SCHEDULE 3Other contractual terms
PART 8Variation and termination of contracts
Contract sanctions72
1
In this paragraph and in paragraph 73, “contract sanction” means—
a
termination of specified reciprocal obligations under the contract;
b
suspension of specified reciprocal obligations under the contract for a period of up to six months; or
c
withholding or deducting monies otherwise payable under the contract.
2
Where F1NHS England is entitled to terminate the contract under paragraphs 66, 67, 68, 69 70(4) or (6) or 71, it may instead impose any of the contract sanctions if F1NHS England is reasonably satisfied that the contract sanction to be imposed is appropriate and proportionate to the circumstances giving rise to F1NHS England's entitlement to terminate the contract.
3
F1NHS England may not, under sub-paragraph (2), impose any contract sanction that has the effect of terminating or suspending any obligation to provide, or any obligation that relates to, essential services.
4
a
give notice in writing to the contractor of the contract sanction that it proposes to impose and the date upon which that sanction is to be imposed; and
b
include in the notice an explanation of the effect of the imposition of the sanction.
5
Subject to paragraph 73 F1NHS England may not impose the contract sanction until the end of a period of at least 28 days beginning with the date on which F1NHS England gives notice to the contractor under sub-paragraph (4) unless F1NHS England is satisfied that it is necessary to do so in order to protect—
a
the safety of the contractor's patients; or
b
itself from material financial loss.