ࡱ> i Ybjbj.. nDbDbBO##p1.1$111$111P62|213d7p7778A<U=$s)v$1?88??$11779>F>F>F?|1717Ȕ6>F?>F>FNd7 E"l9>@4O0̐A`d1dP=L->6>Fc>,>3===$$Cn===????=========#B 60:  Form of Sub-Contractor Warranty DATED  DATE \@ "yyyy" \* mergeformat 2022 [insert name of Sub-Contractor] - and - [Insert name of Beneficiary] -and- [Insert name of Contractor or delete if not a party] ____________________________________ SUB-CONTRACTOR COLLATERAL WARRANTY  FORMTEXT relating to the development of Ysgol Feithrin Conwy @ Porth y Felin Early Years Provision ____________________________________ Conwy County Borough Council Legal Department CONTENTS Clause Page  TOC \H \Z \T "TOC Mark 1,1,TOC Mark 2,1,Schedule Heading 1,9,Schedule Heading 2,9"  HYPERLINK \l "_Toc156707100" 1 Warranty  PAGEREF _Toc156707100 \h 3  HYPERLINK \l "_Toc156707101" 2 Instructions  PAGEREF _Toc156707101 \h 4  HYPERLINK \l "_Toc156707102" 3 Termination of Sub-Contract and Step-In  PAGEREF _Toc156707102 \h 4  HYPERLINK \l "_Toc156707103" 4 Copyright  PAGEREF _Toc156707103 \h 5  HYPERLINK \l "_Toc156707104" 5 Insurance  PAGEREF _Toc156707104 \h 6  HYPERLINK \l "_Toc156707105" 6 Assignment  PAGEREF _Toc156707105 \h 7  HYPERLINK \l "_Toc156707106" 7 Further Warranties  PAGEREF _Toc156707106 \h 7  HYPERLINK \l "_Toc156707107" 8 Extraneous Rights  PAGEREF _Toc156707107 \h 7  HYPERLINK \l "_Toc156707108" 9 Limitation of Liability  PAGEREF _Toc156707108 \h 8  HYPERLINK \l "_Toc156707109" 10 Notices  PAGEREF _Toc156707109 \h 8  HYPERLINK \l "_Toc156707110" 11 Jurisdiction and Interpretation  PAGEREF _Toc156707110 \h 8  HYPERLINK \l "_Toc156707111" 12 Third Party Rights  PAGEREF _Toc156707111 \h 9  HYPERLINK \l "_Toc156707112" 13 Partnership  PAGEREF _Toc156707112 \h 9  THIS DEED is made the day of  Date \@ "yyyy" \* MergeFormat 2022 BETWEEN:  FORMTEXT [COMPANY NAME] (company number  FORMTEXT [NUMBER]) whose registered office is at  FORMTEXT [insert registered office address] (the Sub-Contractor); and [COMPANY NAME] (company number [NUMBER]) whose registered office is at [insert registered office address] (the Beneficiary). [COMPANY NAME] (company number [NUMBER]) whose registered office is at [insert registered office address] (the Contractor). BACKGROUND A [The Beneficiary has entered into the Agreement as described in the Appendix]. B By the Building Contract the [Employer] [Beneficiary] has appointed the Contractor to carry out the Project as described in the Appendix. C By the Sub-Contract the Contractor has appointed the Sub-Contractor to carry out the Sub-Contract Works as part of the Project as described in the Appendix. D The Sub-Contractor has agreed to enter into this Deed for the benefit of the Beneficiary NOW THIS DEED WITNESSES as follows: In consideration of the payment of ten pounds (10) by the Beneficiary to the Sub-Contractor (receipt of which the Sub-Contractor hereby acknowledges). AGREED TERMS Warranty The Sub-Contractor warrants to the Beneficiary that it has carried out and completed or will carry out and complete the Sub-Contract Works in accordance with and subject to the terms of the Sub-Contract and has observed and performed and will continue to observe and perform all of the terms and obligations on its part to be observed and performed under the Sub-Contract. Without derogation from Clause  REF _Ref156707505 \r \h 1.1 the Sub-Contractor warrants to the Beneficiary that it has exercised and will continue to exercise all the reasonable skill care and diligence as may be expected of a competent contractor of the appropriate discipline with experience in carrying out works similar to the Sub-Contract Works and in connection with projects of a similar size scope and complexity to the Project in respect of the following, to the extent of the Sub-Contractors responsibility for the same: the design of the Sub-Contract Works; the selection of goods, materials, equipment or plant for the Sub-Contract Works; and the satisfaction of any performance requirement or specification of or for the Sub-Contract Works. The Sub-Contractor acknowledges that the Beneficiary has relied and will continue to rely upon the Sub-Contractor exercising reasonable skill and care in respect of all such matters as lie within the scope of the Sub-Contractors responsibilities pursuant to the Sub-Contract and that the Sub-Contractor owes a duty of care in respect thereof to the Beneficiary. The Sub-Contractor further warrants that for the purposes of the Sub-Contract Works it has not used and shall not use, and that it has exercised and will continue to exercise the level of skill care and diligence stipulated in Clause  REF _Ref156707521 \r \h 1.2 not to specify, any products or materials which; do not conform with British and European Standards or Codes of Practice; or contravene the recommendation of British Council for Offices publication Good Practice in the Selection of Construction Materials current at the date hereof; or are generally known within the industry to be deleterious, in