4.6 In December 2001, SBS, Siemens AG and NS&I identified a number of key areas for review within the contract, as part of the Operational Strategy Programme. Following negotiations, an agreement was signed between the parties in September 2002, which reflected a realignment of the contract. The drivers behind the contract re-alignment were:
■ to improve clarity and reduce ambiguity;
■ to adjust any issues which both parties deemed as intrinsically unfair; and
■ to ensure the contract was a driver for a low cost operation.
4.7 NS&I was keen to ensure that the agreement was not a renegotiation and did not change the functionality of the contract, or the transfer of risk. At the same time it wanted to ensure the contract encouraged "best" behaviour by both NS&I and SBS to achieve the objectives of the partnership and whole business working. NS&I and SBS consider they have a "living contract", which should evolve over time, and the realignment is a means of supporting this concept.