Common use of Latent Conditions Clause in Contracts

Latent Conditions. (a) If during the installation of the EPC Solutions, the ESCO becomes aware of a latent condition that will affect the completion of the installation, the ESCO must (as a condition precedent to any entitlement to additional time or money) forthwith and where possible before the latent condition is disturbed, (and in any event within five business days) give written notice thereof to the Customer. (b) The ESCO shall provide in that notice to the Customer a statement specifying: (i) the latent conditions encountered and in what respects they differ materially from the site conditions which should reasonably have been anticipated by a competent and experienced ESCO exercising good industry practice at the date of the Agreement; (ii) the additional work and additional resources which the ESCO estimates to be necessary to deal with the latent conditions; (iii) the time the ESCO estimates will be required to deal with the latent conditions and the expected delay in completion; (iv) the ESCO’s reasonable estimate of the cost of the measures necessary to deal with the latent conditions; and (v) any other details that may be reasonably required by the Customer. (c) Delay caused by a latent condition may justify an extension of time for completion. (d) If a latent condition causes the ESCO to: (i) carry out additional work; (ii) use additional materials; or (iii) incur extra cost (including, but not limited to, the cost of delay or disruption); which the ESCO did not and could not reasonably have anticipated at the time of tendering exercising good industry practice, the Customer must pay to the ESCO any agreed amount of additional payment in respect of additional costs caused by the latent condition or, if no agreement has been reached, any actual reasonable direct costs to the extent caused by the latent condition, with payment to be made in accordance with Clause 9. (e) Subject to Clause 2.6(f), if the Customer does not wish the ESCO to proceed as notified, the Customer must promptly instruct the ESCO not to proceed, and the ESCO must comply with such an instruction. (f) The Customer and the ESCO may negotiate and agree on some other way of overcoming the latent condition, including, but not limited to having necessary work performed by others, and may agree to an amount of any additional payment to the ESCO in respect of costs caused by the latent condition.

Appears in 1 contract

Sources: Energy Performance Contract

Latent Conditions. 10.1 Latent Conditions are: (a) If during physical conditions on the installation of the EPC Solutions, the ESCO becomes aware of a latent condition that will affect the completion of the installation, the ESCO must (as a condition precedent to any entitlement to additional time or money) forthwith Site and where possible before the latent condition is disturbed, (and in any event within five business days) give written notice thereof to the Customer. (b) The ESCO shall provide in that notice to the Customer a statement specifying: (i) the latent conditions encountered and in what respects they its near surrounds which differ materially from the site physical conditions which should reasonably have been anticipated by a competent and experienced ESCO exercising good industry practice Subcontractor at the date time of the Agreementsubcontractor’s tender if the Subcontractor had inspected: (i) all written information made available by ICG to the Subcontractor for the purpose of tendering; (ii) all information influencing the risk allocation in the subcontractor’s tender and reasonably obtainable by the making of reasonable enquiries (including information available from or through Dial Before You Dig (where relevant)); and (iii) the Site (including existing structure) and its near surrounds; (b) any other conditions which the Subcontract specifies as Latent Conditions; but exclude: (c) weather conditions. 10.2 The Subcontractor, upon becoming aware of a Latent Condition while carrying out the Works, shall as soon as is practicable, and where possible before the Latent Condition is disturbed, give ICG written notice of the general nature of it. 10.3 If required by ICG promptly after receiving that notice, the Subcontractor shall, as soon as practicable, give ICG a written statement of: (a) the Latent Condition encountered and the respects in which it differs materially; (b) the additional work work, resources, time and additional resources cost which the ESCO Subcontractor estimates to be necessary to deal with the latent conditions; (iii) the time the ESCO estimates will be required to deal with the latent conditions and the expected delay in completion; (iv) the ESCO’s reasonable estimate of the cost of the measures necessary to deal with the latent conditionsLatent Condition; and (v) any 10.4 other details that may be reasonably required by the CustomerICG. (c) 10.5 Delay caused by a latent condition Latent Condition may justify an extension of time for completionunder clause 13, provided the Subcontractor has complied with the requirements of clause 13. (d) 10.6 If a latent condition Latent Condition causes the ESCO to: (i) Subcontractor to carry out additional more work; (ii) , use additional materials; or (iii) more construction plant or incur extra more cost (including, including but not limited to, the cost of to extra costs for delay or disruption); which , than the ESCO did not and Subcontractor could not reasonably have anticipated at the time of tendering exercising good industry practiceentering into the Subcontract, the Customer Subcontractor must pay seek a direction pursuant to the ESCO any agreed amount of additional payment clause 14 in respect of such additional costs caused by work prior to commencing the latent condition or, if no agreement has been reached, any actual reasonable direct costs to the extent caused by the latent condition, with payment to be made in accordance with Clause 9. (e) Subject to Clause 2.6(f), if the Customer does not wish the ESCO to proceed as notified, the Customer must promptly instruct the ESCO not to proceed, and the ESCO must comply with such an instruction. (f) The Customer and the ESCO may negotiate and agree on some other way of overcoming the latent condition, including, but not limited to having necessary work performed by others, and may agree make a Variation claim pursuant to an clause 14. However the Subcontractor must use all reasonable endeavours to minimise the amount of any additional payment to the ESCO in respect of costs caused by the latent conditionsuch a Variation claim.

