COVID-19 & Leisure Contracts - The Impact on Local Authorities & Their Partners
This highly topical live broadcast session considers the contractual and other legal implications of closure on existing contractual and other arrangements between local authorities and their third-party leisure providers.
Indoor leisure centres in the UK have been closed since 21 March and when they re-open social distancing will require major change in the way services are provided. Adapting current contracts and leases via need modifications/variations to the financial and other obligations, has massive contractual, financial and service implications for all in the industry.
This live session will be up to date and will provide a technical analysis of the contractual implications of these changed requirements on the legal arrangements between local authorities and their providers, whether large national contractors or small local trusts.
The session is designed for lawyers and others in local government who are advising local authorities.
What You Will Learn
This live and interactive session will cover the following:
- What are the key contractual issues when leisure centres and services are externalised?
- Concession Contracts Regulations 2016 (CCR) and how far they apply to existing service contracts - are all contracts concessions irrespective of when they were procured?
- Are design, build, fund and operate contracts different?
- Regulation 43, modifications under the CCR because of the pandemic and the relationship between the law and procurement policy guidance notes from the Crown Commercial Office, PPNs 1 - 5
- Supplier relief due to COVID-19, EU guidance, PPN 02 and FAQs - e.g. assumptions on change of law and pandemic risk transfer in the guidance, purpose of relief to protect cash flow and supply chain and business continuity, open book and relevance of model interim payment terms to these contracts
- Responsible contractual behaviour, recovery and transition from COVID-19 and PPN 04 guidance - the basis for longer-term support, contract re-basing, the timing of this, modifications and whether interim and then more permanent modifications are needed, transparency, collaboration and even partial or full termination
- Staffing issues and the interrelation between furloughing staff, payments under PPN guidance and redundancies
- Do force majeure provisions always apply as this is a contractual remedy and/or is the doctrine of frustration ever applicable?
- Disagreement and disputes on contractual and any other relief during and after the crisis - e.g. suppose the relief is unaffordable for the authority, the contractor cannot afford to re-open without payment and/or there is a dispute about matters such as loss of profit. What are the options and risks of contractor failure?
- How is risk treated in your contract, different models of risk transfer and the implications when negotiating modifications e.g. who accepts volume risk and are there relevant change of law provisions
- Impact of contractor difficulty on potential for relief under the PPN guidance
- Relationships between authorities and their locally created leisure trusts, the similarities and differences if you have a grant arrangement
- Suppose there is no contract just a lease, how is this different?
- State aid and how is this relevant - see the Temporary Framework for State Aid measures to support the economy in the current COVID-19 outbreak (2020/C 91 1/01)
- Emergency options and the implications of contractor failure - closure, controlled company, taking services in-house or using urgency procedures because of COVID-19 for a short-term re-procurement
Recording of live sessions: Soon after the Learn Live session has taken place you will be able to go back and access the recording - should you wish to revisit the material discussed.