Payment Mechanism, Management and Monitoring - Section 10

39  Section 10 provides new or substantially updated guidance on contract management, monitoring against the payment mechanism, commencement of monitoring, who does the monitoring, who pays for the monitoring and the reporting of the results of the monitoring.

40  It is important that the performance monitoring regime functions effectively.  Both parties will bear the costs of their own monitoring except where the Local Authority has to carry out increased monitoring.  The Model Contract and Model Payment Mechanism allows the Local Authority to undertake additional monitoring where the Service Provider has been fraudulent in the submission of monitoring reports or has submitted erroneous monitoring reports.  In such instances the Service Provider pays for the additional monitoring costs.