Information Warranties - Section 6  

22  Sections 6.2 and 6.3 of SoPC relate to Service Provider due diligence and Local Authority warranties.  In social care PFI projects it is not common practice to provide any warranties except in relation to employee information and, possibly, property related matters.  However, Local Authorities should have regard to the criteria listed in paragraph 6.3.1 of SoPC where the granting of warranties would help to reduce the Service Provider's costs.  However, if the Local Authority gives a warranty, it will be liable for damages/compensation arising from the inaccuracy of any information that is warranted, and therefore the Local Authority should balance this increased risk against any potential reduction in the bidders costs (and thus the Service Payment).

23  Section 6.3.3 of SoPC includes required drafting for a typical exclusion for contracts in which warranties are not given by the Local Authority.  This required drafting has been included in the Model Contract.