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Public Sector: Contracts

Volume 485: debated on Wednesday 10 December 2008

To ask the Chancellor of the Exchequer what advice the Office of Government Commerce has provided on the use of break clauses in Government contracts to allow public sector bodies to leave a contract if there is a change of policy as a consequence of a change in the Government. (241746)

OGC recommends, in its contractual guidance available on the OGC website, that Departments include a general break clause in their contracts for goods or services as a precautionary measure. In the event that there was a change of policy, as a consequence of a change of Government, this clause provides them with a facility to terminate a contract early, after giving the contractor a period of notice.