

PARTNERING AGREEMENT PSPC P

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APPENDIX PART 1

Schedule of Partners

Name Address Date of Appointment

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PARTNERING AGREEMENT PSPC P

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APPENDIX PART 2

Partnering Charter (1)

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PARTNERING AGREEMENT PSPC P

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APPENDIX PART 3

Formal Contracts (10)

PUBLIC SECTOR PARTNERING CONTRACTS:

The Partners agree to enter into one or more of the following options:

Option 1 Term Maintenance: Measure and Value

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Option 2 Term Maintenance: Target Cost With Cost Reimbursable

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Option 3 Authority Design: Lump Sum

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Option 4 Contractor Design: Lump Sum

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Option 5 Authority Design: Target Cost With Cost Reimbursable

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Option 6 Contractor Design: Target Cost With Cost Reimbursable

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Option 7 Subcontract: Lump Sum

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Option 8 Subcontract: Target Cost With Cost Reimbursable

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Option 9 Professional Services

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PARTNERING AGREEMENT PSPC P

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APPENDIX PART 4

Decision Making Process (8)

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PARTNERING AGREEMENT PSPC P

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APPENDIX PART 5

Guaranteed Maximum Price (11)

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PARTNERING AGREEMENT PSPC P

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APPENDIX PART 6

Procedures Document (9)

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PARTNERING AGREEMENT PSPC P

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FEDERATION OF PROPERTY SOCIETIES

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PUBLIC SECTOR PARTNERING CONTRACT

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TERM MAINTENANCE

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MEASURE AND VALUE

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DP S P C 1

OPTION 1
SECTOR PARTNERING CONTRACT

The Public Sector Partnering Contract is made up from the following documents:

Document Ref

Partnering Agreement PSPC P

Available Options

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Option 1 Term Maintenance Measure and Value PSPC 1

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Option 2 Term Maintenance Target Cost With Cost Reimbursable PSPC 2

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Option 3 Authority Design

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Lump Sum PSPC 3

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Option 4 Contractor Design
Lump Sum PSPC 4

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Option 5 Authority Design

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Target Cost With Cost Reimbursable PSPC 5

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Option 6 Contractor Design

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Target Cost With Cost Reimbursable PSPC 6

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Option 7 Subcontract
Lump Sum PSPC 7

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Option 8 Subcontract
Target Cost With Cost Reimbursable PSPC 8

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Option 9 Professional Services PSPC 9

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Option 10 Prestart Agreement PSPC 10

Schedule of Costs
For use with Option 2, 5, 6 or 8 PSPC SC

Fluctuation Rules PSPC F

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CONTENTS

AGREEMENT

TERMS AND CONDITIONS

1. Partnering Obligations
2. Programme
3. Value of Work
4. Orders

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5. Response Times and Other Procedures
6. Cancellation of an Order

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7. Communications

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8. Assignment
9. Subcontracting

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10. Contractor’s Obligations

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11. Contract Administrator’s Powers
12. Non-Compliance with Contract Administrator’s Instructions
13. Statutory Obligations

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14. CDM Regulations

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15. Access to the Site

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16. Supply of Materials by the Authority

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17. Materials

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18. Commencement and Completion

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19. Interruption of Work
20. Extensions of Time and Additional Cost

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21. Variations
22. Valuation
23. Measurement

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24. Payment Certificates
25. Retention

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26. Completion and Final Value
27. Payment

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28. Value Added Tax
29. Defects
30. Indemnity
31. Insurance
32. Authority’s Risk
33. Prevention of Corruption
34. Termination by the Authority
35. Adjudication
36. Arbitration
37. Reckoning Periods of Days
38. Applicable Law
39. Third Party Rights

APPENDIX

Part 1 General
Part 2 Response Times and Other Procedures required by the Authority
Part 3 Insurance
Part 4 Key Personnel

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AGREEMENT
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AGREEMENT

This Agreement made on the day of 20 is

Between

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of

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(called ‘the Authority’)

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And

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of

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(called ‘the Contractor’)

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WHEREAS

Recitals

First the Authority requires works of responsive maintenance, planned maintenance and minor works
(the Work) described in Appendix Part 1.1.2 to be carried out within:

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(called ‘the Area’)

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in accordance with the contract.

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Second the Contractor has offered to carry out the Work in accordance with the contract and the Authority

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has accepted that offer.

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IT IS AGREED

Article 1

The Contractor will carry out the Work in accordance with the contract.

Article 2

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The Authority will pay the Contractor in accordance with the contract.

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Article 3

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The term ‘the Contract Administrator’ in the contract means

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or such other person as the Authority may appoint as a replacement.

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Article 4

The term ‘the Planning Supervisor’ in the contract means

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or such other person as the Authority appoints as a replacement as the Planning Supervisor pursuant to the
CDM Regulations.

Article 5

The contract comprises the following contract documents:

• Articles of Agreement

• Terms and Conditions

• Appendix

• Schedule of Rates

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The several documents forming the contract are to be taken as mutually explanatory of one another and in the case
of ambiguities or discrepancies they will be explained and adjusted by the Contract Administrator who will then
issue to the Contractor appropriate instructions in writing.

Article 6

The contract does not exclude any rights and obligations the Authority or Contractor may have under statute or at
common law as a result of carrying out the Work.

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SIGNATURES

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TERMS AND CONDITIONS

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Term Maintenance
Measure and Value
Terms and Conditions

1.0 Partnering Obligations

1.1 The Contractor will enter into the Partnering Agreement with the Authority and such other third
parties associated with the Project referred to in the Partnering Agreement, as the Authority and
Contractor agree.

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1.2 The Contractor will enter into the Partnering Charter detailed in the Partnering Agreement.

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2.0 Programme

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2.1 A programme will be agreed between the Contract Administrator and the Contractor at the

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commencement of each government fiscal year. The Work will be identified in specific categories and
budget heads.

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2.2 The programme will be continuously monitored and adjustments may be made by agreement between
the Contract Administrator and the Contractor to accommodate changes in demand.

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3.0 Value of Work

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The Authority does not accept any liability for the amount of work that will be ordered in specific categories

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and no change in the percentage adjustments will be made if the value of work ordered in specific categories
is at variance with that stated in Appendix Part 1.3 or provided through any other source.

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4.0 Orders

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4.1 Orders detailing work to be carried out will be issued by the Contract Administrator and will be
executed by the Contractor within the Contract Period stated in Appendix Part 1.4 unless agreed

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otherwise by the Contractor and the Contract Administrator.

4.2 The Contractor will comply with all reasonable written instructions issued by the Contract
Administrator in regard to the Work under any Order.

4.3 The Value of each Order will not be less than the Minimum Value or greater than the Maximum Value
stated in Appendix Part 1.2.

5.0 Response Times and Other Procedures

The Contractor must, in carrying out the Work in any Order issued by the Contract Administrator, comply with the
response time and other procedures required by the Authority as detailed in Appendix Part 2.

6.0 Cancellation of an Order

6.1 The Contract Administrator may cancel any Order at will and at any time in writing.

6.2 The Authority shall reimburse the Contractor any additional costs reasonably incurred by the
Contractor as a result and include such costs in a Payment Certificate issued in accordance with clause 24.0.

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7.0 Communications

Communications required by the contract to be in writing may be handwritten or typed and sent by hand,
post, facsimile or email, or other means resulting in a permanent record.

8.0 Assignment

Neither the Authority nor the Contractor will, without the prior written consent of the other, assign the
contract.

9.0

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Subcontracting

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The Contractor will not subcontract the Work or any part without the written consent of the Contract

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Administrator whose consent will not be unreasonably delayed or withheld.

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10.0 Contractor’s Obligations

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10.1 The Contractor will carry out the Work with due diligence and in a workmanlike manner in

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accordance with the contract.

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10.2 The Authority reserves the right to place orders for similar work with other contractors or labour

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working directly for the Authority in the Area.

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10.3 The Contractor will provide, except where provided by the Authority, the necessary plant and
equipment for the proper execution of all Orders, including scaffolding, machinery, tools or other
appliances.

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10.4 The Contractor will employ the key personnel identified in Appendix Part 4. Any substitutes must be

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of equivalent ability and qualifications and be accepted by the Contract Administrator.

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11.0 Contract Administrator’s Powers

11.1 The Contractor will comply with all reasonable written instructions issued by the Contract
Administrator in regard to the Work.

11.2 The Contract Administrator may delegate any of the powers provided for by the Contract. These
delegated powers may be cancelled or other delegates substituted.

11.3 The Contract Administrator may, but not unreasonably or vexatiously, instruct the Contractor to
remove an employee engaged on the Work. The Contractor within one working day of receiving the
instruction will ensure that the employee has no further involvement with the Work.

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12.0 Non-compliance with Contractor Administrator’s Instructions

If the Contractor fails to comply with a Contract Administrator’s written instruction the Contract
Administrator may serve a written default notice on the Contractor. Should the instruction not be complied
with within a further 7 days the Authority may employ and pay others to carry out the instruction. The
Authority may then charge the Contractor with the resultant costs or deduct or withhold the costs from sums
otherwise due to the Contractor.

13.0 Statutory Obligations

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The Contractor will comply with all applicable statutory requirements including safety, health and welfare

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and CDM Regulations.

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14.0 CDM Regulations

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The Authority will ensure that the Planning Supervisor carries out all the duties of the Planning Supervisor
under the CDM Regulations.

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15.0 Access to the Site

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15.1 Access to a property in the Area referred to in any Order will be arranged by or on the Contract

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Administrator’s instructions. The Contractor will be responsible for taking down and refixing if

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required any fixtures, fittings and the like necessary to enable the Contractor to carry out the Work in

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the Order.

15.2 If the Contractor is unable to gain access to a property in the Area referred to in any Order, the
Contractor must immediately notify the Contract Administrator.

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16.0 Supply of Materials by the Authority

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16.1 The Authority may supply any of the materials or plant and equipment necessary for the carrying out
or part carrying out of any Order.

16.2 Materials supplied by the Authority will remain the property of the Authority and the Contractor will
be responsible for the safe storage of such materials whilst in the Area.

16.3 The Contractor will be responsible for the safe storage of any plant and equipment supplied by the
Authority. Such plant and equipment will be returned to the Contract Administrator if required on
completion of the Order.

17.0 Materials

All materials whether supplied by the Contractor or by the Authority will be as described in the Order.

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18.0 Commencement and Completion

All Orders will, unless subject to any priority coding given in Appendix Part 1.5, state a commencement
date (called the Order Commencement Date) and a date for completion (called the Order Completion Date)
and the Contractor will complete each Order by such date.

19.0 Interruption of Work

The Contract Administrator may interrupt the execution of the Work to revise the Contractor’s priority or

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programme of working.

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20.0 Extensions of Time and Additional Cost

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20.1 Extensions of time for completion of the Work in any Order may be granted by the Contract
Administrator where the Contractor is prevented from completing by the Order Completion Date due

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to any of the following reasons:-

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.1 Lack of access under clause 15.0

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.2 Interruption of work under clause 19.0

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.3 Any act, omission or default by the Authority or of others employed or engaged by the Authority

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.4 Any matter outside the control or responsibility of the Contractor or others employed or

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engaged by the Contractor

.5 The Contractor suspends work in accordance with clause 27.3

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.6 Variations issued in accordance with clause 21.0.

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20.2 The Contractor will provide full details and particulars to demonstrate that any one or more of those

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causes has prevented completion by the Order Completion Date in such form and detail as the
Contract Administrator may reasonably require.

20.3 The Contractor will constantly use its best endeavours to carry out and complete the Work in any
Order by the Order Completion Date or extended Order Completion Date.

20.4 Where the Contractor incurs additional cost as a result of any of the matters referred to in clause 20.1
these costs will be recorded by the Contractor. A valuation of the effects of these matters will be made
by the Contract Administrator in consultation with the Contractor in a fair and reasonable manner on
a costs basis. Valuations made in accordance with this clause will be included in a Payment
Certificate issued in accordance with clause 24.0.

21.0 Variations

21.1 The Contract Administrator may, from time to time, issue further documents which explain or amplify
the drawings or instructions issued with any Order.

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21.2 The Contract Administrator without invalidating this contract may order variations to the Work by
way of:-

.1 Variation or modification of the design, quality or quantity of the Work comprised in any Order

.2 Addition to, omission from or alteration to the Work comprised in any Order

.3 Change to the sequence of the Work comprised in any Order.

21.3 Variations are to be given in writing but if given orally they must be confirmed in writing to the

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Contract Administrator by the Contractor within 7 days or at any time by the Contract Administrator
up to the date of certification of the final value of the Order in accordance with clause 26.2

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21.4 The value of any variation issued by the Contract Administrator will be ascertained and included in a
Payment Certificate issued in accordance with clause 24.0.

22.0 Valuation

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22.1 The valuation of an Order will be ascertained by measurement and valuation in accordance with the
rates or prices in the Schedule of Rates referred to in in Appendix Part 1.8 or rates and prices deduced

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from the Schedule as far as such rates or prices apply. These rates or prices are to be adjusted by the
percentage indicated in Appendix Part 1.8.

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22.2 Where the rates or prices in the Schedule of Rates do not apply the valuation will be ascertained on a

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fair and reasonable basis by the Contract Administrator after consultation with the Contractor.

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22.3 A reduction in the rates or prices referred to in clauses 22.1 and 22.2 will be made where the Authority
provides materials, plant or equipment in accordance with clause 16.0. The reduction will reflect the
saving in direct cost to the Contractor together with off site overheads and profit.

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23.0 Measurement

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23.1 The measurement and valuation of the Work comprised in Orders will be undertaken by the
Contractor, unless the Contract Administrator otherwise directs.

23.2 If the Contractor is directed not to carry out the measurement and valuation the task will be
undertaken by the Contract Administrator.

24.0 Payment Certificates

24.1 Unless otherwise agreed, the Contractor may submit to the Contract Administrator at monthly
intervals commencing one month after an Order Commencement Date a fully detailed request for a
Payment Certificate.

24.2 The Contractor may apply to the Contract Administrator for further Payment Certificates at:-

.1 Completion of all of the Work in the Order and

.2 Four weeks after the Contract Administrator issues the Defects Correction Certificate in
connection with any Order.

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24.3 The value of work to be included in the Payment Certificates will be ascertained in accordance with
clauses 6.0, 20.0, 21.0 and 22.0.

24.4 Within 14 days of receipt of a request the Contract Administrator will issue a Payment Certificate
which sets out the basis on which it is calculated. It will take into account any amounts previously
certified in respect of the Order.

25.0 Retention

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25.1 Amounts certified for payment up to the date of Practical Completion for each Order will be subject to
the deduction of the percentage stated in Appendix Part 1.7 up to the limit of the retention.

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25.2 Amounts certified for payment from the date of the issue of the Certificate of Practical Completion up
to the date of the issue of the Defects Correction Certificate for each Order will be subject to

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deduction of half of the percentage stated in Appendix Part 1.7.

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25.3 All Payment Certificates issued after the date of the issue of the Defects Correction Certificate will be
in full.

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25.4 If retention is not to be deducted ‘nil’ is to be stated in Appendix Part 1.7.

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26.0 Completion and Final Value

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26.1 The Contractor will notify the Contract Administrator in writing of the date when in its opinion the

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Work comprised in an Order has been completed. The Contract Administrator will certify the date
when Work in the Order has reached Practical Completion.

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26.2 Within six weeks of the Order being completed the Contract Administrator will certify the value of the
completed Order and state to what the value relates, the basis on which that value is calculated and the

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amount to be paid by the Authority to the Contractor after taking into account any amounts previously
certified in respect of the Order.

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27.0 Payment

27.1 The Authority will pay the Contractor on or before the final date for payment being not later than 14
days after the issue of the Payment Certificate the sum certified.

27.2 Not later than 5 days before the final date for payment, the Authority will give a written notice to the
Contractor stating any amount proposed to be withheld from the Payment Certificate and the ground
or grounds for it being withheld.

27.3 If the Authority fails to make payment in full in accordance with the contract the Contractor may serve
notice on the Authority of an intention to suspend work. If the failure to make payment by the
Authority continues for 7 days after receipt of the written notice then the Contractor may suspend
performance until payment in full occurs.

27.4 If the Authority fails to make payment in full in accordance with the contract the Contractor will be
entitled to interest on the sum paid late at a rate of 5% above the Bank of England Base Rate for the
period of late payment.

TERM MAINTENANCE MEASURE AND VALUE PSPC 1

17
28.0 Value Added Tax

Any sums certified under this contract will be exclusive of Value Added Tax.

29.0 Defects

29.1 Any defects, excessive shrinkages or other faults which appear within 6 months of the date the
Contract Administrator certifies that all work in the Order has achieved Practical Completion due to
materials or workmanship not being in accordance with the contract will be made good by the

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Contractor entirely at the Contractor’s cost.

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29.2 When all the remedial work referred to in clause 29.1 is complete, the Contract Administrator will

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issue a Defects Correction Certificate indicating the date when these obligations were discharged.

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30.0 Indemnity

30.1 The Contractor will indemnify and keep indemnified the Authority against all losses and claims in

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respect of

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.1 Death of or injury to any person or

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.2 Loss of or damage to any property

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which may arise out of or in consequence of the carrying out of the Work in any Order.

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31.0 Insurance

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31.1 Except those matters which are the Authority’s risk under clause 32.0, the Contractor will be

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responsible for effecting and maintaining the following insurance cover with a reputable insurer.

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.1 The risk of any loss or damage caused to the Work, unfixed materials and items for
incorporation into the Work from any cause whatsoever. This insurance will be in the joint
names of the Contractor and the Authority for the full reinstatement value plus 15% in respect of
professional fees. The insurance cover will commence on the Commencement Date of the first
Order and continue until the date of Practical Completion of all Orders.

.2 Where the Contractor is required to undertake any design function, the Contractor will effect
and maintain professional indemnity insurance to cover all defects or insufficiency in the
Contractor’s design work for the limit of liability indicated in Appendix Part 3. The Contractor
will provide insurance cover for any one occurrence or series of occurrences for the period
indicated in Appendix Part 3.

.3 Public liability insurance for injury to persons and damage to property other than the Work
arising by reason of the Contractor’s negligence, breach of statutory duty, omission or default
for the minimum amount indicated in Appendix Part 3 for one occurrence or series of
occurrences arising out of one event.

TERM MAINTENANCE MEASURE AND VALUE PSPC 1

18
.4 Employer’s liability insurance in respect of persons in the Contractor’s employment in
compliance with all legislation and such insurance shall be for the minimum amount indicated
in Appendix Part 3.

31.2 The Contractor will provide, if requested by the Contract Administrator, evidence that the insurance is
effective. In the absence of such evidence the Authority will be entitled to effect and maintain the
insurance and charge the cost to the Contractor or deduct the cost from monies due.

32.0 Authority’s Risk

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32.1 The Authority will be liable for any of the matters included in clause 32.2 which cause

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.1 Damage to the Work or

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.2 Expense, liability, loss, claims or proceedings arising out of or in connection with the Work in
respect of personal injury or death of any person or loss or damage to any property.

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32.2 Matters for which the Authority is liable

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.1 Riot, war, invasion, act of foreign enemies or hostilities

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.2 Civil war, rebellion, revolution, insurrection or military or usurped power

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.3 Ionising radiations or contamination by radioactivity from any nuclear fuel or any nuclear waste

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.4 Pressure waves caused by aircraft or other aerial devices

.5 Any act of terrorism

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.6 Any act or negligence on the part of the Authority or any person for whom the Authority is

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liable.

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32.3 Where the Work involves maintenance, refurbishment or alteration within existing structures, the
Authority will bear the risks of fire, lightning, explosion, storm, tempest, flood, bursting or
overflowing of water tanks, apparatus or pipes, earthquake, aircraft or other aerial devices or articles
dropped therefrom in respect of loss or damage to the existing structures and contents owned by the
Authority or for which it is responsible.

32.4 The Contractor will bear all other risks.

33.0 Prevention of Corruption

33.1 The Authority will be entitled to cancel this contract if the Contractor gives any fee or reward the
receipt of which is an offence under sub-section (2) of section 117 of the Local Government Act 1972
or any other enactment.

33.2 The Contractor will pay to the Authority any loss, cost or expense incurred which results from the
cancellation.

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34.0 Termination by the Authority

34.1 The Authority may terminate the Contractor’s employment under this clause by written notice by post
with proof of delivery for reasons referred to in clauses 34.2 and/or 34.3.

34.2 If the Contractor :-

.1 Makes a composition or arrangement with creditors, or becomes bankrupt, or

.2 Being a company makes a voluntary arrangement for a composition of debts or scheme of

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arrangement to be approved in accordance with the Companies Act 1985 or the Insolvency Act
1986 as the case may be or any amendment or re-enactment, or

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.3 Has a provisional liquidator appointed, or

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.4 Has a winding-up order made, or

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.5 Passes a resolution for voluntary winding-up (except for the purposes of amalgamation or
reconstruction), or

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.6 Under the Insolvency Act 1986 or any amendment or re-enactment has an administrator or an

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administrative receiver appointed.

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34.3 If the Contractor:-

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.1 Abandons the Work under any Order without due cause, or

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.2 Fails to proceed regularly and diligently with the Work under any Order after due written
warning by the Contract Administrator, or

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.3 Refuses or neglects after due written notice from the Contract Administrator to remove work,

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materials or goods which do not comply with the contract, or

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.4 Fails to comply with statutory safety, health and welfare or CDM Regulations, or

.5 Fails to comply with the response times or other procedures required by the Authority referred to
in clause 5.0.

34.4 If the Contractor’s employment is terminated under this clause:-

.1 The Contractor will immediately cease to occupy any property in the Area in respect of which an
Order has been issued but will not remove any plant, tools or equipment until instructed by the
Contract Administrator. The Authority will be entitled to use the Contractor’s plant, tools and
equipment until the completion of the Work for which Orders have been given under the
contract.

.2 The Authority may recover from the Contractor any additional cost of completing the Work
under any Order together with any loss, cost, damage or expense incurred as a result of the
termination.

.3 The Authority will not be bound to make any further payments to the Contractor until
completion of all Work for which Orders have been given under the contract.

TERM MAINTENANCE MEASURE AND VALUE PSPC 1

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34.5 The provisions of this clause will not affect any legal entitlement the Authority may have to terminate
the contract due to any breach or breaches of the contract on the part of the Contractor.

34.6 The provisions of this clause must not be operated in an unreasonable or oppressive manner.

35.0 Adjudication

35.1 Either party may refer any dispute arising under or in connection with the contract or the carrying out
of the Work to adjudication by way of a written notice.

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35.2 The Scheme for Construction Contracts Adjudication Provisions as referred to in the Housing Grants,

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Construction and Regeneration Act 1996 or any amendment or re-enactment will apply.

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36.0 Arbitration

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36.1 All disputes arising under or in connection with the contract or the carrying out of the Work will be
finally determined by reference to arbitration. The party seeking arbitration must serve on the other

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party a notice in writing to refer the dispute to arbitration.

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36.2 The Arbitrator will be a person appointed by agreement of the parties.

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If the parties fail to appoint an Arbitrator within one month of either party serving on the other party a

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notice in writing the dispute will be referred to a person to be appointed by the President for the time

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being of the Chartered Institute of Arbitrators.

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36.3 The arbitration will be conducted in accordance with the Construction Industry Model Arbitration

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Rules (CIMAR) current at the date the contract was entered into.

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36.4 The appointed Arbitrator will have full power to open up, review and revise any decision, opinion,
instruction, direction, certificate or valuation of the Contract Administrator.

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37.0 Reckoning Periods of Days

Where under the contract an action is required to be undertaken within a specified period of days after or
from a specified date, the period will begin immediately after that date. Where the period would include a
Public Holiday, Saturday or Sunday, that day shall be excluded.

38.0 Applicable Law

The law of England and Wales shall be the law applicable to the contract unless the Area is situated in
Scotland in which case the law of Scotland will apply.

39.0 Third Party Rights

Nothing in the contract confers any right to enforce any of its terms on any person who is not one of the
parties.

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APPENDIX PART 1

1.1.1 List of properties in the Area in respect of which Orders under the contract may be issued.

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1.1.2 Description of the types of work for which Orders under the contract may be issued. (First Recital)

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APPENDIX PART 1

1.2 Minimum Value of any one Order (4.3) to be issued under the contract

£ (words )

Maximum Value of any one Order (4.3) to be issued under the contract

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1.3

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Approximate anticipated value of work (3.0) to be carried out under the contract

R A (words ) per annum

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*£ (words ) for the Contract Period

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* delete as required

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1.4 The Contract Period (4.0) will be month(s)

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commencing on (date)

1.5
Dcompleting on

Priority coding for Orders (18.0)


(date)

TERM MAINTENANCE MEASURE AND VALUE PSPC 1

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APPENDIX PART 1

1.6 The work will be valued in accordance with the Schedule of Rates identified in 1.8 below.

1.7 Retention (25.0)

Retention Percentage %

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Limit of Retention £

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If there is to be no retention insert NIL

1.8

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Schedule of Rates (22.0)

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The following Schedule of Rates will apply

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.1* the National Schedule of Rates

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or

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.2 *

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(identify the priced Schedule of Rates to be used)

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* delete as required

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upon and subject to the *addition of / deduction of

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Percentage %

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1.9* Fluctuation Provisions

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Where 1.8.1 applies the rates in the National Schedule of Rates current at the commencement of the
Contract Period will apply to the valuation of Orders issued prior to the following 1 August and
subsequently the up-date for those rates will apply at 1 August in each year to Orders issued on and after that
date.

Where 1.8.2 applies the rates in the Schedule of Rates are to be adjusted during the Contract Period in
accordance with the BCIS General Building Cost Index

Base Date

1.10*Fixed Price:

The rates are those given in the Schedule of Rates identified in 1.8 and will not be subject to fluctuations
adjustment.

* delete 1.9 or 1.10 as required.

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APPENDIX PART 2

Response Times and Other Procedures Required by the Authority (5.0)

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APPENDIX PART 3

Insurance (31.0)

Professional Indemnity (31.1.2)

Limit of liability £

Period of insurance

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Public liability (31.1.3)

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Minimum cover £

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Employer’s liability (31.1.4)

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Minimum cover £

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APPENDIX PART 4

Key Personnel (10.4)

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ON
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Perform 21

FEDERATION OF PROPERTY SOCIETIES

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PUBLIC SECTOR PARTNERING CONTRACT

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TERM MAINTENANCE

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TARGET COST WITH COST REIMBURSABLE

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DP S P C 2

OPTION 2
PUBLIC SECTOR PARTNERING CONTRACT

The Public Sector Partnering Contract is made up from the following documents:

Document Ref

Partnering Agreement PSPC P

Available Options/Schedule/Rules

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Option 1 Term Maintenance
Measure and Value PSPC 1

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Option 2 Term Maintenance
Target Cost With Cost Reimbursable PSPC 2

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Option 3 Authority Design

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Lump Sum PSPC 3

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Option 4 Contractor Design
Lump Sum PSPC 4

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Option 5 Authority Design

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Target Cost With Cost Reimbursable PSPC 5

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Option 6 Contractor Design

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Target Cost With Cost Reimbursable PSPC 6

Option 7 Subcontract

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Lump Sum PSPC 7

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Option 8 Subcontract
Target Cost With Cost Reimbursable PSPC 8

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Option 9 Professional Services PSPC 9

Option 10 Prestart Agreement PSPC 10

Schedule of Costs
For use with Option 2, 5, 6 or 8 PSPC SC

Fluctuation Rules PSPC F

TERM MAINTENANCE TARGET COST PSPC 2

2
CONTENTS

AGREEMENT

TERMS AND CONDITIONS

1. Partnering Obligations
2. Programme
3. Value of Work
4. Orders

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5. Response Times and Other Procedures
6. Cancellation of an Order

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7. Communications

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8. Assignment
9. Subcontracting

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10. Contractor’s Obligations

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11. Provision of Records
12. Contract Administrator’s Powers
13. Non-Compliance with Contract Administrator’s Instructions

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14. Statutory Obligations

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15. CDM Regulations

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16. Access to the Site

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17. Supply of Materials by the Authority

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18. Materials

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19. Commencement and Completion

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20. Interruption of Work

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21. Extensions of Time
22. Variations
23. Target Cost

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24. Valuation
25. Gain Share of Pain Share

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26. Measurement
27. Payment Certificates

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28. Retention
29. Completion and Final Value
30. Payment
31. Value Added Tax
32. Defects
33. Indemnity
34. Insurance
35. Authority’s Risk
36. Prevention of Corruption
37. Termination by the Authority
38. Adjudication
39. Arbitration
40. Reckoning Periods of Days
41. Applicable Law
42. Third Party Rights

TERM MAINTENANCE TARGET COST PSPC 2

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APPENDIX

Part 1 General
Part 2 Response Times and Other Procedures required by the Authority
Part 3 Insurance
Part 4 Gain Share/Pain Share
Part 5 Key Personnel

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ON
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AGREEMENT
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AGREEMENT

This Agreement made on the day of 20 is

Between

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of

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(called ‘the Authority’)

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And

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of

(called ‘the Contractor’)

TERM MAINTENANCE TARGET COST PSPC 2

6
WHEREAS

Recitals

First the Authority requires works of responsive maintenance, planned maintenance and minor works
(the Work) described in Appendix Part 1.1.2 to be carried out within:

ON
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(called ‘the Area’)

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in accordance with the contract.

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Second the Contractor has offered to carry out the Work in accordance with the contract and the Authority
has accepted that offer.

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IT IS AGREED

Article 1

The Contractor will carry out the Work in accordance with the contract.

Article 2

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The Authority will pay the Contractor in accordance with the contract.

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Article 3

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The term ‘the Contract Administrator’ in the contract means

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or such other person as the Authority may appoint as a replacement.

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Article 4

The term ‘the Planning Supervisor’ in the contract means

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or such other person as the Authority appoints as a replacement as the Planning Supervisor pursuant to the
CDM Regulations.

Article 5

The contract comprises the following contract documents:

• Articles of Agreement

• Terms and Conditions

• Appendix

• Schedule of Rates

TERM MAINTENANCE TARGET COST PSPC 2

8
The several documents forming the contract are to be taken as mutually explanatory of one another and in the case
of ambiguities or discrepancies they will be explained and adjusted by the Contract Administrator who will then
issue to the Contractor appropriate instructions in writing.

Article 6

The contract does not exclude any rights and obligations the Authority or Contractor may have under statute or at
common law as a result of carrying out the Work.

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TERM MAINTENANCE TARGET COST PSPC 2

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SIGNATURES

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TERMS AND CONDITIONS

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TERM MAINTENANCE
TARGET COST WITH COST REIMBURSABLE
TERMS AND CONDITIONS

1.0 Partnering Obligations

1.1 The Contractor will enter into the Partnering Agreement with the Authority and such other third
parties associated with the Project referred to in the Partnering Agreement as the Authority and

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Contractor agree.

1.2 The Contractor will enter into the Partnering Charter detailed in the Partnering Agreement.

2.0 Programme

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2.1 A programme will be agreed between the Contract Administrator and the Contractor at the

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commencement of each government fiscal year. The work will be identified in specific categories and
budget heads.

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2.2 The programme will be continuously monitored and adjustments may be made by agreement between

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the Contract Administrator and the Contractor to accommodate changes in demand.

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3.0 Value of Work

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The Authority does not accept any liability for the amount of work that will be ordered in specific
categories and no change in the percentage adjustments will be made if the value of the work ordered in
specific categories is at variance with that stated in Appendix Part 1.3 or provided through any other source.

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4.0 Orders

4.1 Orders detailing the Work to be carried out will be issued by the Contract Administrator and will be

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executed by the Contractor within the Contract Period stated in Appendix Part 1.4 unless agreed
otherwise by the Contractor and the Contract Administrator.

