The following Public Law Q&A provides comprehensive and up to date legal information covering:
This Q&A only considers the position regarding an above-threshold public contract tendered under the Public Contracts Regulations (PCR 2015), SI 2015/102.
In the first instance, we refer you to the following cases which discuss the role of key performance indicators (KPIs) within contracts involving public authorities:
BT Cornwall Ltd v Cornwall Council involved a contract claim for a material breach by the outsourced company, evidence of which was provided by a fallen KPI performance. The case discussed the availability of early termination in outsourcing contracts where they are not fulfilling their KPIs. See News Analysis: When outsourcing contracts don’t deliver
Sutton Housing Partnership Ltd v Rydon Maintenance Ltd concerned a contract tendered between a housing partnership for the London Borough of Sutton and a company to provide repair and maintenance works. This discussed how KPIs can be amended or determined and the corresponding effect on level of performance of the contract. See News Analysis: Example performance levels in contract were binding (Sutton v Rydon)
See also News Analysis: Competing for public contracts—invitation to tender or retreat? which discusses performance and performance measurement in public sector contracts, particularly in the context of termination.
The EU public procurement regime regulates the tendering and award of contracts by public authorities. Whether compliance is brought into question by particular performance requirements specified in the
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