Common use of Failure to Pass Tests on Completion Clause in Contracts

Failure to Pass Tests on Completion. If the Works, or a Section, fail to pass the Tests on Completion repeated under sub- clause 9.3 [Retesting] the Engineer shall be entitled to: (a) order further repetition of Tests on Completion under sub-clause 9.3; (b) if the failure deprives the Employer of substantially the whole benefit of the Works or Section, reject the Works or Section (as the case may be), in which event the Employer shall have the same remedies as are provided in clause 11.A2 [Defects in the Works]; or (c) issue a Taking-Over Certificate, if the Employer so requests. In the event of sub-paragraph (c), the Contractor shall then proceed in accordance with all other obligations under the Contract, and the Contract Price shall be reduced by such amount as shall be appropriate to cover the reduced value to the Employer as a result of this failure. Unless the relevant reduction for this failure is stated (or its method of calculation is defined) in the Contract, the Employer may require the reduction to be (i) agreed by both Parties (in full satisfaction of this failure only) and paid before this Taking- Over Certificate is issued, or (ii) determined and paid under sub-clause 2.5 [Employer's Claims] and sub-clause 3.5 [Determinations]. For the avoidance of doubt the failure of any part of the Works to pass the Tests on Completion shall not prevent the Employer taking over for use any part of the Works which has passed the Tests on Completion and is available for commercial operation by the Employer, but the final payment under the Contract will not be made until all the Works has successfully passed the Tests on Completion and the final Taking-Over Certificate has been issued.

Appears in 2 contracts

Samples: Contractor Agreement, Contractor Agreement

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Failure to Pass Tests on Completion. If the Works, or a Section, fail to pass the Tests on Completion repeated under sub- clause Sub- Clause 9.3 [Retesting] ], the Engineer shall be entitled to: (a) order further repetition of Tests on Completion under subSub-clause Clause 9.3; (b) if the failure deprives the Employer of substantially the whole benefit of the Works or Section, reject the Works or Section (as the case may be), in which event the Employer shall have the same remedies as are provided in clause 11.A2 sub- paragraph (c) of Sub-Clause 11.4 [Defects in the WorksFailure to Remedy Defects]; or (c) issue a Taking-Over Certificate, if the Employer so requests. In the event of sub-paragraph (c), the Contractor shall then proceed in accordance with all other obligations under the Contract, and the Contract Price shall be reduced by such amount as shall be appropriate to cover the reduced value to the Employer as a result of this failure. Unless the relevant reduction for this failure is stated (or its method of calculation is defined) in the Contract, the Employer may require the reduction to be (i) agreed by both Parties (in full satisfaction of this failure only) and paid before this Taking- Taking-Over Certificate is issued, or (ii) determined and paid under subSub-clause Clause 2.5 [Employer's Claims] and subSub-clause Clause 3.5 [Determinations]. For the avoidance of doubt the failure of any part of the Works to pass the Tests on Completion shall not prevent the Employer taking over for use any part of the Works which has passed the Tests on Completion and is available for commercial operation by the Employer, but the final payment under the Contract will not be made until all the Works has successfully passed the Tests on Completion and the final Taking-Over Certificate has been issued.

Appears in 2 contracts

Samples: Contract Agreement, Contract Agreement

Failure to Pass Tests on Completion. If the Works, or a Section, fail to pass the Tests on Completion repeated under sub- clause Sub-Clause 9.3 [Retesting] ], the Engineer shall be entitled to: (a) order further repetition of Tests on Completion under subSub-clause Clause 9.3; (b) if the failure deprives the Employer of substantially the whole benefit of the Works or Section, reject the Works or Section (as the case may be), in which event the Employer shall have the same remedies as are provided in clause 11.A2 sub-paragraph (c) of Sub- Clause 11.4 [Defects in the WorksFailure to Remedy Defects]; or (c) issue a Taking-Over Certificate, if the Employer so requests. In the event of sub-paragraph (c), the Contractor shall then proceed in accordance with all other obligations under the Contract, and the Contract Price shall be reduced by such amount as shall be appropriate to cover the reduced value to the Employer as a result of this failure. Unless the relevant reduction for this failure is stated (or its method of calculation is defined) in the Contract, the Employer may require the reduction to be (i) agreed by both Parties (in full satisfaction of this failure only) and paid before this Taking- Taking-Over Certificate is issued, or (ii) determined and paid under subSub-clause Clause 2.5 [Employer's ’s Claims] and subSub-clause Clause 3.5 [Determinations]. For the avoidance of doubt the failure of any part of the Works to pass the Tests on Completion shall not prevent the Employer taking over for use any part of the Works which has passed the Tests on Completion and is available for commercial operation by the Employer, but the final payment under the Contract will not be made until all the Works has successfully passed the Tests on Completion and the final Taking-Over Certificate has been issued.