4.2 The Contractor will comply with all reasonable written instructions issued by the Contract
Administrator in regard to the Work under any Order.

4.3 The Value of each Order will not be less than the Minimum Value or greater than the Maximum
Value stated in Appendix Part 1.2.

5.0 Response Times and Other Procedures

The Contractor must, in carrying out the Work in any Order issued by the Contract Administrator, comply
with the response times and other procedures required by the Authority as detailed in Appendix Part 2.

6.0 Cancellation of an Order

The Contract Administrator may cancel any Order at will and at any time in writing.

TERM MAINTENANCE TARGET COST PSPC 2

12
7.0 Communications

Communications required by the contract to be in writing may be handwritten or typed and sent by hand,
post, facsimile or email, or other means resulting in a permanent record.

8.0 Assignment

Neither the Authority nor the Contractor will, without the prior written consent of the other, assign the
contract.

9.0

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Subcontracting

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The Contractor will not subcontract the Work or any part without the written consent of the Contract

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Administrator whose consent will not be unreasonably delayed or withheld.

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10.0 Contractor’s Obligations

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10.1 The Contractor will carry out the Work with due diligence and in a workmanlike manner in

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accordance with the contract.

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10.2 The Authority reserves the right to place orders for similar work with other contractors or labour

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working directly for the Authority in the Area.

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10.3 The Contractor will provide all the labour and, except where provided by the Authority, materials
necessary for the carrying out of any Order.

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10.4 The Contractor will provide, except where provided by the Authority, the necessary plant and
equipment for the proper execution of all Orders, including scaffolding, machinery, tools or other

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appliances.

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10.5 The Contractor will employ the key personnel identified in Appendix Part 5. Any substitutes must be
of equivalent ability and qualifications and be accepted by the Contract Administrator.

11.0 Provision of Records

11.1 The Contractor will provide copies of all records, costs, supply invoices and accounts in connection
with the contract required by the Contract Administrator subject to 7 days notice.

11.2 The Contractor will allow the Authority to carry out a full audit of the documents referred to in this
clause on an unlimited number of occasions subject to 14 days notice.

11.3 The Contractor will retain copies of the documents referred to in this clause for a period of 6 years
after the Date of Practical Completion of any Order.

TERM MAINTENANCE TARGET COST PSPC 2

13
12.0 Contract Administrator’s Powers

12.1 The Contractor will comply with all reasonable written instructions issued by the Contract
Administrator in regard to the Work.

12.2 The Contract Administrator may delegate any of the powers provided for by the contract. These
delegated powers may be cancelled or other delegates substituted.

12.3 The Contract Administrator may, but not unreasonably or vexatiously, instruct the Contractor to
remove an employee engaged on the Work. The Contractor within one working day of receiving the

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instruction will ensure that the employee has no further involvement with any property in the Area.

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13.0 Non-compliance with Contract Administrator’s Instructions

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If the Contractor fails to comply with a Contract Administrator’s written instruction the Contract

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Administrator may serve a written default notice on the Contractor. Should the instruction not be complied
with within a further 7 days the Authority may employ and pay others to carry out the instruction. The
Authority may then charge the Contractor with the resultant costs or deduct or withhold the costs from sums

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otherwise due to the Contractor.

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14.0 Statutory Obligations

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The Contractor will comply with all applicable statutory requirements including safety, health and welfare

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and CDM Regulations.

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15.0 CDM Regulations

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The Authority will ensure that the Planning Supervisor carries out all the duties of a Planning Supervisor

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under the CDM Regulations.

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16.0 Access to the Site

Access to a property in the Area referred to in any Order will be arranged by or on the Contract
Administrator’s instructions. The Contractor will be responsible for taking down and refixing if required
any fixtures, fittings and the like necessary to enable the Contractor to carry out the Work in the Order.

17.0 Supply of Materials by the Authority

17.1 The Authority may supply any of the materials or plant and equipment necessary for the carrying out
or part carrying out of any Order.

17.2 Materials supplied by the Authority will remain the property of the Authority and the Contractor will
be responsible for the safe storage of such materials whilst on a property in the Area.

17.3 The Contractor will be responsible for the safe storage of any plant and equipment supplied by the
Authority. Such plant and equipment will be returned to the Contract Administrator if required on
completion of the Order.

TERM MAINTENANCE TARGET COST PSPC 2

14
18.0 Materials

All materials whether supplied by the Contractor or by the Authority will be as described in the Order.

19.0 Commencement and Completion

All Orders will, unless subject to any priority coding given in Appendix Part 1.5, state a commencement
date (called the Order Commencement Date) and a date for completion (called the Order Completion Date)
and the Contractor will complete each Order by such date.

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20.0 Interruption of Work

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The Contract Administrator may interrupt the execution of the Work to revise the Contractor’s priority or

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programme of working.

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21.0 Extensions of Time

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21.1 Extensions of time for completion of the Work in any Order may be granted by the Contract

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Administrator where the Contractor is prevented from completing by the Order Completion Date due

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to any of the following reasons:-

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.1 Lack of access under clause 16.0

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.2 Interruption of work under clause 20.0

.3 Any act, omission or default by the Authority or of others employed or engaged by the Authority

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.4 Any matter outside the control or responsibility of the Contractor or others employed or

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engaged by the Contractor

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.5 The Contractor suspends work in accordance with clause 30.3

.6 Variations issued under clause 22.0

21.2 The Contractor will provide full details and particulars to demonstrate that any one or more of those
causes has prevented completion by the Order Completion Date in such form and detail as the
Contract Administrator may reasonably require.

21.3 The Contractor will constantly use its best endeavours to carry out and complete the Work in any
Order by the Order Completion Date or extended Completion Date.

22.0 Variations

22.1 The Contract Administrator may, from time to time, issue further documents which explain or amplify
the drawings or instructions issued with any Order.

TERM MAINTENANCE TARGET COST PSPC 2

15
22.2 The Contract Administrator without invalidating this contract may order variations to the Work by
way of:-

.1 Variation or modification of the design, quality or quantity of the Work comprised in any Order

.2 Addition to, omission from or alteration to the Work comprised in any Order

.3 Change to the sequence of the Work comprised in any Order.

22.3 Variations are to be given in writing but if given orally they must be confirmed in writing to the

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Contract Administrator by the Contractor within 7 days or at any time by the Contract Administrator
up to the date of certification of the final value of the Order in accordance with clause 29.2.

23.0 Target Cost

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23.1 So as to fix the Target Cost the Work in each Order will be measured and priced in accordance with the
Schedule of Rates referred to in Appendix Part 1.8 or rates and prices deduced from the Schedule as
far as such rates and prices are applicable. Where the rates or prices in the Schedule or deduced rates

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do not apply, fair and reasonable rates and prices will be used. If Appendix 1.9 applies the Target Cost

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will be increased or decreased accordingly.

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23.2 A reduction in the Target Cost will be made where the Authority provides materials, plant or

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equipment in accordance with clause 17.0. The reduction will reflect the saving in direct cost to the

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Contractor together with off-site overheads and profit.

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23.3 Where the Contractor incurs additional costs as a result of any of the events in clause 23.4 such costs
will be recorded by the Contractor. A valuation of the effects of these events will be made by the
Contract Administrator in consultation with the Contractor in a fair and reasonable manner using the

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recorded costs as a basis. Valuations made in accordance with this clause will be included in the
Target Cost of any Orders so affected.

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23.4 Matters giving rise to additional costs:-

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.1 Where the Contractor is unable to gain access to the Site as required by clause 16.0.

.2 Where the Contract Administrator cancels an order in accordance with clause 6.0.

.3 Where the Contract Administrator interrupts the execution of the Works to revise the
Contractor’s priority or programme of working in accordance with clause 20.0.

.4 Any act, omission or default by the Authority or of others employed or engaged by the Authority.

.5 Any matter outside the control or responsibility of the Contractor or others employed or
engaged by the Contractor.

.6 Where the Contractor suspends work in accordance with clause 30.4.

.7 Variations issued in accordance with clause 22.0.

TERM MAINTENANCE TARGET COST PSPC 2

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24.0 Valuation

The valuation of an Order will be calculated by reference to the Contractor’s costs admissible under the
Schedule of Contractor’s Costs together with the Contractor’s Fee referred to in Appendix Part 4, plus the
gain share or minus the pain share referred to in Appendix 4 and calculated in accordance with clause 25.0.

25.0 Gain Share or Pain Share

25.1 The Contractor may become entitled to a gain share or subject to a pain share in respect of each Order

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issued under clause 4.0.

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25.2 The gain share or pain share for each Order will be

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based upon the following calculation.
£

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.1 Target Cost for the Order referred to in clause 23.0

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Less

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.2 Contractor’s Costs and Fee for the Order

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referred to in clause 24.0

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Positive or negative balance £

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25.3 Where the balance is positive, the Contractor will be entitled to have included in the valuation of an

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Order in accordance with clause 24.0, the positive balance multiplied by the gain share percentage in
Appendix 4.

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25.4 Where the balance is a negative, the valuation of an Order in accordance with clause 24.0 will be
reduced by the negative balance multiplied by the pain share percentage.

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25.6 A positive or negative share adjustment in respect of any Order will be included only in a Payment

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Certificate after a Final Value of the Order has been ascertained in accordance with clause 29. Where
the application of a negative adjustment results in an overpayment to the Contractor, the amount of the
overpayment will be reimbursed by the Contractor to the Authority within 14 days of the issue of the
Payment Certificate.

26.0 Measurement

26.1 The measurement and pricing of the Work comprised in Orders required to fix the Target Cost referred
to in clause 23.1 will be undertaken by the Contractor unless the Contract Administrator otherwise
directs.

26.2 If the Contractor is directed not to carry out the measurement the task will be undertaken by the
Contract Administrator.

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27.0 Payment Certificates

27.1 Unless otherwise agreed, the Contractor may submit to the Contract Administrator at monthly
intervals commencing one month after an Order Commencement Date a fully detailed request for a
Payment Certificate.

27.2 The Contractor may apply to the Contract Administrator for further Payment Certificates at:-

.1 Completion of all of the Work in the Order and

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.2 Four weeks after the Contract Administrator issues the Defects Correction Certificate in
connection with any Order.

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27.3 The value to be included in the Payment Certificates will be ascertained in accordance with the
valuation detailed in clause 24.0.

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27.4 Within 14 days of receipt of a request the Contract Administrator will issue a Payment Certificate

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which sets out the basis on which it is calculated. It will take into account any amounts previously
certified in respect of the Order.

28.0 Retention

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28.1 Amounts certified for payment up to the date of the issue of the Certificate of Practical Completion for

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each Order will be subject to deduction of the percentage stated in Appendix Part 1.7 up to the limit of

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the retention.

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28.2 Amounts certified for payment from the date of Practical Completion up to the date of the issue of the
Defects Correction Certificate for each Order will be subject to deduction of half the percentage stated
in Appendix Part 1.7.

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28.3 All Payment Certificates issued after the date of the issue of the Defects Correction Certificate will be
in full.

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28.4 If retention is not to be deducted ‘nil’ is to be stated in Appendix Part 1.7.

29.0 Completion and Final Value

29.1 The Contractor will notify the Contract Administrator in writing of the date when in its opinion the
Work comprised in an Order has been completed. The Contract Administrator will certify the date
when the work in the Order has reached Practical Completion.

29.2 Within six weeks of the Order being completed the Contract Administrator will certify the value of the
completed Order and state to what the value relates, the basis on which that value is calculated and the
amount to be paid by the Authority to the Contractor after taking into account any amounts previously
certified in respect of the Order.

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30.0 Payment

30.1 The Authority will pay the Contractor on or before the final date for payment being not later than 14
days after the issue of the Payment Certificate the sum certified.

30.2 Not later than 5 days before the final date for payment, the Authority will give a written notice to the
Contractor stating any amount proposed to be withheld from the Payment Certificate and the ground
or grounds for it being withheld.

30.3 If the Authority fails to make payment in full in accordance with the contract the Contractor may serve

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notice on the Authority of an intention to suspend work. If the failure to make payment by the
Authority continues for 7 days after receipt of the written notice then the Contractor may suspend

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performance until payment in full occurs.

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30.4 If the Authority fails to make payment in full in accordance with the contract the Contractor will be

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entitled to interest on the sum paid late at a rate of 5% above the Bank of England Base Rate for the

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period of late payment.

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31.0 Value Added Tax

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Any sums certified under this contract will be exclusive of Value Added Tax.

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32.0 Defects

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32.1 Any defects, excessive shrinkages or other faults which appear within 6 months of the date the
Contract Administrator certifies that all Work in the Order has achieved Practical Completion due to
materials or workmanship not being in accordance with the contract will be made good by the

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Contractor entirely at the Contractor’s cost.

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32.2 When all the remedial work referred to in clause 32.1 is complete the Contract Administrator will
issue a Defects Correction Certificate indicating the date when these obligations were discharged.

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33.0 Indemnity

33.1 The Contractor will indemnify and keep indemnified the Authority against all losses and claims in
respect of

.1 Death of or injury to any person or

.2 Loss of or damage to any property

which may arise out of or in consequence of the carrying out of the Work in any Order.

34.0 Insurance

34.1 Except those matters which are the Authority’s risk under clause 35.0, the Contractor will be
responsible for effecting and maintaining the following insurance cover with a reputable insurer.

TERM MAINTENANCE TARGET COST PSPC 2

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.1 The risk of any loss or damage caused to the Work, unfixed materials and items for incorporation
into the Work from any cause whatsoever. This insurance will be in the joint names of the
Contractor and the Authority for the full resinstatement value plus 15% in respect of
professional fees. The insurance cover will commence on the Commencement Date of the first
Order and continue until the date of Practical Completion of all Orders.

.2 Where the Contractor is required to undertake any design function, the Contractor will effect
and maintain professional indemnity insurance to cover all defects or insufficiency in the
Contractor’s design work for the limit of liability indicated in Appendix Part 3. The Contractor
will provided the insurance cover for any one occurrence or series of occurrences for the period

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indicated in Appendix Part 3.

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.3 Public liability insurance for injury to persons and damage to property other than the Work

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arising by reason of the Contractor’s negligence, breach of statutory duty, omission or default
for the minimum amount indicted in Appendix Part 3 for one occurrence or series of occurrences

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arising out of one event.

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.4 Employer’s liability insurance in respect of persons in the Contractor’s employment in
compliance with all legislation and such insurance shall be for the minimum amount indicated in

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Appendix Part 3.

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34.2 The Contractor will provide, if requested by the Contract Administrator, evidence that the insurance is

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effective. In the absence of such evidence the Authority will be entitled to effect and maintain the

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insurance and charge the cost to the Contractor or deduct the cost from monies due.

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35.0 Authority’s Risk

35.1 The Authority will be liable for any of the matters included in clause 35.2 which cause

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.1 Damage to the Work or

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.2 Expense, liability, loss, claims or proceedings arising out of or in connection with the Work in

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respect of personal injury or death of any person or loss or damage to any property.

35.2 Matters for which the Authority is liable

.1 Riot, war, invasion, act of foreign enemies or hostilities

.2 Civil war, rebellion, revolution, insurrection or military or usurped power

.3 Ionising radiations or contamination by radioactivity from any nuclear fuel or any nuclear waste

.4 Pressure waves caused by aircraft or other aerial devices

.5 Any act of terrorism

.6 Any act or negligence on the part of the Authority or any person for whom the Authority is
liable.

TERM MAINTENANCE TARGET COST PSPC 2

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35.3 Where the Work involves maintenance, refurbishment or alteration within existing structures, the
Authority will bear the risks of fire, lightning, explosion, storm, tempest, flood, bursting or
overflowing of water tanks, apparatus or pipes, earthquake, aircraft or other aerial devices or articles
dropped therefrom in respect of loss or damage to the existing structures and contents owned by the
Authority or for which it is responsible.

35.4 The Contractor will bear all other risks.

36.0 Prevention of Corruption

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36.1 The Authority will be entitled to cancel this contract if the Contractor gives any fee or reward the

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receipt of which is an offence under sub-section (2) of section 117 of the Local Government Act 1972

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or any other enactment.

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36.2 The Contractor will pay to the Authority any loss, cost or expense incurred which results from the
cancellation.

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37.0 Termination by the Authority

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37.1 The Authority may terminate the Contractor’s employment under this clause by written notice by post

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with proof of delivery for reasons referred to in clauses 37.2 and/or 37.3

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37.2 If the Contractor :-

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.1 Makes a composition or arrangement with creditors, or becomes bankrupt, or

.2 Being a company makes a voluntary arrangement for a composition of debts or scheme of

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arrangement to be approved in accordance with the Companies Act 1985 or the Insolvency Act
1986 as the case may be or any amendment or re-enactment, or

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.3 Has a provisional liquidator appointed, or

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.4 Has a winding-up order made, or

.5 Passes a resolution for voluntary winding-up (except for the purposes of amalgamation or
reconstruction), or

.6 Under the Insolvency Act 1986 or any amendment or re-enactment has an administrator or an
administrative receiver appointed.

37.3 If the Contractor:-

.1 Abandons the Work under any Order without due cause, or

.2 Fails to proceed regularly and diligently with the Work under any Order after due written
warning by the Contract Administrator, or

.3 Refuses or neglects after due written notice from the Contract Administrator to remove work,
materials or goods which do not comply with the contract, or

TERM MAINTENANCE TARGET COST PSPC 2

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.4 Fails to comply with statutory safety, health and welfare or CDM Regulations, or

.5 Fails to comply with the response times or other procedures required by the Authority referred to
in clause 5.0.

37.4 If the Contractor’s employment is terminated under this clause:-

.1 The Contractor will immediately cease to occupy any property in the Area in respect of which an
Order has been issued but will not remove any plant, tools or equipment until instructed by the
Contract Administrator. The Authority will be entitled to use the Contractor’s plant, tools and

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equipment until the completion of the Work for which Orders have been given under the
contract.

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.2 The Authority may recover from the Contractor any additional cost of completing the Work
under any Order together with any loss, cost, damage or expense incurred as a result of the

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termination.

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.3 The Authority will not be bound to make any further payments to the Contractor until
completion of all work for which Orders have been given under the contract.

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37.5 The provisions of this clause will not affect any legal entitlement the Authority may have to terminate

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the contract due to any breach or breaches of the contract on the part of the Contractor.

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37.6 The provisions of this clause must not be operated in an unreasonable or oppressive manner.

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38.0 Adjudication

38.1 Either party may refer any dispute arising under or in connection with the contract or the carrying out

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of the Work to adjudication by way of a written notice.

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38.2 The Scheme for Construction Contracts Adjudication Provisions as referred to in the Housing Grants,
Construction and Regeneration Act 1996 or any amendment or re-enactment will apply.

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39.0 Arbitration

39.1 All disputes arising under or in connection with the contract or the carrying out of the Work will be
finally determined by reference to arbitration. The party seeking arbitration must serve on the other
party a notice in writing to refer the dispute to arbitration.

39.2 The Arbitrator will be a person appointed by agreement of the parties.


If the parties fail to appoint an Arbitrator within one month of either party serving on the other party a
notice in writing the dispute will be referred to a person to be appointed by the President for the time
being of the Chartered Institute of Arbitrators.

39.3 The arbitration will be conducted in accordance with the Construction Industry Model Arbitration
Rules (CIMAR) current at the date the contract was entered into.

39.4 The appointed Arbitrator will have full power to open up, review and revise any decision, opinion,
instruction, direction, certificate or valuation of the Contract Administrator.

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40.0 Reckoning Periods of Days

Where under the contract an action is required to be undertaken within a specified period of days after or
from a specified date, the period will begin immediately after that date. Where the period would include a
Public Holiday, Saturday or Sunday, that day shall be excluded.

41.0 Applicable Law

The law of England and Wales shall be the law applicable to the contract unless the Area is situated in

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Scotland in which case the law of Scotland will apply.

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42.0 Third Party Rights

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Nothing in the contract confers any right to enforce any of its terms on any person who is not one of the
parties

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APPENDIX
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APPENDIX PART 1

1.1.1 List of properties in the Area in respect of which Orders under the contract may be issued.

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1.1.2 Description of the types of work for which Orders under the contract may be issued. (First Recital)

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APPENDIX PART 1

1.2 Minimum Value of any one Order (4.3) to be issued under the contract

£ (words )

Maximum Value of any one Order (4.3) to be issued under the contract

ON (words )

1.3

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Approximate anticipated value of work (3.0) to be carried out under the contract

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*£ (words ) for the Contract Period

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* delete as required

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1.4 The Contract Period (4.0) will be month(s)

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commencing on (date)

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completing on (date)

1.5 Priority coding for Orders (19.0)

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APPENDIX PART 1

1.6 The work will be valued in accordance with the Schedule of Rates identified in 1.8 below.

1.7 Retention (28.0)

Retention Percentage %

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Limit of Retention £

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If there is to be no retention insert NIL

1.8

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Schedule of Rates (23.0)

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The following Schedule of Rates will apply

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.1* the National Schedule of Rates

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or

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.2 *

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(identify the priced Schedule of Rates to be used)
* delete as required

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upon and subject to the *addition of / deduction of

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Percentage %

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1.9* Fluctuation Provisions (23.0)

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Where 1.8.1 applies when fixing the Target Cost in accordance with Clause 23.0 the rates in the National
Schedule of Rates current at the Order Commencement Date will apply to the valuation of Orders issued
prior to the following 1 August and subsequently the update for those rates will apply at 1 August in each
year to Orders issued on and after that date.

Where 1.8.2 applies when fixing the Target Cost the rates in the Schedule of Rates are to be adjusted in
accordance with the BCIS General Building Cost Index on a fair and reasonable basis.

1.10*Fixed Price:

The rates are those given in the Schedule of Rates identified in 1.8 above and will not be subject to
fluctuations adjustment.

* delete 1.9 or 1.10 as required.

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APPENDIX PART 2

Response Times and Other Procedures Required by the Authority (5.0)

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APPENDIX PART 3

Insurance (34.0)

Professional Indemnity (34.1.2)

Limit of liability £

Period of insurance

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Public liability (34.1.3)

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Minimum cover £

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Employer’s liability (34.1.4)

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Minimum cover £

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APPENDIX PART 4

Fee: Gain Share / Pain Share (24.0/25.0)


The Contractor’s Fee will be calculated by applying the following percentage to the valuation referred to in clause
24.0.

Fee Percentage %

Contractor’s Gain Share Percentage %

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Contractor’s Pain Share Percentage %

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APPENDIX PART 5

Key Personnel (10.5)

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Perform 21

FEDERATION OF PROPERTY SOCIETIES

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PUBLIC SECTOR PARTNERING CONTRACT

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AUTHORITY DESIGN

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LUMP SUM

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DP S P C 3

OPTION 3
PUBLIC SECTOR PARTNERING CONTRACT

The Public Sector Partnering Contract is made up from the following documents:

Document Ref

Partnering Agreement PSPC P

Available Options/Schedule/Rules

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Option 1 Term Maintenance
Measure and Value PSPC 1

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Option 2 Term Maintenance
Target Cost With Cost Reimbursable

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PSPC 2

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Option 3 Authority Design
Lump Sum PSPC 3

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Option 4 Contractor Design

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Lump Sum PSPC 4

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Option 5 Authority Design

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Target Cost With Cost Reimbursable PSPC 5

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Option 6 Contractor Design

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Target Cost With Cost Reimbursable PSPC 6

Option 7 Subcontract

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Lump Sum PSPC 7

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Option 8 Subcontract
Target Cost With Cost Reimbursable PSPC 8

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Option 9 Professional Services PSPC 9

Option 10 Prestart Agreement PSPC 10

Schedule of Costs
For use with Option 2, 5, 6 or 8 PSPC SC

Fluctuation Rules PSPC F

AUTHORITY DESIGN LUMP SUM PSPC 3

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CONTENTS

AGREEMENT

TERMS AND CONDITIONS

1. Partnering Obligations
2. Communications
3. Assignment
4. Subcontracting

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5. Contractor’s Obligations
6. Design Liability

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7. Contract Administrator’s Powers

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8. Non-Compliance with Contract Administrator’s Instructions
9. Document Issue

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10. Statutory Obligations
11. CDM Regulations

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12. Commencement and Completion
13. Care of the Works

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14. Extensions of Time and Additional Cost
15. Variations

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16. Practical Completion
17. Late Completion Damages

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18. Payment Certificates

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19. Retention

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20. Final Documentation

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21. Statement of Final Account
22. Payment
23. Value Added Tax

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24. Fixed Price
25. Price Adjustment Formula

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26. Defects
27. Final Certificate

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28. Indemnity
29. Insurance
30. Authority’s Risk
31. Prevention of Corruption
32. Termination by the Authority
33. Adjudication
34. Arbitration
35. Reckoning Periods of Days
36. Applicable Law
37. Third Party Rights

APPENDIX

Part 1 General
Part 2 Contract Documents
Part 3 Key Personnel

AUTHORITY DESIGN LUMP SUM PSPC 3

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AGREEMENT
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AGREEMENT

This Agreement made on the day of 20 is

Between

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of

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(called ‘the Authority’)

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And

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of

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(called ‘the Contractor’)

AUTHORITY DESIGN LUMP SUM PSPC 3

6
WHEREAS

Recitals

First the Authority requires the construction of the following:

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(the Works)

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and has caused to be prepared Drawings and Specification referred to later in this Agreement and
Priced Documents referred to in Appendix Part 2 which show and describe the Works.

Second

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the Contractor has supplied the Authority with a fully priced copy of the Priced Documents.

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Third the Drawings referred to in the First Recital are numbered

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have been signed by or on behalf of the parties.

AUTHORITY DESIGN LUMP SUM PSPC 3

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IT IS AGREED

Article 1

The Contractor will carry out and complete the Works in accordance with the contract.

Article 2

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The Authority will pay the Contractor the sum of

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(referred to as the Contract Sum) or such other sum which becomes payable in accordance with the contract.

Article 3

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The term ‘the Contract Administrator’ in the contract means

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or such other person as the Authority may appoint as a replacement.

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Article 4

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The term ‘the Planning Supervisor’ in the contract means

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or such other person as the Authority appoints as a replacement as the Planning Supervisor pursuant to the
CDM Regulations.

AUTHORITY DESIGN LUMP SUM PSPC 3

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Article 5

The contract comprises the following contract documents:

• Articles of Agreement

• Contract Drawings scheduled in this Agreement

• Specification

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• Terms and Conditions

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• Appendix

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• Priced Documents

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The several documents forming the contract are to be taken as mutually explanatory of one another and in the case
of ambiguities or discrepancies they will be explained and adjusted by the Contract Administrator who will then

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issue to the Contractor appropriate instructions in writing.

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Article 6

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The contract does not exclude any rights and obligations the Authority and Contractor may have under statute or

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at common law as a result of carrying out the Works.

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AUTHORITY DESIGN LUMP SUM PSPC 3

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SIGNATURES

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TERMS AND CONDITIONS

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AUTHORITY DESIGN
LUMP SUM
TERMS AND CONDITIONS

1.0 Partnering Obligations

1.1 The Contractor will enter into the Partnering Agreement with the Authority and such other third
parties associated with the Project referred to in the Partnering Agreement as the Authority and

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Contractor agree.

1.2 The Contractor will enter into the Partnering Charter detailed in the Partnering Agreement.

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2.0 Communications

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Communications required by the contract to be in writing may be handwritten or typed and sent by hand,
post, facsimile or email, or other means resulting in a permanent record.

3.0 Assignment

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Neither the Authority nor the Contractor will, without the prior written consent of the other, assign this

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contract.

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4.0 Subcontracting

The Contractor will not subcontract the Works or any part without the written consent of the Contract

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Administrator whose consent will not be unreasonably delayed or withheld.

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5.0 Contractor’s Obligations

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5.1 The Contractor will carry out and complete the Works with due diligence and in a workmanlike
manner in accordance with the contract.

5.2 The Contractor will employ the key personnel identified in Appendix Part 3. Any substitutes must be
of equivalent ability and qualifications and be accepted by the Contract Administrator.

6.0 Design Liability

6.1 This clause applies where the Contractor is required to design a part of the Works and applies to such
part only.

.1 Reasonable Skill and Care

Where Appendix Part 1.7.1 applies the Contractor is required to design such part of the Works using
reasonable skill and care.

.2 Fitness For Purpose

AUTHORITY DESIGN LUMP SUM PSPC 3

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Where Appendix Part 1.7.2 applies the Contractor is required to design such part of the Works to be fit for
its intended purpose.

6.2 The Contractor will submit drawings, calculations and particulars of any design to the Contract
Administrator for acceptance. Reasons for not accepting the design would be that it does not comply
with the

.1 Contract Documents, and/or

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.2 Applicable Law.

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6.3 The Contractor indemnifies the Authority against any claims, compensation and costs of whatsoever

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nature arising out of the Contractor’s design.

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6.4 The copyright is vested in the Authority of all drawings, specifications, bills of quantities, schedules
of work, contract documents, photographs, surveys, reports and all other documents prepared in

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relation to the Project referred to in the Partnering Agreement.

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6.5 The Contractor will provide operation and maintenance manuals together with as finished drawings of
the Works. Practical Completion will not be certified until the manuals and drawings have been

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submitted and accepted by the Contract Administrator.

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7.0 Contract Administrator’s Powers

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7.1 The Contractor will comply with all reasonable written instructions issued by the Contract
Administrator in regard to the Works.

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7.2 The Contract Administrator may delegate any of the powers provided for by the contract. These
delegated powers may be cancelled or other delegates substituted.

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7.3 The Contract Administrator may, but not unreasonably or vexatiously, instruct the Contractor to

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remove an employee engaged on the Works. The Contractor within one working day of receiving the
instruction will ensure that the employee has no further involvement with the Works.

8.0 Non-compliance with Contract Administrator’s Instructions

If the Contractor fails to comply with a Contract Administrator’s written instruction the Contract
Administrator may serve a written default notice on the Contractor. Should the instruction not be complied
with within a further 7 days the Authority may employ and pay others to carry out the instruction. The
Authority may then charge the Contractor with the resultant costs or deduct or withhold the costs from sums
otherwise due to the Contractor

9.0 Document Issue

9.1 The Contract Administrator may from time to time during the progress of the Works issue further
documents which explain or amplify the Works.

9.2 The Contractor is required to give proper written notice to the Contract Administrator if any further
documents are required to carry out and complete the Works.

AUTHORITY DESIGN LUMP SUM PSPC 3

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10.0 Statutory Obligations

The Contractor will comply with all applicable statutory requirements including safety, health and welfare
and CDM Regulations.

11.0 CDM Regulations

The Authority will ensure that the Planning Supervisor carries out all the duties of a Planning Supervisor
under the CDM Regulations.

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12.0 Commencement and Completion

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12.1 The Contractor will commence the Works on the date referred to as the Commencement Date included

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in the Contract Administrator’s instruction to commence which will be issued within 28 days of the
award of the contract.

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12.2 The Authority will give possession and access to the site not later than the Commencement Date.

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12.3 The Contractor will complete the whole of the Works within the contract period stated in Appendix

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Part 1.1 or such extended period as allowed under the contract.

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12.4 If any section or sections of the Works are required to be completed in particular periods stated in

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Appendix Part 1.1 the Contractor must achieve Practical Completion of the section or sections of the

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Works within the period or periods stated in Appendix Part 1.1 or extended period or periods.

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13.0 Care of the Works

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13.1 The Contractor will take full responsibility for the care of the Works and for materials, plant and

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equipment for incorporation and any loss or damage until Practical Completion.

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13.2 When the Contract Administrator certifies Practical Completion for any section or part of the Works
the Contractor will cease to be responsible for the care of that section or part which passes to the
Authority.

