Description of risks to contract performance
Due to the exceptional current market circumstances in existence at the time of this tender competition (and which may arise during the term of the contract), the contracting authority is aware that there may be significant divergences between the costs assumed by tenderers and the actual costs for delivery during the term of the contract. Such changes are unlikely to be captured completely by the operation of the indexation clause in the contract to the prices tendered. The contracting authority considers that such risks could jeopardise the satisfactory performance of the contract, but because of their nature could not be addressed accurately and completely in the contract as awarded. The contracting authority has identified such risks as “known risks” meeting the description in paragraph 6(a) of Schedule 8 of the Procurement Act 2023 and if such risks materialise the contracting authority may modify the contract in accordance with paragraph 5 of Schedule 8 of the Procurement Act 2023.
Extent of work required in any Lot Contract may push Lot Contract expenditure beyond the
awarded value, thereby resulting in the need to increase the contract value specified in the relevant notice.
Risk of volume of work being higher as a result of needing to apply the back up and support service in a neighbouring Lot which may be for any of the following reasons:
>following a Major Incident/Emergency,
>if there is no contractor Providing the Service in a Lot,
>if the Client requires additional resources to address a failure in the performance of a
contractor appointed to Provide the Service in another Lot,
>if another contractor has not complied with an instruction, or
>if a Contract Lot has not been awarded from the initial tender.
Risk that an alternative contractor to the one appointed as the back up and support
contractor will be required to provide back up and support due to the following reasons:
>there is no back up and support contractor appointed either as a result of the lot not
being awarded, or the lot being awarded to the same contractor.
>the appointed back up and support contractor cannot provide the back up and support
services due to issues with, for example, capacity.