Where a variation to the Contract is required either as a result of a Board Variation request (see paragraph 17) or a Relevant Change in Law (see paragraph 18), the Board and the Contractor must follow a particular procedure.
1.1 In the case of a Relevant Change in Law, either party may notify the other of the Relevant Change in Law. The parties then meet to agree the effect of the Relevant Change in Law. After agreement (or determination by the Disputes Resolution Procedure if they fail to agree) of the effect, the Board issues a Variation Enquiry to the Contractor and this starts the procedure detailed in paragraph 1.3 below.
1.2 In the case of the Board requiring a variation, the Board starts the procedure detailed in paragraph 1.3 by issuing a Variation Enquiry to the Contractor.
1.3 The procedure is broadly as follows:-
1.3.1 the Variation Enquiry referred to in 1.1 and 1.2 above will give details babout the change, such as whether it relates to works or services and by when the Board expects it to be made.
1.3.2 The Contractor will then:
(i) Provide a preliminary indication of costs, timescale and, where necessary, the availability of any finance needed for the change; or
(ii) respond formally to the Board, stating whether it objects or agrees to the proposed variation.
1.3.3 The Contractor can only object to a variation on a limited number of grounds, including but not limited to:
(i) health and safety concerns;
(ii) where the variation would result in a breach of law; and
(iii) where the variation would fundamentally change the nature of the hospital.
If a variation is required in order to reflect a change in law, the Contractor can only refuse the variation to the extent that it would not give effect to the relevant law.
1.3.4 Once the details of the change have been agreed by the parties (or determined at Dispute Resolution), the Board will confirm the proposed variation.