29.2  STEP-IN - GENERAL

Required drafting for such a right of step-in is as follows:

29  Authority Step-In

(a)  If the Authority reasonably believes that it needs to take action in connection with the Service:

(i)  because a serious risk exists to the health or safety of persons or property or to the environment;531 and/or

(ii)  to discharge a statutory duty,

then the Authority shall be entitled to take action in accordance with paragraphs (b) to (e) below.

(b)  If paragraph (a) applies and the Authority wishes to take action, the Authority shall notify the Contractor in writing of the following:

(i)  the action it wishes to take;

(ii)  the reason for such action;

(iii)  the date it wishes to commence such action;

(iv)  the time period which it believes will be necessary for such action;

and

(v)  to the extent practicable, the effect on the Contractor and its obligation to provide the Service during the period such action is being taken.

(c)  Following service of such notice, the Authority shall take such action as notified under paragraph (b) above and any consequential additional action as it reasonably believes is necessary (together, the "Required Action") and the Contractor shall give all reasonable assistance to the Authority while it is taking such Required Action.




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531  Other considerations may be important in other projects, such as those involving national security. The MOD will normally require a similar right to step in under their provisions dealing with "Measures in a Crisis" (see MOD standard form PFI contract - clauses 71 and 73).