Appears in 1 contract

Samples: Unit Price Contract

Failure to Pass Tests on Completion. If the Works, or a Section, fail to pass the Tests on Completion repeated under sub- clause Sub- Clause 9.3 [Retesting] ], the Engineer shall be entitled to: (a) order further repetition of Tests on Completion under subSub-clause Clause 9.3; (b) if the failure deprives the Employer of substantially the whole benefit of the Works or Section, reject the Works or Section (as the case may be), in which event the Employer shall have the same remedies as are provided in clause 11.A2 sub- paragraph (c) of Sub-Clause 11.4 [Defects in the WorksFailure to Remedy Defects]; or (c) issue a Taking-Over Certificate, if the Employer so requests. In the event of sub-paragraph (c), the Contractor shall then proceed in accordance with all other obligations under the Contract, and the Contract Price shall be reduced by such amount as shall be appropriate to cover the reduced value to the Employer as a result of this failure. Unless the relevant reduction for this failure is stated (or its method of calculation is defined) in the Contract, the Employer may require the reduction to be (i) agreed by both Parties (in full satisfaction of this failure only) and paid before this Taking- Taking-Over Certificate is issued, or (ii) determined and paid under subSub-clause Clause 2.5 [Employer's ’s Claims] and subSub-clause Clause 3.5 [Determinations]. For the avoidance of doubt the failure of any part of the Works to pass the Tests on Completion shall not prevent the Employer taking over for use any part of the Works which has passed the Tests on Completion and is available for commercial operation by the Employer, but the final payment under the Contract will not be made until all the Works has successfully passed the Tests on Completion and the final Taking-Over Certificate has been issued.

Appears in 1 contract

Samples: Unit Price Contract

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Failure to Pass Tests on Completion. The Works will pass the Tests on Completion where they meet the Performance Guarantees, if applicable, the Minimum Performance Levels and other criteria stated in the Employer's Requirements as amplified in the attached Feasibility Study and Financial Model. If the Works, or a Section, fail to pass the Tests on Completion repeated under sub- clause Sub-Clause 9.3 [Retesting] ], the Engineer Employer/s, in conjunction with the financial institution providing the funding for the Project/s, shall be entitled to: (a) order further repetition of Tests on Completion under subSub-clause Clause 9.3; (b) levy Performance Damages in respect of any failure to meet Required Testing Performance, if the failure deprives the Employer Employer/s of substantially the whole benefit of the Works or Section, reject the Works or Section (as the case may be), in which event the Employer Employer/s shall have the same remedies as are provided in clause 11.A2 sub- paragraph (c) of Sub-Clause 11.4 [Defects in the WorksFailure to Remedy Defects]; or (c) issue a Taking-Over Certificate, if the Employer so requests. /s. In the event of sub-paragraph (c), the Contractor shall then proceed in accordance with all other obligations under the Contract, and the Contract Price shall be reduced by such amount as shall be appropriate to cover the reduced value to the Employer as a result of this failure. Unless the relevant reduction for this failure is stated (or its method of calculation is defined) post Take Over in the Contract, the Employer may require the reduction to be (i) agreed by both Parties (in full satisfaction of this failure only) and paid before this Taking- Over Certificate is issued, or (ii) determined and paid under sub-clause 2.5 [Employer's Claims] and sub-clause 3.5 [Determinations]. For the avoidance of doubt the failure of any part terms of the Works to pass the Tests on Completion shall not prevent the Employer taking over for use any part of the Works which has passed the Tests on Completion Energy management and is available for commercial operation by the Employer, but the final payment under the Contract will not be made until all the Works has successfully passed the Tests on Completion administration activities and the final Taking-Over Certificate has been issuedin due course Water and ICT management and administration activities.

Appears in 1 contract

Samples: Public Private Partnership Agreement

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