14.0 Extensions of Time and Additional Cost

14.1 Extensions of time for completion of the Works or any section of it may be granted by the Contract
Administrator where the Contractor is prevented from completing on time due to any of the following
reasons:-

.1 Any act, omission or default by the Authority or of others employed or engaged by the Authority

.2 Any matter outside the control or responsibility of the Contractor or of others employed or
engaged by the Contractor

.3 The Contractor suspends Work in accordance with clause 22.3

.4 Variations issued in accordance with clause 15.0

AUTHORITY DESIGN LUMP SUM PSPC 3

14
14.2 The Contractor will provide full details and particulars to demonstrate that any one or more of these
causes has prevented completion within the period(s) stated in Appendix Part 1.1 in such form and in
such detail as the Contract Administrator may reasonably require.

14.3 The Contractor will constantly use its best endeavours to carry out and complete the Works within the
period(s) stated in Appendix Part 1.1 or extended period(s).

14.4 Where the Contractor incurs additional cost as a result of the matters referred to in clauses 14.1.1,
14.1.3 and 14.1.4 these costs will be recorded by the Contractor. A valuation of the effects of these
matters will be made by the Contract Administrator in consultation with the Contractor in a fair and

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reasonable manner on a costs basis. Valuations made in accordance with this clause will be included
in a Payment Certificate issued in accordance with clause 18.0.

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15.0 Variations

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15.1 The Contract Administrator may without invalidating the contract order a variation to the Works

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by way of:-

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.1 Variation or modification of the design, quality or quantity of work

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.2 Addition to, omission from or alteration to the Works

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.3 Change to the sequence of the Works

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.4 Errors or omissions in the Priced Documents.

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15.2 Where a variation affects the Contract Sum, any change will be calculated by the Contract
Administrator using where relevant rates and prices in the Priced Documents or rates and prices

M
deduced from the Priced Documents. If such rates and prices are inapplicable then any changes will
be made using fair and reasonable rates and prices.

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15.3 Instead of the valuation referred to in clause 15.2 changes in the Contract Sum may be agreed

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between the Contract Administrator and the Contractor before the work is commenced.

15.4 Any change will be added to or omitted from the Contract Sum.

15.5 Variations are to be given in writing but if given orally they must be confirmed in writing to the
Contract Administrator by the Contractor within 7 days or at any time by the Contract Administrator
up to the date of issue of the Final Certificate.

16.0 Practical Completion

The Contract Administrator will certify the date when the Works have reached Practical Completion.

17.0 Late Completion Damages

17.1 If the Contractor fails to achieve Practical Completion of the Works within the contract period as set
out in Appendix Part 1.1 or extended contract period the Contractor will pay or allow to the Authority
for every day or week of delay as the case may be a sum calculated at the rate stated in Appendix Part 1.2.

AUTHORITY DESIGN LUMP SUM PSPC 3

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17.2 Where the Contractor is required to achieve Practical Completion of a section or sections of the Works
before the end of the contract period as stated in Appendix Part 1.1 and has failed to achieve Practical
Completion within these periods or extended periods the Contractor will pay or allow the Authority
for every day or week of delay as the case may be a sum calculated at the rate or rates stated in
Appendix Part 1.2.

18.0 Payment Certificates

18.1 Unless otherwise agreed the Contractor may submit to the Contract Administrator at monthly intervals

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commencing one month after the Commencement Date a fully detailed request for a Payment
Certificate.

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18.2 Within 14 days of receipt of a request the Contract Administrator will issue a Payment Certificate
which sets out the basis on which it is calculated. It will take into account amounts previously

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certified.

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18.3 The sums included in the Payment Certificate will comprise either:-

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.1 The total value of work properly executed and the total value of materials and goods delivered to
or adjacent to the Works for incorporation. The materials and goods must be stored and

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protected and must not have been delivered prematurely, or

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.2 A stage payment where provided for in Appendix Part 1.5.1 when the progress of the Works or

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any section has reached the stage required for payment.

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18.4 The total value of work properly executed will be ascertained by reference to the Priced Documents
referred to in Appendix Part 2 and any adjustments in accordance with the contract.

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19.0 Retention

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19.1 Amounts certified for payment up to the date of Practical Completion will be subject to deduction of

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the percentage stated in Appendix Part 1.6 up to the limit of retention.

19.2 Amounts certified for payment from the date of Practical Completion up to the date of the issue of the
Defects Correction Certificate will be subject to deduction of half the percentage stated in Appendix
Part 1.6.

19.3 All Payment Certificates issued after the date of the issue of the Defects Correction Certificate will be
in full.

19.4 If retention is not to be deducted ‘nil’ is to be stated in Appendix Part 1.6.

20.0 Final Documentation

The Contractor, within 3 months from the date of Practical Completion, will supply all measurements,
documentation, subcontractors’ accounts and details of costs reasonably required to enable the Contract
Administrator to adjust the Contract Sum.

AUTHORITY DESIGN LUMP SUM PSPC 3

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21.0 Statement of Final Account

The Contract Administrator within 3 months of receipt of all the Final Documentation referred to in clause
20 will issue a Statement of Final Account. This document will show the Contract Sum and all adjustments
required by the contract.

22.0 Payment

22.1 The Authority will pay the Contractor on or before the final date for payment being not later than 14

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days after the date of the issue of the Payment Certificate the sum certified.

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22.2 Not later than 5 days before the final date for payment the Authority will give a written notice to the

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Contractor stating any amount proposed to be withheld from the Payment Certificate, and the ground
or grounds for it being withheld.

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22.3 If the Authority fails to make payment in full in accordance with the contract the Contractor may serve

A
notice on the Authority of an intention to suspend work. If the failure to make payment by the
Authority continues for 7 days after receipt of the written notice then the Contractor may suspend

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work until payment in full occurs.

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22.4 If the Authority fails to make payment in full in accordance with the contract the Contractor will be

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entitled to interest on the sums paid late at a rate of 5% above the Bank of England Base Rate for the

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period of late payment.

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23.0 Value Added Tax

Any sums certified under this contract will be exclusive of value added tax.

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24.0 Fixed Price

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Where Appendix Part 1.4.1 applies the Contractor will not be entitled to any payment in respect of any
change in the cost to the Contractor of labour, materials, plant or other resources employed in carrying out
the Works.

25.0 Price Adjustment Formula

Where Appendix Part 1.4.2 applies increases or decreases in cost due to fluctuations in the cost of labour,
materials and resources will be dealt with in accordance with the Fluctuation Rules and the contract sum
adjusted either up or down.

26.0 Defects

26.1 Any defects, excessive shrinkages or other faults in the Works which appear within the period stated in
Appendix Part 1.3 after the date of Practical Completion due to materials or workmanship not being in
accordance with this contract will be made good by the Contractor entirely at the Contractor’s own
cost.

AUTHORITY DESIGN LUMP SUM PSPC 3

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26.2 When all the remedial work referred to in clause 26.1 is complete, the Contract Administrator will
issue a Defects Correction Certificate indicating the date when these obligations were discharged.

27.0 Final Certificate

27.1 A Final Certificate will be issued by the Contract Administrator within one month of the issue of the
Defects Correction Certificate. The amount of the certificate will be the amount remaining due as
indicated in the Statement of Final Account adjusted if appropriate by the Contract Administrator for
any defects which are not required to be made good, less payments already made.

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27.2 Payment of any balance will be made from the Authority to the Contractor or Contractor to Authority

O
on or before the final date for payment being not later than 14 days after the issue of the Final

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Certificate.

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28.0 Indemnity

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28.1 The Contractor will indemnify and keep indemnified the Authority against all losses and claims in

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respect of

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.1 Death of or injury to any person or

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.2 Loss of or damage to any property

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which may arise out of or in consequence of the carrying out of the Works.

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29.0 Insurance

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29.1 Except those matters which are the Authority’s risk under clause 30.0, the Contractor will be

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responsible for effecting and maintaining the following insurance cover with a reputable insurer.

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.1 The risk of any loss or damage caused to the Works, unfixed materials and items for
incorporation into the Works from any cause whatsoever. This insurance will be in the joint
names of the Contractor and the Authority for the full resinstatement value plus 15% in respect
of professional fees. The insurance cover will commence on the Commencement Date referred
to in clause 12.0 and continue until the date of Practical Completion.

.2 Where the Contractor is required to undertake any design function, the Contractor will effect
and maintain professional indemnity insurance to cover all defects or insufficiency in the
Contractor’s design work for the limit of liability indicated in Appendix Part 1.8. Such
insurance will provide for any one occurrence or series of occurrences for the period indicated in
Appendix Part 1.8.

.3 Public liability insurance for injury to persons and damage to property other than the Works
arising by reason of the Contractor’s negligence, breach of statutory duty, omission or default
for the minimum amount indicted in Appendix Part 1.8 for one occurrence or series of
occurrences arising out of one event.

AUTHORITY DESIGN LUMP SUM PSPC 3

18
.4 Employer’s liability insurance in respect of persons in the Contractor’s employment in
compliance with all legislation and such insurance shall be for the minimum amount indicated
in Appendix Part 1.8.

29.2 The Contractor will provide, if requested by the Contract Administrator, evidence that the insurance is
effective. In the absence of such evidence the Authority will be entitled to effect and maintain the
insurance and charge the cost to the Contractor or deduct the cost from monies due.

30.0 Authority’s Risk

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30.1 The Authority will be liable for any of the matters included in clause 30.2 which cause

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.1 Damage to the Works or

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.2 Expense, liability, loss, claims or proceedings arising out of or in connection with the Works in
respect of personal injury or death of any person or loss or damage to any property.

A
30.2 Matters for which the Authority is liable:-

R
.1 Riot, war, invasion, act of foreign enemies or hostilities

T N
.2 Civil war, rebellion, revolution, insurrection or military or usurped power

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.3 Ionising radiations or contamination by radioactivity from any nuclear fuel or any nuclear waste

N
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.4 Pressure waves caused by aircraft or other aerial devices

.5 Any act of terrorism

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.6 Any act or negligence on the part of the Authority or any person for whom the Authority is

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liable.

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30.3 Where the Works involves the maintenance, refurbishment or alteration within existing structures, the
Authority will bear the risks of fire, lightning, explosion, storm, tempest, flood, bursting or
overflowing of water tanks, apparatus or pipes, earthquake, aircraft or other aerial devices or articles
dropped therefrom in respect of loss or damage to the existing structures and contents owned by the
Authority or for which it is responsible.

30.4 The Contractor will bear all other risks.

31.0 Prevention of Corruption

31.1 The Authority will be entitled to cancel this contract if the Contractor gives any fee or reward the
receipt of which is an offence under sub-section (2) of section 117 of the Local Government Act 1972
or any other enactment.

31.2 The Contractor will pay to the Authority any loss, cost or expense incurred which results from the
cancellation.

AUTHORITY DESIGN LUMP SUM PSPC 3

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32.0 Termination by the Authority

32.1 The Authority may terminate the Contractor’s employment under this clause by written notice by post
with proof of delivery for reasons referred to in clauses 32.2 and/or 32.3.

32.2 If the Contractor:

.1 Makes a composition or arrangement with creditors or becomes bankrupt, or

.2 Being a company makes a voluntary arrangement for a composition of debts or scheme of

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arrangement to be approved in accordance with the Companies Act 1985 or the Insolvency Act
1986 as the case may be or any amendment or re-enactment, or

IO
.3 Has a provisional liquidator appointed, or

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.4 Has a winding-up order made, or

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.5 Passes a resolution for voluntary winding-up (except for the purposes of amalgamation or
reconstruction),

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.6 Under the Insolvency Act 1986 or any amendment or re-enactment has an administrator or an

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administrative receiver appointed.

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32.3 If the Contractor:-

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.1 Abandons the Works without due cause, or

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.2 Fails to proceed regularly and diligently with the Works after due written warning by the
Contract Administrator, or

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.3 Refuses or neglects after due written notice from the Contract Administrator to remove work,

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materials or goods which do not comply with the contract, or

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.4 Fails to comply with statutory safety, health and welfare or CDM regulations.

32.4 If the Contractor’s employment is terminated under this clause:-

.1 The Contractor will immediately cease to occupy the site but will not remove any plant, tools or
equipment until instructed by the Contract Administrator. The Authority will be entitled to use
the Contractor’s plant, tools and equipment until practical completion of the Works.

.2 The Authority may recover from the Contractor any additional cost of completing the Works
together with any loss, cost, damages or expense incurred as a result of the termination.

.3 The Authority will not be bound to make any further payments to the Contractor until the issue
of the Final Certificate.

32.5 The provisions of this clause will not affect any legal entitlement the Authority may have to terminate
the contract due to any breach or breaches of the contract on the part of the Contractor.

32.6 The provisions of this clause must not be operated in an unreasonable or oppressive manner.

AUTHORITY DESIGN LUMP SUM PSPC 3

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33.0 Adjudication

33.1 Either party may refer any dispute arising under or in connection with the contract or the carrying out
of the Works to adjudication by way of a written notice.

33.2 The Scheme for Construction Contracts Adjudication Provisions as referred to in the Housing Grants,
Construction and Regeneration Act 1996 or any amendment or re-enactment will apply.

34.0 Arbitration

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34.1 All disputes arising under or in connection with the contract or the carrying out of the Works will be

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finally determined by reference to arbitration. The party seeking arbitration must serve on the other

I
party a notice in writing to refer the dispute to arbitration.

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34.2 The Arbitrator will be a person appointed by agreement of the parties.
If the parties fail to appoint an Arbitrator within one month of either party serving on the other party a

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notice in writing the dispute will be referred to a person to be appointed by the President for the time
being of the Chartered Institute of Arbitrators.

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34.3 The arbitration will be conducted in accordance with the Construction Industry Model Arbitration

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Rules (CIMAR) current at the date the contract was entered into.

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34.4 The appointed Arbitrator will have full power to open up, review and revise any decision, opinion,

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instruction, direction, certificate or valuation of the Contract Administrator.

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35.0 Reckoning Periods of Days

Where under the contract an action is required to be undertaken within a specified period of days after or

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from a specified date, the period will begin immediately after that date. Where the period would include a

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Public Holiday, Saturday or Sunday, that day shall be excluded.

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36.0 Applicable Law

The law of England and Wales shall be the law applicable to the contract unless the Works is situated in
Scotland in which case the law of Scotland will apply.

37.0 Third Party Rights

Nothing in the contract confers any right to enforce any of its terms on any person who is not one of the
parties.

AUTHORITY DESIGN LUMP SUM PSPC 3

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ON
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APPENDIX
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APPENDIX PART 1

1.1 Contract Period (12.0)

EITHER For the whole of the Works weeks

OR For sections of the Works

Section A weeks

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Section B weeks

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Section C weeks

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Section D weeks

AT
Remainder of the Works weeks

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1.2 Late Completion Damages (17.0)

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Per day / week

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EITHER For the whole of the Works £

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OR For Section A (as above) £

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Section B (as above) £

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Section C (as above) £

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Section D (as above) £

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Remainder of the Works £

1.3 Defects Liability Period (26.0) months

1.4 Fluctuation Provisions (24.0/25.0)

.1 Fixed Price*

.2 Price Adjustment Formula*


Base Month
*delete as required

AUTHORITY DESIGN LUMP SUM PSPC 3

24
APPENDIX PART 1

1.5.1* Stage Payments (18.0)

The stages are as follows:


Stages (insert brief description) Cumulative value

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£

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£

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£

AT
£

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£

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£

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£

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£

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£

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£

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£

* Cumulative value of final stage must
be equal to the Target Cost

1.5.2* Periodic Payments (18.0)

Applications for Interim Payment are to be made at intervals not exceeding one month.

*delete as required

1.6 Retention (19.0)

Retention Percentage %

Limit of Retention %

If there is no retention insert NIL

AUTHORITY DESIGN LUMP SUM PSPC 3

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APPENDIX PART 1

1.7 Design Liability (6.0)

.1 Reasonable skill and care applies*

.2 Fitness for purpose applies*


*delete as required

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1.8 Insurance (29.0)

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Professional Indemnity (29.1.2)

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Limit of liability £

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Period of insurance

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Public liability (29.1.3)

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Minimum cover £

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Employer’s liability (29.1.4)

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Minimum cover £

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APPENDIX PART 2

Priced Documents (Article 5)

* Bill of Quantities#

* Bill of Approximate Quantities~

* Schedule of Rates

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* Schedule of Work

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* Schedule of Activities

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* Target Cost Analysis

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* Additional Documents

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* delete as required

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# Where a Bill of Quantities is used it will be prepared in accordance with the Standard Method of Measurement
of Building Works 7th Edition published by the Royal Institution of Chartered Surveyors and the

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Construction Confederation.

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~ Where a Bill of Approximate Quantities is used the parties may agree that all work will be remeasured.

When remeasurement occurs the rates and prices will be those contained in the Bill of Approximate Quantities
where relevant or rates and prices deduced from the Bill of Approximate Quantities. If the rates and prices are
not applicable then fair and reasonable rates and prices will be used.

The Contractor will be entitled to an extension of time for completion if, due to the quantities in the Bill of
Approximate Quantities not being reasonably accurate, the Contractor is prevented from completing on time.

AUTHORITY DESIGN LUMP SUM PSPC 3

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APPENDIX PART 3

Key Personnel (5.2)

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ON
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ON
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Perform 21

FEDERATION OF PROPERTY SOCIETIES

ON
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PUBLIC SECTOR PARTNERING CONTRACT

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CONTRACTOR DESIGN

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O DI
LUMP SUM
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E M E
DP S P C 4

OPTION 4
PUBLIC SECTOR PARTNERING CONTRACT

The Public Sector Partnering Contract is made up from the following documents:

Document Ref

Partnering Agreement PSPC P

Available Options/Schedule/Rules

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Option 1 Term Maintenance
Measure and Value PSPC 1

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Option 2 Term Maintenance
Target Cost With Cost Reimbursable PSPC 2

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Option 3 Authority Design

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Lump Sum PSPC 3

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Option 4 Contractor Design
Lump Sum PSPC 4

ST N
Option 5 Authority Design

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Target Cost With Cost Reimbursable PSPC 5

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Option 6 Contractor Design

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Target Cost With Cost Reimbursable PSPC 6

Option 7 Subcontract

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Lump Sum PSPC 7

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Option 8 Subcontract
Target Cost With Cost Reimbursable PSPC 8

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Option 9 Professional Services PSPC 9

Option 10 Prestart Agreement PSPC 10

Schedule of Costs
For use with Option 2, 5, 6 or 8 PSPC SC

Fluctuation Rules PSPC F

CONTRACTOR DESIGN LUMP SUM PSPC 4

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CONTENTS

AGREEMENT

TERMS AND CONDITIONS

1. Partnering Obligations
2. Communications
3. Assignment

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4. Subcontracting
5. Contractor’s Obligations
6. Design Liability

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7. Contract Administrator’s Powers

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8. Non-Compliance with Contract Administrator’s Instructions
9. Document Issue

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10. Statutory Obligations

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11. CDM Regulations
12. Commencement and Completion

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13. Care of the Works
14. Extensions of Time and Additional Cost

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15. Variations

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16. Practical Completion

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17. Late Completion Damages

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18. Payment Certificates

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19. Retention
20. Final Documentation

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21. Statement of Final Account
22. Payment
23. Value Added Tax

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24. Fixed Price
25. Price Adjustment Formula

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26. Defects
27. Final Certificate

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28. Indemnity
29. Insurance
30. Authority’s Risk
31. Prevention of Corruption
32. Termination by the Authority
33. Adjudication
34. Arbitration
35. Reckoning Periods of Days
36. Applicable Law
37. Third Party Rights

APPENDIX

Part 1 General
Part 2 Contract Documents
Part 3 Key Personnel

CONTRACTOR DESIGN LUMP SUM PSPC 4

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AGREEMENT
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AGREEMENT

This Agreement made on the day of 20 is

Between

ON
of

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(called ‘the Authority’)

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And

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of

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(called ‘the Contractor’)

CONTRACTOR DESIGN LUMP SUM PSPC 4

6
WHEREAS

Recitals

First the Authority requires the construction of the following:

N
(referred to as the Works)

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Second the Authority’s requirements have been issued to the Contractor as the Authority’s Requirements

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referred to in Appendix Part 2.1.

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Third the Contractor has submitted proposals for carrying out the Works in the Contractor’s Proposals

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referred to in Appendix Part 2.2.

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CONTRACTOR DESIGN LUMP SUM PSPC 4

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IT IS AGREED

Article 1

The Contractor will design and construct the Works in accordance with the contract.

Article 2

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The Authority will pay the Contractor the sum of

IO £

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(referred to as the Contract Sum) or such other sum which becomes payable in accordance with the contract.

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The Contractor has submitted an analysis of the Contract Sum referred to in Appendix Part 2.3 as the Priced

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Documents which are annexed to the Contractor’s Proposals.

ST N
Article 3

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The term ‘the Contract Administrator’ in the contract means

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or such other person as the Authority may appoint as a replacement.

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Article 4

The term ‘the Planning Supervisor’ in the contract means

or such other person as the Authority appoints as a replacement as the Planning Supervisor pursuant to the
CDM Regulations.

CONTRACTOR DESIGN LUMP SUM PSPC 4

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Article 5

The contract comprises the following contract documents:

• Articles of Agreement

• Terms and Conditions

• Authority’s Requirements

N
• Contractor’s Proposals

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• Priced Documents

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• Appendix

AT
The several documents forming the contract are to be taken as mutually explanatory of one another and in the case
of ambiguities or discrepancies they will be explained and adjusted by the Contract Administrator who will then
issue to the Contractor appropriate instructions in writing.

TR
In the event of any ambiguity or discrepancy between the Authority’s Requirements and the Contractor’s

N
Proposals, the Authority’s Requirements will take precedence.

Article 6

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The contract does not exclude any rights and obligations the Authority and Contractor may have under statute or
at common law as a result of carrying out the Works.

EM E
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CONTRACTOR DESIGN LUMP SUM PSPC 4

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SIGNATURES

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TERMS AND CONDITIONS

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CONTRACTOR DESIGN
LUMP SUM
TERMS AND CONDITIONS

1.0 Partnering Obligations

1.1 The Contractor will enter into the Partnering Agreement with the Authority and such other third
parties associated with the Project referred to in the Partnering Agreement as the Authority and

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Contractor agree.

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1.2 The Contractor will enter into the Partnering Charter detailed in the Partnering Agreement.

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2.0 Communications

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Communications required by the contract to be in writing may be handwritten or typed and sent by hand,
post, facsimile or email, or other means resulting in a permanent record.

3.0 Assignment

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S
Neither the Authority nor the Contractor will, without the prior written consent of the other, assign this

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contract.

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4.0 Subcontracting

The Contractor will not subcontract the Works or any part without the written consent of the Contract

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Administrator whose consent will not be unreasonably delayed or withheld.

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5.0 Contractor’s Obligations

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5.1 The Contractor will carry out and complete the Works with due diligence and in a workmanlike
manner in accordance with the contract.

5.2 The Contractor will employ the key personnel identified in Appendix Part 3. Any substitutes must be
of equivalent ability and qualifications and be accepted by the Contract Administrator.

6.0 Design Liability

6.1 Reasonable Skill and Care

Where Appendix Part 1.7.1 applies the Contractor is required to design the Works using reasonable skill and
care.

6.2 Fitness For Purpose

Where Appendix Part 1.7.2 applies the Contractor is required to design the Works to be fit for its intended
purpose.

CONTRACTOR DESIGN LUMP SUM PSPC 4

12
6.3 The Contractor will submit drawings, calculations and particulars of any design to the Contract
Administrator for acceptance. Reasons for not accepting the design would be that it does not comply
with the

.1 Contract Documents, and/or

.2 Applicable Law.

6.4 The Contractor indemnifies the Authority against any claims, compensation and costs of whatsoever

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nature arising out of the Contractor’s design.

O
6.5 The copyright is vested in the Authority of all drawings, specifications, bills of quantities, schedules

I
of work, contract documents, photographs, surveys, reports and all other documents prepared in
relation to the Project referred to in the Partnering Agreement.

T
6.6 The Contractor will provide operation and maintenance manuals together with as finished drawings of

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the Works. Practical Completion will not be certified until the manuals and drawings have been
submitted and accepted by the Contract Administrator.

7.0

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Contract Administrator’s Powers

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7.1 The Contractor will comply with all reasonable written instructions issued by the Contract

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Administrator in regard to the Works.

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7.2 The Contract Administrator may delegate any of the powers provided for by the contract. These
delegated powers may be cancelled or other delegates substituted.

7.3 The Contract Administrator may, but not unreasonably or vexatiously, instruct the Contractor to

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remove an employee engaged on the Works. The Contractor within one working day of receiving the

E
instruction will ensure that the employee has no further involvement with the Works.

8.0

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Non-compliance with Contract Administrator’s Instructions

If the Contractor fails to comply with a Contract Administrator’s written instruction the Contract
Administrator may serve a written default notice on the Contractor. Should the instruction not be complied
with within a further 7 days the Authority may employ and pay others to carry out the instruction. The
Authority may then charge the Contractor with the resultant costs or deduct or withhold the costs from sums
otherwise due to the Contractor

9.0 Document Issue

9.1 The Contract Administrator may from time to time during the progress of the Works issue further
documents which explain or amplify the Works.

CONTRACTOR DESIGN LUMP SUM PSPC 4

13
9.2 The Contractor is required to give proper written notice to the Contract Administrator if any further
documents are required to carry out and complete the Works.

10.0 Statutory Obligations

The Contractor will comply with all applicable statutory requirements including safety, health and welfare
and CDM Regulations.

11.0 CDM Regulations

N
The Authority will ensure that the Planning Supervisor carries out all the duties of a Planning Supervisor

O
under the CDM Regulations.

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12.0 Commencement and Completion

A
12.1 The Contractor will commence the Works on the date referred to as the Commencement Date included
in the Contract Administrator’s instruction to commence which will be issued within 28 days of the

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award of the contract.

T N
12.2 The Authority will give possession and access to the site not later than the Commencement Date.

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12.3 The Contractor will complete the whole of the Works within the contract period stated in Appendix

I
Part 1.1 or such extended period as allowed under the contract.

N
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12.4 If any section or sections of the Works are required to be completed in particular periods stated in
Appendix Part 1.1 the Contractor must achieve Practical Completion of the section or sections of the
Works within the period or periods stated in Appendix Part 1.1 or extended period or periods.

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13.0 Care of the Works

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13.1 The Contractor will take full responsibility for the care of the Works and for materials, plant and

D
equipment for incorporation and any loss or damage until Practical Completion.

13.2 When the Contract Administrator certifies Practical Completion for any section or part of the Works
the Contractor will cease to be responsible for the care of that section or part which passes to the
Authority.

14.0 Extensions of Time and Additional Cost

14.1 Extensions of time for completion of the Works or any section of it may be granted by the Contract
Administrator where the Contractor is prevented from completing on time due to any of the following
reasons:-

.1 Any act, omission or default by the Authority or of others employed or engaged by the Authority

.2 Any matter outside the control or responsibility of the Contractor or of others employed or
engaged by the Contractor

CONTRACTOR DESIGN LUMP SUM PSPC 4

14
.3 The Contractor suspends Work in accordance with clause 22.3

.4 Variations issued in accordance with clause 15.0.

14.2 The Contractor will provide full details and particulars to demonstrate that any one or more of these
causes has prevented completion within the period(s) stated in Appendix Part 1.1 in such form and in
such detail as the Contract Administrator may reasonably require.

14.3 The Contractor will constantly use its best endeavours to carry out and complete the Works within the

N
period(s) stated in Appendix Part 1.1 or extended period(s).

14.4 Where the Contractor incurs additional cost as a result of the matters referred to in clauses 14.1.1,

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14.1.3 and 14.1.4 these costs will be recorded by the Contractor. A valuation of the effects of these

I
matters will be made by the Contract Administrator in consultation with the Contractor in a fair and

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reasonable manner on a costs basis. Valuations made in accordance with this clause will be included
in a Payment Certificate issued in accordance with clause 18.0.

R A
15.0 Variations

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15.1 The Contract Administrator may without invalidating the contract order a variation to the Works by

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way of:-

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.1 Variation or modification of the design, quality or quantity of work

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.2 Addition to, omission from or alteration to the Works

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.3 Change to the sequence of the Works.

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15.2 Where a variation affects the Contract Sum any change will be calculated by the Contract
Administrator using where relevant rates and prices in the Priced Documents or rates and prices

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deduced from the Priced Documents. If such rates and prices are inapplicable then any changes will
be made using fair and reasonable rates and prices.

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15.3 Instead of the valuation referred to in clause 15.2 changes in the Contract Sum may be agreed between
the Contract Administrator and the Contractor before work commences.

15.4 Any change will be added to or omitted from the Contract Sum.

15.5 Variations are to be given in writing but if given orally they must be confirmed in writing to the
Contract Administrator by the Contractor within 7 days or at any time by the Contract Administrator
up to the date of issue of the Final Certificate.

16.0 Practical Completion

The Contract Administrator will certify the date when the Works have reached Practical Completion.

CONTRACTOR DESIGN LUMP SUM PSPC 4

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17.0 Late Completion Damages

17.1 If the Contractor fails to achieve Practical Completion of the Works within the contract period as set
out in Appendix Part 1.1 or extended contract period the Contractor will pay or allow to the Authority
for every day or week of delay as the case may be a sum calculated at the rate stated in Appendix Part
1.2.

17.2 Where the Contractor is required to achieve Practical Completion of a section or sections of the Works
as stated in Appendix Part 1.1 before the end of the contract period and has failed to achieve Practical
Completion within these periods or extended periods the Contractor will pay or allow the Authority

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for every day or week of delay as the case may be a sum calculated at the rate or rates stated in
Appendix Part 1.2.

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18.0 Payment Certificates

AT
18.1 Unless otherwise agreed the Contractor may submit to the Contract Administrator at monthly
intervals commencing one month after the Commencement Date a fully detailed request for a
Payment Certificate.

TR
18.2 Within 14 days of receipt of a request the Contract Administrator will issue a Payment Certificate

N
which sets out the basis on which it is calculated. It will take into account amounts previously

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certified.

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18.3 The sums included in the Payment Certificate will comprise either:-

N
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.1 The total value of work properly executed and the total value of materials and goods delivered
to or adjacent to the Works for incorporation. The materials and goods must be stored and
protected and must not have been delivered prematurely or

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.2 A stage payment where provided for in Appendix Part 1.5.1 when the progress of the Works or

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any section has reached the stage required for payment.

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18.4 The total value of work properly executed will be ascertained by reference to the Priced Documents
referred to in Appendix Part 2 and any adjustments in accordance with the contract.

19.0 Retention

19.1 Amounts certified for payment up to the date of Practical Completion will be subject to deduction of
the percentage stated in Appendix Part 1.6 up to the limit of retention.

19.2 Amounts certified for payment from the date of Practical Completion up to the date of the issue of the
Defects Correction Certificate will be subject to deduction of half the percentage stated in Appendix
Part 1.6.

19.3 All Payment Certificates issued after the date of the issue of the Defects Correction Certificate will be
in full.

19.4 If retention is not to be deducted ‘nil’ is to be stated in Appendix Part 1.6.

CONTRACTOR DESIGN LUMP SUM PSPC 4

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20.0 Final Documentation

The Contractor, within 3 months from the date of Practical Completion, will supply all measurements,
documentation, subcontractors’ accounts and details of costs reasonably required to enable the Contract
Administrator to adjust the Contract Sum.

21.0 Statement of Final Account

The Contract Administrator within 3 months of receipt of all the Final Documentation referred to in clause

N
20 will issue a Statement of Final Account. This document will show the Contract Sum and all adjustments
required by the contract.

22.0 Payment

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AT
22.1 The Authority will pay the Contractor on or before the final date for payment being not later than
14 days after the date of the issue of the Payment Certificate the sum certified.

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22.2 Not later than 5 days before the final date for payment the Authority will give a written notice to the

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Contractor stating any amount proposed to be withheld from the Payment Certificate, and the

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ground or grounds for it being withheld.