the particular circumstances in which they are specified for use, to health and safety and/or the durability of the building or structure. Instructions The Beneficiary has no authority to issue any direction or instruction to the Sub-Contractor in relation to performance of the Sub-Contractors obligations under the Sub-Contract [unless and until the Beneficiary has given notice pursuant to Clause  REF _Ref305048973 \r \h 3]. Termination of Sub-Contract and Step-In The Sub-Contractor agrees that it will not without first giving the Beneficiary a minimum of twenty eight days notice in writing exercise any right it may have to terminate the Sub-Contract or to treat the same as having been repudiated by the Contractor or to discontinue or suspend the performance of any obligations to be performed by the Sub-Contractor pursuant thereto. The Sub-Contractors right to terminate the Sub-Contract or treat the same as having been repudiated or discontinue or suspend performance shall cease if within such period of notice and subject to Clause  REF _Ref156707562 \r \h 3.3 the Beneficiary gives notice in writing to the Sub-Contractor requiring the Sub-Contractor to accept the instructions of the Beneficiary or its appointee to the exclusion of the Contractor in respect of the Sub-Contract Works upon the terms and conditions of the Sub-Contract. Notwithstanding that as between the Sub-Contractor and the Contractor the Sub-Contractors right of termination or suspension of the Sub-Contract may not have arisen, the Sub-Contractor agrees that at any time during the carrying out of the Sub-Contract Works the Sub-Contractor will if so required by notice in writing given by the Beneficiary and subject to Clause  REF _Ref156707562 \r \h 3.3 accept the instructions of the Beneficiary or its appointee to the exclusion of the Contractor in respect of the Sub-Contract Works upon the terms and conditions of the Sub-Contract. It shall be a condition of any notice given by the Beneficiary under Clauses  REF _Ref156707589 \r \h 3.1or  REF _Ref156707601 \r \h 3.2 that the Beneficiary or its appointee accepts liability for payment of the sums payable to the Sub-Contractor under the Sub-Contract and for performance of the Contractors obligations under the Sub-Contract including payment of any sums outstanding at the date of such notice. Upon the issue of any notice by the Beneficiary under Clauses 3.1 or 3.2 the Sub-Contract shall continue in full force and effect as if no right of termination on the part of the Sub-Contractor had arisen and the Sub-Contractor shall be liable to the Beneficiary or its appointee under the Sub-Contract in lieu of its liability to the Contractor. If any notice given by the Beneficiary under Clauses  REF _Ref156707589 \r \h 3.1 or  REF _Ref156707601 \r \h 3.2 requires the Sub-Contractor to accept the instructions of the Beneficiarys appointee the Beneficiary shall be liable to the Sub-Contractor as guarantor for the payment of all sums from time to time due to the Sub-Contractor from the Beneficiarys appointee. The Contractor by executing this Deed signifies its consent to its terms. Copyright The Sub-Contractor with full title guarantee hereby grants to the Beneficiary and its nominees an irrevocable non-exclusive royalty-free licence to use and to reproduce all drawings details plans specifications schedules reports calculations and other work and the designs contained in them (and all subsequent amendments and additions to them) whether in hard copy or electronic form (together referred to in this clause as the Proprietary Material) which have been or are hereafter written originated or made by or on behalf of the Sub-Contractor for any purpose connected with the Sub-Contract Works including but without limitation the execution completion maintenance letting management sale advertisement extension alteration reinstatement and repair thereof. Such licence shall carry the right to grant sub-licences and shall be transferable to third parties without the consent of the Sub-Contractor on the basis that the Sub-Contractor shall have no liability for their use except for their original purpose. The Beneficiary shall on written request, and upon payment of a reasonable copying charge, be entitled to be supplied by the Sub-Contractor with copies of the Proprietary Material. The Sub-Contractor shall if so requested by the Beneficiary execute such documents and perform such acts as may be required fully and effectively to assure to the other the rights referred to in sub-Clauses  REF _Ref156707640 \r \h 4.1 and  REF _Ref156707654 \r \h 4.2. The Sub-Contractor agrees to indemnify and keep indemnified the Beneficiary from and against any loss damage cost expense liability or claim in respect of breach of the copyright or the other intellectual property rights of any third party caused or arising out of the carrying out of the Sub-Contract Works or the use of a licence under Clause  REF _Ref156707640 \r \h 4.1. The