Appears in 1 contract

Sources: Subcontract Agreement

Latent Conditions. (a) If during the installation of the EPC Solutions, the ESCO Contractor becomes aware of a latent condition that will affect the completion of the installation, the ESCO Contractor must (as a condition precedent to any entitlement to additional time or money) forthwith and where possible before the latent condition is disturbed, (and in any event within five business days) give written notice thereof to the Customer and obtain the Customer’s written consent to undertake any action which may cause Contractor any additional cost which the Customer may be liable to pay. (b) The ESCO Contractor shall provide in that notice to the Customer a statement specifying: (i) the latent conditions encountered and in what respects they differ materially from the site conditions which should reasonably have been anticipated by a competent and experienced ESCO Contractor exercising good industry practice at the date of the Agreement; (ii) the additional work and additional resources which the ESCO Contractor estimates to be necessary to deal with the latent conditions; (iii) the time the ESCO Contractor estimates will be required to deal with the latent conditions and the expected delay in completion; (iv) the ESCOContractor’s reasonable estimate of the cost of the measures necessary to deal with the latent conditions; and (v) any other details that may be reasonably required by the Customer. (c) Delay caused by a latent condition may justify an extension of time for completion. (d) If Subject to clause 2.6(e) if a latent condition causes the ESCO Contractor to: (i) carry out additional work; (ii) use additional materials; or (iii) incur extra cost (including, but not limited to, the cost of delay or disruption); which the ESCO Contractor did not and could not reasonably have anticipated at the time of tendering exercising good industry practice, the Customer must pay to the ESCO Contractor any agreed amount of additional payment in respect of additional costs caused by the latent condition or, if no agreement has been reached, any actual reasonable direct costs to the extent caused by the latent condition, with payment to be made in accordance with Clause 9. (e) For avoidance of doubt, Contractor will only be entitled to the additional payment referred to in clause 2.6(d) if: (i) the Contractor has first obtained the Customer’s written consent to undertake the action which contributed to the additional cost; and (ii) the parties have reached an agreement over the amount of the additional cost. (f) Subject to Clause 2.6(f2.6(g), if the Customer does not wish the ESCO Contractor to proceed as notifiednotified or the parties cannot agree to the additional costs referred to in clause 2.6(e), the Customer must promptly instruct the ESCO Contractor not to proceed, and the ESCO Contractor must comply with such an instruction. (fg) The Customer and the ESCO Contractor may negotiate and agree on some other way of overcoming the latent condition, including, but not limited to having necessary work performed by others, and may agree to an amount of any additional payment to the ESCO Contractor in respect of costs caused by the latent condition.

