Outline Construction Contractor Direct Agreement Page 13
ADVERTISEMENT
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20above or is not entitled to withhold its consent under Clause 4.4.1, the
Proposed Substitute shall be deemed to be accepted.
4.5
Subsequent proposed Novations
If the Construction Contractor exercises its right under Clause 4.4 to withhold its
consent to a Proposed Substitute this shall not prejudice the ability of the Lead
Authority to give one or more subsequent Proposed Novation Notices pursuant to the
provisions of Clause 4.1 containing changed particulars relating to the same Proposed
Substitute or particulars relating to another Proposed Substitute which the Lead
Authority has good cause to believe would fulfil the requirements of Clause 4.4.1
provided that only one Proposed Novation Notice may be outstanding at any one time.
4.6
Implementation of Novation
If the Construction Contractor consents to a novation pursuant to a Proposed Novation
Notice (or is deemed to have given such consent pursuant to Clause 4.4.2) then on the
Effective Novation Date:
4.6.1 the Proposed Substitute shall become a party to the Construction Contract (in
such capacity, the “Substitute”) in place of the Contractor and thereafter shall
be treated as if it were named as a party to the Construction Contract in place
of the Contractor;
4.6.2 the Contractor and the Substitute shall enter into a novation agreement and
any other requisite agreements pursuant to which the Substitute shall be
granted all of the rights and assume all of the obligations and liabilities of the
Contractor under the Construction Contract (whether actual, accrued,
contingent or otherwise and whether arising on, before or after the Effective
Novation Date); [and]
4.6.3 the Construction Contractor shall release the Lead Authority from any Step-In
Undertaking given by it to the extent that the obligations of the Lead
Authority under the Step-In Undertaking which have accrued up to the
Effective Novation Date shall have been discharged; [and]
4.6.4 [the Contractor shall assign, novate or otherwise transfer to the Substitute, on
terms reasonably requested by the Substitute, the Construction Contract Parent
Company Guarantee and the Contractor and the Guarantor irrevocably
confirm their consent to any such assignment, novation or other transfer and
their agreement to the provisions of such guarantee applying mutatis mutandis
to the Construction Contract as assigned, novated or otherwise transferred
under this Agreement.]
4.7
Rights of Termination of Construction Contract
4.7.1 Where a Proposed Novation Notice is issued:
(A)
pursuant to Clause 4.2.1, the Construction Contractor shall not be
entitled to terminate the Construction Contract (or its employment
10
05\21798_4
ADVERTISEMENT
0 votes
Related Articles
Related forms
Related Categories
Parent category: Business