3  Annual Service Report and Annual Service Plan3

3.1  If, in the Authority's reasonable opinion, the provision, performance or delivery of the Service (or any part of the Service) may be more effective, efficient and economic having regard to the Annual Service Report, and the Best Value Duty, then the Authority may serve a written notice upon the Service Provider (a CAA Change Notice) stating the nature and timing of the changes to the provision, performance or delivery of the Service (or the relevant part of the Service) which the Authority desires.

3.2  The Service Provider shall, within [twenty (20)] Business Days of the date of receipt of a CAA Change Notice, provide the Authority, at its own cost, with a written statement (the Annual Service Plan) containing the Service Provider's proposals to achieve the change to the Service (or the relevant part) in accordance with the CAA Change Notice.

3.3  As soon as practicable after the Authority receives the Annual Service Plan, the parties shall discuss and agree the issues set out in the Annual Service Plan.  In such discussions the Authority may modify the CAA Change Notice, in which case the Service Provider shall, as soon as practicable and in any event not more than twenty (20) Business Days after the receipt of such modification, notify the Authority of any consequential changes to the Annual Service Plan.

3.4  If the parties cannot agree on the contents of the Annual Service Plan then the dispute shall be determined in accordance with the Dispute Resolution Procedure.  

3.5  As soon as practicable after the content of the Annual Service Plan has been agreed or otherwise determined pursuant to the Dispute Resolution Procedure the Authority shall:

(a)  confirm in writing the Annual Service Plan; or

(b)  withdraw the CAA Change Notice.

3.6  If the Authority either withdraws the CAA Change Notice or does not confirm the Annual Service Plan within [twenty (20)] Business Days of the Annual Service Plan having been agreed or determined pursuant to the Dispute Resolution Procedure then the Annual Service Plan and the CAA Change Notice shall be deemed to have been withdrawn.

3.7  If the Authority confirms the Annual Service Plan, then the Authority shall submit an Authority Change Notice (which shall contain the information set out in the CAA Change Notice and Annual Service Plan) and the provisions of the Change Protocol shall apply.

3.8  The Service Provider shall take all reasonable steps to mitigate any costs and maximise any savings arising as a consequence of a CAA Change Notice, and for the avoidance of doubt, the corresponding Authority Change Notice served pursuant to paragraph 3.7.

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3 No drafting regarding customer satisfaction surveys is included.  Authorities should include the latest SoPC4 wording and also insert provisions for a remediation plan.  See SoPC4 section 7.9.5, and by way of example, the Building Schools for the Future payment mechanism at paragraph 17.1.