There is a matrix of penalties for breach of contract(where negligent or intentional non-completion of work has occurred)
The Rural Priorities breach of contract calculations are based on the full value of an actual costs capital project over the full term of the contract, the total value of a standard cost capital item or, in the case of an annual recurrent option, the total annual value of that option under the Rural Priorities contract. These penalties are applied in addition to recovery of any payment made or non-payment on the option or item in question. The minimum and maximum will be applied per project or per annual recurrent option per year.
Minimum penalty to be applied £200
Maximum penalty to be applied £1000
Intent - negligent or intentional
- Negligent - A beneficiary has breached a measure as a result of failing to take reasonable care, skill and foresight.
- Intentional non-compliance - this has been defined as being the same as its legal meaning within criminal and civil law. Very broadly, an intentional non-compliance is where the beneficiary has knowingly breached the rules that are set out with an understanding of what she/he was doing.
Extent - This is based on the achievement of the outcomes
- Minimum - an infringement of little consequence to the outcome.
- Medium - substantially undermines overall objectives of the outcome.
- High - Outcome/s not achieved.
Severity - Low or high
- Determined by the inspector and based on the overall importance of the consequences of breach in relation to the whole contract
Permanence
The permanence of the breach will be determined by the timescale in which the breach can be rectified, if at all
- Rectifiable within the year
- Rectifiable within the agreement
- Permanent not rectifiable within the period of the commitment
Please note if it is rectifiable within the agreement a variation may be required.
If the Severity is high and the outcomes will not be achieved the case should be reviewed by the Case Officer's line manager. If their recommendation is to terminate the contract the case should be referred to the RPAC for a final decision.