Sub-Contractor hereby waives and agrees not to assert (and to procure that any sub-consultants do likewise) all moral rights in the Proprietry Material under Chapter IV of the Copyright, Designs and Patents Act 1988 or any re-enactment or modification of it. Insurance Without prejudice to his obligations under this Deed or otherwise at law the Sub-Contractor covenants and undertakes with the Beneficiary that: It has maintained and will continue to maintain for so long as the same continues to be available to the Sub-Contractor in the United Kingdom insurance market at commercially reasonable rates and terms (but without having regard to the Sub-Contractors claims record) with reputable insurers licensed to carry on business in the European Union from the date hereof and for a period specified in the Appendix liability indemnity insurance to provide cover for liability arising from breach of the terms of this Deed and the Sub-Contract and under the general law without unusual or onerous condition of the type, level and nature detailed in the Appendix. The insurances referred to in sub-Clause  REF _Ref156707686 \r \h 5.1 hereof shall be with a well established insurance office or underwriter of repute. It will provide to the Beneficiary within ten working days of the Beneficiarys written request sufficient documentary evidence that such insurances are being properly maintained and the receipt for the last premium payable. If such insurance ceases to be available at commercially reasonable rates and terms as pursuant to clause 5.1 the Sub-Contractor shall immediately inform the Beneficiary in order that the Sub-Contractor and the Beneficiary can discuss means of protecting the respective positions of the Sub-Contractor and the Beneficiary in the absence of such insurance and as an interim measure the Sub-Contractor shall take out such appropriate insurance cover as it is able to procure. Assignment The Beneficiary shall be entitled to assign and/or charge the benefit of this Deed and the rights and remedies available to it: by way of security or by way of re-assignment on redemption; and to any Group Company of the Beneficiary. Save for the provisions of Clause  REF _Ref156707699 \r \h 6.1 the benefit of this Deed may be assigned and/or charged twice only without the consent of the Sub-Contractor being required. The Sub-Contractor undertakes with the Beneficiary not to contend that any person to whom this Deed shall be assigned shall be precluded from recovering under this Deed any loss resulting from any breach of this Deed by reason that such person is an assignee and not the original beneficiary named herein or by reason that the Beneficiary named herein or any intermediate owner of the Beneficiarys interest in the Project escaped loss resulting from such breach by reason of the disposal of its interest in the same or by reason that the loss suffered from such breach is different from or not the same as that which was or would have been suffered by the original Beneficiary named herein or any intermediate owner of the Beneficiarys interest. Further Warranties The Sub-Contractor shall at the written request of the Beneficiary execute a deed or deeds of warranty in favour of any Purchaser and/or Funder and/or Tenant in the terms of this Deed mutatis mutandis but excluding this Clause  REF _Ref156707717 \r \h 7 and Clause 3. Extraneous Rights This Deed shall not negate or diminish any duty or liability otherwise owed by the Sub-Contractor to the Beneficiary. No approval or inspection of the Sub-Contract Works or of any designs or specifications and no testing of any work or materials by or on behalf of the Beneficiary and no omission to test or inspect shall negate or diminish any duty or liability of the Sub-Contractor arising under this Deed. Limitation of Liability No proceedings shall be commenced against the Sub-Contractor under this Deed more than 12 years after practical completion of the Project. The Sub-Contractor shall not have any greater liability to the Beneficiary under this Deed than it would have had if the Beneficiary had been named as a joint employer in the Sub-Contract. The SubContractor shall be entitled in any action or proceedings brought by the Beneficiary under this Deed to rely on any limitation in the Sub-Contract and to raise equivalent rights in defence (but excluding set offs and counterclaims) as it would have if the Beneficiary had been named as a joint employer under the Sub-Contract. Notices Any notice to be given hereunder shall either be delivered personally or sent by facsimile transmission and subsequently confirmed by letter or other means of telecommunication in permanent written form. The addresses or numbers for service of the Client and of the Consultant shall be those stated in Appendix 1 hereto or such other address or number for service as the party to be served may have previously notified in writing to the other party. A notice shall be deemed to have been served as follows: