Termination for poor performance

9  Once the new facilities are open, if the number of Deficiency Points awarded in a month exceeds a pre-agreed level, that level varying depending on the support service concerned, the Department can issue Defence Management a warning notice on its performance. If Defence Management receives 16 of these notices in any 12-month period, the Department can terminate the PFI contract in whole or in part. Prior to this, the Department can also require Defence Management to appoint a new service sub-contractor if it has issued notices in respect of the relevant service in three consecutive months or four consecutive three-month periods.

10  The Department can terminate the PFI contract, in whole or in part, if Defence Management's performance in making the facilities available is so deficient that it is in serious breach of the contract.