Outline Construction Contractor Direct Agreement Page 9
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20Contractor shall be entitled to terminate the Construction Contract (or its employment
thereunder) during the period commencing on the date which is [40] Working Days
following receipt of the notice given under Clause 2.1 and ending on the day before
the date on which the Lead Authority gives a notice under Clause 2.2.
3.2
Notice by the Construction Contractor
Without prejudice to Clauses 2.5, within [10] Working Days of the date on which the
Step-In Notice is given to the Construction Contractor shall, if it has not already done
so, provide the Lead Authority with the information referred to in Clause 2.5 updated
to reflect the same as at the date on which the Step-In Notice is given.
The Construction Contractor shall inform the Lead Authority in writing as soon as
reasonably practicable of any change prior to the Step-In Date in such information
including any further sums, amounts or obligations thereafter falling due and payable
but unpaid or falling due for performance or discharge and unperformed or discharged
(as the case may be).
3.3
Confirmation by the Lead Authority
At least [2] Working Days prior to the Step-In Date, the Lead Authority shall notify
the Construction Contractor in writing confirming that it is prepared to issue a Step-In
Undertaking (a “Step-In Confirmation”) or, subject to Clause 3.4, notify the
Construction Contractor of its withdrawal of the Step-In Notice.
3.4
Withdrawal by the Lead Authority
If the Lead Authority notifies the Construction Contractor of its withdrawal of the
Step-In Notice pursuant to Clause 3.3 and the Lead Authority has not given a Step-In
Undertaking pursuant to Clause 3.5.1 or if the Lead Authority fails to give a Step-In
Confirmation under Clause 3.3, the rights and obligations of the Parties shall be
construed as if the Step-In Notice had not been given.
3.5
Step-In
3.5.1 If the Lead Authority gives a Step-In Confirmation in accordance with
Clause 3.3 then on the Step-In Date the Lead Authority shall give to the
Construction Contractor a Step-In Undertaking.
3.5.2 During the Step-In Period, the Construction Contractor confirms to the Lead
Authority that, subject to the Construction Contractor’s right to suspend the
carrying out of the Works for non-payment pursuant to Section 112 of the
Housing Grants, Construction and Regeneration Act 1996, it has observed and
performed and shall continue to observe and perform its duties and obligations
under the Construction Contract provided however that the Lead Authority
shall not assume and/or accede to the rights and/or entitlements of the
Contractor under the Construction Contract arising on or prior to the Step-In
Date unless and until the exhaustion by the Contractor, the [Senior
Lender/Security Trustee/Agent and the Representative] of all of their direct or
indirect legal rights and remedies against the Construction Contractor under
the Construction Contract or, if earlier, the date on which the [Senior
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