Project Warranty Period. Contractor’s Warranty period starts at Substantial Completion, except that a Warranty for a specific element owned by a Third-Party may start at the date the Third-Party accepts that specific element if (1) that date is prior to Substantial Completion, and (2) VPRA and Contractor have documented the earlier Warranty start date. Subject to extensions under Section 4.1.5 of these General Terms and Conditions Contractor’s Warranty obligations for all elements of the Project that will be owned by VPRA shall remain in effect until two years after Substantial Completion, except that any longer Warranty period specified elsewhere in the Contract Documents for a specific element of the Project shall control. If at any time during the Warranty period VPRA determines that any of the Work has not met the standards specified in this Section 4.1 of these General Terms and Conditions, then Contractor shall correct such Work as specified in this Article 4 of these General Terms and Conditions, even if the performance of such Warranty Work extends beyond the stated Warranty period. Alternatively, VPRA may elect, in its sole discretion, to Accept the Work in accordance with Section 6.5.3 of these General Terms and Conditions and adjust the Contract Price or seek damages as provided therein.
Project Warranty Period. The effective period of use commences from the excavation of the foundation pit until the expiry of one year after the project reaches the design elevation. BASIS OF THE CONSIDERATION The Decoration and Construction Agreements were awarded to the Contractor through a competitive tendering process on the basis of a predetermined set of same building specifications, taking into account the Contract Prices submitted by the Contractor and the Contractor’s qualifications and experience. The Contract Prices were the lowest prices in the bids for the Decoration and Construction Agreements submitted by five different qualified contractors in the said tendering process. As of the date of this announcement, there has been no substantial upward adjustment to the Contract Prices. The payment of the consideration under the Decoration and Construction Agreements, including the Contract Prices and the Settlement Amounts, will be primarily financed by the Group’s internal resources and the proceeds from the Global Offering. REASONS FOR AND BENEFITS OF ENTERING INTO THE DECORATION AND CONSTRUCTION AGREEMENTS As the number of students of Lingnan Institute of Technology continues to increase, the number of beds at the existing dormitories of Lingnan Institute of Technology may not correspond to the demands of the students in the near future. Qingyuan New Dormitories and Basement will expand the student capacity of Lingnan Institute of Technology, thereby supporting further development of its businesses. In addition, the new dormitories will be equipped with more advanced facilities, which help improve students’ living conditions and the campus security. Accordingly, the Directors believe that Qingyuan New Dormitories and Basement will facilitate the development of the Group and enhance its competitiveness and market recognition. The Group has entered into the General Construction Contract with the Contractor for constructing the main body of Qingyuan New Dormitories and Basement. The transactions contemplated under the Decoration and Construction Agreements will equip Qingyuan New Dormitories and Basement with necessary decoration and facilities. The Directors are of the view that the terms of the Decoration and Construction Agreements are on normal commercial terms, are fair and reasonable and the entering into of the Decoration and Construction Agreements is in the interests of the Company and its Shareholders. INFORMATION OF THE PARTIES The Group, Lingnan Institute of Tec...
