Government publishes model T&Cs for major services contracts

The Government has published a revised set of model terms and conditions for major services contracts for use by Whitehall departments and other public sector organisations.

The new model services contract – developed by the Crown Commercial Service (CCS) and the Government Legal Service – can be viewed here.

The CCS said the contract had been developed for services contracts with a value over £10m (over the whole of the intended contract term). It replaces the “widely-used but out-of-date” OGC Model ICT contract version 2.3 and “reflects current Government priorities and recommended ways of doing business”.

The contract also “aims to aid delivery assurance and reduce administration, legal costs and negotiation time”.

The CCS said the model was suitable for use with the range of business services that Government purchases and in particular contained applicable provisions for contracts for Business Process Outsourcing and/or IT delivery services.

In its latest Procurement Policy Note, the Cabinet Office said all central government departments including their executive agencies and non-departmental public bodies (‘in-scope’ organisations) should adopt the new contract.

It added: “The Model Services Contract is designed as a template for the type of services procurements which will typically require some form of formal dialogue with potential suppliers, for example clarifying the scope of existing arrangements or desired service outcomes, or ensuring that there is a commercially attractive balance of risk and reward.

“In-Scope Organisations should always seek appropriate legal advice in the context of their specific procurements.”

The Cabinet Office said a set of guidance notes on the use of the model were being developed and were expected to be available during the summer of 2014.