Chapter 23: Early Termination

STANDARDISATION OF PF2 CONTRACTS PROVISION

SOURCE OF CHANGE WHERE RELEVANT

EXPLANATION OF HOW PROVISION HAS CHANGED THE SoPC4 POSITION

Chapter 23: Early Termination

 

 

Section 23.2.2.1 (Contractor Default definition)

Market up-date

Minor drafting changes to definition of Contractor Default

Section 23.2.2.6 (Events leading to Termination)

Market up-date

This is an additional Contractor Default where health and safety is a particular concern. Contains suitable drafting and definition of Contractor Related Party.

Section 23.2.3.3 (Termination for Persistent Breach by the Contractor)

Policy

A definition of "Information Breach" is needed and is provided.

Clause 23.2.3 (Persistent Breach)

Policy

Repeated Information Breaches will be treated as a Persistent Breach.

Section 23.2.8.9 (Retendering Procedure)

Market up-date

Minor change to definition of "Maximum Unitary Charge".

Clause 23.2.8 (Retendering Procedure)

Policy

Life Cycle Surplus taken into account in determining what is paid on termination.

Section 23.2.9.11 (No Retendering)

Policy

Definition of "Deemed New Contract" amended to include the new concept of Handover. See Sections 7.6, 7.7 and 7.8 above.

Section 23.2.9.11 (No Retendering)

Market up-date

Amendment of definition of "Termination Date Discount Rate".

Clause 23.2.9 (No Retendering Procedure)

Market up-date

Several changes to give effect more clearly to the purpose of the Clause.

Clause 23.3.2 (Compensation on Termination of Force Majeure)

Policy

Sub-clause (h) added to provide for the sharing of the Life Cycle Surplus.

Section 23.4.1.3 (Termination on Corrupt Gifts and Fraud)

Market up-date

Definition of "Prohibited Act" amended to refer to Bribery Act.

Clause 23.4.3 (Termination for Corrupt Gifts and Fraud)

Market up-date

Amendments at sub-clauses (b), (d), (f) and (h) to take account of Bribery Act requirements.

Clause 23.4.3(h)

Market up-date

Undertaking by Contractor to comply with Bribery Act.

Clause 23.4.4 (Compensation on Termination for Corrupt Gifts and Fraud)

Policy

Sub-clause (d) added to provide for the payment of the Lifecycle Surplus.

Clause 23.5.2 (Compensation on Voluntary Termination)

Policy

Amended to provide for the sharing of the Lifecycle Surplus.

Clause 23.6.1 (Termination by the Authority for Breach of the Refinancing Provisions)

Policy

Sub-clause (e) added to provide for the payment of the Lifecycle Surplus.