Appears in 1 contract

Sources: Energy Performance Contract

Latent Conditions. (a) If If, during the installation performance of the EPC SolutionsWorks, the ESCO Contractor becomes aware of a latent any physical condition that will affect the completion of the installationSite which may be a Latent Condition, the ESCO must (as a condition precedent to any entitlement to additional time or money) forthwith and where possible Contractor must, before disturbing the latent condition is disturbedphysical Site condition, (and in any event within five business days) give written notice thereof to Tetra Tech’s Representative of the Customerexistence of the physical Site Condition. (b) The ESCO shall provide Any notice required to be given pursuant to Clause 8.2(a) must be in that notice to the Customer a statement specifyingwriting and detail: (i) the latent conditions encountered and in what respects they differ materially from additional direct cost to the site conditions which should reasonably have been anticipated by a competent and experienced ESCO exercising good industry practice at Contractor (if any) of removing or remediating the date of the Agreementphysical Site condition; (ii) the additional work and additional resources which impact (if any) that the ESCO estimates to be necessary to deal with removal or remediation of the latent conditions;physical Site condition would have on the Contractor achieving Practical Completion by the Date for Practical Completion; and (iii) the time obligations under this Contract that the ESCO estimates will Contractor would not be required able to deal comply with (if any) if Tetra Tech does not direct the latent conditions and Contractor to remove or remediate the expected delay in completion; (iv) the ESCO’s reasonable estimate of the cost of the measures necessary to deal with the latent conditions; and (v) any other details that may be reasonably required by the Customerphysical Site condition. (c) Delay caused Following receipt of a notice required to be given pursuant to Clause 8.2(a), if the physical Site condition is determined by Tetra Tech’s Representative to be a latent condition Latent Condition, Tetra Tech may justify an extension of time for completion(in Tetra Tech’s sole and absolute discretion) either: (i) direct the Contractor to remove or remediate the Latent Condition as a Variation in a Variation Order under Clause 18.1; or (ii) direct the Contractor to not remove or remediate the Latent Condition. (d) If Tetra Tech directs the Contractor to perform remove or remediate the Latent Condition under Clause 18.1 in a latent condition Variation Order, then to the extent that performing the Variation Order causes the ESCO toContractor to incur more cost than otherwise would have been incurred, the Contract Price will be increased by the difference: (i) carry out additional work;as agreed between Tetra Tech and the Contractor; or (ii) use additional materials; or (iii) incur extra cost (includingwhere Tetra Tech and the Contractor cannot agree, but not limited to, the cost of delay or disruption); which the ESCO did not and could not reasonably have anticipated at the time of tendering exercising good industry practice, the Customer must pay to the ESCO any agreed amount of additional payment in respect of additional costs caused by the latent condition or, if no agreement has been reached, any actual reasonable direct costs to the extent caused by the latent condition, with payment to be made in accordance with as valued under Clause 918.8. (e) Subject If Tetra Tech directs the Contractor not to remove or remediate the Latent Condition under Clause 2.6(f8.2(c)(ii), if then Tetra Tech may direct the Customer does Contractor to perform the Works in an area not wish affected by the ESCO to proceed Latent Condition as notified, the Customer must promptly instruct the ESCO not to proceed, and the ESCO must comply with such an instructiona Variation in a Variation Order under Clause 18.1. (f) The Customer Except as expressly stated in this Clause 8.2, Tetra Tech is not liable for, or in connection with, any Claim (and the ESCO may negotiate Contractor is not entitled to make any Claim) arising out of, or in connection with, the nature, characteristics and agree on some other way physical conditions of overcoming the latent condition, including, but not limited to having necessary work performed by others, and may agree to an amount of any additional payment to Site or the ESCO in respect of costs caused by the latent conditionEnvironment or a Latent Condition.

Appears in 1 contract

Sources: Major Works Contract – Design and Construct

Latent Conditions. (a) If during the installation of the EPC Solutions, the ESCO Contractor becomes aware of a latent condition that will affect the completion of the installation, the ESCO Contractor must (as a condition precedent to any entitlement to additional time or money) forthwith and where possible before the latent condition is disturbed, (and in any event within five business days) give written notice thereof to the Customer and obtain the Customer’s written consent to undertake any action which may cause Contractor any additional cost which the Customer may be liable to pay. (b) The ESCO Contractor shall provide in that notice to the Customer a statement specifying: (i) the latent conditions encountered and in what respects they differ materially from the site conditions which should reasonably have been anticipated by a competent and experienced ESCO Contractor exercising good industry practice at the date of the Agreement; (ii) the additional work and additional resources which the ESCO Contractor estimates to be necessary to deal with the latent conditions; (iii) the time the ESCO Contractor estimates will be required to deal with the latent conditions and the expected delay in completion; (iv) the ESCOContractor’s reasonable estimate of the cost of the measures necessary to deal with the latent conditions; and (v) any other details that may be reasonably required by the Customer. (c) Delay caused by a latent condition may justify an extension of time for completion. (d) If Subject to clause 2.6(e) if a latent condition causes the ESCO Contractor to: (i) carry out additional work; (ii) use additional materials; or (iii) incur extra cost (including, but not limited to, the cost of delay or disruption); which the ESCO Contractor did not and could not reasonably have anticipated at the time of tendering exercising good industry practice, the Customer must pay to the ESCO Contractor any agreed amount of additional payment in respect of additional costs caused by the latent condition or, if no agreement has been reached, any actual reasonable direct costs to the extent caused by the latent condition, with payment to be made in accordance with Clause 9. (e) For avoidance of doubt, Contractor will only be entitled to the additional payment referred to in clause 2.6(d) if: (i) the Contractor has first obtained the Customer’s written consent to undertake the action which contributed to the additional cost; and (ii) the parties have reached an agreement over the amount of the additional cost. (f) Subject to Clause 2.6(f2.6(g), if the Customer does not wish the ESCO Contractor to proceed as notifiednotified or the parties cannot agree to the additional costs referred to in clause 2.6(e), the Customer must promptly instruct the ESCO Contractor not to proceed, and the ESCO Contractor must comply with such an instruction. (fg) The Customer and the ESCO Contractor may negotiate and agree on some other way of overcoming the latent condition, including, but not limited to having necessary work performed by others, and may agree to an amount of any additional payment to the ESCO Contractor in respect of costs caused by the latent condition.

Appears in 1 contract

Sources: Energy Design and Implementation Contract