26.3  Erroneous Monitoring Reports

Without prejudice to the Authority's rights under clause 37.4 (Termination on Contractor Default) and to any other express rights under this Agreement, where the Contractor has been found to:

26.3.1  be fraudulent in the submission of monitoring reports or claims for payment under clause 33 (Payment Provisions); or

26.3.2  have submitted at least [two (2)] erroneous monitoring reports, within a [three (3)] month period.

the Authority may by notice to the Contractor increase the level of its monitoring of the Contractor, or (at the Authority's option), of the Contractor's monitoring of its own performance of its obligations under this Agreement in respect of the relevant Service or Services the subject of such fraudulent or erroneous reporting until such time as the Contractor shall have demonstrated to the reasonable satisfaction of the Authority that it will perform (and is capable of performing) its obligations under this Agreement.