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High Speed Two

Question for Department for Transport

UIN 129383, tabled on 23 February 2018

To ask the Secretary of State for Transport, pursuant to the Answer of 18 January 2018 to Question 122605 will he publish the clauses of the contract between HS2 Ltd and CEK JV for HS2 that guarantee the full delivery of the HS2 contract now that Carillion is unable to fulfil any part of that contract.

Answered on

28 February 2018

As a Joint Venture CEK were subject to the following contractual clause:

Z12 Joint and several liability

Z12.1 If the Contractor is a Joint Venture

(1) each of the parties comprising the Joint Venture are jointly and severally liable to the Employer for the performance of this contract and all liabilities, acts and omissions of the Contractor under or in connection with this contract are the liabilities, acts or omissions of each party comprising the Joint Venture under or in connection with this contract,

(2) without limiting or prejudicing any other provisions of this contract, if any of the parties comprising the Joint Venture ceases to be a member of the Joint Venture or suffers one of the events described in clause 91.1, the other parties or party carry out and complete the works in accordance with this contract,

(3) the Contractor gives notice to the Employer and the Project Manager as to which of the parties comprising the Joint Venture has the authority to bind the Contractor for all the purposes of this contract and

(4) the Contractor keeps the Employer and the Project Manager informed promptly of any changes in the Joint Venture whether in relation to any incorporated entity or its constituent entities or the entities forming an unincorporated joint venture, including changes in legal status, the occurrence of any of the events described in clause 91.1, amalgamation, demerger, merger, deterioration in financial condition, de-ratings, major legal claims and suits, and any other matter or circumstance that could reasonably be deemed to be of concern to the Employer or the Project Manager.

[Regarding (4) above, Carillion Construction Limited was subject to an ‘event described in clause 91.1’ when it was put into liquidation on 15 January 2018]

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