4  Authority Stage 1 Confirmation

4.1  The Authority shall consider in good faith, the Service Provider Stage 1 Response.  If the Authority finds that any material aspects of the Service Provider Stage 1 Response are unsatisfactory to it, it shall notify the Service Provider of the same and offer reasonable assistance to the Service Provider to enable it to address such deficiencies and resubmit the Service Provider Stage 1 Response as soon as reasonably practicable.

4.2  The Authority shall, within sixty (60) Business Days or such other period as the parties may agree, of receipt of the Service Provider Stage 1 Response (as may be amended pursuant to paragraph 3.1 (Service Provider Stage 1 Response)), confirm in writing to the Service Provider that either:

(a)  the Service Provider should proceed with developing a Service Provider Stage 2 Response and shall confirm the agreed Project Management Fee,  and set out the date by which the Service Provider Stage 2 Response shall be submitted (which date shall reflect the complexity of the High Value Change and shall not be less than sixty (60) Business Days) (an Authority Stage 1 Confirmation); or

(b)  the Authority withdraws the Authority Change Notice.

4.3  In the event that within forty-five (45) Business Days of receipt of the Service Provider Stage 1 Response (as may be amended pursuant to paragraph 3.1), the Authority has not issued to the Service Provider a confirmation under paragraph 3.2 (a) or notice of withdrawal under paragraph 3.2 (b), the Service Provider shall, request the Authority in writing to confirm or withdraw the Change.  In the event that the Service Provider has not received written notice of confirmation or withdrawal within sixty (60) Business Days of receipt of the Service Provider Stage 1 Response, the Authority Change Notice shall be deemed to have been withdrawn.

4.4  Te Authority shall pay the Service Provider the Project Management Fee and the third party costs set out in the Authority Initial Confirmation and due at Stage 1 within twenty (20) Business Days of receipt of an invoice for the agreed sum submitted by the Service Provider.

4.5  Where paragraph 4.2 (Implementation) of Part 1 applies and the Authority Change Notice is deemed withdrawn, or the Authority Change Notice is deemed withdrawn pursuant to paragraph 3.3 (Authority Stage 1 Confirmation), then no compensation (including payment of any Part of the Project Management Fee) shall be paid to the Service Provider by the Authority.