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22.3 If the Authority fails to make payment in full in accordance with the contract the Contractor may

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serve notice on the Authority of an intention to suspend work. If the failure to make payment by the
Authority continues for 7 days after receipt of the written notice then the Contractor may suspend

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work until payment in full occurs.

22.4 If the Authority fails to make payment in full in accordance with the contract the Contractor will be

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entitled to interest on the sums paid late at a rate of 5% above the Bank of England Base Rate for
the period of late payment.

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23.0 Value Added Tax

Any sums certified under this contract will be exclusive of value added tax.

24.0 Fixed Price

Where Appendix Part 1.4.1 applies the Contractor will not be entitled to any payment in respect of any
change in the cost to the Contractor of labour, materials, plant or other resources employed in carrying out
the Works.

25.0 Price Adjustment Formula

Where Appendix Part 1.4.2 applies increases or decreases in cost due to fluctuations in the cost of labour,
materials and resources will be dealt with in accordance with the Fluctuation Rules and the contract sum
adjusted either up or down.

CONTRACTOR DESIGN LUMP SUM PSPC 4

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26.0 Defects

26.1 Any defects, excessive shrinkages or other faults in the Works which appear within the period stated
in Appendix Part 1.3 after the date of Practical Completion due to materials or workmanship not being
in accordance with this contract will be made good by the Contractor entirely at the Contractor’s own
cost.

26.2 When all the remedial work referred to in clause 26.1 is complete, the Contract Administrator will
issue a Defects Correction Certificate indicating the date when these obligations were discharged.

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27.0 Final Certificate

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27.1 A Final Certificate will be issued by the Contract Administrator within one month of the issue of the
Defects Correction Certificate. The amount of the certificate will be the amount remaining due as

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indicated in the Statement of Final Account adjusted if appropriate by the Contract Administrator
for any defects which are not required to be made good, less payments already made.

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27.2 Payment of any balance will be made from the Authority to the Contractor or Contractor to

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Authority on or before the final date for payment being not later than 14 days after the issue of the
Final Certificate.

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28.0 Indemnity

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28.1 The Contractor will indemnify and keep indemnified the Authority against all losses and claims in

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respect of

.1 Death of or injury to any person or

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.2 Loss of or damage to any property

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which may arise out of or in consequence of the carrying out of the Works.

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29.0 Insurance

29.1 Except those matters which are the Authority’s risk under clause 30.0, the Contractor will be
responsible for effecting and maintaining the following insurance cover with a reputable insurer.

.1 The risk of any loss or damage caused to the Works, unfixed materials and items for
incorporation into the Works from any cause whatsoever. This insurance will be in the joint
names of the Contractor and the Authority for the full resinstatement value plus 15% in respect
of professional fees. The insurance cover will commence on the Commencement Date referred
to in clause 12.0 and continue until the date of Practical Completion.

.2 Professional indemnity insurance to cover all defects or insufficiency in the Contractor’s design
work for the limit of liability indicated in Appendix Part 1.8. Such insurance will provide for
any one occurrence or series of occurrences for the period indicated in Appendix Part 1.8.

CONTRACTOR DESIGN LUMP SUM PSPC 4

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.3 Public liability insurance for injury to persons and damage to property other than the Works
arising by reason of the Contractor’s negligence, breach of statutory duty, omission or default
for the minimum amount indicted in Appendix Part 1.8 for one occurrence or series of
occurrences arising out of one event.

.4 Employer’s liability insurance in respect of persons in the Contractor’s employment in


compliance with all legislation and such insurance shall be for the minimum amount indicated
in Appendix Part 1.8.

29.2 The Contractor will provide, if requested by the Contract Administrator, evidence that the insurance is

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effective. In the absence of such evidence the Authority will be entitled to effect and maintain the
insurance and charge the cost to the Contractor or deduct the cost from monies due.

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30.0 Authority’s Risk

AT
30.1 The Authority will be liable for any of the matters included in clause 30.2 which cause

.1 Damage to the Works or

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.2 Expense, liability, loss, claims or proceedings arising out of or in connection with the Works in

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respect of personal injury or death of any person or loss or damage to any property.

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30.2 Matters for which the Authority is liable:-

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.1 Riot, war, invasion, act of foreign enemies or hostilities

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.2 Civil war, rebellion, revolution, insurrection or military or usurped power

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.3 Ionising radiations or contamination by radioactivity from any nuclear fuel or any nuclear waste

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.4 Pressure waves caused by aircraft or other aerial devices

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.5 Any act of terrorism

.6 Any act or negligence on the part of the Authority or any person for whom the Authority is
liable.

30.3 Where the Works involves the maintenance, refurbishment or alteration within existing structures, the
Authority will bear the risks of fire, lightning, explosion, storm, tempest, flood, bursting or
overflowing of water tanks, apparatus or pipes, earthquake, aircraft or other aerial devices or articles
dropped therefrom in respect of loss or damage to the existing structures and contents owned by the
Authority or for which it is responsible.

30.4 The Contractor will bear all other risks.

31.0 Prevention of Corruption

31.1 The Authority will be entitled to cancel this contract if the Contractor gives any fee or reward the
receipt of which is an offence under sub-section (2) of section 117 of the Local Government Act 1972
or any other enactment.

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31.2 The Contractor will pay to the Authority any loss, cost or expense incurred which results from the
cancellation.

32.0 Termination by the Authority

32.1 The Authority may terminate the Contractor’s employment under this clause by written notice by post
with proof of delivery for reasons referred to in clauses 32.2 and/or 32.3.

32.2 If the Contractor:

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.1 Makes a composition or arrangement with creditors or becomes bankrupt, or

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.2 Being a company makes a voluntary arrangement for a composition of debts or scheme of
arrangement to be approved in accordance with the Companies Act 1985 or the Insolvency Act

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1986 as the case may be or any amendment or re-enactment, or

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.3 Has a provisional liquidator appointed, or

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.4 Has a winding-up order made, or

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.5 Passes a resolution for voluntary winding-up (except for the purposes of amalgamation or

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reconstruction), or

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.6 Under the Insolvency Act 1986 or any amendment or re-enactment has an administrator or an

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administrative receiver appointed.

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32.3 If the Contractor:-

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.1 Abandons the Works without due cause, or

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.2 Fails to proceed regularly and diligently with the Works after due written warning by the
Contract Administrator, or

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.3 Refuses or neglects after due written notice from the Contract Administrator to remove work,
materials or goods which do not comply with the contract, or

.4 Fails to comply with statutory safety, health and welfare or CDM regulations.

32.4 If the Contractor’s employment is terminated under this clause:-

.1 The Contractor will immediately cease to occupy the site but will not remove any plant, tools or
equipment until instructed by the Contract Administrator. The Authority will be entitled to use
the Contractor’s plant, tools and equipment until practical completion of the Works.

.2 The Authority may recover from the Contractor any additional cost of completing the Works
together with any loss, cost, damages or expense incurred as a result of the termination.

.3 The Authority will not be bound to make any further payments to the Contractor until the issue
of the Final Certificate.

CONTRACTOR DESIGN LUMP SUM PSPC 4

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32.5 The provisions of this clause will not affect any legal entitlement the Authority may have to terminate
the contract due to any breach or breaches of the contract on the part of the Contractor.

32.6 The provisions of this clause must not be operated in an unreasonable or oppressive manner.

33.0 Adjudication

33.1 Either party may refer any dispute arising under or in connection with the contract or the carrying out
of the Works to adjudication by way of a written notice.

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33.2 The Scheme for Construction Contracts Adjudication Provisions as referred to in the Housing Grants,

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Construction and Regeneration Act 1996 or any amendment or re-enactment will apply.

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34.0 Arbitration

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34.1 All disputes arising under or in connection with the contract or the carrying out of the Works will be
finally determined by reference to arbitration. The party seeking arbitration must serve on the other

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party a notice in writing to refer the dispute to arbitration.

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34.2 The Arbitrator will be a person appointed by agreement of the parties.
If the parties fail to appoint an Arbitrator within one month of either party serving on the other party a

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notice in writing the dispute will be referred to a person to be appointed by the President for the time

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being of the Chartered Institute of Arbitrators.

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34.3 The arbitration will be conducted in accordance with the Construction Industry Model Arbitration
Rules (CIMAR) current at the date the contract was entered into.

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34.4 The appointed Arbitrator will have full power to open up, review and revise any decision, opinion,
instruction, direction, certificate or valuation of the Contract Administrator.

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35.0 Reckoning Periods of Days

Where under the contract an action is required to be undertaken within a specified period of days after or
from a specified date, the period will begin immediately after that date. Where the period would include a
Public Holiday, Saturday or Sunday, that day shall be excluded.

36.0 Applicable Law

The law of England and Wales shall be the law applicable to the contract unless the Works is situated in
Scotland in which case the law of Scotland will apply.

37.0 Third Party Rights

Nothing in the contract confers any right to enforce any of its terms on any person who is not one of the
parties.

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APPENDIX

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APPENDIX PART 1

1.1 Contract Period (12.0)

EITHER For the whole of the Works weeks

OR For sections of the Works

Section A weeks

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Section B weeks

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Section C weeks

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Section D weeks

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Remainder of the Works weeks

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1.2 Late Completion Damages (17.0)

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Per day / week

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EITHER For the whole of the Works £

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OR For Section A (as above) £

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Section B (as above) £

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Section C (as above) £

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Section D (as above) £

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Remainder of the Works £

1.3 Defects Liability Period (26.0) months

1.4 Fluctuation Provisions (24.0/25.0)

.1 Fixed Price*

.2 Price Adjustment Formula*


Base Month
*delete as required

CONTRACTOR DESIGN LUMP SUM PSPC 4

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APPENDIX PART 1

1.5.1* Stage Payments (18.0)

The stages are as follows:


Stages (insert brief description) Cumulative value

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£

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£

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£

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£

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£

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£

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£

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£

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£

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£

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£

* Cumulative value of final stage must
be equal to the Target Cost

1.5.2* Periodic Payments (18.0)

Applications for Interim Payment are to be made at intervals not exceeding one month.

*delete 1.5.1 or 1.5.2 as required

1.6 Retention (19.0)

Retention Percentage %

Limit of Retention %

If there is no retention insert NIL

CONTRACTOR DESIGN LUMP SUM PSPC 4

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APPENDIX PART 1

1.7 Design Liability (6.0)

.1 Reasonable skill and care applies*

.2 Fitness for purpose applies*

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*delete as required

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1.8 Insurance (29.0)

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Professional Indemnity (29.1.2)

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Limit of liability £

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Period of insurance

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Public liability (29.1.3)

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Minimum cover £

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Employer’s liability (29.1.4)

Minimum cover £

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APPENDIX PART 2

2.1 The Authority’s Requirements are comprised in the following document(s) signed by or on behalf of the
parties: (Second Recital)

ON
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2.2 The Contractor’s Proposals are comprised in the following document(s) signed by or on behalf of the
parties: (Third Recital)

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2.3 Priced Documents (Article 2)

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* Target Cost Analysis

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* The Priced Documents comprise one or more of the following document(s) signed by or on behalf of
the parties:

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* delete as required

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APPENDIX PART 3

Key Personnel (5.2)

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Perform 21

FEDERATION OF PROPERTY SOCIETIES

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PUBLIC SECTOR PARTNERING CONTRACT

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AUTHORITY DESIGN

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TARGET COST WITH COST REIMBURSABLE

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DP S P C 5

OPTION 5
PUBLIC SECTOR PARTNERING CONTRACT

The Public Sector Partnering Contract is made up from the following documents:

Document Ref

Partnering Agreement PSPC P

Available Options/Schedule/Rules

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Option 1 Term Maintenance
Measure and Value PSPC 1

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Option 2 Term Maintenance
Target Cost With Cost Reimbursable PSPC 2

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Option 3 Authority Design

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Lump Sum PSPC 3

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Option 4 Contractor Design

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Lump Sum PSPC 4

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Option 5 Authority Design

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Target Cost With Cost Reimbursable PSPC 5

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Option 6 Contractor Design

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Target Cost With Cost Reimbursable PSPC 6

Option 7 Subcontract

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Lump Sum PSPC 7

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Option 8 Subcontract
Target Cost With Cost Reimbursable PSPC 8

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Option 9 Professional Services PSPC 9

Option 10 Prestart Agreement PSPC 10

Schedule of Costs
For use with Option 2, 5, 6 or 8 PSPC SC

Fluctuation Rules PSPC F

AUTHORITY DESIGN TARGET COST WITH COST REIMBURSABLE PSPC 5

2
CONTENTS

AGREEMENT

TERMS AND CONDITIONS

1. Partnering Obligations
2. Communications
3. Assignment

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4. Subcontracting
5. Contractor’s Obligations
6. Design Liability

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7. Contract Administrator’s Powers

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8. Non-Compliance with Contract Administrator’s Instructions

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9. Document Issue
10. Statutory Obligations

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11. CDM Regulations
12. Commencement and Completion

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13. Care of the Works
14. Extensions of Time

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15. Variations
16. Practical Completion

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17. Late Completion Damages

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18. Target Cost

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19. Valuation
20. Gain Share or Pain Share

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21. Measurement
22. Payment Certificates
23. Retention

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24. Final Documentation

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25. Payment

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26. Value Added Tax
27. Fixed Price

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28. Price Adjustment Formula
29. Defects
30. Final Certificate
31. Indemnity
32. Insurance
33. Authority’s Risk
34. Prevention of Corruption
35. Termination by the Authority
36. Adjudication
37. Arbitration
38. Reckoning Periods of Days
39. Applicable Law
40. Third Party Rights

APPENDIX

Part 1 General
Part 2 Priced Documents
Part 3 Fee Details
Part 4 Key Personnel

AUTHORITY DESIGN TARGET COST WITH COST REIMBURSABLE PSPC 5

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AGREEMENT
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AGREEMENT

This Agreement made on the day of 20 is

Between

ON
of

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(called ‘the Authority’)

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And

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of

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(called ‘the Contractor’)

AUTHORITY DESIGN TARGET COST WITH COST REIMBURSABLE PSPC 5

6
WHEREAS

Recitals

First the Authority requires the construction of the following:

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(the Works)

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and has caused to be prepared Drawings and Specification referred to later in this Agreement and
Priced Documents referred to in Appendix Part 2 prepared which show and describe the Works.

Second

AT
the Contractor has supplied the Authority with a fully priced copy of the Priced Documents.

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Third the Drawings referred to in the First Recital are numbered

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D referred to as the Contract Drawings which, together with the Specification and Priced Documents,
have been signed by or on behalf of the parties.

AUTHORITY DESIGN TARGET COST WITH COST REIMBURSABLE PSPC 5

7
IT IS AGREED

Article 1

The Contractor will carry out and complete the Works in accordance with the contract.

Article 2

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The Authority will pay the Contractor:-

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The Contractor’s admissible costs and Contractor’s Fee plus or minus the Gain Share or Pain Share

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The Target Cost is £

Article 3

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The term ‘the Contract Administrator’ in the contract means

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or such other person as the Authority may appoint as a replacement.

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Article 4

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The term ‘the Planning Supervisor’ in the contract means

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or such other person as the Authority appoints as a replacement as the Planning Supervisor pursuant to the
CDM Regulations.

AUTHORITY DESIGN TARGET COST WITH COST REIMBURSABLE PSPC 5

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Article 5

The contract comprises the following contract documents:

• Articles of Agreement

• Contract Drawings scheduled in this Agreement

• Specification

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• Terms and Conditions

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• Appendix

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• Priced Documents

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The several documents forming the contract are to be taken as mutually explanatory of one another and in the case

A
of ambiguities or discrepancies they will be explained and adjusted by the Contract Administrator who will then
issue to the Contractor appropriate instructions in writing.

Article 6

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The contract does not exclude any rights and obligations the Authority or Contractor may have under statute or at

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common law as a result of carrying out the Works.

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EM E
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AUTHORITY DESIGN TARGET COST WITH COST REIMBURSABLE PSPC 5

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SIGNATURES

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TERMS AND CONDITIONS

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AUTHORITY DESIGN
TARGET COST WITH COST REIMBURSABLE
TERMS AND CONDITIONS

1.0 Partnering Obligations

1.1 The Contractor will enter into the Partnering Agreement with the Authority and such other third
parties associated with the Project referred to in the Partnering Agreement as the Authority and

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Contractor agree.

1.2 The Contractor will enter into the Partnering Charter detailed in the Partnering Agreement.

2.0 Communications

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Communications required by the contract to be in writing may be handwritten or typed and sent by hand,
post, facsimile or email, or other means resulting in a permanent record.

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3.0 Assignment

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Neither the Authority nor the Contractor will, without the prior written consent of the other, assign this

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contract.

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4.0 Subcontracting

The Contractor will not subcontract the Works or any part without the written consent of the Contract

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Administrator whose consent will not be unreasonably delayed or withheld.

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5.0 Contractor’s Obligations

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5.1 The Contractor will carry out and complete the Works with due diligence and in a workmanlike
manner in accordance with the contract.

5.2 The Contractor will provide copies of all records, costs, supply and subcontract invoices and accounts
in connection with the contract required by the Contract Administrator subject to 7 days notice.

5.3 The Contractor will allow the Authority to carry out a full audit of the documents referred to in this
clause on an unlimited number of occasions subject to 14 days notice.

5.4 The Contractor will retain copies of the documents referred to in this clause for a period of 6 years
after the date of Practical Completion.

5.5 The Contractor will employ the key personnel identified in Appendix Part 4. Any substitutes must be
of equivalent ability and qualifications and be accepted by the Contract Administrator.

6.0 Design Liability

6.1 This clause applies where the Contractor is required to design a part of the Works and applies to such
part only.

AUTHORITY DESIGN TARGET COST WITH COST REIMBURSABLE PSPC 5

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.1 Reasonable Skill and Care

Where Appendix Part 1.7.1 applies the Contractor is required to design such part of the Works using
reasonable skill and care.

.2 Fitness For Purpose

Where Appendix Part 1.7.2 applies the Contractor is required to design such part of the Works to be fit for its
intended purpose.

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6.2 The Contractor will submit drawings, calculations and particulars of any design to the Contract
Administrator for acceptance. Reasons for not accepting the design would be that it does not comply

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with the

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.1 Contract Documents, and/or

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.2 Applicable Law.

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6.3 The Contractor indemnifies the Authority against any claims, compensation and costs of whatsoever

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nature arising out of the Contractor’s design.

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6.4 The copyright is vested in the Authority of all drawings, specifications, bills of quantities, schedules

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of work, contract documents, photographs, surveys, reports and all other documents prepared in

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relation to the Project referred to in the Partnering Agreement

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6.5 The Contractor will provide operation and maintenance manuals together with as finished drawings of

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the Works. Practical Completion will not be certified until the manuals and drawings have been
submitted and accepted by the Contract Administrator.

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7.0 Contract Administrator’s Powers

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7.1 The Contractor will comply with all reasonable written instructions issued by the Contract

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Administrator in regard to the Works.

7.2 The Contract Administrator may delegate any of the powers provided for by the contract. These
delegated powers may be cancelled or other delegates substituted.

7.3 The Contract Administrator may, but not unreasonably or vexatiously, instruct the Contractor to
remove an employee engaged on the Works. The Contractor within one working day of receiving the
instruction will ensure that the employee has no further involvement with the Works.

8.0 Non-compliance with Contract Administrator’s Instructions

If the Contractor fails to comply with a Contract Administrator’s written instruction the Contract
Administrator may serve a written default notice on the Contractor. Should the instruction not be complied
with within a further 7 days the Authority may employ and pay others to carry out the instruction. The
Authority may then charge the Contractor with the resultant costs or deduct or withhold the costs from sums
otherwise due to the Contractor.

AUTHORITY DESIGN TARGET COST WITH COST REIMBURSABLE PSPC 5

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9.0 Document Issue

13.1 The Contract Administrator may from time to time during the progress of the Works issue further
documents which explain or amplify the Works.

13.2 The Contractor is required to give proper written notice to the Contract Administrator if any further
documents are required to carry out and complete the Works.

10.0 Statutory Obligations

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The Contractor will comply with all applicable statutory requirements including safety, health and welfare

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and CDM Regulations.

11.0 CDM Regulations

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The Authority will ensure that the Planning Supervisor carries out all the duties of a Planning Supervisor
under the CDM Regulations.

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12.0 Commencement and Completion

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12.1 The Contractor will commence the Works on the date referred to as the Commencement Date included

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in the Contract Administrator’s instruction to commence which will be issued within 28 days of the

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award of the contract.

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12.2 The Authority will give possession and access to the site not later than the Commencement Date.

12.3 The Contractor will complete the whole of the Works within the contract period stated in Appendix

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Part 1.1 or such extended period as allowed under the contract.

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12.4 If any section or sections of the Works are required to be completed in particular periods stated in
Appendix Part 1.1 the Contractor must achieve Practical Completion of the section or sections of the

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Works within the period or periods stated in Appendix Part 1.1 or extended period or periods.

13.0 Care of the Works

13.1 The Contractor will take full responsibility for the care of the Works and for materials, plant and
equipment for incorporation and any loss or damage until Practical Completion.

13.2 When the Contract Administrator certifies Practical Completion for any section or part of the Works
the Contractor will cease to be responsible for the care of that section or part which passes to the
Authority.

14.0 Extensions of Time

14.1 Extensions of time for completion of the Works or any section of it may be granted by the Contract
Administrator where the Contractor is prevented from completing on time due to any of the following
reasons:-

AUTHORITY DESIGN TARGET COST WITH COST REIMBURSABLE PSPC 5

14
.1 Any act, omission or default by the Authority or of others employed or engaged by the Authority

.2 Any matter outside the control or responsibility of the Contractor or of others employed or
engaged by the Contractor

.3 The Contractor suspends Work in accordance with clause 25.3

.4 Variations issued in accordance with clause 15.0.

14.2 The Contractor will provide full details and particulars to demonstrate that any one or more of these

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causes has prevented completion within the period(s) stated in Appendix Part 1.1 in such form and in
such detail as the Contract Administrator may reasonably require.

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14.3 The Contractor will constantly use its best endeavours to carry out and complete the Works within the
period(s) stated in Appendix Part 1.1 or extended period(s).

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15.0 Variations

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15.1 The Contract Administrator may without invalidating the contract order a variation to the Works
by way of:-

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.1 Variation or modification of the design, quality or quantity of work

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.2 Addition to, omission from or alteration to the Works

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.3 Change to the sequence of the Works

.4 Errors or omissions in the Priced Documents.

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15.2 Variations are to be given in writing but if given orally they must be confirmed in writing to the

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Contract Administrator by the Contractor within 7 days or at any time by the Contract Administrator
up to the date of issue of the Final Certificate.

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16.0 Practical Completion

The Contract Administrator will certify the date when the Works have reached Practical Completion.

17.0 Late Completion Damages

17.1 If the Contractor fails to achieve Practical Completion of the Works within the contract period as set
out in Appendix Part 1.1 or extended contract period the Contractor will pay or allow to the Authority
for every day or week of delay as the case may be a sum calculated at the rate stated in Appendix Part
1.2.

17.2 Where the Contractor is required to achieve Practical Completion of a section or sections of the Works
as stated in Appendix Part 1.1 before the end of the contract period and has failed to achieve Practical
Completion within these periods or extended periods the Contractor will pay or allow the Authority
for every day or week of delay as the case may be a sum calculated at the rate or rates stated in
Appendix Part 1.2.

AUTHORITY DESIGN TARGET COST WITH COST REIMBURSABLE PSPC 5

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18.0 Target Cost

18.1 The Target Cost is stated in Article 2 of the Agreement.

18.2 The monetary effect of variations issued under clause 15.0 will be calculated by the Contract
Administrator for the purpose of adjusting the Target Cost. Such adjustment will be carried out using
relevant rates and prices in the Priced Documents or rates and prices deduced from the Priced
Documents. If the rates and prices are inapplicable then any adjustment in the Target Cost will be
made using fair and reasonable rates and prices.

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18.3 Where the Contractor incurs additional costs as a result of any of the events referred to in clause 18.4
such costs will be recorded by the Contractor. An ascertainment of additional costs will be made by

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the Contract Administrator in consultation with the Contractor in a fair and reasonable manner using

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the costs as a basis and an adjustment made to the Target Cost.

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18.4 Matters giving rise to additional cost:-

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.1 Any act, omission or default by the Authority or others employed or engaged by the Authority.

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.2 Any matter outside the control or responsibility of the Contractor or others employed or engaged
by the Contractor.

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.3 Where the Contractor suspends work in accordance with clause 25.3.

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18.5 The Contract Administrator within 3 months of receipt of all the Final Documentation referred to in

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clause 24 will issue a Statement of Final Adjustment to Target Cost showing all adjustments required

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by the contract.

18.6 There will be no adjustment to the Contractor’s Fee.

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19.0 Valuation

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The valuation of the Works will be calculated by reference to the Contractor’s costs admissible under the
Schedule of Costs together with the Contractor’s Fee referred to in Appendix Part 3 plus the gain share or
minus the pain share referred to in Appendix part 3 and calculated in accordance with clause 20.0.

20.0 Gain Share or Pain Share

20.1 The Contractor may become entitled to a gain share or subject to a pain share based upon the
following calculation.
£
.1 Adjusted Target Cost referred to in clause 18.0
Less
.2 Contractor’s costs calculated in accordance with
clause 19.0 and Contractor’s Fee

Positive or negative balance £

AUTHORITY DESIGN TARGET COST WITH COST REIMBURSABLE PSPC 5

16
20.2 Where the balance is positive the Contractor will be entitled to have certified a sum using the positive
balance multiplied by the gain share percentage in Appendix Part 3.

20.3 Where the balance in negative the Contractor will be liable to pay or allow to the Authority the amount
of the negative balance multiplied by the pain share percentage in Appendix Part 3.

21.0 Measurement

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21.1 The measurement and pricing of the Works required to fix the Target Cost referred to in clause 18.1
will be undertaken by the Contractor unless the Contract Administrator otherwise directs.

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21.2 If the Contractor is directed not to carry out the measurement the task will be undertaken by the

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Contract Administrator.

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22.0 Payment Certificates

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22.1 Unless otherwise agreed the Contractor may submit to the Contract Administrator at monthly intervals
commencing one month after the Commencement Date a fully detailed request for a Payment

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Certificate.

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22.2 Within 14 days of receipt of a request the Contract Administrator will issue a Payment Certificate

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which sets out the basis on which it is calculated. It will take into account amounts previously

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certified.

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22.3 The sums included in the Payment Certificate will comprise either:-

.1 The total value of work properly executed and the total value of materials and goods delivered to

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or adjacent to the Works for incorporation. The materials and goods must be stored and
protected and must not have been delivered prematurely, or

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.2 A stage payment where provided for in Appendix Part 1.5.1 when the progress of the Works or

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any section has reached the stage required for payment.

22.4 The total value of work properly executed will be ascertained by reference to the Schedule of Costs
plus Contractor’s Fee as referred to in Appendix Part 3.

22.5 The amount of the Fee will be the sum included in Appendix Part 3 apportioned on a time basis in
relation to the Contract Period in Appendix Part 1.1. The total amount will not exceed the sum
included in Appendix Part 3.

23.0 Retention

23.1 Amounts certified for payment up to the date of Practical Completion will be subject to deduction of
the percentage stated in Appendix Part 1.6 up to the limit of retention.

23.2 Amounts certified for payment from the date of Practical Completion up to the date of the issue of the
Defects Correction Certificate will be subject to deduction of half the percentage stated in Appendix
Part 1.6.

AUTHORITY DESIGN TARGET COST WITH COST REIMBURSABLE PSPC 5

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23.3 All Payment Certificates issued after the date of the issue of the Defects Correction Certificate will be
in full.

23.4 If retention is not to be deducted ‘nil’ is to be stated in Appendix Part 1.6.

24.0 Final Documentation

The Contractor, within 3 months after Practical Completion, will supply all measurements, documentation,

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Subcontractors’ accounts and details of costs reasonably required to enable the Contract Administrator to
adjust the Target Cost.

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25.0 Payment

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25.1 The Authority will pay the Contractor on or before the final date for payment being not later than 14

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days after the date of the issue of the Payment Certificate the sum certified.

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25.2 Not later than 5 days before the final date for payment the Authority will give a written notice to the
Contractor stating any amount proposed to be withheld from the Payment Certificate, and the ground

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or grounds for it being withheld.

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25.3 If the Authority fails to make payment in full in accordance with the contract the Contractor may serve

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notice on the Authority of an intention to suspend work. If the failure to make payment by the

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Authority continues for 7 days after receipt of the written notice then the Contractor may suspend
work until payment in full occurs.

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25.4 If the Authority fails to make payment in full in accordance with the contract the Contractor will be
entitled to interest on the sums paid late at a rate of 5% above the Bank of England Base Rate for the

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period of late payment.

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26.0 Value Added Tax

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Any sums certified under this contract will be exclusive of Value Added Tax.

27.0 Fixed Price

Where Appendix Part 1.4.1 applies the Target Cost will not be adjusted to take account of any change in the
cost to the Contractor of labour, materials, plant or other resources employed in carrying out the Works.

28.0 Price Adjustment Formula

Where Appendix Part 1.4.2 applies the Target Cost will be adjusted either up or down to take account of any
increases or decreases in the price of labour, materials and plant in accordance with the Fluctuation Rules.

AUTHORITY DESIGN TARGET COST WITH COST REIMBURSABLE PSPC 5

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29.0 Defects

29.1 Any defects, excessive shrinkages or other faults in the Works which appear within the period stated
in Appendix Part 1.3 after Practical Completion due to materials or workmanship not being in
accordance with this contract will be made good by the Contractor entirely at the Contractor’s own
cost.

29.2 When all the remedial work referred to in clause 29.1 is complete, the Contract Administrator will
issue a Defects Correction Certificate indicating the date when these obligations were discharged.

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30.0 Final Certificate

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30.1 A Final Certificate will be issued by the Contract Administrator within one month of the issue of the
Defects Correction Certificate.

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30.2 The Final Certificate will include the Contractor’s costs plus Contractor’s Fee, adjusted for any gain

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share or pain share calculated in accordance with clauses 20.2 or 20.3 less payments already made.

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30.3 Payment of any balance will be made from the Authority to the Contractor or Contractor to Authority

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on or before the final date for payment, being not later than 14 days after the issue of the Final

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Certificate.

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31.0 Indemnity

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31.1 The Contractor will indemnify and keep indemnified the Authority against all losses and claims in
respect of

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.1 Death of or injury to any person or

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.2 Loss of or damage to any property

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which may arise out of or in consequence of the carrying out of the Works.

32.0 Insurance

32.1 Except those matters which are the Authority’s risk under clause 33.0, the Contractor will be
responsible for effecting and maintaining the following insurance cover with a reputable insurer.

.1 The risk of any loss or damage caused to the Works, unfixed materials and items for
incorporation into the Works from any cause whatsoever. This insurance will be in the joint
names of the Contractor and the Authority for the full resinstatement value plus 15% in respect
of professional fees. The insurance cover will commence on the Commencement Date referred
to in clause 11.0 and continue until the date of Practical Completion.

.2 Where the Contractor is required to undertake any design function, the Contractor will effect
and maintain professional indemnity insurance to cover all defects or insufficiency in the
Contractor’s design work for the limit of liability indicated in Appendix Part 1.8. Such
insurance will provide for any one occurrence or series of occurrences for the period indicated
in Appendix Part 1.8.

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.3 Public liability insurance for injury to persons and damage to property other than the Works
arising by reason of the Contractor’s negligence, breach of statutory duty, omission or default
for the minimum amount indicted in Appendix Part 1.8 for one occurrence or series of
occurrences arising out of one event.

.4 Employer’s liability insurance in respect of persons in the Contractor’s employment in


compliance with all legislation and such insurance shall be for the minimum amount indicated
in Appendix Part 1.8.

