RTMC Model Conditions of Contract - Highways Agency

Regional Technology Maintenance ContractConditions of ContractAuditor General or any other auditor appointed by the Employer mayexamine documents held or controlled by the Contractor or anySubcontractor and may require the Contractor to provide such oral orwritten explanations as he considers necessary. The Contractorpromptly complies with any such requirements at his own cost. For theavoidance of doubt, the carrying out of an examination under Section6(3)(d) of the National Audit Act 1983 in relation to the Contractor is nota function exercisable under this contractClause Z35 InnovationsInnovationsZ35.1 The Contractor may at any time after the starting date submit to theService Manager a proposal for an Innovation.Z35.2 The Contractor continually monitors the development of a proposedInnovation and assesses the likelihood of its successful developmentand ensures that any abortive cost to both itself and the Employerare mitigated.Z35.3 A proposed Innovation must identify a resultant defined andcalculated saving in cost to the Employer which will arise from eitheror both of:• A reduction in the Prices or• A reduction in other costs to the Employer.Z35.4 Prior to preparing a detailed business case for an Innovation theContractor submits to the Service Manager an outline business casesetting out brief details of:• The proposed change to the Performance Requirements• Any significant risks that would impact on the successfuldevelopment and implementation of the proposed Innovation• The approximate cost saving to the Employer• The envisaged mechanisms to generate the proposed financialbenefits for the Employer i.e. the extent to which the benefits willbe realised by a reduction in the Prices and/or by a reduction inother costs to the Employer.Z35.5 The primary purpose of the outline business case is to provide anopportunity for the Contractor to assess the likelihood of the proposedInnovation being accepted and for the Service Manager to assess thecomplexity of the envisaged mechanisms to generate the proposedfinancial benefits.Z35.6 Following a joint review of the outline business case between theContractor, Employer and the Service Manager the Contractor maycontinue to develop the proposal by preparing a detailed businesscase at his discretion and at his own risk. The Contractor is notentitled to payment for the design or development of an Innovation(including the development of business cases).RTMC CoC, Issue 1, Rev 0 July 2011