In paragraph 64 of Part 4 of Schedule 5 to the GMS Contracts Regulations (other contractual terms – sub-contracting of clinical matters), after sub-paragraph (9) add the following sub-paragraph –

“(10)

The contractor shall not sub-contract any of his rights or duties under the contract in relation to the provision of essential services to a company or firm –

(a)

owned wholly or partly by the contractor, or by any former or current employee of, or partner or shareholder in, the contractor;

(b)

formed by or on behalf of the contractor, or from which he derives or may derive a pecuniary benefit; or

(c)

formed by or on behalf of a former or current employee of, or partner or shareholder in, the contractor, or from which such a person derives or may derive a pecuniary benefit,

where that company or firm is or was formed wholly or partly for the purpose of avoiding restrictions on the sale of goodwill of a medical practice in Article 60 of and Schedule 10 to the 1972 Order or any Regulations made wholly or partly under those provisions.”

After paragraph 106 of Part 8 of Schedule 5 to the GMS Contracts Regulations (other contractual terms), insert the following paragraph –

“Termination by the Board for unlawful sub-contracting106A.

If the contractor breaches the condition specified in paragraph 64 (10) and it comes to the Board’s attention that the contractor has done so, the Board shall serve a notice in writing on the contractor –

(a)

terminating the contract forthwith; or

(b)

instructing him to terminate the sub-contracting arrangements that give rise to the breach forthwith, and if he fails to comply with the instruction, the Board shall serve a notice in writing on the contractor terminating the contract forthwith.”.