32.2 The Contractor will provide, if requested by the Contract Administrator, evidence that the insurance is

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effective. In the absence of such evidence the Authority will be entitled to effect and maintain the
insurance and charge the cost to the Contractor or deduct the cost from monies due.

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33.0 Authority’s Risk

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33.1 The Authority will be liable for any of the matters included in clause 33.2 which cause

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.1 Damage to the Works or

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.2 Expense, liability, loss, claims or proceedings arising out of or in connection with the Works in

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respect of personal injury or death of any person or loss or damage to any property.

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33.2 Matters for which the Authority is liable:-

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.1 Riot, war, invasion, act of foreign enemies or hostilities

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.2 Civil war, rebellion, revolution, insurrection or military or usurped power

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.3 Ionising radiations or contamination by radioactivity from any nuclear fuel or any nuclear waste

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.4 Pressure waves caused by aircraft or other aerial devices

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.5 Any act of terrorism

.6 Any act or negligence on the part of the Authority or any person for whom the Authority is
liable.

33.3 Where the Works involves maintenance, refurbishment or alteration within existing structures, the
Authority will bear the risks of fire, lightning, explosion, storm, tempest, flood, bursting or
overflowing of water tanks, apparatus or pipes, earthquake, aircraft or other aerial devices or articles
dropped therefrom in respect of loss or damage to the existing structures and contents owned by the
Authority or for which it is responsible.

33.4 The Contractor will bear all other risks.

34.0 Prevention of Corruption

34.1 The Authority will be entitled to cancel this contract if the Contractor gives any fee or reward the
receipt of which is an offence under sub-section (2) of section 117 of the Local Government Act 1972
or any other enactment.

AUTHORITY DESIGN TARGET COST WITH COST REIMBURSABLE PSPC 5

20
34.2 The Contractor will pay to the Authority any loss, cost or expense incurred which results from the
cancellation.

35.0 Termination by the Authority

35.1 The Authority may terminate the Contractor’s employment under this clause by written notice by post
with proof of delivery for reasons referred to in clauses 35.2 and/or 35.3.

35.2 If the Contractor:-

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.1 Makes a composition or arrangement with creditors or becomes bankrupt, or

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.2 Being a company makes a voluntary arrangement for a composition of debts or scheme of
arrangement to be approved in accordance with the Companies Act 1985 or the Insolvency Act

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1986 as the case may be or any amendment or re-enactment, or

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.3 Has a provisional liquidator appointed, or

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.4 Has a winding-up order made, or

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.5 Passes a resolution for voluntary winding-up (except for the purposes of amalgamation or

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reconstruction), or

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.6 Under the Insolvency Act 1986 or any amendment or re-enactment has an administrator or an

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administrative receiver appointed.

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35.3 If the Contractor:-

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.1 Abandons the Works without due cause, or

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.2 Fails to proceed regularly and diligently with the Works after due written warning by the
Contract Administrator, or

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.3 Refuses or neglects after due written notice from the Contract Administrator to remove work,
materials or goods which do not comply with the contract, or

.4 Fails to comply with statutory safety, health and welfare or CDM regulations.

35.4 If the Contractor’s employment is terminated under this clause:-

.1 The Contractor will immediately cease to occupy the site but will not remove any plant, tools or
equipment until instructed by the Contract Administrator. The Authority will be entitled to use
the Contractor’s plant, tools and equipment until practical completion of the Works.

.2 The Authority may recover from the Contractor any additional cost of completing the Works
together with any loss, cost, damages or expense incurred as a result of the termination.

.3 The Authority will not be bound to make any further payments to the Contractor until the issue
of the Final Certificate.

AUTHORITY DESIGN TARGET COST WITH COST REIMBURSABLE PSPC 5

21
35.5 The provisions of this clause will not affect any legal entitlement the Authority may have to terminate
the contract due to any breach or breaches of the contract on the part of the Contractor.

35.6 The provisions of this clause must not be operated in an unreasonable or oppressive manner.

36.0 Adjudication

36.1 Either party may refer any dispute arising under or in connection with the contract or the carrying out
of the Works to adjudication by way of a written notice.

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36.2 The Scheme for Construction Contracts Adjudication Provisions as referred to in the Housing Grants,

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Construction and Regeneration Act 1996 or any amendment or re-enactment will apply.

37.0 Arbitration

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37.1 All disputes arising under or in connection with the contract or the carrying out of the Works will be
finally determined by reference to arbitration. The party seeking arbitration must serve on the other

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party a notice in writing to refer the dispute to arbitration.

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37.2 The Arbitrator will be a person appointed by agreement of the parties.

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If the parties fail to appoint an Arbitrator within one month of either party serving on the other party a

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notice in writing the dispute will be referred to a person to be appointed by the President for the time

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being of the Chartered Institute of Arbitrators.

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37.3 The arbitration will be conducted in accordance with the Construction Industry Model Arbitration
Rules (CIMAR) current at the date the contract was entered into.

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37.4 The appointed Arbitrator will have full power to open up review and revise any decision, opinion,
instruction, direction, certificate or valuation of the Contract Administrator.

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38.0 Reckoning Periods of Days

Where under the contract an action is required to be undertaken within a specified period of days after or
from a specified date, the period will begin immediately after that date. Where the period would include a
Public Holiday, Saturday or Sunday, that day shall be excluded.

39.0 Applicable Law

The law of England and Wales shall be the law applicable to the contract unless the Works is situated in
Scotland in which case the law of Scotland will apply.

40.0 Third Party Rights

Nothing in the contract confers any right to enforce any of its terms on any person who is not one of the
parties.

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APPENDIX
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APPENDIX PART 1

1.1 Contract Period (12.0)

EITHER For the whole of the Works weeks

OR For sections of the Works

Section A weeks

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Section B weeks

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Section C weeks

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Section D weeks

A
Remainder of the Works weeks

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1.2 Late Completion Damages (17.0)

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Per day / week

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EITHER For the whole of the Works £

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OR For Section A (as above) £

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Section B (as above) £

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Section C (as above) £

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Section D (as above) £

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Remainder of the Works £

1.3 Defects Liability Period (29.0) months

1.4 Fluctuation Provisions (27.0/28.0)

.1 Fixed Price*

.2 Price Adjustment Formula*


Base Month
*delete as required

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24
APPENDIX PART 1

1.5.1* Stage Payments (22.0)

The stages are as follows:


Stages (insert brief description) Cumulative value

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£

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£

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£

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£

A
£

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£

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£

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£

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£

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£

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£

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£

* Cumulative value of final stage must
be equal to the Target Cost

1.5.2* Periodic Payments (22.0)

Applications for Interim Payment are to be made at intervals not exceeding one month.

*delete as required

1.6 Retention (23.0)

Retention Percentage %

Limit of Retention %

If there is no retention insert NIL

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APPENDIX PART 1

1.7 Design Liability (6.0)

.1 Reasonable skill and care applies*

.2 Fitness for purpose applies*

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*delete as required

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1.8 Insurance (32.0)

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Professional Indemnity (32.1.2)

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Limit of liability £

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Period of insurance

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Public liability (32.1.3)

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Minimum cover £

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Employer’s liability (32.1.4)

Minimum cover £

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APPENDIX PART 2

Priced Documents (Article 5)

* Bill of Quantities#

* Bill of Approximate Quantities~

* Schedule of Rates

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* Schedule of Work

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* Schedule of Activities

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* Target Cost Analysis

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* Additional Documents

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* delete as required

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# Where a Bill of Quantities is used it will be prepared in accordance with the Standard Method of Measurement
of Building Works 7th Edition published by the Royal Institution of Chartered Surveyors and the Construction

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Confederation.

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~ Where a Bill of Approximate Quantities is used the parties may agree that in adjusting the Target Cost all work
will be remeasured.

When remeasurement occurs the rates and prices will be those contained in the Bill of Approximate Quantities
where relevant or rates and prices deduced from the Bill of Approximate Quantities. If the rates and prices are
not applicable then fair and reasonable rates and prices will be used.

The Contractor will be entitled to an extension of time for completion if, due to the quantities in the Bill of
Approximate Quantities not being reasonably accurate, the Contractor is prevented from completing on time.

AUTHORITY DESIGN TARGET COST WITH COST REIMBURSABLE PSPC 5

27
APPENDIX PART 3

Fee: Gain Share / Pain Share (20.0)

Fee £

Contractor’s Gain Share Percentage %

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Contractor’s Pain Share Percentage %

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APPENDIX PART 4

Key Personnel (5.5)

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29
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Perform 21

FEDERATION OF PROPERTY SOCIETIES

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PUBLIC SECTOR PARTNERING CONTRACT

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CONTRACTOR DESIGN

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TARGET COST WITH COST REIMBURSABLE

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DP S P C 6

OPTION 6
PUBLIC SECTOR PARTNERING CONTRACT

The Public Sector Partnering Contract is made up from the following documents:

Document Ref

Partnering Agreement PSPC P

Available Options/Schedule/Rules

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Option 1 Term Maintenance
Measure and Value PSPC 1

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Option 2 Term Maintenance
Target Cost With Cost Reimbursable

T
PSPC 2

A
Option 3 Authority Design
Lump Sum PSPC 3

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Option 4 Contractor Design

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Lump Sum PSPC 4

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Option 5 Authority Design

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Target Cost With Cost Reimbursable PSPC 5

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Option 6 Contractor Design

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Target Cost With Cost Reimbursable PSPC 6

Option 7 Subcontract

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Lump Sum PSPC 7

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Option 8 Subcontract
Target Cost With Cost Reimbursable PSPC 8

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Option 9 Professional Services PSPC 9

Option 10 Prestart Agreement PSPC 10

Schedule of Costs
For use with Option 2, 5, 6 or 8 PSPC SC

Fluctuation Rules PSPC F

CONTRACTOR DESIGN TARGET COST WITH COST REIMBURSABLE PSPC 6

2
CONTENTS

AGREEMENT

TERMS AND CONDITIONS

1. Partnering Obligations
2. Communications
3. Assignment

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4. Subcontracting
5. Contractor’s Obligations
6. Design Liability

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7. Contract Administrator’s Powers

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8. Non-Compliance with Contract Administrator’s Instructions
9. Document Issue

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10. Statutory Obligations

A
11. CDM Regulations
12. Commencement and Completion

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13. Care of the Works
14. Extensions of Time

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15. Variations

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16. Practical Completion

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17. Late Completion Damages

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18. Target Cost

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19. Valuation
20. Gain Share or Pain Share

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21. Measurement
22. Payment Certificates
23. Retention

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24. Final Documentation
25. Payment

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26. Value Added Tax
27. Fixed Price

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28. Price Adjustment Formula
29. Defects
30. Final Certificate
31. Indemnity
32. Insurance
33. Authority’s Risk
34. Prevention of Corruption
35. Termination by the Authority
36. Adjudication
37. Arbitration
38. Reckoning Periods of Days
39. Applicable Law
40. Third Party Rights

APPENDIX

Part 1 General
Part 2 Priced Documents
Part 3 Fee Details
Part 4 Key Personnel

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AGREEMENT
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AGREEMENT

This Agreement made on the day of 20 is

Between

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of

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(called ‘the Authority’)

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And

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of

(called ‘the Contractor’)

CONTRACTOR DESIGN TARGET COST WITH COST REIMBURSABLE PSPC 6

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WHEREAS

Recitals

First the Authority requires the construction of the following:

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(the Works)

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Second the Authority’s requirements have been issued to the Contractor as the Authority’s Requirements
referred to in Appendix Part 2.1.

Third

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the Contractor has submitted proposals for carrying out the Works in the Contractor’s Proposals
referred to in Appendix Part 2.2.

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IT IS AGREED

Article 1

The Contractor will design and construct the Works in accordance with the contract.

Article 2

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The Authority will pay the Contractor:-

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The Contractor’s admissible costs and Contractor’s Fee plus or minus the Gain Share or Pain Share

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The Target Cost is £

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Article 3

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The term ‘the Contract Administrator’ in the contract means

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or such other person as the Authority may appoint as a replacement.

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Article 4

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The term ‘the Planning Supervisor’ in the contract means

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or such other person as the Authority appoints as a replacement as the Planning Supervisor pursuant to the
CDM Regulations.

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Article 5

The contract comprises the following contract documents:

• Articles of Agreement

• Terms and Conditions

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• Authority’s Requirements

• Contractor’s Proposals

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• Priced Documents

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• Appendix

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The several documents forming the contract are to be taken as mutually explanatory of one another and in the case

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of ambiguities or discrepancies they will be explained and adjusted by the Contract Administrator who will then
issue to the Contractor appropriate instructions in writing.

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In the event of any ambiguity or discrepancy between the Authority’s Requirements and the Contractor’s

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Proposals, the Authority’s Requirements will take precedence.

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Article 6

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The contract does not exclude any rights and obligations the Authority and Contractor may have under statute or
at common law as a result of carrying out the Works.

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SIGNATURES

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TERMS AND CONDITIONS

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CONTRACTOR DESIGN
TARGET COST WITH COST REIMBURSABLE
TERMS AND CONDITIONS

1.0 Partnering Obligations

1.1 The Contractor will enter into the Partnering Agreement with the Authority and such other third
parties associated with the Project referred to in the Partnering Agreement as the Authority and

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Contractor agree.

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1.2 The Contractor will enter into the Partnering Charter detailed in the Partnering Agreement.

2.0 Communications

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Communications required by the contract to be in writing may be handwritten or typed and sent by hand,
post, facsimile or email, or other means resulting in a permanent record.

3.0 Assignment

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Neither the Authority nor the Contractor will, without the prior written consent of the other, assign this

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contract.

4.0

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Subcontracting

The Contractor will not subcontract the Works or any part without the written consent of the Contract

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Administrator whose consent will not be unreasonably delayed or withheld.

5.0

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Contractor’s Obligations

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5.1 The Contractor will carry out and complete the Works with due diligence and in a workmanlike
manner in accordance with the contract.

5.2 The Contractor will provide copies of all records, costs, supply and subcontract invoices and accounts
in connection with the contract required by the Contract Administrator subject to 7 days notice.

5.3 The Contractor will allow the Authority to carry out a full audit of the documents referred to in this
clause on an unlimited number of occasions subject to 14 days notice.

5.4 The Contractor will retain copies of the documents referred to in this clause for a period of 6 years
after the date of Practical Completion.

5.5 The Contractor will employ the key personnel identified in Appendix Part 4. Any substitutes must be
of equivalent ability and qualifications and be accepted by the Contract Administrator.

6.0 Design Liability

6.1 Reasonable Skill and Care

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Where Appendix Part 1.7.1 applies the Contractor is required to design the Works using reasonable skill and
care.

6.2 Fitness For Purpose

Where Appendix Part 1.7.2 applies the Contractor is required to design the Works to be fit for its intended
purpose.

6.3 The Contractor will submit drawings, calculations and particulars of any design to the Contract
Administrator for acceptance. Reasons for not accepting the design would be that it does not comply

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with the

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.1 Contract Documents, and/or

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.2 Applicable Law.

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6.4 The Contractor indemnifies the Authority against any claims compensation and costs of whatsoever

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nature arising out of the Contractor’s design.

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6.5 The copyright is vested in the Authority of all drawings, specifications, bills of quantities, schedules
of work, contract documents, photographs, surveys, reports and all other documents prepared in

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relation to the Project referred to in the Partnering Agreement.

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6.6 The Contractor will provide operation and maintenance manuals together with as finished drawings of

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the Works. Practical Completion will not be certified until the manuals and drawings have been

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submitted and accepted by the Contract Administrator.

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7.0 Contract Administrator’s Powers

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7.1 The Contractor will comply with all reasonable written instructions issued by the Contract

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Administrator in regard to the Works.

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7.2 The Contract Administrator may delegate any of the powers provided for by the contract. These
delegated powers may be cancelled or other delegates substituted.

7.3 The Contract Administrator may, but not unreasonably or vexatiously, instruct the Contractor to
remove an employee engaged on the Works. The Contractor within one working day of receiving the
instruction will ensure that the employee has no further involvement with the Works.

8.0 Non-compliance with Contract Administrator’s Instructions

If the Contractor fails to comply with a Contract Administrator’s written instruction the Contract
Administrator may serve a written default notice on the Contractor. Should the instruction not be complied
with within a further 7 days the Authority may employ and pay others to carry out the instruction. The
Authority may then charge the Contractor with the resultant costs or deduct or withhold the costs from sums
otherwise due to the Contractor

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9.0 Document Issue

9.1 The Contract Administrator may from time to time during the progress of the Works issue further
documents which explain or amplify the Works.

9.2 The Contractor is required to give proper written notice to the Contract Administrator if any further
documents are required to carry out and complete the Works.

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10.0 Statutory Obligations
The Contractor will comply with all applicable statutory requirements including safety, health and welfare
and CDM Regulations.

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11.0 CDM Regulations

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The Authority will ensure that the Planning Supervisor carries out all the duties of a Planning Supervisor
under the CDM Regulations.

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12.0 Commencement and Completion

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12.1 The Contractor will commence the Works on the date referred to as the Commencement Date included

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in the Contract Administrator’s instruction to commence which will be issued within 28 days of the award

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of the contract.

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12.2 The Authority will give possession and access to the site not later than the Commencement Date.

12.3 The Contractor will complete the whole of the Works within the contract period stated in Appendix

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Part 1.1 or such extended period as allowed under the contract.

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12.4 If any section or sections of the Works are required to be completed in particular periods stated in
Appendix Part 1.1 the Contractor must achieve Practical Completion of the section or sections of the

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Works within the period or periods stated in Appendix Part 1.1 or extended period or periods.

13.0 Care of the Works

13.1 The Contractor will take full responsibility for the care of the Works and for materials, plant and
equipment for incorporation and any loss or damage until Practical Completion.

13.2 When the Contract Administrator certifies Practical Completion for any section or part of the Works
the Contractor will cease to be responsible for the care of that section or part which passes to the
Authority.

14.0 Extensions of Time

14.1 Extensions of time for completion of the Works or any section of it may be granted by the Contract
Administrator where the Contractor is prevented from completing on time due to any of the following
reasons:-

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.1 Any act, omission or default by the Authority or of others employed or engaged by the Authority

.2 Any matter outside the control or responsibility of the Contractor or of others employed or
engaged by the Contractor

.3 The Contractor suspends Work in accordance with clause 25.3

.4 Variations issued in accordance with clause 15.0.

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14.2 The Contractor will provide full details and particulars to demonstrate that any one or more of these
causes has prevented completion within the period(s) stated in Appendix Part 1.1 in such form and in

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such detail as the Contract Administrator may reasonably require.

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14.3 The Contractor will constantly use its best endeavours to carry out and complete the Works within the

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period(s) stated in Appendix Part 1.1 or extended period(s).

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15.0 Variations

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15.1 The Contract Administrator may without invalidating the contract order a variation to the Works by

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way of:-

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.1 Variation or modification of the design, quality or quantity of work

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.2 Addition to, omission from or alteration to the Works

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.3 Change to the sequence of the Works.

15.2 Variations are to be given in writing but if given orally they must be confirmed in writing to the

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Contract Administrator by the Contractor within 7 days or at any time by the Contract Administrator

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up to the date of issue of the Final Certificate.

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16.0 Practical Completion

The Contract Administrator will certify the date when the Works have reached Practical Completion.

17.0 Late Completion Damages

17.1 If the Contractor fails to achieve Practical Completion of the Works within the contract period as set
out in Appendix Part 1.1 or extended contract period the Contractor will pay or allow to the Authority
for every day or week of delay as the case may be a sum calculated at the rate stated in Appendix Part
1.2.

17.2 Where the Contractor is required to achieve Practical Completion of a section or sections of the Works
as stated in Appendix Part 1.1 before the end of the contract period and has failed to achieve Practical
Completion within these periods or extended periods the Contractor will pay or allow the Authority
for every day or week of delay as the case may be a sum calculated at the rate or rates stated in
Appendix Part 1.2.

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18.0 Target Cost

18.1 The Target Cost is stated in Article 2 of the Agreement.

18.2 The monetary effect of variations issued under clause 15.0 will be calculated by the Contract
Administrator for the purpose of adjusting the Target Cost. Such adjustment will be carried out using
relevant rates and prices in the Priced Documents or rates and prices deduced from the Priced
Documents. If the rates and prices are inapplicable then any adjustment in the Target Cost will be
made using fair and reasonable rates and prices.

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18.3 Where the Contractor incurs additional costs as a result of any of the events referred to in clause 18.4
such costs will be recorded by the Contractor. An ascertainment of additional costs will be made by

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the Contract Administrator in consultation with the Contractor in a fair and reasonable manner using

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the costs as a basis and an adjustment made to the Target Cost.

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18.4 Matters giving rise to additional cost:-

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.1 Any act, omission or default by the Authority or others employed or engaged by the Authority.

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.2 Any matter outside the control or responsibility of the Contractor or others employed or engaged
by the Contractor.

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.3 Where the Contractor suspends work in accordance with clause 25.3.

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18.5 The Contract Administrator within 3 months of receipt of all the Final Documentation referred to in

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clause 24 will issue a Statement of Final Adjustment to Target Cost showing all adjustments required

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by the contract.

18.6 There will be no adjustment to the Contractor’s Fee.

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19.0 Valuation

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The valuation of the Works will be calculated by reference to the Contractor’s costs admissible under the
Schedule of Costs together with the Contractor’s Fee referred to in Appendix Part 3 plus the gain share or
minus the pain share referred to in Appendix part 3 and calculated in accordance with clause 20.0.

20.0 Gain Share or Pain Share

20.1 The Contractor may become entitled to a gain share or subject to a pain share based upon the
following calculation.
£
.1 Adjusted Target Cost referred to in clause 18.0
Less
.2 Contractor’s costs calculated in accordance with
clause 19.0 and Contractor’s Fee

Positive or negative balance £

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20.2 Where the balance is positive the Contractor will be entitled to have certified a sum using the positive
balance multiplied by the gain share percentage in Appendix Part 3.

20.3 Where the balance in negative the Contractor will be liable to pay or allow to the Authority the amount
of the negative balance multiplied by the pain share percentage in Appendix Part 3.

21.0 Measurement

21.1 The measurement and pricing of the Works required to fix the Target Cost referred to in clause 18.1

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will be undertaken by the Contractor unless the Contract Administrator otherwise directs.

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21.2 If the Contractor is directed not to carry out the measurement the task will be undertaken by the

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Contract Administrator.

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22.0 Payment Certificates

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22.1 Unless otherwise agreed the Contractor may submit to the Contract Administrator at monthly

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intervals commencing one month after the Commencement Date a fully detailed request for a
Payment Certificate.

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22.2 Within 14 days of receipt of a request the Contract Administrator will issue a Payment Certificate

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which sets out the basis on which it is calculated. It will take into account amounts previously

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certified.

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22.3 The sums included in the Payment Certificate will comprise either:-

.1 The total value of work properly executed and the total value of materials and goods delivered to
or adjacent to the Works for incorporation. The materials and goods must be stored and

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protected and must not have been delivered prematurely, or

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.2 A stage payment where provided for in Appendix Part 1.5.1 when the progress of the Works or

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any section has reached the stage required for payment.

22.4 The total value of work properly executed will be ascertained by reference to the Schedule of Costs
plus Contractor’s Fee as referred to in Appendix Part 3.

22.5 The amount of the Fee will be the sum included in Appendix Part 3 apportioned on a time basis in
relation to the Contract Period in Appendix Part 1.1. The total amount will not exceed the sum
included in Appendix Part 3.

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23.0 Retention

23.1 Amounts certified for payment up to the date of Practical Completion will be subject to deduction of
the percentage stated in Appendix Part 1.6 up to the limit of retention.

23.2 Amounts certified for payment from the date of Practical Completion up to the date of the issue of the
Defects Correction Certificate will be subject to deduction of half the percentage stated in Appendix
Part 1.6.

23.3 All Payment Certificates issued after the date of the issue of the Defects Correction Certificate will be

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in full.

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23.4 If retention is not to be deducted ‘nil’ is to be stated in Appendix Part 1.6.

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24.0 Final Documentation

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The Contractor, within 3 months after Practical Completion, will supply all measurements, documentation,
Subcontractors’ accounts and details of costs reasonably required to enable the Contract Administrator to

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adjust the Target Cost.

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25.0 Payment

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25.1 The Authority will pay the Contractor on or before the final date for payment being not later than 14

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days after the date of the issue of the Payment Certificate the sum certified.

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25.2 Not later than 5 days before the final date for payment the Authority will give a written notice to the
Contractor stating any amount proposed to be withheld from the Payment Certificate, and the ground

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or grounds for it being withheld.

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25.3 If the Authority fails to make payment in full in accordance with the contract the Contractor may serve
notice on the Authority of an intention to suspend work. If the failure to make payment by the

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Authority continues for 7 days after receipt of the written notice then the Contractor may suspend
work until payment in full occurs.

25.4 If the Authority fails to make payment in full in accordance with the contract the Contractor will be
entitled to interest on the sums paid late at a rate of 5% above the Bank of England Base Rate for the
period of late payment.

26.0 Value Added Tax

Any sums certified under this contract will be exclusive of Value Added Tax.

27.0 Fixed Price

Where Appendix Part 1.4.1 applies the Target Cost will not be adjusted to take account of any change in the
cost to the Contractor of labour, materials, plant or other resources employed in carrying out the Works.

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28.0 Price Adjustment Formula

Where Appendix Part 1.4.2 applies the Target Cost will be adjusted either up or down to take account of any
increases or decreases in the price of labour, materials and plant using the Fluctuation Rules.

29.0 Defects

29.1 Any defects, excessive shrinkages or other faults in the Works which appear within the period stated
in Appendix Part 1.3 after Practical Completion due to materials or workmanship not being in

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accordance with this contract will be made good by the Contractor entirely at the Contractor’s own
cost.

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29.2 When all the remedial work referred to in clause 29.1 is complete, the Contract Administrator will
issue a Defects Correction Certificate indicating the date when these obligations were discharged.

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30.0 Final Certificate

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30.1 A Final Certificate will be issued by the Contract Administrator within one month of the issue of the
Defects Correction Certificate.

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30.2 The Final Certificate will include the Contractor’s costs plus Contractor’s Fee, adjusted for any gain

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share or pain share calculated in accordance with clauses 20.2 or 20.3 less payments already made.

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30.3 Payment of any balance will be made from the Authority to the Contractor or Contractor to Authority

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on or before the final date for payment, being not later than 14 days after the issue of the Final
Certificate.

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31.0 Indemnity

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31.1 The Contractor will indemnify and keep indemnified the Authority against all losses and claims in

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respect of

.1 Death of or injury to any person or

.2 Loss of or damage to any property

which may arise out of or in consequence of the carrying out of the Works.

32.0 Insurance

32.1 Except those matters which are the Authority’s risk under clause 33.0, the Contractor will be
responsible for effecting and maintaining the following insurance cover with a reputable insurer.

.1 The risk of any loss or damage caused to the Works, unfixed materials and items for incorporation into
the Works from any cause whatsoever. This insurance will be in the joint names of the Contractor and
the Authority for the full resinstatement value plus 15% in respect of professional fees. The insurance
cover will commence on the Commencement Date referred to in clause 12.0 and continue until the
date of Practical Completion.

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.2 Professional indemnity insurance to cover all defects or insufficiency in the Contractor’s design
work for the limit of liability indicated in Appendix Part 1.8. Such insurance will provide for
any one occurrence or series of occurrences for the period indicated in Appendix Part 1.8.

.3 Public liability insurance for injury to persons and damage to property other than the Works
arising by reason of the Contractor’s negligence, breach of statutory duty, omission or default
for the minimum amount indicted in Appendix Part 1.8 for one occurrence or series of
occurrences arising out of one event.

.4 Employer’s liability insurance in respect of persons in the Contractor’s employment in

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compliance with all legislation and such insurance shall be for the minimum amount indicated
in Appendix Part 1.8.

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32.2 The Contractor will provide, if requested by the Contract Administrator, evidence that the insurance is
effective. In the absence of such evidence the Authority will be entitled to effect and maintain the

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insurance and charge the cost to the Contractor or deduct the cost from monies due.

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33.0 Authority’s Risk

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33.1 The Authority will be liable for any of the matters included in clause 33.2 which cause

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.1 Damage to the Works or

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.2 Expense, liability loss, claims or proceedings arising out of or in connection with the Works in

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respect of personal injury or death of any person or loss or damage to any property.

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33.2 Matters for which the Authority is liable:-

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.1 Riot, war, invasion, act of foreign enemies or hostilities

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.2 Civil war, rebellion, revolution, insurrection or military or usurped power

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.3 Ionising radiations or contamination by radioactivity from any nuclear fuel or any nuclear waste

.4 Pressure waves caused by aircraft or other aerial devices

.5 Any act of terrorism

.6 Any act or negligence on the part of the Authority or any person for whom the Authority is
liable.

33.3 Where the Works involves the maintenance, refurbishment or alteration within existing structures, the
Authority will bear the risks of fire, lightning, explosion, storm, tempest, flood, bursting or
overflowing of water tanks, apparatus or pipes, earthquake, aircraft or other aerial devices or articles
dropped therefrom in respect of loss or damage to the existing structures and contents owned by the
Authority or for which it is responsible.

33.4 The Contractor will bear all other risks.

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34.0 Prevention of Corruption

34.1 The Authority will be entitled to cancel this contract if the Contractor gives any fee or reward the
receipt of which is an offence under sub-section (2) of section 117 of the Local Government Act 1972
or any other enactment.

34.2 The Contractor will pay to the Authority any loss, cost or expense incurred which results from the
cancellation.

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35.0 Termination by the Authority

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35.1 The Authority may terminate the Contractor’s employment under this clause by written notice by post

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with proof of delivery for reasons referred to in clauses 35.2 and/or 35.3.

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35.2 If the Contractor:-

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.1 Makes a composition or arrangement with creditors or becomes bankrupt, or

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.2 Being a company makes a voluntary arrangement for a composition of debts or scheme of
arrangement to be approved in accordance with the Companies Act 1985 or the Insolvency Act

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1986 as the case may be or any amendment or re-enactment, or

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.3 Has a provisional liquidator appointed, or

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.4 Has a winding-up order made, or

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.5 Passes a resolution for voluntary winding-up (except for the purposes of amalgamation or
reconstruction), or

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.6 Under the Insolvency Act 1986 or any amendment or re-enactment has an administrator or an

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administrative receiver appointed.

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35.3 If the Contractor:-

.1 Abandons the Works without due cause, or

.2 Fails to proceed regularly and diligently with the Works after due written warning by the
Contract Administrator, or

.3 Refuses or neglects after due written notice from the Contract Administrator to remove work,
materials or goods which do not comply with the contract, or

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.4 Fails to comply with statutory safety, health and welfare or CDM regulations.

35.4 If the Contractor’s employment is terminated under this clause:-

.1 The Contractor will immediately cease to occupy the site but will not remove any plant, tools or
equipment until instructed by the Contract Administrator. The Authority will be entitled to use
the Contractor’s plant, tools and equipment until practical completion of the Works.

.2 The Authority may recover from the Contractor any additional cost of completing the Works
together with any loss, cost, damages or expense incurred as a result of the termination.

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.3 The Authority will not be bound to make any further payments to the Contractor until the issue

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of the Final Certificate.

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35.5 The provisions of this clause will not affect any legal entitlement the Authority may have to terminate

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the contract due to any breach or breaches of the contract on the part of the Contractor.

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35.6 The provisions of this clause must not be operated in an unreasonable or oppressive manner.

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36.0 Adjudication

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36.1 Either party may refer any dispute arising under or in connection with the contract or the carrying out

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of the Works to adjudication by way of a written notice.

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36.2 The Scheme for Construction Contracts Adjudication Provisions as referred to in the Housing Grants,

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Construction and Regeneration Act 1996 or any amendment or re-enactment will apply.

