SCHEDULE 3OTHER CONTRACTUAL TERMS
PART 8MID-YEAR REVIEW OF ACTIVITY UNDER AGREEMENTS
Action the Relevant Body can take following a mid-year review59
1
Where, following the mid-year review and the provision of the final record of that review to the contractor, the Relevant Body, having taken account of any evidence or reasons put forward by the contractor at that review, nevertheless has serious concerns that the contractor is unlikely to provide the number of—
a
units of dental activity; or
b
units of orthodontic activity,
that it is required to provide by the end of the financial year, the Relevant Body shall be entitled to take either or both of the steps specified in paragraph (2).
2
The Relevant Body may—
a
require the contractor to comply with a written plan drawn up by the Relevant Body to ensure that the level of activity during the remainder of the financial year is such that the contractor will provide the number of units of dental activity or units of orthodontic activity it is required to provide; or
b
withhold monies payable under the agreement.
3
The maximum amount that may be withheld under sub-paragraph (2)(b) is—
a
the amount that is payable under the agreement in respect of the number of units of dental activity or units of orthodontic activity required to be provided in a financial year, less
b
the amount that would be payable under the agreement as a relevant proportion of that amount if the contractor provided in the whole of the financial year only twice the number of units of dental activity or orthodontic activity that it provided between 1st April and 30th September.
4
Nothing in this paragraph shall prevent the Relevant Body and the contractor agreeing to vary the contract in accordance with paragraph 61 to adjust—
a
the level of activity to be provided under the agreement; or
b
the monies to be paid by the Relevant Body to the contractor under the agreement.
5
Where the Relevant Body withholds monies pursuant to paragraph (2), it shall ensure that it pays the withheld monies to the contractor as soon as possible following the end of the financial year where the contractor has—
a
provided the number of units of dental activity or units of orthodontic activity required to be provided; or
b
failed to provide that number of units of dental activity or units of orthodontic activity, but that failure amounts to 4 per cent or less of the total number of units of dental activity or units of orthodontic activity that ought to have been provided during that financial year (and therefore regulation 15 applies).