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Following my blog on the NEC Facilities Management (FM) contract earlier this week, this blog deals with Z clauses for the FM contract.
The NEC’s approach remains ‘brevity is best’. Whilst this approach may assist with the management of contracts, it is likely that clients and service providers will include a number of Z clauses. Some of those clauses will relate to performance measures which I mentioned in my blog posted earlier this week . Other areas may include:
• Data protection;
• IT operating systems, licences and intellectual property rights;
• TUPE and employment provisions;
• Financial distress;
• Rectification plans;
• Step-in triggers;
• Partial termination and service exclusion;
• Fraud and prohibited acts;
• Audit rights; and
• Change provisions.
It will also be interesting to see how the NEC chooses to address the principles set out by the Government in its Outsourcing Playbook.
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