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37.0 Arbitration

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37.1 All disputes arising under or in connection with the contract or the carrying out of the Works will be
finally determined by reference to arbitration. The party seeking arbitration must serve on the other

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party a notice in writing to refer the dispute to arbitration.

37.2 The Arbitrator will be a person appointed by agreement of the parties.


If the parties fail to appoint an Arbitrator within one month of either party serving on the other party a
notice in writing the dispute will be referred to a person to be appointed by the President for the time
being of the Chartered Institute of Arbitrators.

37.3 The arbitration will be conducted in accordance with the Construction Industry Model Arbitration
Rules (CIMAR) current at the date the contract was entered into.

37.4 The appointed Arbitrator will have full power to open up, review and revise any decision, opinion,
instruction, direction, certificate or valuation of the Contract Administrator.

38.0 Reckoning Periods of Days

Where under the contract an action is required to be undertaken within a specified period of days after or
from a specified date, the period will begin immediately after that date. Where the period would include a
Public Holiday, Saturday or Sunday, that day shall be excluded.

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39.0 Applicable Law

The law of England and Wales shall be the law applicable to the contract unless the Works is situated in
Scotland in which case the law of Scotland will apply.

40.0 Third Party Rights

Nothing in the contract confers any right to enforce any of its terms on any person who is not one of the

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parties.

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ON
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APPENDIX
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APPENDIX PART 1

1.1 Contract Period (12.0)

EITHER For the whole of the Works weeks

OR For sections of the Works

Section A weeks

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Section B weeks

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Section C weeks

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Section D weeks

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Remainder of the Works weeks

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1.2 Late Completion Damages (17.0)

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Per day / week

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EITHER For the whole of the Works £

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OR For Section A (as above) £

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Section B (as above) £

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Section C (as above) £

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Section D (as above) £

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Remainder of the Works £

1.3 Defects Liability Period (29.0) months

1.4 Fluctuation Provisions (27.0/28.0)

.1 Fixed Price*

.2 Price Adjustment Formula*


Base Month
*delete as required

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APPENDIX PART 1

1.5.1* Stage Payments (22.0)

The stages are as follows:


Stages (insert brief description) Cumulative value

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£

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£

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£

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£

A
£

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£

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£

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£

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£

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£

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£

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£

* Cumulative value of final stage must
be equal to the Target Cost

1.5.2* Periodic Payments (22.0)

Applications for Interim Payment are to be made at intervals not exceeding one month.

*delete 1.5.1 or 1.5.2 as required

1.6 Retention (23.0)

Retention Percentage %

Limit of Retention %

If there is no retention insert NIL

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APPENDIX PART 1

1.7 Design Liability (6.0)

.1 Reasonable skill and care applies*

.2 Fitness for purpose applies*

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*delete as required

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1.8 Insurance (32.0)

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Professional Indemnity (32.1.2)

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Limit of liability £

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Period of insurance

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Public liability (32.1.3)

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Minimum cover £

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Employer’s liability (32.1.4)

Minimum cover £

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APPENDIX PART 2

2.1 The Authority’s Requirements are comprised in the following document(s) signed by or on behalf of the
parties: (Second Recital)

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2.2 The Contractor’s Proposals are comprised in the following document(s) signed by or on behalf of the
parties: (Third Recital)

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2.3 Priced Documents

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* Target Cost Analysis

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* The Priced Documents comprise one or more of the following document(s) signed by or on behalf of
the parties:

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* delete as required

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APPENDIX PART 3

Fee: Gain Share / Pain Share (20.0)

Fee £

Contractor’s Gain Share Percentage %

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Contractor’s Pain Share Percentage %

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APPENDIX PART 4

Key Personnel (5.5)

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ON
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Perform 21

FEDERATION OF PROPERTY SOCIETIES

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PUBLIC SECTOR PARTNERING CONTRACT

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SUBCONTRACT

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LUMP SUM

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DP S P C 7

OPTION 7
PUBLIC SECTOR PARTNERING CONTRACT

The Public Sector Partnering Contract is made up from the following documents:

Document Ref

Partnering Agreement PSPC P

Available Options/Schedule/Rules

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Option 1 Term Maintenance
Measure and Value PSPC 1

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Option 2 Term Maintenance
Target Cost With Cost Reimbursable PSPC 2

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Option 3 Authority Design
Lump Sum PSPC 3

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Option 4 Contractor Design

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Lump Sum PSPC 4

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Option 5 Authority Design

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Target Cost With Cost Reimbursable PSPC 5

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Option 6 Contractor Design

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Target Cost With Cost Reimbursable PSPC 6

Option 7 Subcontract

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Lump Sum PSPC 7

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Option 8 Subcontract
Target Cost With Cost Reimbursable PSPC 8

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Option 9 Professional Services PSPC 9

Option 10 Prestart Agreement PSPC 10

Schedule of Costs
For use with Option 2, 5, 6 or 8 PSPC SC

Fluctuation Rules PSPC F

SUBCONTRACT LUMP SUM PSPC 7

2
CONTENTS

AGREEMENT

TERMS AND CONDITIONS

1. Partnering Obligations
2. Communications
3. Assignment
4. Subcontractor’s Obligations

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5. Design Liability
6. Variations Instructions and Directions

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7. Non-Compliance with Contractor’s Instructions

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8. Document Issue
9. Statutory Obligations

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10. Commencement and Completion
11. Care of the Works

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12. Extensions of Time and Additional Cost
13. Practical Completion

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14. Late Completion Damages
15. Final Documentation

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16. Payment Certificates

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17. Retention

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18. Statement of Final Account

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19. Payment

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20. Value Added Tax

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21. Fixed Price
22. Price Adjustment Formula
23. Defects

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24. Final Certificate
25. Indemnity

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26. Insurance
27. Prevention of Corruption

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28. Termination by the Contractor
29. Termination by the Subcontractor
30. Adjudication
31. Arbitration
32. Reckoning Periods of Days
33. Applicable Law
34. Third Party Rights

APPENDIX

Part 1 Main Contract Details


Part 2 Subcontract Details
Part 3 Key Personnel

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ON
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AGREEMENT
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AGREEMENT

This Agreement made on the day of 20 is

Between

of (or whose registered office is situated at)

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(called ‘the Contractor’)

And

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S
of (or whose registered office is situated at)

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(called ‘the Subcontractor’)

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WHEREAS

Recitals

First The Contractor is the main contractor for the following main contract work

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Second

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The Contractor requires the construction of the following:-

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(the Subcontract Works)

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and has produced the subcontract documents referred to later in this Agreement which show and
describe the Subcontract Works.

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IT IS AGREED

Article 1

The Subcontractor will carry out and complete the Subcontract Works in accordance with the subcontract.

Article 2

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The Contractor will pay to the Subcontractor the sum of

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£

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(the Subcontract Sum) or such other sum which becomes payable in accordance with the subcontract.

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Article 3

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The subcontract comprises the following subcontract documents:

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• Articles of Agreement

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• Subcontract Drawings scheduled in this Agreement

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• Specification

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• Terms and Conditions

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• Appendix

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• Priced Documents

The several documents forming the subcontract are to be taken as mutually explanatory of one another and in the
case of ambiguities or discrepancies they will be explained and adjusted by the Contractor who will then issue to
the Subcontractor appropriate instructions in writing.

SUBCONTRACT LUMP SUM PSPC 7

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Article 4

Subcontract Drawings

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Article 5

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The Subcontract does not exclude any rights and obligations the Contractor and Subcontractor may have under
statute or at common law as result of carrying out the Subcontract Works.

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SIGNATURES

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TERMS AND CONDITIONS

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SUBCONTRACT
LUMP SUM
TERMS AND CONDITIONS

1.0 Partnering Obligations

Where in Appendix Part 2.8 it is shown to be required, the Subcontractor will enter into the Partnering
Agreement with the Contractor, Authority in Appendix Part 1.1 and such other third parties associated with

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the Project referred to in the Partnering Agreement as the Authority, Contractor and Subcontractor agree.
The Subcontractor will enter into the Partnering Charter detailed in the Public Sector Partnering Agreement.

2.0 Communications

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Communications required by the subcontract to be in writing may be handwritten or typed and sent by hand,

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post, facsimile or email, or other means resulting in a permanent record.

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3.0 Assignment

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Neither the Authority nor the Contractor will, without the prior written consent of the other, assign this

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subcontract.

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4.0 Subcontractor’s Obligations

4.1 With the exception of the detailed prices the Subcontractor will be deemed to have notice of all the
provisions of the main contract, access to which will be made available by the Contractor at the

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location referred to in Appendix Part 1.3 subject to reasonable notice.

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4.2 The Subcontractor will upon and subject to the subcontract and the main contract carry out and
complete the Subcontract Works in accordance with the subcontract and all reasonable directions

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issued by the Contractor.

4.3 The Subcontractor will observe, perform and comply with all the provisions of the main contract as
referred to in Appendix Part 1.2 so far as they relate and apply to the Subcontract Works.

4.4 The Subcontractor will enter into such collateral warranties as the Contractor requires. The terms of
the collateral warranties will be no more onerous than those of the subcontract.

4.5 The Subcontractor will, with due diligence and in a workmanlike manner, carry out and complete the
Subcontract Works in accordance with the subcontract.

4.6 The Subcontractor will employ the key personnel identified in Appendix Part 3. Any substitutes must
be of equivalent ability and qualifications and be accepted by the Contractor.

5.0 Design Liability

5.1 This clause applies where the Subcontractor is required to design all or part of the Subcontract Works.

.1 Reasonable Skill and Care

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Where Appendix Part 2.5.1 applies the Subcontractor is required to design all or part of the Subcontract
Works using reasonable skill and care.

.2 Fitness For Purpose

Where Appendix Part 2.5.2 applies the Subcontractor is required to design all or part of the Subcontract
Works to be fit for its intended purpose.

5.2 The Subcontractor will submit drawings, calculations and particulars of the design to the Contractor
for acceptance. Reasons for not accepting the design would be that it does not comply with the:-

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.1 Subcontract Documents and/or

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.2 Applicable law.

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5.3 The Subcontractor indemnifies the Contractor against any claims, compensation and costs of
whatsoever nature arising out of the Subcontractor’s design.

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5.4 The copyright is vested in the Authority in Appendix Part 1.1 of all drawings, specifications, bills of

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quantities, schedules of works, contract documents, photographs, surveys, reports and all other

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documents prepared in relation to the Project referred to in the Partnering Agreement.

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5.5 The Subcontractor will provide operation and maintenance manuals together with as finished

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drawings of the Subcontract Works. The Practical Completion of the Subcontract Works will not be

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certified until the manuals and drawings have been submitted and accepted by the Contractor.

6.0
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Variations Instructions and Directions

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6.1 The Subcontractor will comply with all reasonable written directions issued by the Contractor in
relation to the Subcontract Works.

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6.2 Any written instruction issued by the Contract Administrator under the main contract affecting the

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Subcontract Works reissued by the Contractor to the Subcontractor will be deemed to be a direction of
the Contractor under clause 6.1.

6.3 The Contractor may without invalidating the Subcontract instruct a variation to the Subcontract Works
by way of:-

.1 Variation or modification of the design, quality or quantity of work

.2 Addition to or omission from or alteration to the Subcontract Works

.3 Change to the sequence of the Subcontract Works

.4 Errors or omissions in the Priced Documents.

6.4 Where a variation affects the Subcontract Sum, any change will be calculated by the Contractor in
consultation with the Subcontractor using where relevant rates and prices in the Priced Documents or
rates and prices deduced from the Priced Documents. If such rates and prices are inapplicable then
any changes in the Subcontract Sum will be made using fair and reasonable rates and prices.

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6.5 Instead of the valuation referred to in clause 6.4 the value may be agreed between the Contractor and
the Subcontractor before the work is commenced.

6.6 `The value of the variation will be added to or omitted from the Subcontract Sum.

6.7 Variations are to be given in writing but if given orally they must be confirmed in writing to the
Contractor by the Subcontractor within 7 days or at any time by the Contractor up to the date of issue
of the Final Certificate.

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7.0 Non-compliance with Contractor’s Instructions

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If the Subcontractor fails to comply with a Contractor’s written instruction the Contractor may serve a

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written default notice on the Subcontractor. Should the instruction not be complied with within a further 7
days the Contractor may employ and pay others to carry out the instruction. The Contractor may then charge

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the Subcontractor with the resultant costs or deduct or withhold the costs from sums otherwise due to the
Subcontractor.

8.0

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Document Issue
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8.1 The Contractor may from time to time during the progress of the Subcontract Works issue further

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documents which explain or amplify the Subcontract Works.

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8.2 The Subcontractor must give proper written notice to the Contractor if any further documents are

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required to carry out and complete the Subcontract Works.

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9.0 Statutory Obligations

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The Subcontractor will comply with all applicable statutory requirements including safety, health and

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welfare and CDM Regulations.

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10.0 Commencement and Completion

10.1 The Contractor will issue in accordance with Appendix Part 2.3.3 a written instruction which requires
the Subcontractor to commence work on site.

10.2 The Subcontractor will carry out and complete the Subcontract Works within the period(s) stated in
Appendix Parts 2.3.2 and 2.3.4, or such extended period(s) allowed under the subcontract. The
Subcontractor will also carry out and complete the Subcontract Works reasonably in accordance with
the progress of the main contract work.

10.3 If any section or sections of the Subcontract Works are required to be completed as stated in Appendix
Part 2.3.2, the Subcontractor must achieve practical completion of the section or sections of the
Subcontract Works within the period or periods stated or extended period or periods.

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11.0 Care of the Works

The Subcontractor will take full responsibility for the care of the Subcontract Works and for unfixed
materials, plant and equipment for incorporation and any loss or damage thereto until Practical Completion
of the Subcontract Works.

12.0 Extensions of Time and Additional Cost

12.1 Extensions of time for completion of the whole or any section of the Subcontract Works may be

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granted by the Contractor where the Subcontractor is prevented from completing on time due to any of
the following reasons:-

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.1 Any matter which gives rise to an entitlement to an extension of time under the main contract

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.2 Any act, omission or default by the Contractor or of others employed or engaged by the
Contractor

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.3 Any matter outside the control or responsibility of the Subcontractor or of others employed or

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engaged by the Subcontractor

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.4 The Subcontractor suspends work in accordance with clause 19.3

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.5 Variations issued in accordance with clause 6.0.

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12.2 The Subcontractor will provide full details and particulars to demonstrate that any one or more of

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these causes has prevented completion within the period(s) stated in Appendix Part 2.3.2 in such form
and in such detail as the Contractor may reasonably require.

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12.3 The Subcontractor will constantly use its best endeavours to carry out and complete the Subcontract
Works within the period(s) stated in Appendix Part 2.3.2 or extended period(s).

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12.4 Where the Subcontractor incurs additional cost as a result of:-

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.1 Matters referred to in clauses 12.1.2, 12.1.4 and 12.1.5

.2 Matters for which the Contractor is entitled to recover additional cost under the main contract

these costs will be recorded by the Subcontractor. A valuation of the financial effects of these matters will
be made by the Contractor in consultation with the Subcontractor in a fair and reasonable manner using the
costs as a basis. Valuations in accordance with this clause will be included in a Payment Certificate issued
in accordance with clause 16.0.

13.0 Practical Completion

13.1 The Subcontractor will give written notice to the Contractor when the Subcontract Works have reached
Practical Completion.

13.2 The Contractor will certify the date when the Subcontract Works have reached Practical Completion.

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14.0 Late Completion Damages

Where Appendix Part 2.4 applies, should the Subcontractor fail to achieve completion of the whole of the
Subcontract Works within the period as set out in Appendix Part 2.3.2 or extended period the Subcontractor
will pay or allow to the Contractor for every day or week of delay as the case may be a sum calculated at the
rate stated.

15.0 Final Documentation

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The Subcontractor, within 3 months from the date of Practical Completion of the Subcontract Works, will
supply all supporting measurements, documentation and details of costs reasonably required to enable the

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Contractor to adjust the Subcontract Sum.

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16.0 Payment Certificates

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16.1 Unless otherwise agreed the Subcontractor may submit to the Contractor at monthly intervals
commencing one month after commencement on site a fully detailed request for a Payment

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Certificate.

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16.2 Within 14 days of receipt of a request the Contractor will issue a Payment Certificate which sets out

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the basis on which it is calculated. It will take into account amounts previously certified.

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16.3 The sums included in the Payment Certificate will comprise the total value of subcontract work

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properly executed and the total value of unfixed materials and goods delivered to or adjacent to the

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Subcontract Works for incorporation. The materials and goods must be stored and protected and must
not have been delivered prematurely.

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16.4 The total value of work properly executed will be ascertained by reference to the Priced Documents
referred to in Appendix Part 2.2 and any adjustments in accordance with the subcontract.

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17.0 Retention

17.1 Amounts certified for payment up to the date of the issue of the Certificate of Practical Completion
will be subject to deduction of the percentage stated in Appendix Part 2.6 up to the limit of retention.

17.2 Amounts certified for payment from the date of Practical Completion up to the date of the issue of the
Statement of Final Account will be subject to deduction of half the percentage stated in the Appendix
Part 2.6.

17.3 Payment Certificates issued after the date of the issue of the Statement of Final Account will be in full.

17.4 If retention is not to be deducted ‘nil’ is to be stated in Appendix Part 2.6.

18.0 Statement of Final Account

The Contractor within 3 months of receipt of the Final Documentation referred to in clause 18.0 will issue a
Statement of Final Account. This document will show the Subcontract Sum and all adjustments required by
the Subcontract.

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19.0 Payment

19.1 The Contractor will pay to the Subcontractor on or before the final date for payment being not later
than 21 days after the date of the issue of the Payment Certificate the sum certified.

19.2 Not later than 5 days before the final date for payment the Contractor will give a written notice to the
Subcontractor stating any amount proposed to be withheld from the Payment Certificate and the ground
or grounds for it being withheld.

19.3 If the Contractor fails to make payment in full in accordance with the subcontract the Subcontractor

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may serve notice on the Contractor of an intention to suspend work. If the failure to make payment by
the Contractor continues for 7 days after receipt of the written notice then the Subcontractor may

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suspend work until payment in full occurs.

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19.4 If the Contractor fails to make payment in full in accordance with the Subcontract the Subcontractor

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will be entitled to interest on the sums paid late at a rate of 5% above the Bank of England Base Rate
for the period of late payment.

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20.0 Value Added Tax

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Any sums certified under the subcontract will be exclusive of Value Added Tax.

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21.0 Fixed Price

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Where Appendix Part 2.9.1 applies the Subcontractor will not be entitled to any payment in respect of any
change in the cost to the Subcontractor of labour, materials, plant or other resources employed in carrying
out the works.

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22.0 Price Adjustment Formula

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Where Appendix Part 2.9.2 applies increases or decreases in cost due to fluctuations in the cost of labour,
materials and resources will be dealt with in accordance with the Fluctuation Rules and the Subcontract
Sum adjusted either up or down.

23.0 Defects

Any defects, excessive shrinkages or other faults which appear within the period stated in Appendix Part 1.6
after the date of Practical Completion of the main contract works due to materials or workmanship not being
in accordance with the subcontract will be made good by the Subcontractor entirely at the Subcontractor’s
own cost.

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24.0 Final Certificate

24.1 A Final Certificate will be issued by the Contractor within one month of the issue of the Statement of
Final Account. The amount of the certificate will be the amount remaining due as indicated in the
Statement of Final Account adjusted if appropriate by the Contractor in agreement with the
Subcontractor for any defects referred to in clause 23.0 which are not required to be made good, less
payments already made.

24.2 Payment of any balance will be made from the Contractor to the Subcontractor or Subcontractor to
Contractor on or before the final date for payment being not later than 14 days after the issue of the

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Final Certificate.

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25.0 Indemnity

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25.1 The Subcontractor will indemnify and keep indemnified the Contractor against all losses and claims in

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respect of

.1 Death of or injury to any person or

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.2 Loss of or damage to any property

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which may arise out of or in consequence of the carrying out of the Subcontract Work.

26.0 Insurance

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26.1 The Subcontractor will be responsible for effecting and maintaining insurance cover with a reputable
insurer against such risks as are identified in Appendix Part 2.7 to the extent of the cover indicated.

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26.2 The Contractor will be responsible for effecting and maintaining insurance cover with a reputable

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insurer against such risks as are identified in Appendix Part 2.7 to the extent of the cover indicated.

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26.3 The insurance cover under clauses 26.1 and 26.2 will if required be in the joint names of the
Contractor and Subcontractor and will be operational from the date of commencement of the
Subcontract Works until the date of Practical Completion of the Subcontract Works.

26.4 Where the Subcontractor is required to undertake any design function the Subcontractor will effect
and maintain professional indemnity insurance to cover all defects or insufficiency in the design work
for the limit of liability indicated in Appendix Part 2.7. Such insurance will provide for any one
occurrence or series of occurrences for the period indicated.

26.5 The Subcontractor will be responsible for effecting and maintaining public liability insurance for
injury to any person and loss or damages to any property resulting from the construction of the Sub
contract Works for the minimum amount stated in Appendix Part 2.7

26.6 The Subcontractor will be responsible for effecting and maintaining Employer’s liability insurance in
respect of persons in the Subcontractor’s employment in compliance with legislation. Such insurance
shall be for the minimum amount stated in Appendix Part 2.7.

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26.7 Where the Subcontractor is responsible for effecting and maintaining insurance, the Subcontractor
will provide, if requested by the Contractor, evidence that the insurance is effective. In the absence of
such evidence the Contractor will be entitled to effect and maintain the insurance and charge the costs
to the Subcontractor or deduct the costs from monies due.

26.8 Where the Contractor is responsible for effecting and maintaining insurance or ensuring that
insurance is effected and maintained the Contractor will, if requested by the Subcontractor, provide
evidence that the insurance is effective. In the absence of such evidence the Subcontractor will be
entitled to effect and maintain the insurance and charge the costs to the Contractor.

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27.0 Prevention of Corruption

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27.1 The Contractor will be entitled to cancel this subcontract if the Subcontractor gives any fee or reward
the receipt of which is an offence under sub-section (2) of section 117 of the Local Government Act

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1972 or any other enactment.

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27.2 The Subcontractor will pay to the Contractor any loss, cost or expense incurred which results from the
cancellation.

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28.0 Termination by the Contractor

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28.1 The Contractor may terminate the Subcontractor’s employment under this clause by written notice by

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post with proof of delivery for reasons referred to in clauses 28.2 and/or 28.3.

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28.2 If the Subcontractor:-

.1 Makes a composition or arrangement with creditors or becomes bankrupt, or

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.2 Being a company makes a voluntary arrangement for a composition of debts or scheme of

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arrangement to be approved in accordance with the Companies Act 1985 or the Insolvency Act
1986 as the case may be or any amendment or re-enactment, or

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.3 Has a provisional liquidator appointed, or

.4 Has a winding-up order made, or

.5 Passes a resolution for voluntary winding-up (except for the purposes of amalgamation or
reconstruction), or

.6 Under the Insolvency Act 1986 or any amendment or re-enactment has an administrator or an
administrative receiver appointed.

28.3 If the Subcontractor :-

.1 Abandons the Subcontract Works without due cause, or

.2 Fails to proceed regularly and diligently with the Subcontract Works after due written warning
by the Contractor, or

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.3 Refuses or neglects after due written notice from the Contractor to remove work, materials or
goods which do not comply with either the main contract or subcontract, or

.4 Fails to comply with statutory safety, health and welfare or CDM regulations.

28.4 If the employment of the Contractor under the main contract is terminated the employment of the
Subcontractor under the subcontract is automatically terminated.

28.5 If the Subcontractor’s employment is terminated under the subcontract other than by operation of
clause 28.4:-

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.1 The Subcontractor will immediately cease to occupy the site but will not remove any plant, tools

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or equipment until instructed by the Contractor. The Contractor will be entitled to use the

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Subcontractor’s plant, tools and equipment until completion of the Subcontract Works.

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.2 The Contractor may recover from the Subcontractor any additional cost of completing the
Subcontract Works together with any loss, cost, damage or expense incurred as a result of the

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termination.

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.3 The Contractor will not be bound to make any further payments to the Subcontractor until the

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issue of the Final Certificate under the main contract.

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28.6 The provisions of this clause will not affect any legal entitlement the Contractor may have to

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determine the subcontract due to any breach or breaches of the subcontract on the part of the

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Subcontractor.

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28.7 The provisions of this clause must not be operated in an unreasonable or oppressive manner.

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29.0 Termination by the Subcontractor

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29.1 The Subcontractor may terminate its employment under the Subcontract by written notice by post with
proof of delivery for reasons referred to in clause 29.2.

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29.2 If the Contractor:-

.1 Makes a composition or arrangement with creditors or becomes bankrupt, or

.2 Being a company makes a voluntary arrangement for a composition of debts or scheme of


arrangement to be approved in accordance with the Companies Act 1985 or the Insolvency Act
1986 as the case may be or any amendment or re-enactment, or

.3 Has a provisional liquidator appointed, or

.4 Has a winding-up order made, or

.5 Passes a resolution for voluntary winding-up (except for the purposes of amalgamation or
reconstruction), or

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.6 Under the Insolvency Act 1986 or any amendment or re-enactment has an administrator or an
administrative receiver appointed, or

.7 Fails to make payment in accordance with the subcontract.

29.3 If the Subcontractor’s employment is terminated under clause 28.4 or clause 29.1:-

.1 The Subcontractor will withdraw from the site and remove all plant, tools and equipment.

.2 The Subcontractor is entitled to recover from the Contractor, in addition to any unpaid value of

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the Subcontract Works carried out, any loss, cost, damage or expense incurred as a result of the
termination.

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29.4 The provisions of this clause will not affect any legal entitlement the Subcontractor may have to
determine the subcontract due to any breach or breaches of the subcontract on the part of the

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Contractor.

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29.5 The provisions of this clause must not be operated in an unreasonable or vexatious manner.

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30.0 Adjudication

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30.1 Either party may refer any dispute arising under or in connection with the subcontract or the carrying

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out of the Subcontract Works to adjudication by way of a written notice.

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30.2 The Scheme for Construction Contracts Adjudication Procedure as referred to in the Housing Grants,

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Construction and Regeneration Act 1996 or any amendment or re-enactment will apply.

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31.0 Arbitration

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31.1 All disputes arising under or in connection with the contract or the carrying out of the Subcontract
Works will be finally determined by reference to arbitration. The party seeking arbitration must serve

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on the other party a notice in writing to refer the dispute to arbitration.

31.2 The Arbitrator will be a person appointed by agreement of the parties.


If the parties fail to appoint an Arbitrator within one month of either party serving on the other party a
notice in writing the dispute will be referred to a person to be appointed by the President for the time
being of the Chartered Institute of Arbitrators.

31.3 The arbitration will be conducted in accordance with the Construction Industry Model Arbitration
Rules (CIMAR) current at the date the subcontract was entered into.

31.4 The appointed Arbitrator will have full power to open up, review and revise any decision, opinion,
instruction, direction, certificate or valuation of the Contractor.

31.5 If a dispute under the main contract has been referred to arbitration and has any connection with a
dispute relating to the subcontract, the Contractor may by written notice to the Subcontractor have the
subcontract dispute referred to the Arbitrator appointed under the main contract. The award of the
Arbitrator will bind the Subcontractor in the same manner as the Contractor.

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32.0 Reckoning Periods of Days

Where under the subcontract action is required to be undertaken within a specified period of days after or
from a specified date, the period will begin immediately after that date. Where the period would include a
Public Holiday, Saturday or Sunday that day shall be excluded.

33.0 Applicable Law

The law of England and Wales shall be the law applicable to the subcontract unless the Subcontract Works

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is situated in Scotland in which case the law of Scotland will apply.

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34.0 Third Party Rights

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Nothing in the subcontract confers any right to enforce any of its terms on any person who is not one of the
parties.

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APPENDIX
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APPENDIX PART 1

Main Contract Details (4.0)

1.1 Authority

1.2 Main Contract Conditions

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1.3 Main Contract

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May Be Inspected at

1.4

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Execution of Main Contract * simple contract

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* deed

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* delete as required

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1.5 Date for Completion of Main Contract

1.6

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Defects Liability Period (23.0)

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in the Main Contract

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1.7 Late Completion
Damages in the Main Contract day / week

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APPENDIX PART 2

Subcontract Details

2.1 Particulars of Subcontract Works (Second Recital)

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2.2 Priced Documents (Article 3)

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* Bill of Quantities#

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* Bill of Approximate Quantities~

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* Schedule of Rates

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* Schedule of Work

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* Schedule of Activities

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Additional Documents

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*
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delete as required

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# Where a Bill of Quantities is used it will be prepared in accordance with the Standard Method of Measurement
of Building Works 7th Edition published by the Royal Institution of Chartered Surveyors and the Construction
Confederation.

~ Where a Bill of Approximate Quantities is used the parties may agree that in adjusting the Subcontract Sum all
work will be remeasured.

When remeasurement occurs the rates and prices will be those contained in the Bill of Approximate Quantities
where relevant or rates and prices deduced from the Bill of Approximate Quantities. If the rates and prices are
not applicable then fair and reasonable rates and prices will be used.

The Subcontractor will be entitled to an extension of time for completion if, due to the quantities in the Bill of
Approximate Quantities not being reasonably accurate, the Subcontractor is prevented from completing on time.

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APPENDIX PART 2

2.3 Commencement and Completion (10.0)

2.3.1 The date for commencement of the Subcontract Works on site will be between:

and

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2.3.2 Time for completion (12.0)

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For the whole of the Subcontract Works weeks

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For Sections of the Subcontract Works

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Section A weeks

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Section B weeks

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Section C weeks

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Section D weeks

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Remainder of works weeks

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2.3.3 Period required for notice[s] to commence work [in any Section] on site:

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weeks

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2.3.4 Period required for Subcontract Works off site and prior to commencement on site:

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weeks

2.3.5 Further details:

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APPENDIX PART 2

2.4 Late Completion Damages (14.0)

* Late Completion Damages for the whole of the Subcontract Works

* day / week

* delete or complete as required

2.5

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Design Liability (5.0)

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.1 Reasonable skill and care applies*

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.2 Fitness for purpose applies*

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* delete as required

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2.6 Retention Percentage (17.0) %

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Limit of retention £

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If there is to be no retention insert NIL

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APPENDIX PART 2

2.7 Insurances (26.0)

Subcontractor’s Insurance Risk

Details of cover

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Contractor’s Insurance Risks

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Details of cover

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Professional Indemnity (26.4)

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Limit of Liability £

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Period of Insurance

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Public Liability (26.5)

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Minimum cover £

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Employer’s Liability (26.6)

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Minimum cover £

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2.8 Partnering Obligations (1.0)

The Subcontractor will/will not* be required to enter into the Partnering Agreement.

