Outline Construction Contractor Direct Agreement Page 11
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203.6
Step-Out
The Lead Authority may, during the Step-In Period, give the Construction Contractor
at least [10] Working Days’ prior written notice of its intention to terminate the Step-
In Period on such date as may be specified in the notice given under this Clause 3.6
(the “Step-Out Date”) and, to the extent that the Lead Authority shall have complied
with all of its obligations under the Step-In Undertaking, the Lead Authority shall be
released from the Step-In Undertaking on the Step-Out Date.
3.7
End of Step-In Period
If:
3.7.1 no notice is given by the Lead Authority under Clause 3.6; or
3.7.2 the provisions of Clause 4.9 do not apply; or
3.7.3 an Effective Novation Date has not occurred;
then, the Step-In Period shall end on the Completion Date and, to the extent that the
Lead Authority shall have complied with all of its obligations under the Step-In
Undertaking, the Lead Authority shall be released from the Step-In Undertaking.
4.
NOVATION
4.1
Proposed Substitute
Subject to Clause 4.2, at any time during which the Lead Authority is entitled to serve
a Step-In Notice or at any time during the Step-In Period the Lead Authority may give
notice (a “Proposed Novation Notice”) to the Construction Contractor that it wishes
itself or another person (a “Proposed Substitute”) to assume by way of novation the
rights and obligations of the Contractor under the Construction Contract.
4.2
Arrangements Affecting Novation
The following shall apply:-
4.2.1 where the Step-In Period has commenced, the Lead Authority shall not be
entitled to serve a Proposed Novation Notice (whether under Clause 4.1 or
4.5) after the expiry of the Step-In Period;
4.2.2 where the Lead Authority has served a Proposed Novation Notice but not a
Step-In Notice, the Lead Authority shall be entitled to serve a Step-In
Confirmation and a Step-In Undertaking in accordance with Clauses 3.3 and
3.5 respectively as if the Proposed Novation Notice had been served on the
Construction Contractor as a Step-In Notice (and for this purpose the Step-In
Date shall be deemed to be the date which is [20] Working Days after
termination of the Principal Contract becomes effective).
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