Part four: Secondary Option Clauses

This chapter explains the various secondary Option clauses, also referred to as X clauses and Y clauses, which may be selected by the Client and how each operates. Specifically, changes in the law, parent company guarantees, sectional completion, bonus for early Completion, delay damages, undertakings (collateral warranties), termination for convenience, multi-party incentives, Key Performance Indicators (KPIs), performance bonds, advanced payment, standard of care for the Contractor's design, retention, limitation of liability, early Contractor involvement, climate change, third party rights and payment following insolvency of the Contractor.