* delete as required

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APPENDIX PART 2

2.9 Fluctuations / Fixed Price (21.0/22.0)

.1 Fixed Price*

.2 Fluctuations*

Base Month

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* delete as required

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APPENDIX PART 3

Key Personnel (4.6)

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Perform 21

FEDERATION OF PROPERTY SOCIETIES

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PUBLIC SECTOR PARTNERING CONTRACT

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SUBCONTRACT

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TARGET COST WITH COST REIMBURSABLE

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DP S P C 8

OPTION 8
PUBLIC SECTOR PARTNERING CONTRACT

The Public Sector Partnering Contract is made up from the following documents:

Document Ref

Partnering Agreement PSPC P

Available Options/Schedule/Rules

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Option 1 Term Maintenance
Measure and Value PSPC 1

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Option 2 Term Maintenance
Target Cost With Cost Reimbursable PSPC 2

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Option 3 Authority Design

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Lump Sum PSPC 3

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Option 4 Contractor Design

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Lump Sum PSPC 4

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Option 5 Authority Design

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Target Cost With Cost Reimbursable PSPC 5

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Option 6 Contractor Design

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Target Cost With Cost Reimbursable PSPC 6

Option 7 Subcontract

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Lump Sum PSPC 7

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Option 8 Subcontract
Target Cost With Cost Reimbursable PSPC 8

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Option 9 Professional Services PSPC 9

Option 10 Prestart Agreement PSPC 10

Schedule of Costs
For use with Option 2, 5, 6 or 8 PSPC SC

Fluctuation Rules PSPC F

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CONTENTS

AGREEMENT

TERMS AND CONDITIONS

1. Partnering Obligations
2. Communications
3. Assignment

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4. Subcontractor’s Obligations
5. Design Liability
6. Variations Instructions and Directions

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7. Non-Compliance with Contractor’s Instructions

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8. Document Issue
9. Statutory Obligations

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10. Commencement and Completion

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11. Care of the Works
12. Extensions of Time

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13. Practical Completion
14. Late Completion Damages

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15. Final Documentation

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16. Valuation

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17. Gain Share or Pain Share

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18. Measurement

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19. Payment Certificates
20. Retention

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21. Target Cost
22. Payment
23. Value Added Tax

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24. Fixed Price
25. Price Adjustment Formula

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26. Defects
27. Final Certificate

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28. Indemnity
29. Insurance
30. Prevention of Corruption
31. Termination by the Contractor
32. Termination by the Subcontractor
33. Adjudication
34. Arbitration
35. Reckoning Periods of Days
36. Applicable Law
37. Third Party Rights

APPENDIX

Part 1 Main Contract Details


Part 2 Subcontract Details
Part 3 Fee Gain Share / Pain Share
Part 4 Key Personnel

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AGREEMENT
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AGREEMENT

This Agreement made on the day of 20 is

Between

of (or whose registered office is situated at)

ON
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(called ‘the Contractor’)

And

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S
of (or whose registered office is situated at)

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(called ‘the Subcontractor’)

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WHEREAS

Recitals

First The Contractor is the main contractor for the following main contract work

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Second

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The Contractor requires the construction of the following:-

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(the Subcontract Works)

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and has produced the subcontract documents referred to later in this Agreement which show and
describe the Subcontract Works.

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IT IS AGREED

Article 1

The Subcontractor will carry out and complete the Subcontract Works in accordance with the subcontract.

Article 2

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The Contractor will pay to the Subcontractor the Subcontractor’s admissible costs and Subcontractor’s Fee plus
or minus the Gain Share or Pain Share.

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The Target Cost is £

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Article 3

The subcontract comprises the following subcontract documents:

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• Articles of Agreement

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• Subcontract Drawings scheduled in this Agreement

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• Specification

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• Terms and Conditions

• Appendix

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• Priced Documents

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The several documents forming the subcontract are to be taken as mutually explanatory of one another and in the

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case of ambiguities or discrepancies they will be explained and adjusted by the Contractor who will then issue to
the Subcontractor appropriate instructions in writing.

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Article 4

Subcontract Drawings

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Article 5

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The Subcontract does not exclude any rights and obligations the Contractor and Subcontractor may have under
statute or at common law as result of carrying out the Subcontract Works.

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SIGNATURES

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TERMS AND CONDITIONS

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SUBCONTRACT
TARGET COST WITH COST REIMBURSABLE
TERMS AND CONDITIONS

1.0 Partnering Obligations

Where in Appendix Part 2.8 it is shown to be required, the Subcontractor will enter into the Partnering
Agreement with the Contractor, Authority in Appendix Part 1.1 and such other third parties associated with

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the Project referred to in the Partnering Agreement as the Authority, Contractor and Subcontractor agree.
The Subcontractor will enter into the Partnering Charter detailed in the Public Sector Partnering

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Agreement.

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2.0 Communications

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Communications required by the subcontract to be in writing may be handwritten or typed and sent by hand,
post, facsimile or email, or other means resulting in a permanent record.

3.0 Assignment

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Neither the Contractor nor the Subcontractor will, without the prior written consent of the other, assign this

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subcontract.

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4.0 Subcontractor’s Obligations

4.1 With the exception of the detailed prices the Subcontractor will be deemed to have notice of all the

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provisions of the main contract, access to which will be made available by the Contractor at the

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location referred to in Appendix Part 1.3 subject to reasonable notice.

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4.2 The Subcontractor will upon and subject to the subcontract and the main contract carry out and

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complete the Subcontract Works in accordance with the subcontract and all reasonable directions
issued by the Contractor.

4.3 The Subcontractor will observe, perform and comply with all the provisions of the main contract as
referred to in Appendix Part 1.2 so far as they relate and apply to the Subcontract Works.

4.4 The Subcontractor will enter into such collateral warranties as the Contractor requires. The terms of
the collateral warranties will be no more onerous than those of the subcontract.

4.5 The Subcontractor will provide copies of all records, costs, supply and subcontract invoices and
accounts required by the Contractor subject to 7 days notice.

4.6 The Subcontractor will allow the Contractor to carry out a full audit of the Subcontractor’s records,
costs, supply and subcontract invoices and accounts on an unlimited number of occasions subject to
14 days notice.

4.7 The Subcontractor will, with due diligence and in a workmanlike manner, carry out and complete the
Subcontract Works in accordance with the subcontract.

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4.8 The Subcontractor will employ the key personnel identified in Appendix Part 4. Any substitutes must
be of equivalent ability and qualifications and be accepted by the Contractor.

5.0 Design Liability

5.1 This clause applies where the Subcontractor is required to design all or part of the Subcontract Works.

.1 Reasonable Skill and Care

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Where Appendix part 2.5.1 applies the Subcontractor is required to design all or part of the Subcontract
Works using reasonable skill and care.

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.2 Fitness For Purpose

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Where Appendix Part 2.5.2 applies the Subcontractor is required to design all or part of the Subcontract
Works to be fit for its intended purpose.

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5.2 The Subcontractor will submit drawings, calculations and particulars of the design to the Contractor

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for acceptance. Reasons for not accepting the design would be that it does not comply with the:-

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.1 Subcontract Documents and/or

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.2 Applicable law.

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5.3 The Subcontractor indemnifies the Contractor against any claims, compensation and costs of

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whatsoever nature arising out of the Subcontractor’s design.

5.4 The copyright is vested in the Authority in Appendix Part 1.1 of all drawings, specifications, bills of

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quantities, schedules of works, contract documents, photographs, surveys, reports and all other
documents prepared in relation to the Project referred to in the Partnering Agreement .

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5.5 The Subcontractor will provide operation and maintenance manuals together with as finished

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drawings of the Subcontract Works. The Practical Completion of the Subcontract Works will not be
certified until the manuals and drawings have been submitted and accepted by the Contractor.

6.0 Variations Instructions and Directions

6.1 The Subcontractor will comply with all reasonable written directions issued by the Contractor in
relation to the Subcontract Works.

6.2 Any written instruction issued by the Contract Administrator under the main contract affecting the
Subcontract Works reissued by the Contractor to the Subcontractor will be deemed to be a direction of
the Contractor under clause 6.1.

6.3 The Contractor may without invalidating the Subcontract instruct a variation to the Subcontract Works
by way of:-

.1 Variation or modification of the design, quality or quantity of work.

.2 Addition to or omission from or alteration to the Subcontract Works

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.3 Change to the sequence of the Subcontract Works

.4 Errors or omissions in the Priced Documents

6.4 Variations are to be given in writing but if given orally they must be confirmed in writing to the
Contractor by the Subcontractor within 7 days or at any time by the Contractor up to the date of issue
of the Final Certificate.

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7.0 Non-compliance with Contractor’s Instructions

If the Subcontractor fails to comply with a Contractor’s written instruction the Contractor may serve a

IO
written default notice on the Subcontractor. Should the instruction not be complied with within a further 7
days the Contractor may employ and pay others to carry out the instruction. The Contractor may then

T
charge the Subcontractor with the resultant costs or deduct or withhold the costs from sums otherwise due to
the Subcontractor.

8.0

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Document Issue

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8.1 The Contractor may from time to time during the progress of the Subcontract Works issue further
documents which explain or amplify the Subcontract Works.

S O
8.2 The Subcontractor must give proper written notice to the Contractor if any further documents are

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required to carry out and complete the Subcontract Works.

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9.0 Statutory Obligations

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The Subcontractor will comply with all applicable statutory requirements including safety, health and

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welfare and CDM Regulations.

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10.0 Commencement and Completion

10.1 The Contractor will issue in accordance with Appendix Part 2.3.3 a written instruction which requires
the Subcontractor to commence work on site.

10.2 The Subcontractor will carry out and complete the Subcontract Works within the period(s) stated in
Appendix Parts 2.3.2 and 2.3.4 or such extended period(s) allowed under the subcontract. The
Subcontractor will also carry out and complete the Subcontract Works reasonably in accordance with
the progress of the main contract work.

10.3 If any section or sections of the Subcontract Works are required to be completed as stated in Appendix
Part 2.3.2, the Subcontractor must achieve practical completion of the section or sections of the
Subcontract Works within the period or periods stated or extended period or periods.

11.0 Care of the Works

The Subcontractor will take full responsibility for the care of the Subcontract Works and for unfixed
materials, plant and equipment for incorporation and any loss or damage thereto until Practical Completion
of the Subcontract Works.

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12.0 Extensions of Time

12.1 Extensions of time for completion of the whole or any section of the Subcontract Works may be
granted by the Contractor where the Subcontractor is prevented from completing on time due to any of
the following reasons:-

.1 Any matter which gives rise to an entitlement to an extension of time under the main contract

.2 Any act, omission or default by the Contractor or of others employed or engaged by the
Contractor

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.3 Any matter outside the control or responsibility of the Subcontractor or of others employed or

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engaged by the Subcontractor

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.4 The Subcontractor suspends work in accordance with clause 22.3

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.5 Variations issued in accordance with clause 6.0.

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12.2 The Subcontractor will provide full details and particulars to demonstrate that any one or more of

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these causes has prevented completion within the period(s) stated in Appendix Part 2.3.2 in such form

T
and in such detail as the Contractor may reasonably require.

S N
12.3 The Subcontractor will constantly use its best endeavours to carry out and complete the Subcontract

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Works within the period(s) stated in Appendix Part 2.3.2 or extended period(s).

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13.0 Practical Completion

13.1 The Subcontractor will give written notice to the Contractor when the Subcontract Works have reached

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Practical Completion.

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13.2 The Contractor will certify the date when the Subcontract Works have reached Practical Completion.

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14.0 Late Completion Damages

Where Appendix Part 2.4 applies, should the Subcontractor fail to achieve completion of the whole of the
Subcontract Works within the period as set out in Appendix Part 2.3.2 or extended period the Subcontractor
will pay or allow to the Contractor for every day or week of delay as the case may be a sum calculated at the
rate stated.

15.0 Final Documentation

The Subcontractor, within 3 months from the date of Practical Completion of the Subcontract Works, will
supply all supporting measurements, documentation and details of costs reasonably required to enable the
Contractor to adjust the Subcontract Sum.

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16.0 Valuation

The valuation of the Subcontract Works will be calculated by reference to the Subcontractor’s costs
admissible under the Schedule of Costs together with the Subcontractor’s Fee referred to in Appendix Part
3 plus the gain share or minus the pain share referred to in Appendix Part 3 and calculated in accordance
with clause 17.

17.0 Gain Share or Pain Share

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17.1 The Subcontractor may become entitled to a gain share or subject to a pain share based upon the
following calculation.

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£

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.1 Adjusted Target Cost referred to in clause 21.0

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Less

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.2 Subcontractor’s costs calculated in accordance with

R
clause 16.0 and Subcontractor’s Fee

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Positive or negative balance £

S N
17.2 Where the balance is positive the Subcontractor will be entitled to have certified a sum using the

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positive balance multiplied by the gain share percentage in Appendix Part 3.

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17.3 Where the balance is negative the Subcontractor will be liable to pay or allow to the Contractor the

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amount of the negative balance multiplied by the pain share percentage in Appendix Part 3.

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18.0 Measurement

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18.1 The measurement and pricing of the Subcontract Works required to fix the Target Cost referred to in
clause 21.0 will be undertaken by the Subcontractor unless the Contractor otherwise directs.

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18.2 If the Subcontractor is directed not to carry out the measurement the task will be undertaken by the
Contractor.

19.0 Payment Certificates

19.1 Unless otherwise agreed the Subcontractor may submit to the Contractor at monthly intervals
commencing one month after commencement on site a fully detailed request for a Payment
Certificate.

19.2 Within 14 days of receipt of a request the Contractor will issue a Payment Certificate which sets out
the basis on which it is calculated. It will take into account amounts previously certified.

19.3 The sums included in the Payment Certificate will comprise the total value of subcontract work
properly executed and the total value of unfixed materials and goods delivered to or adjacent to the
Subcontract Works for incorporation. The materials and goods must be stored and protected and must
not have been delivered prematurely.

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19.4 The total value of work properly executed will be ascertained by reference to the Schedule of Costs
plus Subcontractor’s Fee in Appendix Part 3.

19.5 The amount of the Fee will be the total included in Appendix Part 3 apportioned on a time basis in
relation to the Subcontract Period in Appendix Part 2.3.2. The total amount will not exceed the sum
included in Appendix Part 3.

20.0 Retention

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20.1 Amounts certified for payment up to the date of Practical Completion will be subject to deduction of
the percentage stated in Appendix Part 2.6 up to the limit of retention.

IO
20.2 Amounts certified for payment from the date of Practical Completion up to the date of the issue of the
Statement of Final Adjustment to Target Cost will be subject to deduction of half the percentage stated

T
in the Appendix Part 2.6.

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20.3 Payment Certificates issued after the date of the issue of the Statement of Final Adjustment to Target
Cost will be in full.

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20.4 If retention is not to be deducted ‘nil’ is to be stated in Appendix Part 2.6.

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21.0 Target Cost

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21.1 The Target Cost is stated in Article 2 of the Agreement.

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21.2 The monetary effect of variations issued under clause 6.0 will be calculated by the Contractor
for the purpose of adjusting the Target Cost. Such adjustment will be carried out using relevant rates

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and prices in the Priced Documents or rates and prices deduced from the Priced
Documents. If the rates and prices are inapplicable then any adjustment in the Target Cost will be

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made using fair and reasonable rates and prices.

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21.3 Where the Contractor incurs additional costs as a result of any of the events referred to in clause 21.4
such costs will be recorded by the Subcontractor. An ascertainment of additional costs will be made
by the Contractor in consultation with the Subcontractor in a fair and reasonable manner using the
costs as a basis and an adjustment made to the Target Cost.

21.4 Matters giving rise to additional costs:-

.1 Any act, omission or default by the Contractor or others employed or engaged by the Contractor

.2 Any matter outside the control or responsibility of the Subcontractor or others employed or
engaged by the Subcontractor

.3 Where the Subcontractor suspends work in accordance with clause 22.3.

21.5 The Contractor within 3 months of receipt of the Final Documentation referred to in clause 15.0 will
issue a Statement of Final Adjustment to Target Cost. This document will show the Target Cost and all
adjustments required by the subcontract.

21.6 There will be no adjustment to the Subcontractor’s Fee.

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22.0 Payment

22.1 The Contractor will pay to the Subcontractor on or before the final date for payment being not later
than 21 days after the date of the Issue of the Payment Certificate the sum certified.

22.2 Not later than 5 days before the final date for payment the Contractor will give a written notice to the
Subcontractor stating any amount proposed to be withheld from the Payment Certificate and the ground
or grounds for it being withheld.

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22.3 If the Contractor fails to make payment in full in accordance with the subcontract the Subcontractor
may serve notice on the Contractor of an intention to suspend work. If the failure to make payment by
the Contractor continues for 7 days after receipt of the written notice then the Subcontractor may

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suspend work until payment in full occurs.

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22.4 If the Contractor fails to make payment in full in accordance with the subcontract the Subcontractor
will be entitled to interest on the sums paid late at a rate of 5% above the Bank of England Base Rate

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for the period of late payment.

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23.0 Value Added Tax

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Any sums certified under the subcontract will be exclusive of Value Added Tax.

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24.0 Fixed Price

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Where Appendix Part 2.9.1 applies the Target Cost will not be adjusted to take account of any change in the
cost to the Subcontractor of labour, materials, plant or other resources employed in carrying out the works.

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25.0 Price Adjustment Formula

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Where Appendix Part 2.9.2. applies the Target Cost will be adjusted either up or down to take account of any

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increases or decreases in the price of labour, materials and plant using the Fluctuation Rules.

26.0 Defects

Any defects, excessive shrinkages or other faults which appear within the period stated in Appendix Part 1.6
after the date of Practical Completion of the main contract works due to materials or workmanship not being
in accordance with the subcontract will be made good by the Subcontractor entirely at the Subcontractor’s
own cost.

27.0 Final Certificate

27.1 A Final Certificate will be issued by the Contractor within one month of the issue of the Statement of
Final Adjustment to Target Cost.

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27.2 The Final Certificate will include the Subcontractor’s costs plus Subcontractor’s Fee adjusted for any
gain share or pain share calculated in accordance with clauses 17.2 or 17.3 less payments already
made.

27.3 The amount of the Final Certificate will be adjusted if appropriate by the Contractor in agreement
with the Subcontractor for any defects referred to in Clause 26.0 which are not required to be made
good.

27.4 Payment of any balance will be made from the Contractor to the Subcontractor or Subcontractor to
Contractor on or before the final date for payment, being not later than 14 days after the issue of the

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Final Certificate.

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28.0 Indemnity

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28.1 The Subcontractor will indemnify and keep indemnified the Contractor against all losses and claims
in respect of

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.1 Death of or injury to any person or

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.2 Loss of or damage to any property

T N
which may arise out of or in consequence of the carrying out of the Subcontract Work.

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29.0 Insurance

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29.1 The Subcontractor will be responsible for effecting and maintaining insurance cover with a reputable
insurer against such risks as are identified in Appendix Part 2.7 to the extent of the cover indicated.

29.2 The Contractor will be responsible for effecting and maintaining insurance cover with a reputable

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insurer against such risks as are identified in Appendix Part 2.7 to the extent of the cover indicated.

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29.3 The insurance cover under clauses 29.1 and 29.2 will if required be in the joint names of the
Contractor and Subcontractor and will be operational from the date of commencement of the

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Subcontract Works until Practical Completion of the Subcontract Works.

29.4 Where the Subcontractor is required to undertake any design function the Subcontractor will effect
and maintain professional indemnity insurance to cover all defects or insufficiency in the design work
for the limit of liability indicated in Appendix Part 2.7. The Subcontractor will provide the insurance
cover for any one occurrence or series of occurrences for the period indicated.

29.5 The Subcontractor will be responsible for effecting and maintaining public liability insurance for
injury to any person and loss or damages to any property resulting from the construction of the
Subcontract Works for the minimum amount stated in Appendix Part 2.7.

29.6 The Subcontractor will be responsible for effecting and maintaining Employer’s liability insurance in
respect of persons in the Subcontractor’s employment in compliance with legislation. Such insurance
shall be for the minimum amount stated in Appendix Part 2.7.

29.7 Where the Subcontractor is responsible for effecting and maintaining insurance, the Subcontractor
will provide, if requested by the Contractor, evidence that the insurance is effective. In the absence of
such evidence the Contractor will be entitled to effect and maintain the insurance and charge the costs
to the Subcontractor or deduct the costs from monies due.

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19
29.8 Where the Contractor is responsible for effecting and maintaining insurance or ensuring that
insurance is effected and maintained the Contractor will, if requested by the Subcontractor, provided
evidence that the insurance is effective. In the absence of such evidence the Subcontractor will be
entitled to effect and maintain the insurance and charge the costs to the Contractor.

30.0 Prevention of Corruption

30.1 The Contractor will be entitled to cancel this subcontract if the Subcontractor gives any fee or reward
the receipt of which is an offence under sub-section (2) of section 117 of the Local Government Act

N
1972 or any other enactment.

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30.2 The Subcontractor will pay to the Contractor any loss, cost or expense incurred which results from the

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cancellation.

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31.0 Termination by the Contractor

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31.1 The Contractor may terminate the Subcontractor’s employment under this clause by written notice by

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post with proof of delivery for reasons referred to in clauses 31.2 and/or 31.3.

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31.2 If the Subcontractor:-

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.1 Makes a composition or arrangement with creditors or becomes bankrupt, or

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.2 Being a company makes a voluntary arrangement for a composition of debts or scheme of

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arrangement to be approved in accordance with the Companies Act 1985 or the Insolvency Act
1986 as the case may be or any amendment or re-enactment, or

.3 Has a provisional liquidator appointed, or

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.4 Has a winding-up order made, or

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.5 Passes a resolution for voluntary winding-up (except for the purposes of amalgamation or
reconstruction), or

.6 Under the Insolvency Act 1986 or any amendment or re-enactment has an administrator or an
administrative receiver appointed.

31.3 If the Subcontractor :-

.1 Abandons the Subcontract Works without due cause, or

.2 Fails to proceed regularly and diligently with the Subcontract Works after due written warning
by the Contractor, or

.3 Refuses or neglects after due written notice from the Contractor to remove work, materials or
goods which do not comply with either the main contract or subcontract, or

.4 Fails to comply with statutory safety, health and welfare or CDM regulations.

31.4 If the employment of the Contractor under the main contract is terminated the employment of the
Subcontractor under the subcontract is automatically terminated.

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20
31.5 If the Subcontractor’s employment is terminated under the subcontract other than by operation of
clause 31.4:-

.1 The Subcontractor will immediately cease to occupy the site but will not remove any plant, tools
or equipment until instructed by the Contractor. The Contractor will be entitled to use the
Subcontractor’s plant, tools and equipment until completion of the Subcontract Works.

.2 The Contractor may recover from the Subcontractor any additional cost of completing the
Subcontract Works together with any loss, cost, damage or expense incurred as a result of the
termination.

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.3 The Contractor will not be bound to make any further payments to the Subcontractor until the

O
issue of the Final Certificate under the main contract.

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31.6 The provisions of this clause will not affect any legal entitlement the Contractor may have to

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determine the subcontract due to any breach or breaches of the subcontract on the part of the
Subcontractor.

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31.7 The provisions of this clause must not be operated in an unreasonable or oppressive manner.

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32.0 Termination by the Subcontractor

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32.1 The Subcontractor may terminate its employment under the Subcontract by written notice by post

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with proof of delivery for reasons referred to in clause 32.2.

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32.2 If the Contractor:-

.1 Makes a composition or arrangement with creditors or becomes bankrupt, or

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.2 Being a company makes a voluntary arrangement for a composition of debts or scheme of

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arrangement to be approved in accordance with the Companies Act 1985 or the Insolvency Act
1986 as the case may be or any amendment or re-enactment, or

D
.3 Has a provisional liquidator appointed, or

.4 Has a winding-up order made, or

.5 Passes a resolution for voluntary winding-up (except for the purposes of amalgamation or
reconstruction), or

.6 Under the Insolvency Act 1986 or any amendment or re-enactment has an administrator or an
administrative receiver appointed, or

.7 Fails to make payment in accordance with the subcontract.

32.3 If the Subcontractor’s employment is terminated under clause 31.4 or clause 32.1:-

.1 The Subcontractor will withdraw from the site and remove all plant, tools and equipment.

.2 The Subcontractor will be entitled to recover from the Contractor, in addition to any unpaid
value of the Subcontract Works carried out and Subcontractor’s Fee and gain/pain share, any
loss, cost, damage or expense incurred as a result of the termination.

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21
32.4 The provisions of this clause will not affect any legal entitlement the Subcontractor may have to
determine the subcontract due to any breach or breaches of the subcontract on the part of the
Contractor.

32.5 The provisions of this clause must not be operated in an unreasonable or vexatious manner.

33.0 Adjudication

33.1 Either party may refer any dispute arising under or in connection with the subcontract or the carrying

N
out of the Subcontract Works to adjudication by way of a written notice.

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33.2 The Scheme for Construction Contracts Adjudication Procedure as referred to in the Housing Grants,

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Construction and Regeneration Act 1996 or any amendment or re-enactment will apply.

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34.0 Arbitration

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34.1 All disputes arising under or in connection with the contract or the carrying out of the Subcontract
Works will be finally determined by reference to arbitration. The party seeking arbitration must serve

R
on the other party a notice in writing to refer the dispute to arbitration.

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34.2 The Arbitrator will be a person appointed by agreement of the parties.
If the parties fail to appoint an Arbitrator within one month of either party serving on the other party a

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notice in writing the dispute will be referred to a person to be appointed by the President for the time

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being of the Chartered Institute of Arbitrators.

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34.3 The arbitration will be conducted in accordance with the Construction Industry Model Arbitration
Rules (CIMAR) current at the date the subcontract was entered into.

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34.4 The appointed Arbitrator will have full power to open up, review and revise any decision, opinion,
instruction, direction, certificate or valuation of the Contractor.

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34.5 If a dispute under the main contract has been referred to arbitration and has any connection with a

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dispute relating to the subcontract, the Contractor may by written notice to the Subcontractor have the
subcontract dispute referred to the Arbitrator appointed under the main contract. The award of the
Arbitrator will bind the Subcontractor in the same manner as the Contractor.

35.0 Reckoning Periods of Days

Where under the subcontract action is required to be undertaken within a specified period of days after or
from a specified date, the period will begin immediately after that date. Where the period would include a
Public Holiday, Saturday or Sunday that day shall be excluded.

36.0 Applicable Law

The law of England and Wales shall be the law applicable to the subcontract unless the Subcontract Works
is situated in Scotland in which case the law of Scotland will apply.

37.0 Third Party Rights

Nothing in the subcontract confers any right to enforce any of its terms on any person who is not one of the
parties.

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APPENDIX
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APPENDIX PART 1

Main Contract Details (4.0)

1.1 Authority

1.2 Main Contract Conditions

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1.3 Main Contract

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May Be Inspected at

1.4

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Execution of Main Contract * simple contract

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* deed

* delete as required

1.5

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Date for Completion of Main Contract

1.6

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Defects Liability Period (26.0)

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in the Main Contract

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1.7 Late Completion
Damages in the Main Contract day / week

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APPENDIX PART 2

Subcontract Details (Second Recital)

2.1 Particulars of Subcontract Works

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2.2 Priced Documents (Article 3)

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* Bill of Quantities#

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* Bill of Approximate Quantities~

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* Schedule of Rates

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* Schedule of Work

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* Schedule of Activities

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Additional Documents

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*
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delete as required

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# Where a Bill of Quantities is used it will be prepared in accordance with the Standard Method of Measurement
of Building Works 7th Edition published by the Royal Institution of Chartered Surveyors and the Construction
Confederation.

~ Where a Bill of Approximate Quantities is used the parties may agree that in adjusting the Target Cost all
work will be remeasured.

When remeasurement occurs the rates and prices will be those contained in the Bill of Approximate Quantities
where relevant or rates and prices deduced from the Bill of Approximate Quantities. If the rates and prices are
not applicable then fair and reasonable rates and prices will be used.

The Subcontractor will be entitled to an extension of time for completion if, due to the quantities in the Bill of
Approximate Quantities not being reasonably accurate, the Subcontractor is prevented from completing on time.

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25
APPENDIX PART 2

2.3 Commencement and Completion (10.0)

2.3.1 The date for commencement of the subcontract works on site will be between:

and

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2.3.2 Time for completion (12.0)

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For the whole of the Subcontract Works weeks

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For Sections of the Subcontract Works

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Section A weeks

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Section B weeks

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Section C weeks

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Section D weeks

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Remainder of works weeks

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2.3.3 Period required for notice[s] to commence work [in any Section] on site:

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weeks

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2.3.4 Period required for Subcontract Works off site and prior to commencement on site:

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weeks

2.3.5 Further details:

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APPENDIX PART 2

2.4 Late Completion Damages (14.0)

* Late Completion Damages for the whole of the Subcontract Works

* day / week

* delete or complete as required

2.5

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Design Liability (5.0)

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.1 Reasonable skill and care applies*

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.2 Fitness for purpose applies*

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* delete as required

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2.6 Retention Percentage (20.0) %

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Limit of retention £

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If there is to be no retention insert NIL

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APPENDIX PART 2

2.7 Insurances (26.0)

Subcontractor’s Insurance Risk

Details of cover

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Contractor’s Insurance Risks

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Details of cover

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Professional Indemnity (26.4)

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Limit of Liability £

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Period of Insurance

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Public Liability (26.5)

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Minimum cover £

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Employer’s Liability (26.6)

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Minimum cover £

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2.8 Partnering Obligations (1.0)

The Subcontractor will/will not* be required to enter into the Partnering Agreement.

* delete as required

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APPENDIX PART 2

2.9 Fluctuations / Fixed Price (24.0/25.0)

.1 Fixed Price*

.2 Fluctuations*

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Base Month

* delete as required

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APPENDIX PART 3

Fee: Gain Share / Pain Share (17.0)

Subcontractor’s Fee £

SubContractor’s Gain Share Percentage %

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SubContractor’s Pain Share Percentage %

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APPENDIX PART 4

Key Personnel (4.8)

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FEDERATION OF PROPERTY SOCIETIES

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PROFESSIONAL SERVICES

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DP S P C 9

OPTION 9
PUBLIC SECTOR PARTNERING CONTRACT

The Public Sector Partnering Contract is made up from the following documents:

Document Ref

Partnering Agreement PSPC P

Available Options/Schedule/Rules

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Option 1 Term Maintenance
Measure and Value PSPC 1

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Option 2 Term Maintenance
Target Cost With Cost Reimbursable PSPC 2

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Option 3 Authority Design

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Lump Sum PSPC 3

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Option 4 Contractor Design
Lump Sum PSPC 4

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Option 5 Authority Design

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Target Cost With Cost Reimbursable PSPC 5

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Option 6 Contractor Design

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Target Cost With Cost Reimbursable PSPC 6

Option 7 Subcontract

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Lump Sum PSPC 7

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Option 8 Subcontract
Target Cost With Cost Reimbursable PSPC 8

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Option 9 Professional Services PSPC 9

Option 10 Prestart Agreement PSPC 10

Schedule of Costs
For use with Option 2, 5, 6 or 8 PSPC SC

Fluctuation Rules PSPC F

PROFESSIONAL SERVICES PSPC 9

2
CONTENTS

AGREEMENT

TERMS AND CONDITIONS

1. Partnering Obligations
2. Services
3. Authority’s Obligations
4. Communications

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5. Assignment
6. Sub-contracting

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7. Fees and Expenses

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8. Payment
9. Indemnity

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10. Insurance
11. Statutory Obligations

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12. Prevention of Corruption
13. Termination by Authority

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14. Copyright
15. Adjudication

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16. Arbitration

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17. Reckoning Periods of Days

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18. Applicable Law

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19. Third party Rights

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APPENDIX

Part 1 Schedule of Services

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Part 2 Fees and Payment Terms
Part 3 Schedule of Disbursements and Expenses

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Part 4 Insurance
Part 5 Key Personnel

PROFESSIONAL SERVICES PSPC 9

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ON
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AGREEMENT
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AGREEMENT

This Agreement made on the day of 20 is

Between

of

ON
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(called ‘the Authority’)

And

AT
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S
of (or whose registered office is situated at)

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(called ‘the Consultant’)

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PROFESSIONAL SERVICES PSPC 9

6
WHEREAS

Recital

The Authority intends to proceed with

(the Project)

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and has requested the Consultant to provide the services (the Services) described in Appendix Part 1.

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It is agreed

AT
Article 1

The Consultant will provide the Services in accordance with the contract.

Article 2

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The Authority will pay the Consultant in accordance with the contract.

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Article 3

The contract comprises the following documents

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Articles of Agreement

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Terms and Conditions

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Appendix

The several documents forming the contract are to be taken as mutually explanatory of one another and in the case
of ambiguities they will be explained and adjusted by the Authority who will then issue to the Consultant
appropriate instructions in writing.

