12. Issues of Council Property
12.1
All Council Property issued in connection with the Contract (hereinafter called “Issued Property”) shall remain the property of the Council whether paid for by or charged against the Contractor or not and shall be used in the execution of the Contract and for no other purpose whatsoever, without the prior written approval of the Council. If requested, the Council will notify the Contractor, within a reasonable time, of the current value of Issued Property.
12.2
Upon receipt of Issued Property, the Contractor shall subject it to (i) a reasonable visual inspection, and (ii) such additional inspection and testing as may be necessary and practicable to check that the issued property is not defective or deficient for the purpose for which it has been provided and as can reasonably be carried out within the under-mentioned period; and shall notify the Council within 14 days of receipt or such longer period as may be specified in the Contract, of any defects or deficiencies thereby discovered; provided that items issued in a “preserved, identified and packaged” condition shall not be unpackaged earlier than is necessary and for such items the said 14 days or longer period shall count from the date from which packages are opened.
12.3
Where the Contractor cannot reasonably carry out the additional inspection and testing within the prescribed period as recorded by Condition 12.2, above, whether after receipt or unpacking as the case may be, he shall inform the Council promptly of the position and shall carry out such inspection and testing as soon as is practicable thereafter and shall notify the Council within 7 days of completion of such inspection and testing of any defects or deficiencies thereby discovered.
12.4
The Council shall within a reasonable time of receipt of any notice under Condition 12.2 replace, re-issue or authorise repair of issued property agreed to be defective or deficient and if appropriate in the circumstances the Council shall revise the Contract price and/or the time specified in the Contract for delivery of the Goods. Should the Council fail to replace, re-issue, or authorise repair of defective or deficient issued property within a reasonable time of receipt of notice under Condition 12.2 such revisions of the Contract price and/or of the times specified in the Contract for delivery of the Goods shall be made as may be appropriate provided that the Contractor shall have taken all reasonable measures to mitigate the consequences of any delay.
12.5
The Contractor shall be responsible for the safe custody and, subject to Condition 12.7, due return of issued property, whether or not incorporated in the Goods, and shall be responsible for all loss thereof or damage thereto from whatever cause (except as provided below) until re-delivered in accordance with the Council’s instructions. For the purposes of this Condition, defects or deficiencies notified to the Council in accordance with Condition 12.2 or deterioration in issued property resulting from its normal and proper use in the execution of the Contract shall not be deemed to be loss or damage (except insofar as the deterioration is contributed to by any misuse, lack of care or want of maintenance by the Contractor). Except as hereinafter provided, the Contractor shall not be liable for loss or damage of the issued property arising from:
12.5.1 aircraft or other aerial devices dropped therefrom, including pressure waves caused by aircraft or such devices whether travelling at sonic or supersonic speeds,
12.5.2 ionising radiations or contamination by radioactivity from any nuclear fuel or from nuclear waste from the combustion of nuclear fuel,
12.5.3 the radioactive, toxic, explosive or any other hazardous properties of any nuclear assembly or nuclear component thereof
12.5.4 riot, civil commotion, civil war, rebellion, revolution, insurrection, military or a usurped power or enemy risks provided that the Contractor shall be so liable to the extent that any of the aforementioned risks are covered by existing insurance.
12.6
Instructions for the return or disposal of the defective or deficient issued property shall be issued by the Council and such property shall not be at the risk of the Contractor once it has been delivered in accordance with the Council’s instructions.
12.7
If any Goods in which issued property has been incorporated is damaged or rejected or are subject to additional costs by reason of a defect or deficiency in the issued property which is not and could not reasonably have been discovered by the Contractor and notified to the Council in accordance with the provisions in Condition 12.2 of this Condition and provided that such defect or deficiency shall not be attributable to any misuse, lack of care, want of maintenance by the Contractor, the Council shall replace, re-issue or authorise repair of the issued property and shall make such revision of the Contract price and/or of the time specified in the Contract for delivery of the Goods as may be appropriate provided that the Contractor shall have taken all reasonable measures to mitigate the consequences of any delay.
12.8
Neither the Contractor nor any Sub-Contractor, nor any other person shall have a lien on issued property whether paid for by or charged against the Contractor or not, for any sum due to the Contractor or other person, and the Contractor shall take all such steps as may be reasonably necessary to ensure that the title of the Council, and the exclusion of any such lien, are brought to the notice of all Sub-Contractors and other persons dealing with any issued property.
