38.2  Annual Service Report and Annual Service Plan161

(a)  Without prejudice to any other provision in this Agreement the Contractor shall, no later than the [DATE TO BE INSERTED] in each Contract Year, at its own cost provide to the Authority a written report (the Annual Service Report) in accordance with the requirements of the Services Specification.

(b)  The Contractor shall upon a written request from the Authority promptly provide such written evidence or other supporting information as the Authority may reasonably require to verify and audit the information and other material contained in the Annual Service Report.

(c)  If, in the Authority's reasonable opinion, the provision, performance or delivery of the Services (or any part) 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 Contractor (a Best Value Service Change Notice) stating the nature and timing of the changes to the provision, performance or delivery of the Services (or the relevant part) which the Authority desires.

(d)  The Contractor shall, within twenty (20) Business Days of the date of receipt of the Best Value Service Change Notice, provide the Authority at its own cost with a written statement (the Annual Service Plan) containing the Service Delivery Proposals to achieve the change to the Services (or the relevant part) in accordance with the Best Value Service Change Notice.

(e)  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 Best Value Service Change Notice, in which case the Contractor 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.

(f)  If the parties cannot agree on the contents of the Annual Service Plan then the dispute will be determined in accordance with the Disputes Resolution Procedure.

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

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

(ii)  withdraw the Best Value Service Change Notice.

(h)  If the Authority either withdraws the Best Value Service 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 Disputes Resolution Procedure, then the Annual Service Plan and the Best Value Service Change Notice shall be deemed to have been withdrawn.

(i)  If the Authority confirms the Annual Service Plan then the Authority shall issue an Authority Change Notice (which shall include the information set out in the Best Value Service Change Notice) in accordance with the Change Protocol.

(j)  [To the extent that the implementation of the proposals in the Annual Service Plan will result in a decrease in the costs of the Contractor, the Unitary Charge shall be adjusted downwards in accordance clause 71 (Financial Adjustments) to reflect a sharing in the decrease in costs [50:50] as to the Authority and Contractor respectively.]162

(k)  [To the extent that the implementation of the proposals in the Annual Service Plan will result in an increase in the costs of the Contractor, the Unitary Charge shall be adjusted [upwards] to reflect such increase in accordance with clause 71 (Financial Adjustments).]

(l)  [The Contractor shall take all reasonable steps to mitigate any costs and maximise any savings arising as a consequence of a Best Value Service Change Notice and an Authority Change Notice served pursuant to clause 38.2.9 (Annual Service Report and Annual Service Plan). ]

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161  No drafting regarding Customer Satisfaction Survey 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.

162  The clauses in square brackets will need to be conformed to the Change Protocol.