Better Roads Digital Magazine
Issue link: http://read.dmtmag.com/i/440996
Better Roads December 2014 25 operating costs, capital costs, grants, the effects of refi nancing on revenue-sharing and other timing issues. Chapter 4: Supervening Events – Topics include the role of insurance in mitigating supervening risks, a defi nition of su- pervening events, and the types of contractual relief generally granted in supervening events. Chapter 5: Changes in Equity Interests – Topics include the defi nition of a change in ownership, example contractual provisions related to a change in ownership, permitted and prohibited changes, and participant concerns. Chapter 6: Changes in Law – Topics include the concerns of parties, unforeseeable changes in law and relevant consider- ations, tax-related issues, and compensation due to changes in law. Chapter 7: Defaults, Early Termination and Compensation – Topics include events related to default by the Developer and the Department, cure periods and termination rights of both parties in the event of a default, as well as all issues related to compensation for early termination. Chapter 8: Handback – Topics include handback require- ments, inspections and reserve accounts. The report also points that that the following "relatively con- sistent" themes: 1. The developer generally bears any negative fi nancial impact associated with any unforeseen change in federal law on the basis that (unlike with respect to other transportation sectors (e.g., aviation) regulation of highways is largely devolved down to State government, the private business community is as well (if not better) placed as any Depart- ment to address any pending Change in Law, and (subject to the terms of the toll rate schedule) an increase in toll rates may afford some level of "hedge" against any negative impact of such a Change in Law. 2. With respect to any unforeseen change in a non-Federal law, the Department only bears any negative fi nancial impact associated with such Change in Law to the extent that it is a "Discriminatory Change in Law" (see Section 6.5 below for a discussion of the defi nition of Discriminatory Change in Law). 3. The negative fi nancial impact associated with any "Nondis- criminatory Change in Law" are generally borne by the de- veloper, except that with respect to changes in sales tax rates or exemptions (whether of general application to suppliers or not), protection is often afforded to the developer. (For more information, refer to Section 6.6 of the document at fhwa.dot.gov/ipd/pdfs/p3/model_p3_core_toll_concessions.pdf.) HighwayContractor -\SSZLY]PJL IYHUJOVMÄJLZ ([SHU[H *OHYSV[[L +HSSHZ +LU]LY +LZ4VPULZ 0UKPHUHWVSPZ 2HUZHZ*P[` 3P[[SL9VJR 4PS^H\RLL 5HZO]PSSL 5L^6YSLHUZ 6RSHOVTH*P[` 7P[[ZI\YNO :[3V\PZ :HU(U[VUPV As a contractor, one of the most critical things is to protect your business with the right insurance. You can count on Bituminous for rock-solid protection. >P[OV]LY`LHYZVML_WLYPLUJLZWLJPHSPaPUNPUPUZ\YHUJLMVYJVU[YHJ[VYZ^LRUV^HUK\UKLYZ[HUK`V\Y I\ZPULZZHUKULLKZIL[[LY[OHUHU`VUL )`PUZ\YPUN^P[O)P[\TPUV\Z`V\»SSNL[THQVYHK]HU[HNLZPUJS\KPUN[OLYPNO[JV]LYHNLPUK\Z[Y`RUV^SLKNL `V\JHU[Y\Z[HUKZVSPKÄUHUJPHSZLJ\YP[`@V\»SSHSZVNL[JVUZPZ[LU[HUKJVUZ[Y\J[P]LYPZRJVU[YVSH[[LU[PVU WS\ZL_WLY[HUK[PTLS`YLZWVUZLZ[VHU`JSHPTZ>OLUP[JVTLZ[VNL[[PUN[OLYPNO[PUZ\YHUJL^L»YLTVYL [OHUHIP[IL[[LY¶^L»YLHSV[IL[[LY *HSS`V\YHNLU[[VKH`HUKHZRHIV\[\Z@V\»SSZLL^L»YL[VWVM[OLSPULH[WYV[LJ[PUN`V\YIV[[VTSPUL /VTL6MÄJL!9VJR0ZSHUK0SSPUVPZ + + ^^^IP[\TPUV\ZPUZ\YHUJLJVT What YOU do is what WE protect. ™