Appendix 1I Tenant and Third Party Damage Protocol

1.  This Protocol defines the circumstances in which the Contractor may pass through costs to the Authority in the event of Tenant Damage and Third Party Damage.  Such costs eligible for pass through are termed in this Protocol Qualifying Costs.  Any costs attributable to either Tenant Damage or Third Party Damage that are not Qualifying Costs are a Contractor responsibility.

2.  The following costs are not Qualifying Costs:

2.1  any damage to Dwellings that is not Tenant Damage or Third Party Damage;

2.2  any damage caused by the Contractor or any Contractor Party;

2.3  all costs caused by Tenant Damage or Third Party Damage up to an annual cap of £[  ] (indexed) (apportioned on a daily basis for any Contract Year of less than 365 days) and subject to paragraph 3 below.

2.4  any costs not properly incurred or of an amount that is not reasonable in the circumstances and any costs incurred in breach of this Agreement or resulting from any failure to take proper and sufficient steps to recharge the responsible person(s) in accordance with the provisions of the [Policy for Recharging Tenants].

2.5  any costs (including insurance) recovered from Tenants, former Tenants or anyone else in respect of Tenant Damage or Third Party Damage.

2.6  any costs in respect of which insurance proceeds are recovered (or which ought to be recoverable) under the Required Insurances.

3.  The Authority will be responsible for an amount equal to [%] of the Qualifying Costs in any Contract Year.  Any sum due from the Authority to the Contractor shall be paid after the end of the relevant Contract Year within 20 Business Days after receipt by the Authority of full details of the damage concerned, evidence of the costs of remedying the relevant damage and the steps taken by the Contractor for recovery of such costs whether under the [Policy for Recharging Tenants] or otherwise.

4.  Where any recovery as described in paragraph 2.5 is achieved after the Authority has made a payment for the Payment Year in which the relevant Tenant Damage or Third Party Damage occurred then the Contractor shall within 20 Business Days of its receipt pay to the Authority 50% of such recovery (net of any reasonable costs of recovery).

5.  The Contractor will take all reasonable steps to secure empty Dwellings from Third Party Damage in accordance with Good Industry Practice and relevant prevailing circumstances.  More than [number] incidents externally or more than [number] incidents internally of void damage not attributable to departing Tenants in any year will be evidence of a failure to properly secure and any further such costs in the relevant payment period will not be Qualifying Costs.

6.  The Contractor will need to demonstrate that Third Party Damage to external property elements is not attributable to fair wear and tear with reference to the following considerations:

6.1  comparison with immediately adjacent or similar elements;

6.2  estate inspection records;

6.3  correspondence with Tenants in relation to their Tenancy obligations.

7.  The Contractor will be entitled to relief from Performance Deductions in relation to repairs raised resulting from Tenant Damage and Third Party Damage where they are notified to the Authority within 5 Business Days of discovery:

7.1  such relief, would be time limited to 28 Business Days in the case of boarded-up windows or other similar incidences of Third Party Damage which would impact on the environmental quality of Project Area; and

7.2  relief, however, will not be given where failure to complete the repair would result in the Dwelling falling below the Availability Standards Rented (Initial), or a health and safety risk would otherwise occur.

8.  The Contractor must report to the Authority the quantum of Tenant Damage and Third Party Damage costs (whether or not Qualifying Costs) incurred in each calendar Month.

9.  If such costs exceed £[number] (indexed) during any one calendar Month, the Contractor will co-operate with the Authority to produce a review plan that will investigate, identify and, as far as possible to mitigate, the causes of these incidences.  The Contractor will be expected to make reasonable endeavours to implement this plan to the reasonable satisfaction of the Authority.