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<p>All the IT being delivered for universal credit is being sourced via robust contracts with IT suppliers. Each of these contracts enables the Department to impose penalties for non-delivery and poor performance. The specific remedies differ according to the terms of each contract, however a range of options is available to the Department, including delay payments for failure to achieve pre-defined delivery milestones, service credits for poor performance against service levels, rights of refund related to failure to meet specific milestones, rights of step-in by the Department or its appointed third party representative (which can be exercised where certain performance or other triggers are met), and ultimately termination rights for breach of contract, where there has been a significant failure to comply with contract obligations.</p> |