The Contract is likely to contain a number of undertakings (in other words, promises or commitments) by the Contractor to the Authority. For example under the WIDP Contract (Clause 5.1) the Contractor undertakes that it will:
• notify the Authority of proceedings (threatened, pending or commenced) against the Contractor where those proceedings would negatively affect the Contractor's ability to perform its obligations;
• respect the restrictions on:
• disposing of all or part of its business or assets;
• its place of residence and operations outside the UK;
• incorporating a company and acquiring interests in a company;
• making loans, granting credit or assuming liabilities for other persons; and
• making material changes to its business; and
• only deliver the Services itself or through a Sub-Contractor.
If the Contract Manager suspects the Contractor is in breach of a contractual undertaking (s)he should seek advice from the Authority's Legal Department to agree the best approach for managing the situation.