7.19.1 The Contractor should take a continuous improvement approach to the services during the Contract Term.
Suitable drafting is as follows:
7.19.1 Efficiency Reviews
(a) The Contractor shall adopt a continuous improvement approach to the provision of all Services, and shall work with the Authority to identify opportunities for improving the performance, efficiency and effectiveness of the Facility and the Services.
(b) Every [2.5] years during the Contract Term (each a "Contract Review Date") the Contractor and the Authority shall conduct a Contract Efficiency Review in order to ensure that the Services and the Facilities are providing a suitable and cost effective solution for the Authority. All savings arising from any Contract Efficiency Review or Annual Contract Review shall be shared between the Authority and Contractor [75%] going to the Authority and [25%]25 going to the Contractor.
(c) The Contract Efficiency Review shall include a meeting held between the Authority and Contractor, where both parties shall present their overview of the effectiveness of the Contract; a discussion takes place concerning the improvements to be made, and a record is made of the decisions taken.
(d) The Contractor shall produce a "Contract Improvement Report" and submit this for review by the Authority no less than 30 days prior to the relevant Contract Efficiency Review Date.
(e) The Contract Improvement Report shall identify any activities undertaken by the Contractor to improve the effectiveness of the Services, and any further opportunities for improvement of the Contract through prospective changes in the Services, changes in the Authority Services, and/or behaviour or usage changes by either Party; it shall include as a minimum:
(i) A trend analysis of performance against performance and availability standards over the Contract years to date to identify areas of performance that can be improved, and steps taken by the Contractor to address performance issues. Where the performance trend analysis identifies a deteriorating trend in performance, repeat failures, or significant failures that impact on the Authority, the Contractor shall produce an action plan to identify how these failures are to be improved;
(ii) A summary of annual Customer Satisfaction Surveys; identifying trends and an action plan to address any areas of customer dissatisfaction;
(iii) A summary of energy consumption over the period since the last Contract Efficiency Review identifying the effectiveness of energy consumption reduction initiatives previously undertaken and identifying areas where energy consumption can be further reduced;
(iv) A review of Planned Maintenance and reactive maintenance, in the form of a risk based maintenance analysis (in line with PAS55 requirements or equivalent) identifying areas where planned or reactive maintenance can be reviewed and opportunities for reducing planned or reactive maintenance costs;
(iv) The Contractor's review of Minor Maintenance Obligations and Elective Services provisions, to identify areas where efficiency or effectiveness can be improved by changes to these provisions;
(f) A financial summary identifying the cost impact of all the efficiency improvement opportunities identified separated into:
(i) Cost savings that can be achieved without instigating a Change under the Contract - including changes made by the Authority.
(ii) "Gain-Share" and 'Spend to Save' Opportunities where the Authority can benefit from savings generated through investment or changes in the Services.
(iii) Other Changes to the Services, or the Facility that can improve efficiency.
7.19.2 Independent Review of Contract Efficiency
(a) Where the Contractor fails to provide the Contract Improvement Report, or to a standard acceptable to the Authority, or the Authority has reasonable ground for questioning the accuracy of the analysis undertaken by the Contractor, the Authority may appoint independent technical advisors to carry out and independent review and produce an independent Contract Improvement Report.
(b) The Contractor shall cooperate fully with the independent technical advisor and provide access to systems, copies or report and any relevant data to enable the independent technical advisor to complete their report.
(c) The costs of the Independent technical advisor shall be borne by the Contractor.
means the review referred to in Clause 7.18.1.1;
Shall have the meaning set out in Clause 7.18.1.2;
"Customer Satisfaction Surveys"
means the annual customer satisfaction surveys undertaken pursuant to Section 20 (Monitoring of Performance Mechanism)
means the contract efficiency review referred to in Clause 7.19.1(b)
means the report referred to in Clause 7.19.1(d);
means each Contract review date as referred to in Clause 7.19.1(b)
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25 The Authority has a discretion to specify a different ratio