9  [INITIAL SERVICES]97

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97  The current drafting does not assume the provision of Initial Services.  If an Authority requires the Contractor to provide Initial Services to the Existing Facilities during construction, it should identify the budget available and service standards required during the competitive dialogue process.  If an Authority requires the Contractor to provide "initial services" to parts of any facilities completed and handed over early, this is to be addressed in the Payment Mechanism.  Contractors and funders are resistant to any possibility of termination due to poor performance of the Initial Services.  However, Authorities could consider whether the Leisure Operator or the FM Contractor ought to be barred from providing Services if performance is sufficiently poor during Initial Services, or whether it only ought to be barred from providing Initial Services.  Where the Leisure Operator is an equity provider, this is likely to be resisted.