26.3 to 26.5

26.3  Without prejudice to the Authority's rights under clause 40.4 (Termination on Contractor Default) and to any other express rights under this Agreement, where the Contractor has been found to:

(a)  be fraudulent in the submission of monitoring reports or claims for payment under clause 36 (Monitoring Reports); or

(b)  have submitted at least [two (2)] erroneous monitoring reports, within a [three (3)] month period,

the Authority may by notice to the Contractor increase the level of its monitoring of the Contractor, and/or (at the Authority's option), of the Contractor's monitoring of its own performance of its obligations under this Agreement in respect of the relevant Service or Services the subject of such fraudulent or erroneous reporting until such time as the Contractor shall have demonstrated to the reasonable satisfaction of the Authority that it will perform (and is capable of performing) its obligations under this Agreement.

26.4  For the purposes of clause 26.3 (Authority Monitory), the Authority acknowledges that if the Contractor has otherwise failed to have demonstrated to the reasonable satisfaction of the Authority as required by clause 26.3 (Authority Monitory) but:

(a)  if the Contractor has removed the person or persons responsible for the fraudulent reporting; or

(b)  (under clause 26.3.2) (Authority Monitory), if in the following [three (3)] month period following the Authority notice (if it has not already been established) there have been no further erroneous reports of any kind;

(c)  this shall be regarded as sufficient demonstration that the Contractor will perform and is capable of performing its obligations.

26.5  If the Authority issues a notice under clause 26.3 (Authority Monitory), the Contractor shall bear its own costs and indemnify and keep the Authority indemnified at all times from and against all reasonable costs and expenses incurred by or on behalf of the Authority in relation to such increased level of monitoring arising due to circumstances under clause 26.3.1 (Authority Monitory).