If personally delivered, at the time of delivery; If sent by facsimile transmission and subsequently confirmed by letter or other means of telecommunication at the time of transmission; If sent by recorded delivery, forty eight hours after being posted; and For the avoidance of doubt e-mail does not constitute a valid method of service under this Deed. Jurisdiction and Interpretation This Deed shall be governed by and construed and interpreted in accordance with the laws of England and all disputes and differences arising out of or in connection with the Sub-Contract Works shall be resolved by the Courts of England which shall have exclusive jurisdiction in respect of such disputes and differences. In this Deed: Group Company means any subsidiary company or holding company of the Beneficiary, or another subsidiary or holding company of such company, as subsidiary and holding company are defined in s1159 Companies Act 2006, as amended, but on the basis that the holding of not less than one quarter of the voting rights shall be deemed to satisfy the condition in s1159(a); Purchaser means any purchaser of the whole or any part of the Project and/or the Site; Tenant means any first tenant of the whole or any part of the Project and/or the Site; Funder means any person firm company or bank (whether one or more in number) providing finance or re-finance in connection with the Project and/or the Site including, for the avoidance of doubt providing finance to the Purchaser. Third Party Rights The parties hereto hereby agree to exclude the Contracts (Rights of Third Parties) Act 1999 (the Act) and this Deed shall take effect as if the Act was not in force. For the avoidance of doubt this Deed shall not confer any right and/or benefit whatsoever on any third party and/or any obligation on the parties which would otherwise arise had the Act applied to this Deed. Partnership Where the Sub-Contractor is a partnership references in this Deed to the Sub-Contractor will be deemed to include reference to each and every present and future partner of such partnership and the liability of each and every such partner under this Deed will be deemed to be joint and several. The Appendix ClauseThe Sub-Contractor: FORMTEXT [insert name of sub-contractor company] whose registered office is at  FORMTEXT [insert registered address].The Beneficiary:[insert name of Beneficiary] whose registered office is at [insert registered address] (which expression includes successors in title and any permitted assignees hereunder)The Contractor:[insert name of Contractor] whose registered office is at [insert name of registered office][B.The Employer[Conwy County Borough Council]The Project:[insert description of the project]The Site[insert description of the site]A.[The Agreement: a contract dated [ ] between the Beneficiary and the Employer by which the Beneficiary has agreed to provide funding for the ProjectB.Building Contract:a contract dated [ ] between the [Beneficiary] [Employer] and the Contractor substantially in the form of the NEC3 option A 2013 Contract for the design of items identified in Clause A30/520 of the Works Information and construction of the whole works as described in the Contract.C.Sub-Contract:a contract dated [ ] between the Contractor and the Sub-Contractor for the Sub-Contract Works.C.Sub-Contract Works:the [design] [supply] [installation] [construction] of  FORMTEXT [insert description of the sub-contract works].  REF _Ref156706712 \r \h 5Level, nature & duration of liability insurance: The insurance referred to in Clause  REF _Ref156706712 \r \h 5 shall be: (a) [professional indemnity] [public and product liability] insurance; (b) for an amount of not less than [ ] million pounds [each and every claim] [any one claim and in all during the annual period of insurance but with [unlimited] [one] [two] automatic reinstatements of the level of cover] [in the aggregate during each annual period of insurance]; and(c) maintained continuously for the period ending 12 years after practical completion of the Project.Addresses and numbers for serviceSub-Contractor:Address:Fax:Beneficiary:Address:Fax:Contractor:Address:Fax: IN WITNESS whereof the parties have signed this document as a Deed the day and year first before written SIGNED as a DEED by [ ] acting by a director and a director/secretaryDIRECTORSignature:Name (in block capitals)SECRETARY/DIRECTORSignature:Name (in block capitals) SIGNED [(but not delivered until the date hereof)] [and delivered] as a DEED by acting by a director and a director/secretaryDIRECTORSignature:Name (in block capitals)SECRETARY/DIRECTORSignature:Name (in block capitals)  Delete if Contractor not a party, ie if now step-in rights  Delete if the Beneficiary is the Employer under the Building Contract (re-letter re Recitals accordingly)  Delete words in square brackets if no step-in rights being given  Delete if step-in rights not being given.  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