Equivalent Project Relief : An anomaly in the context of the impact of legislation on PPP is the fact that the main project agreement between a public authority and the SPV is carved out of the payment and adjudication requirements of the “Construction Act” (see Contractual issues and Dispute resolution ), but the subcontracts between the SPV and its supply chain are not (subject to a limited exception). This mismatch in payment and dispute resolution procedures in the contractual chain has given risen to complex contractual mechanisms (known as Equivalent Project Relief) which are designed to mitigate and manage the risk to the SPV of inconsistent findings as between itself and the public authority, on the one hand, and itself and its subcontractors, on the other. Force majeure : The circumstances in which force majeure relief is available will reflect the standard project agreement and are very limited. Liquidated damages and termination sums : The liquidated damages provisions under the D&B contract will need to compensate the project company for lost revenue plus any additional costs under the operating contract as a result of the delay. The termination sum will need to be sufficient to cover the cost of replacing the defaulting D&B contractor.
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