Common use of Security and Insurance Clause in Contracts

Security and Insurance. Council’s preferred arrangements for the provision of security are set out in detail in the Template Agreements and summarised in the table below. VPA Registration on title (refer to 4.10) Council reserves the right to require additional security prior to executing a VPA, other than registration on title. This may depend on the nature of the VPA and whether a contributions plan for the land exists. Works Cash deposit, bank guarantee or bond that is 125% of the agreed value of each of the works in an Agreement. Where the work is proposed on public land and/or requires Road Act approval, the security shall be in accordance with Councils fees and charges. The security must be lodged before a CC is issued for each work. Upon completion of the agreed works to Council’s satisfaction, part of the security equivalent to 100% of the value of the work will be returned. The remaining security equivalent to 25% of the value of the work will be retained by Council as a security bond. To assist in more timely release of securities, Council will accept two separate securities. The bond shall be returned: • after the defects liability and maintenance periods have lapsed, and • Council’s Engineering Service teams assisted by the City Asset Manager (and any relevant Council technical specialists) have certified in writing that all obligations and works have been undertaken and completed to the standard as detailed in the Agreement and relevant approval. The Agreement will also allow Council to step-in and remedy any breach in carrying out works at the developers cost.