Accrued Penalties

4.24  The issue of accrued service provider contract penalty points at the start of a new subcontract should be handled in accordance with the contract. As a general principle, the possibility of resetting penalty points to nil should apply only at subcontract level, and not to the incumbent contractor if it wins the contract. There should also be no resetting at Project Company level, because it should be held to account for the performance of its subcontractors. Authorities may however consider the extent to which blame can be apportioned to the Project Company when deciding whether to reset penalty points. Penalty points should only be used to incentivise good behaviours in contractors.