Article 4

The contract does not exclude any rights and obligations the Authority and Consultant may have under statute or
at common law as a result of carrying out the Services.

PROFESSIONAL SERVICES PSPC 9

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SIGNATURES

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TERMS AND CONDITIONS

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PROFESSIONAL SERVICES CONTRACT

1.0 Partnering Obligations

1.1 The Consultant will enter into the Partnering Agreement with the Authority and such other third
parties associated with the Project as the Authority and Consultant agree.

1.2 The Consultant will enter into the Partnering Charter detailed in the Partnering Agreement.

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2.0 Services

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2.1 The Services to be provided by the Consultant are set out in Appendix Part 1.

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2.2 The Consultant will perform the Services with reasonable skill, care and diligence.

A
2.3 The Consultant will employ the key personnel identified in Appendix Part 5. Any substitutes must be
of equivalent ability and qualifications and be accepted by the Authority.

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2.4 The Consultant will before commencing work on the Project submit in writing to the Authority for

T N
approval the name of a person with full authority to act on behalf of the Consultant and such person
will not be changed without the consent of the Authority. Such consent will not be unreasonably

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withheld.

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2.5 The Authority may instruct the Consultant to replace the person named in clause 2.4.

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3.0 Authority’s Obligations

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3.1 The Authority will ensure that all information reasonably required by the Consultant from the

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Authority or obtainable by the Authority is provided to the Consultant when required without charge.

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3.2 The Authority will nominate a person to whom the Consultant will report.

4.0 Communications

Communications required by the contract to be in writing may be handwritten or typed and sent by hand,
post, facsimile or email, or other means resulting in a permanent record.

5.0 Assignment

Neither the Authority nor the Consultant shall, without the prior written consent of the other, assign the
contract.

6.0 Subcontracting

The Consultant will not subcontract the Services or any part to subconsultants without the written consent
of the Authority which consent will not be unreasonably delayed or withheld.

PROFESSIONAL SERVICES PSPC 9

11
7.0 Fees and Expenses

7.1 The Consultant’s fees will be in accordance with Appendix Part 2.

7.2 The fees stated in Appendix Part 2 shall be inclusive of all disbursements and expenses except those
stated in Appendix Part 3.

7.3 The Consultant will be entitled to payment where appropriate of the disbursements and expenses
referred to in Appendix Part 3.

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8.0 Payment

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8.1 The Consultant’s payment terms will be in accordance with Appendix Part 2.

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8.2 The Consultant will be required to submit a VAT invoice which reflects the payment terms in
Appendix Part 2.

A
8.3 The payment due date will be 7 days after the receipt by the Authority of the VAT invoice.

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8.4 The Authority will make payment to the Consultant on or before the final date for payment being 21

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days after the payment due date.

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8.5 Not later than 5 days before the final date for payment, the Authority will give written notice to the

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Consultant of the amount which will be paid and the basis on which the amount is calculated.

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8.6 Not later than 5 days before the final date for payment, the Authority will give written notice to the
Consultant stating any amount proposed to be withheld and the ground or grounds for it being
withheld.

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8.7 If the Authority fails to make payment in full in accordance with the contract the Consultant may serve

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notice on the Authority of an intention to suspend provision of services. If the failure to make
payment by the Authority continues for 7 days after receipt of the written notice then the Consultant

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may suspend the services until payment in full occurs.

8.8 If the Authority fails to make payment in full in accordance with this contract the Consultant will be
entitled to interest on the sums paid late at a rate of 5% above the Bank of England Base Rate.

9.0 Indemnity

The Consultant will indemnify and keep indemnified the Authority against any losses and claims in respect
of

.1 Death or injury to any person

.2 Loss or damage to any property

which may arise out of or in consequence of providing the Services.

PROFESSIONAL SERVICES PSPC 9

12
10.0 Insurance

10.1 The Consultant will effect and maintain with a reputable insurer:-

.1 Professional indemnity insurance to cover all defects or insufficiency in the design work for the
limit of liability indicated in Appendix Part 4 relating to the Services. Such insurance will
provide for any one occurrence or series of occurrences for the period indicated.

.2 Employer’s liability insurance in respect of persons employed by the Consultant on the Project
in compliance with all legislation and such insurance will be for the minimum amount in

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Appendix Part 4.

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10.2 The Consultant will provide, if requested by the Authority, evidence that the insurance is effective. In

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the absence of such evidence the Authority will be entitled to maintain the insurance and charge the
costs to the Consultant or deduct the costs from monies due.

AT
11.0 Statutory Obligations

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The Consultant will comply with all applicable statutory requirements including safety, health and welfare

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and CDM Regulations.

S O N
12.0 Prevention of Corruption

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12.1 The Authority will be entitled to cancel the contract if the Consultant gives any fee or reward the

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receipt of which is an offence under sub-section (2) of section 117 of the Local Government Act 1972
or any other enactment.

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12.2 The Consultant will pay to the Authority any loss, cost or expense incurred which results from the
cancellation.

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13.0 Termination by the Authority

13.1 The Authority may terminate the contract by written notice by post with proof of delivery for reasons
referred to in clauses 13.2 and 13.3.

13.2 If the Consultant:-

.1 Makes a composition or arrangement with creditors or becomes bankrupt, or

.2 Being a company makes a voluntary arrangement for a composition of debts or scheme of


arrangement to be approved in accordance with the Companies Act 1985 or the Insolvency Act
1986 as the case may be or any amendment or re-enactment, or

.3 Has a provisional liquidator appointed, or

.4 Has a winding-up order made, or

.5 Passes a resolution for voluntary winding-up (except for the purposes of amalgamation or
reconstruction), or

PROFESSIONAL SERVICES PSPC 9

13
.6 Under the Insolvency Act 1986 or any amendment or re-enactment has an administrator or an
administrative receiver appointed.

13.3 If the Consultant:-

.1 Commits any breach of the provisions of the contract which the Consultant fails to remedy
within 30 days after receiving written notice from the Authority which fully describes the breach
or

.2 Ceases to provide the Services without due cause, or

N
.3 Fails to proceed regularly and diligently with the Services after due written warning by the

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Authority, or

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.4 Fails to comply with statutory safety, health and welfare or CDM regulations.

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13.4 The provisions of this clause will not affect any legal entitlement the Authority may have to terminate

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the contract due to any breach or breaches of the contract on the part of the Consultant.

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13.5 The provisions of this clause must not be operated in an unreasonable or oppressive manner

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14.0 Copyright

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The copyright is vested in the Authority of all drawings, specifications, bills of quantities, schedules of

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works, contract documents, photographs, surveys, reports and all other documents prepared in relation to

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the Project.

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15.0 Adjudication

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15.1 Either party may refer any dispute arising under or in connection with the contract or the carrying out
of the Services to adjudication by way of a written notice.

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15.2 The Scheme for Construction Contracts Adjudication Procedure as referred to in the Housing Grants,
Construction and Regeneration Act 1996 or any amendment or re-enactment will apply.

16.0 Arbitration

16.1 All disputes arising under or in connection with the contract or the carrying out of the Services will be
finally determined by reference to arbitration. The party seeking arbitration must serve on the other
party a notice in writing to refer the dispute to arbitration.

16.2 The Arbitrator will be a person appointed by agreement of the parties.


If the parties fail to appoint an Arbitrator within one month of either party serving on the other party a
notice in writing the dispute will be referred to a person to be appointed by the President for the time
being of the Chartered Institute of Arbitrators.

16.3 The arbitration will be conducted in accordance with the Construction Industry Model Arbitration
Rules (CIMAR) current at the date the contract was entered into.

PROFESSIONAL SERVICES PSPC 9

14
17.0 Reckoning Periods of Days

Where under the contract action is required to be undertaken within a specified period of days after or from
a specified date, the period will begin immediately after that date. Where the period would include a day
which is a Public Holiday, Saturday or Sunday that day shall be excluded.

18.0 Applicable Law

The law of England and Wales shall be the law applicable to the contract unless the Project is situated in

N
Scotland in which case the law of Scotland will apply.

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19.0 Third Party Rights

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Nothing in this contract confers any right to enforce any of its terms on any person who is not one of the
parties.

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PROFESSIONAL SERVICES PSPC 9

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APPENDIX

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APPENDIX PART 1

Schedule of Services (2.0)

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APPENDIX PART 2

Fees and Payment Terms (7.0/8.0)

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APPENDIX PART 3

Schedule of Disbursements and Expenses (7.0)

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APPENDIX PART 1

Insurance (10.0)

Professional Indemnity (10.1.1)

Limit of liability £

Period of insurance

ON
Employer’s liability (10.1.2)

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Minimum cover £

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APPENDIX PART 5

Key Personnel (2.3)

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FEDERATION OF PROPERTY SOCIETIES

ON
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PUBLIC SECTOR PARTNERING CONTRACT

S T N
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PRESTART AGREEMENT

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DP S P C 10

OPTION 10
PUBLIC SECTOR PARTNERING CONTRACT

The Public Sector Partnering Contract is made up from the following documents:

Document Ref

Partnering Agreement PSPC P

Available Options/Schedule/Rules

N
Option 1 Term Maintenance
Measure and Value PSPC 1

IO
Option 1 Term Maintenance
Target Cost With Cost Reimbursable PSPC 2

AT
Option 3 Authority Design
Lump Sum PSPC 3

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Option 4 Contractor Design

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Lump Sum PSPC 4

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Option 5 Authority Design

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Target Cost With Cost Reimbursable PSPC 5

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Option 6 Contractor Design

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Target Cost With Cost Reimbursable PSPC 6

Option 7 Subcontract

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Lump Sum PSPC 7

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Option 8 Subcontract
Target Cost With Cost Reimbursable PSPC 8

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Option 9 Professional Services PSPC 9

Option 10 Prestart Agreement PSPC 10

Schedule of Costs
For use with Option 2, 5, 6 or 8 PSPC SC

Fluctuation Rules PSPC F

PRESTART AGREEMENT PSPC 10

2
CONTENTS

AGREEMENT

TERMS AND CONDITIONS

1. Scope
2. Programme and Estimate
3. Costs

N
4. Payment Certificates
5. Payment
6. Value Added Tax

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7. Provision of Records

I
8. Key Personnel
9. Statutory Obligations

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10. CDM Regulations

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11. Prevention of Corruption
12. Copyright

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13. Indemnity
14. Insurance

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15. Termination

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16. Adjudication

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17. Arbitration

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18. Applicable Law

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19. Third Party Rights

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APPENDIX

Part 1 Services to be undertaken by Contractor

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Part 2 Programme
Part 3 Estimate

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Part 4 Key Personnel

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AGREEMENT
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AGREEMENT

This Prestart Agreement made on the day of 20 is

Between

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of

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(called ‘the Authority’)

And

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of

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(called ‘the Contractor’)

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WHEREAS

Recitals

First The Authority and the Contractor intend to enter into a contract using one of the following options:-

Option 1 Term Maintenance Measure and Value PSPC1


Option 2 Term Maintenance PSPC2
Target Cost With Cost Reimbursable

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Option 3 Authority Design Lump Sump PSPC3
Option 4 Contractor Design Lump Sum PSPC4

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Option 5 Authority Design PSPC5

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Target Cost With Cost Reimbursable
Option 6 Contractor Design PSPC6

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Target Cost With Cost Reimbursable

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in respect of the provision of various works

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Second The Authority requires the Contractor to provide the Services listed in Appendix Part 1 (the

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Services).

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Third The Contractor has agreed to provide the Services

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IT IS AGREED

Article 1

The Contractor will carry out the Services.

Article 2

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The Authority will pay the Contractor in accordance with the terms of payment set out in the contract.

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Article 3

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The contract comprises the following documents

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Articles of Agreement

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Terms and Conditions

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Appendix

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The several documents forming the contract are to be taken as mutually explanatory of one another and in the case

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of ambiguities they will be explained and adjusted by the Contract Administrator who will then issue to the

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Contractor appropriate instructions in writing.

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Article 4

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The term ‘the Contract Administrator’ in this contract means

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or such other person as the Authority may appoint as a replacement.

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Article 5

The term ‘the Planning Supervisor’ in the contract means

or such other person as the Authority appoints as a replacement as the Planning Supervisor pursuant to the CDM
Regulations.

Article 6

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This contract does not exclude any rights and obligations the Authority and Contractor may have under statute or

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at common law as a result of carrying out the Services.

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SIGNATURES

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TERMS AND CONDITIONS

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TERMS AND CONDITIONS

1.0 Scope

The conditions of contract are the Public Sector Partnering Contract (PSPC) using the Option referred to in
the first Recital except where amended by these terms and conditions. The Services will be provided by the
Contractor in accordance with the contract.

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2.0 Programme and Estimate

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2.1 The Contractor will complete a Programme in the format indicated in Appendix Part 2 and Estimate in
the format indicated in Appendix Part 3 and submit them to the Contract Administrator for acceptance.

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2.2 The Contractor will use its best endeavours to carry out the Services listed in Appendix Part 1 in
accordance with the Programme and within the Estimate.

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2.3 If at any time the Contractor considers that there will be a delay to any aspect of the Programme or

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that any sum in the Estimate will be exceeded, the Contractor will immediately give written

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notification to the Contract Administrator together with details. Any amendments to the Programme

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or Estimate will be agreed by the Contract Administrator and Contractor.

3.0 Costs

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The Contractor’s costs excluding profit will be paid for the Services carried out under this contract in
accordance with the Schedule of Costs.

4.0

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Payment Certificates

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4.1 Unless otherwise agreed the Contractor may submit to the Contract Administrator at monthly intervals
commencing one month after commencing the provision of the Services in Appendix Part 1 a fully
detailed request for a Payment Certificate.

4.2 Within 14 days of receipt of a request the Contract Administrator will issue a Payment Certificate
which sets out the basis on which it is calculated. It will take into account amounts previously
certified.

4.3 The sums included in the Payment Certificate will comprise the value of Services properly executed
ascertained by reference to the Schedule of Costs.

5.0 Payment

5.1 The Authority will pay the Contractor on or before the final date for payment being not later than 14
days after the date of the issue of the Payment Certificate of the sum certified.

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5.2 Not later than 5 days before the final date for payment the Authority will give a written notice to the
Contractor stating any amount proposed to be withheld from the Payment Certificate, and the ground
or grounds for it being withheld.

5.3 If the Authority fails to make payment in full in accordance with the contract the Contractor may serve
notice on the Authority of an intention to suspend work. If the failure to make payment by the
Authority continues for 7 days after receipt of the written notice then the Contractor may suspend
work until payment in full occurs.

5.4 If the Authority fails to make payment in full in accordance with the contract the Contractor will be

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entitled to interest on the sums paid late at a rate of 5% above the Bank of England Base Rate for the
period of late payment.

6.0

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Value Added Tax

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Any sums certified under this contract will be exclusive of Value Added Tax.

7.0

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Provision of Records

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7.1 The Contractor will provide copies of all records, costs, supply and subcontract invoices and accounts

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in connection with the contract to the Contract Administrator subject to 7 days notice.

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7.2 The Contractor will allow the Authority to carry out a full audit of the documents referred to in this

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clause on a unlimited number of occasions subject to 14 days notice.

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7.3 The Contractor will retain copies of the documents referred to in this clause for a period of 6 years
after all the Services have been completed.

8.0

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Key Personnel

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The Contractor will employ the key personnel identified in Appendix Part 5. Any substitutes must be of
equivalent ability and qualifications and be accepted by the Contract Administrator.

9.0 Statutory Obligations

The Contractor will comply with all applicable statutory requirements including safety, health and welfare
and CDM Regulations.

10.0 CDM Regulations

The Authority will ensure that the Planning Supervisor carries out all the duties of a Planning Supervisor
under the CDM Regulations.

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11.0 Prevention of Corruption

11.1 The Authority will be entitled to cancel this contract if the Contractor gives any fee or reward the
receipt of which is an offence under sub-section (2) of section 117 of the Local Government Act 1972
or any other enactment.

11.2 The Contractor will pay to the Authority any loss cost or expense incurred which results from the
cancellation.

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12.0 Copyright

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The copyright is vested in the Authority of all drawings, specifications, bills of quantities, schedule of

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works, contract documents, photographs, surveys, reports and other documents prepared in relation to the
Project.

13.0 Indemnity

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The Contractor will indemnify and keep indemnified the Authority against any losses and claims in respect

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of

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.1 Death or injury to any person

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.2 Loss or damage to any property which may arise out of or in consequence of providing the Services.

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14.0 Insurance

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14.1 The Contractor will effect and maintain with a reputable insurer:-

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.1 Professional Indemnity insurance for the limit of liability indicated in Appendix Part 4 relating
to the Services. Such insurance will provide for any one occurrence or series of occurrences for

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the period indicated.

.2 Employer’s liability insurance in respect of persons employed by the Contractor in connection


with the Services in compliance with all legislation and such insurance will be for the minimum
amount in Appendix Part 4.

14.2 The Contractor will provide, if requested by the Authority, evidence that the insurance is effective. In
the absence of such evidence the Authority will be entitled to maintain the insurance and charge the
costs to the Consultant or deduct the costs from monies due.

15.0 Termination

15.1 The Authority may terminate this agreement at its sole discretion subject to 14 days written notice to
the Contractor.

15.2 The Contractor may terminate this agreement with the written consent of the Authority.

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15.3 Upon termination of this agreement the Contractor shall promptly comply with all the Contract
Administrator’s instructions relating to the delivery of copies of all drawings and other documents
completed or in course of preparation by the Contractor.

15.4 All entitlements to payment will cease in respect of costs incurred by the Contractor after the date of
termination.

16.0 Adjudication

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16.1 Either party may refer any dispute arising under or in connection with this contract or the carrying out
of the Services to adjudication by way of a written notice.

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16.2 The Scheme for Construction Contracts Adjudication Provisions as referred to in the Housing Grants,
Construction and Regeneration Act 1996 and any amendments or re-enactments will apply.

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17.0 Arbitration

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17.1 All disputes arising under or in connection with the contract or the carrying out of the Services will be
finally determined by reference to arbitration. The party seeking arbitration must serve on the other

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party a notice in writing to refer the dispute to arbitration.

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17.2 The Arbitrator will be a person appointed by agreement of the parties.

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If the parties fail to appoint an Arbitrator within one month of either party serving on the other party a

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notice in writing the dispute will be referred to a person to be appointed by the President for the time

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being of the Chartered Institute of Arbitrators.

17.3 The arbitration will be conducted in accordance with the Construction Industry Model Arbitration

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Rules (CIMAR) current at the date the contract was entered into.

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17.4 The appointed Arbitrator will have full power to open up, review and revise any decision, opinion,
instruction, direction, certificate or valuation of the Contract Administrator.

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18.0 Applicable Law

The law of England and Wales shall be the law applicable to the contract unless the Project is situated in
Scotland in which case the law of Scotland will apply.

19.0 Third Party Rights

Nothing in this contract confers any right to enforce any of its terms on any person who is not one of the
parties.

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APPENDIX
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APPENDIX PART 1

Services to be Provided by the Contractor (1.0)

* Development of a partnering strategy (internal strategy)


* Preparation of a Strategic Brief
* Assistance with preparation of reports to gain approvals etc.
* Support with funding applications – risk analysis, anticipated expenditure profiles etc.
* Advise on the procurement route

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* Advise on the EC advertisement
* Assist in land acquisition / agreement of access rights

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* Contract preparation

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* Consultation with the supply chain – re new products etc.
* Value Management workshops

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* Risk Management workshops
* Pre-Tender Health and Safety plan

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* Public consultation
* Review of historic cost data

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* Development of the Target Cost
* Partnering Workshops / Team Building

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* Start-up workshop

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* Establishment of an open-book accounting arrangement

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* Coaching / skills transfer and training

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* Undertake Design Work

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* Complete Life Cycle Cost Exercise

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* Undertake an environmental impact assessment

*delete as required

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Any other services:-

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APPENDIX PART 2

Programme (2.0)

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APPENDIX PART 3

Estimate (2.0)

Item Estimated Estimated Estimated


Prestart Agreement Services
Ref No of weeks weekly Cost Total Cost

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APPENDIX PART 4

Insurance (14.0)

Professional Indemnity (14.1.1)

Limit of liability £

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Period of insurance

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Employer’s liability (14.1.2)

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Minimum cover £

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APPENDIX PART 5

Key Personnel (8.0)

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FEDERATION OF PROPERTY SOCIETIES

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PUBLIC SECTOR PARTNERING CONTRACT

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SCHEDULE OF COSTS

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DP S P C S C
PUBLIC SECTOR PARTNERING CONTRACT

The Public Sector Partnering Contract is made up from the following documents:

Document Ref

Partnering Agreement PSPC P

Available Options/Schedule/Rules

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Option 1 Term Maintenance
Measure and Value PSPC 1

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Option 2 Term Maintenance
Target Cost With Cost Reimbursable PSPC 2

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Option 3 Authority Design
Lump Sum PSPC 3

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Option 4 Contractor Design

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Lump Sum PSPC 4

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Option 5 Authority Design

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Target Cost With Cost Reimbursable PSPC 5

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Option 6 Contractor Design

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Target Cost With Cost Reimbursable PSPC 6

Option 7 Subcontract

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Lump Sum PSPC 7

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Option 8 Subcontract
Target Cost With Cost Reimbursable PSPC 8

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Option 9 Professional Services PSPC 9

Option 10 Prestart Agreement PSPC 10

Schedule of Costs
For use with Option 2, 5, 6 or 8 PSPC SC

Fluctuation Rules PSPC F

SCHEDULE OF COSTS PSPC SC

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CONTENTS

SCHEDULE OF COSTS

1. Labour
2. Staff
3. Materials
4. Charges
5. Accommodation

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6. Plant, Equipment and scaffolding
7. Consumable Stores
8. Sundry Costs

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9. IT Equipment and Software

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10. Work Subcontracted
11. Additional Costs

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12. Other Costs

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13. Subcontract Option 8
14. Inadmissible Costs

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APPENDIX

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Part 1 Workpeople other than those engaged on the services upon the site

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Part 2 Management personnel directly engaged on the services upon the site

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Part 3 Additional items

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SCHEDULE OF COSTS PSPC SC

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SCHEDULE OF COSTS

1.0 Labour

1.1 Workpeople directly engaged upon the works on site.

1.2 Workpeople not included in 1.1 above as set out in Appendix 1.

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1.3 The terms of payment to be made in respect of the workpeople in clauses 1.1 and 1.2 are subject to
agreement by the Contract Administrator.

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1.4 Payments to comprise

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.1 Earnings at the normal rates

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.2 Payments in respect of overtime occasionally worked

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.3 Payments in respect of public holidays

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.4 Employer’s contributions to annual holiday credits, pension, lump sum retirement benefit, death

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benefit and other welfare schemes

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.5 Fares and travelling allowances

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.6 Sickness and injury payments

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.7 Tool allowances

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.8 Protective clothing

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.9 Where authorised by the Contract Administrator prior to such payments being made

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.1 Overtime regularly worked

.2 Bonus or incentive scheme or productivity agreements

.3 Periodic leave and lodging allowances.

1.5 Payments in respect of:-

.1 Employer’s National Insurance contributions

.2 The amount of any contributions, levy or tax (excluding redundancy payments) imposed by
statute.

1.6 A percentage addition may be agreed between the Contractor and the Contract Administrator in
substitution for any of the items set out in paragraphs 1.4.2 to 1.4.9 inclusive and 1.5.

SCHEDULE OF COSTS PSPC SC

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2.0 Staff

2.1 Management directly engaged upon the works on site as listed in Appendix 2.

2.2 Management who are not listed in Appendix 2 but whose employment or engagement has been
agreed subsequently by the Contract Administrator prior to such employment or engagement.

2.3 Payments are to be made in respect of costs incurred up to the date of practical completion and, if
authorised by the Contract Administrator, working on or off the site after the date of practical
completion. The payments comprise:-

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.1 Salaries and, subject to the agreement of the Contract Administrator, bonuses

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.2 Subsistence or similar allowances

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.3 Fares, travelling allowances and reasonable cost or allowances for the use of cars

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.4 Employer’s contributions in respect of approved occupational pension schemes

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.5 Employer’s National Insurance contributions

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.6 The amount of any insurance, contribution, levy or tax, (excluding any redundancy payments)

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imposed by statute.

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2.4 A percentage addition may be agreed between the Contractor and Contract Administrator in

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substitution for any of the items set out in clauses 2.3.1 to 2.3.6 inclusive.

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3.0 Materials

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3.1 Materials and goods obtained by the Contractor and delivered to site.

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3.2 Materials and goods obtained from the Contractor’s stock and delivered to site.

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3.3 The prices to be market prices current at the date of delivery.

3.4 All discounts paid or allowed will be passed to the Authority.

3.5 The benefits of any bulk purchasing arrangements to be passed on to the Authority.

4.0 Charges

Payment to utilities for water, gas, electricity and other services.

5.0 Accommodation

Temporary buildings, canteens, sanitary accommodation and the like at rates to be agreed by the Contractor
and Contract Administrator.

SCHEDULE OF COSTS PSPC SC

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6.0 Plant, Equipment and Scaffolding

6.1 Payment for hire of plant, equipment and scaffolding not owned by the Contractor or companies in the
same group.

6.2 An amount for depreciation and maintenance of plant, equipment and scaffolding owned by the
Contractor, or companies in the same group.

6.3 The rates for the plant, equipment and scaffolding to be agreed by the Contractor and Contract

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Administrator.

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7.0 Consumable Stores

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7.1 Power operated tools

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7.2 Non-mechanical plant including hand tools, their repair and sharpening

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7.3 Transport including collection and disposal of rubbish and charges for tips and transportation of plant

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7.4 Tarpaulins, dust sheets and other protection costs

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7.5 Temporary roadways, shoring, planking and strutting, centring, formwork, hoardings, temporary fans,

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temporary fencings, barriers, footways, temporary partitions and the like

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7.6 Fuel and consumable stores for plant and power operated tools

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7.7 Brushes, sponges, leathers, rollers and the like

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7.8 Fuel and equipment for drying out the works and for testing and commissioning services installations

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8.0 Sundry Costs

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8.1 Royalties, fees and similar charges

8.2 Rent of premises

8.3 Provision of health and safety measures necessary to comply with any Statute

8.4 Erection, dismantling and maintenance of mechanical plant

8.5 Provision of canteen facilities

8.6 Provision of cleaning facilities

8.7 Progress photographs and videos

8.8 Charges arising from work carried out by Local Authorities or Statutory Undertakers

8.9 Rates or other similar statutory charges on temporary buildings

SCHEDULE OF COSTS PSPC SC

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8.10 Payments for hoardings and similar licences

8.11 Any payments received by the Contractor arising from advertising or signage on the site to be passed
on to the Authority

8.12 Furniture, furnishings, office equipment, stationery, office and welfare consumables, including
telephone and fax equipment, as authorised by the Contract Administrator for the Contractor’s on-site
staff, less any credits obtained from their eventual disposal

8.13 Postage and other delivery charge for letters etc sent from the site

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8.14 Charges for telephone and fax calls made from the site

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8.15 Reproduction of drawings and other documents sent from the site

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8.16 Travelling and subsistence properly incurred in inspecting materials and work off site

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8.17 Premiums for any performance bond required by the Authority and provided by the Contractor

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8.18 Premiums for any insurance taken out pursuant to the contract

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8.19 Security arrangements

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8.20 Other items listed in the Appendix 3 or agreed by the Contractor and Contract Administrator

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9.0 IT Equipment and Software

9.1 Costs associated with IT equipment and software required for use by on-site staff in connection with

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the Work, Works or Services.

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9.2 The need for and cost of each item of equipment and software must be agreed in writing by the
Contract Administrator before purchase, hire or other means of acquisition otherwise the costs will be

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deemed inadmissible.

9.3 The sale or residual value of the equipment and software will be paid or allowed by the Contractor to
the Authority.

10.0 Work Subcontracted

10.1 Payments made by the Contractor in respect of work subcontracted and approved by the Contract
Administrator

10.2 All discounts to be paid or allowed to the Authority

11.0 Additional Costs

The parties may include other items of cost which are not provided for in clauses 1.0 to 9.0. These other
items of cost are set out in Appendix 3.0.

SCHEDULE OF COSTS PSPC SC

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12.0 Other Costs

Any costs incurred by the Contractor with regard to the Work, Works or Services which are not included in
this Schedule of Costs are deemed to be included in the Contractor’s Fee.

13.0 Subcontract Option 8

Where this Schedule of Costs is used with Subcontract Options 7 or 8 the Authority or Contract

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Administrator should be read as Contractor, Contractor should be read as Subcontractor.

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14.0 Inadmissible Costs

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14.1 The Contractor will not be reimbursed in respect of the following:-

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.1 Cost of labour, plant and materials the Contract Administrator considers to be excessive when
compared with current market rates and prices

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.2 Costs resulting from the inefficient use of labour

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.3 Sums paid or payable to Subcontractors due to acts, omissions or defaults of the Contractor

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with regard to the Work, Works or Services.

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APPENDIX

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APPENDIX PART 1

Workpeople other than those engaged on the services upon the site (1.2)

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SCHEDULE OF COSTS PSPC SC

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APPENDIX PART 2

Management personnel directly engaged on the services upon the site (2.1)

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SCHEDULE OF COSTS PSPC SC

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APPENDIX PART 3

Additional Costs (11.0)

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SCHEDULE OF COSTS PSPC SC

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FEDERATION OF PROPERTY SOCIETIES

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PUBLIC SECTOR PARTNERING CONTRACT

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FLUCTUATION RULES

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DP S P C F
PUBLIC SECTOR PARTNERING CONTRACT

The Public Sector Partnering Contract is made up from the following documents:

Document Ref

Partnering Agreement PSPC P

Available Options/Schedule/Rules

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Option 1 Term Maintenance
Measure and Value PSPC 1

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Option 2 Term Maintenance
Target Cost With Cost Reimbursable PSPC 2

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Option 3 Authority Design
Lump Sum PSPC 3

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Option 4 Contractor Design

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Lump Sum PSPC 4

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Option 5 Authority Design

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Target Cost With Cost Reimbursable PSPC 5

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Option 6 Contractor Design

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Target Cost With Cost Reimbursable PSPC 6

Option 7 Subcontract

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Lump Sum PSPC 7

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Option 8 Subcontract
Target Cost With Cost Reimbursable PSPC 8

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Option 9 Professional Services PSPC 9

Option 10 Prestart Agreement PSPC 10

Schedule of Costs
For use with Option 2, 5, 6 or 8 PSPC SC

Fluctuation Rules PSPC F

FLUCTUATION RULES PSPC F

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FLUCTUATION RULES

1.0 These rules may be used in connection with Options 3, 4, 5, 6, 7 and 8 where the contract is let on a
fluctuating price basis.

2.0 The base month for the purpose of calculation of the fluctuations in price is indicated in the Appendix
to the contract.

3.0 The cost indices used will be those set out in the BCIS General Building Cost index.

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4.0 The fluctuation calculation will not include the value of unfixed materials and goods delivered to or

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adjacent to the work for incorporation or stored off site.

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5.0 The formula for calculating the fluctuations with regard to Option 3, 4 and 7 is

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Index for the month x Value of work executed in the month

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of the certificate of the certificate and certified by the
Index at Base Month Contract Administrator

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6.0 The formula for adjusting the Target Cost to take account of fluctuations in Options 5 and 6 is

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Index for month

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midpoint between

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commencement date x Target Cost

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and certified date

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of practical completion
Index at Base Month

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7.0 The formula for adjusting the Target Cost to take account of fluctuations in Option 8 is

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Index for month
midpoint between

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date subcontract
works commenced x Target Cost
on site and certified
date of practical completion
Index at Base Month

FLUCTUATION RULES PSPC F

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