Providers: Important update regarding the contract framework

Published: May 18, 2020

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  • Public housing

Following requests from Providers, two changes have been made to the Contract Framework. 

The first change will make the Indemnity in the Relationship Agreement fault-based (see Contract Framework Update # 1). 

The second change involves agreement on a consistent compensation regime that would apply if the Ministry of Housing and Urban Development was ever to exercise its termination on notice right under a Capacity, or New Supply Development Funding and Capacity, Service Agreement.

We have worked with analysts, lawyers and some sector participants to produce and test a compensation regime. We are confident that where we have landed is fair, reasonable and simple to apply (see Contract Framework Update # 2).

Both of these changes will be reflected in all Contract Framework agreements signed from 13 December 2018. Any Provider who has signed any earlier form of the Contract Framework, will be provided with a Variation to incorporate these changes.

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