RTMC Model Conditions of Contract - Highways Agency

Regional Technology Maintenance ContractConditions of ContractClause Z26 Continual Improvementproposal then Service Manager issues an instruction to amend PriceList accordingly.Z26.1 The Contractor continually reviews its and its Subcontractors Processes,Procedures and Materials selected by the Contractor andSubcontractors for incorporation into the service in order to identifyEfficiency Improvements.Z26.2 In reviewing the Processes, Procedures and Materials selected by theContractor and Subcontractors for incorporation into the service theContractor as a minimum implements the requirements of the ServiceInformation.Z26.3 The Contractor submits details of any Efficiency Improvement to theService Manager for acceptance. The details must include anexplanation of the change to existing Processes, Procedures and/orMaterials selected by the Contractor and Subcontractors forincorporation into the service together with calculations showing theforecast reduction in the Prices accruing from the EfficiencyImprovement including the timeline over which the reduction will berealized.Z26.4 If the Service Manager accepts an Efficiency Improvement then thePrices are reduced, the reduction being assessed as 50% of theforecast reduction in the Prices identified in the Contractor’s submission.The reduction endures for the remainder of the term of this contract oruntil there is a further reduction on acceptance of a further EfficiencyImprovement and the annual discounts are applied to the reducedPrices.Z26.5 If the Service Manager accepts an Efficiency Improvement theContractor’s Quality Plan is amended to reflect the change inProcesses, Procedures and/or Materials selected by the Contractor andSubcontractors for incorporation into the service. Where the change inProcesses, Procedures and/or Materials selected for incorporation intothe service relates to subcontracted work, the Contractor ensures thatits subcontract arrangements are appropriately adjusted to enable theimprovement to be realized.Z26.6 The acceptance of an Efficiency Improvement by the ServiceManager does not relieve the Contractor of any of its obligationsunder this contract.Z26.7 A change to a Process and/or Materials selected by the Contractorand Subcontractors for incorporation into the service in order tocorrect a Nonconformity is not an Efficiency Improvement and theContractor is not entitled to any payment for the design ordevelopment of an Efficiency Improvement.Clause Z27 Service Manager’s provided PremisesZ27.1 The Contractor occupies and uses the Premises on the basis agreedbetween the Service Manager and the Contractor pursuant to theService Information.Z27.2 The Contractor may, at its own cost and with the Employer’s priorapproval, elect not to use the Premises and to use its own premisesRTMC CoC, Issue 1, Rev 0 July 2011