6  Agreement of Service Provider Stage 2 Response

6.1  As soon as practicable and in any event, not more than fifteen (15) Business Days after the Authority receives the Service Provider Stage 2 Response, the parties shall discuss and endeavour to agree the issues set out in the Service Provider Stage 2 Response.  The Authority may require (and the Service Provider shall provide) further information it reasonably requires to enable the Authority to evaluate the Service Provider Stage 2 Response and, in particular, decide whether the Service Provider Stage 2 Response meets the Approval Criteria.  In particular, the Service Provider shall

(a)  provide evidence that the Service Provider has used reasonable endeavours (including, where practicable (and without prejudice to the provisions of paragraph 7.4 (Competitive Tendering), the use of competitive quotes) to oblige sub-contractors and suppliers to minimise any increase in costs and maximise any reduction in costs;

(b)  demonstrate how any Capital Expenditure to be incurred or avoided is being measured in a cost effective manner, including showing that when such expenditure is incurred, foreseeable Changes in Law at that time would be taken into account by the Service Provider; and

(c)  demonstrate that any expenditure that has been avoided, which was anticipated to be incurred that has been affected by the High Value Change, has been taken into account in the Change in Project Costs,

and the Service Provider shall reply promptly and fully to all requests by the Authority for further information made pursuant to this paragraph 6.1.

6.2  The Authority may modify the Authority Change Notice (which modification shall be in writing).  The Service Provider shall, as soon as practicable and in any event not more than ten (10) Business Days or such other period as the parties may agree after receipt of such modification, notify the Authority of any consequential changes to the Service Provider Stage 2 Response (which shall be deemed accordingly amended).

6.3  If, acting reasonably, the Authority is of the view that any material aspect of the Stage 2 Response fails to meet the Approval Criteria and/or otherwise fails to satisfy any material requirement of this Schedule 15, the Authority shall notify the Service Provider of the same and shall specify in writing and explain to the Service Provider in what respects the Service Provider Stage 2 Response does not meet the Approval Criteria, and/or fails to comply with any material requirement of this Schedule 15.  The Service Provider shall, within twenty (20) Business Days (or such other period as is agreed by the parties) of such notification, revise and re-submit the Service Provider Stage 2 Response.

6.4  If the revised Service Provider Stage 2 Response does not address the shortcomings notified by the Authority pursuant to paragraph 5.3 (Agreement of Service Provider Response) and the revised Service Provider Stage 2 Response does not satisfy the Approval Criteria or other material requirement of this Schedule 15 then paragraph 6.1(c) shall apply.

6.5  If the parties cannot agree on the contents of the Service Provider Stage 2 Response, then either party may refer the dispute to the Dispute Resolution Procedure, provided that no determination shall oblige the Authority to issue a Stage 2 Confirmation in respect of the disputed High Value Change.