Common use of Managing poor performance Clause in Contracts

Managing poor performance. 7.3.1. Freeport delivery will be managed through the processes set out in the Freeports Framework. Should an issue arise, DLUHC will first attempt to resolve it in collaboration with the Governing Body and if applicable the Accountable Body. For persistent issues which are recorded at the annual review or are the result of other assurance activities DLUHC will seek to agree a tailored improvement plan with the Governing Body and the Accountable Body as outlined in the Freeports Framework. 7.3.2. DLUHC’s support for the Freeport is contingent on compliance with this MoU, Appendixes’, and Schedules. DLUHC support of the Freeport may be withdrawn where there are significant concerns with the Freeport, for example including but not limited to the following scenarios where there is: a) Consistently poor progress against agreed delivery commitments and/ or limited commitment to full and effective Freeport delivery; b) Evidence of the misuse of public funds; c) An inability to manage the governance of potential security risks and illicit activity associated with the Freeport; d) Non-compliance with commitments on retained business rates and/or tax site delivery; e) Failure to comply with the minimum requirements of a Freeport (for example, failing to establish an operational customs site), as set out in HMG Freeports policy documentation; f) Activity or negligence leading to the risk of exposure to the wider Freeports Programme to reputational risk (for example, through failures of governance). 7.3.3. The Governing Body, Accountable Body and Billing Authorities accept and agree to all the terms having made full and proper enquiry before agreeing to the statements contained in this MoU. 7.3.4. DLUHC will not resort to performance measures as a first response to address concerns relating to Freeport delivery, except in the high-risk areas of continued concern. Where appropriate, HMG will consider: a) Engagement with relevant government officials (for example, additional bespoke meeting to understand and rectify problems) b) Increased frequency and/or depth of assurance testing c) Delay or reduction of Seed Capital funding and/ or revenue capacity funding: to ensure probity of public funds, funding may be partially or fully withheld until improvements in the Freeport are made. The specific amount and type of funding withheld will depend on the circumstances of the Freeport and the specific concerns which need to be addressed. As part of this process, consideration will be given to the impact that withholding funding may have on the delivery of Freeport projects and operations alongside the risk posed to DLUHC, other government departments and the Accounting Officer of making payments d) Withholding or delaying government support (including but not limited to investment promotion and the use of government branding) e) Exclusion from future government benefits (for example, support in accessing future funding) f) Revoking current policy levers and benefits

Managing poor performance. 7.3.1. Freeport delivery will be managed through the processes set out in the Freeports Framework. Should an issue arise, DLUHC will first attempt to resolve it in collaboration with the Governing Body and if applicable the Accountable Body. For persistent issues which are recorded at the annual review or are the result of other assurance activities DLUHC will seek to agree a tailored improvement plan with the Governing Body and the Accountable Body as outlined in the Freeports Framework. 7.3.2. DLUHC’s support for the Freeport is contingent on compliance with this MoU, Appendixes’, and Schedules. DLUHC DLUHC’s support of the Freeport may be withdrawn where there are significant concerns with the Freeport, for example including but not limited to the following scenarios where there is: a) Consistently poor progress against agreed delivery commitments and/ or limited commitment to full and effective Freeport delivery; b) Evidence of the misuse of public funds; c) An inability to manage the governance of potential security risks and illicit activity associated with the Freeport; d) Non-compliance with commitments on retained business rates and/or tax site delivery; e) Failure to comply with the minimum requirements of a Freeport (for example, failing to establish an operational customs site), as set out in HMG Freeports policy documentation; f) Activity or negligence leading to the risk of exposure to the wider Freeports Programme to reputational risk (for example, through failures of governance). 7.3.3. The Governing Body, Accountable Body and Billing Authorities Authority accept and agree to all the terms having made full and proper enquiry before agreeing to the statements contained in this MoU. 7.3.4. DLUHC will not resort to performance measures as a first response to address concerns relating to Freeport delivery, except in the high-risk areas of continued concern. Where appropriate, HMG will consider: a) Engagement with relevant government officials (for example, additional bespoke meeting to understand and rectify problems) b) Increased frequency and/or depth of assurance testing c) Delay or reduction of Seed Capital funding and/ or revenue capacity funding: to ensure probity of public funds, funding may be partially or fully withheld until improvements in the Freeport are made. The specific amount and type of funding withheld will depend on the circumstances of the Freeport and the specific concerns which need to be addressed. As part of this process, consideration will be given to the impact that withholding funding may have on the delivery of Freeport projects and operations alongside the risk posed to DLUHC, other government departments and the Accounting Officer of making payments d) Withholding or delaying government support (including but not limited to investment promotion and the use of government branding) e) Exclusion from future government benefits (for example, support in accessing future funding) f) Revoking current policy levers and benefits

Managing poor performance. 7.3.1. Freeport delivery will be managed through the processes set out in the Freeports Framework. Should an issue arise, DLUHC will first attempt to resolve it in collaboration with the Governing Body and if applicable the Accountable Body. For persistent issues which are recorded at the annual review or are the result of other assurance activities DLUHC will seek to agree a tailored improvement plan with the Governing Body and the Accountable Body as outlined in the Freeports Framework. 7.3.2. DLUHC’s support for the Freeport is contingent on compliance with this MoU, Appendixes’, and Schedules. DLUHC support of the Freeport may be withdrawn where there are significant concerns with the Freeport, for example including but not limited to the following scenarios where there is: a) Consistently poor progress against agreed delivery commitments and/ or limited commitment to full and effective Freeport delivery; b) Evidence of the misuse of public funds; c) An inability to manage the governance of potential security risks and illicit activity associated with the Freeport; d) Non-compliance with commitments on retained business rates and/or tax site delivery; e) Failure to comply with the minimum requirements of a Freeport (for example, failing to establish an operational customs site), as set out in HMG Freeports policy documentation; f) Activity or negligence leading to the risk of exposure to the wider Freeports Programme to reputational risk (for example, through failures of governance). 7.3.3. The Governing Body, Accountable Body and Billing Authorities accept and agree to all the terms having made full and proper enquiry before agreeing to the statements contained in this MoU. 7.3.4. DLUHC will not resort to performance measures as a first response to address concerns relating to Freeport delivery, except in the high-risk areas of continued concern. Where appropriate, HMG will consider: a) Engagement with relevant government officials (for example, additional bespoke meeting to understand and rectify problems) b) Increased frequency and/or depth of assurance testing c) Delay or reduction of Seed Capital capital seed funding and/ or revenue capacity funding: to ensure probity of public funds, funding may be partially or fully withheld until improvements in the Freeport are made. The specific amount and type of funding withheld will depend on the circumstances of the Freeport and the specific concerns which need to be addressed. As part of this process, consideration will be given to the impact that withholding funding may have on the delivery of Freeport projects and operations alongside the risk posed to DLUHC, other government departments and the Accounting Officer of making payments d) Withholding or delaying government support (including but not limited to investment promotion and the use of government branding) e) Exclusion from future government benefits (for example, support in accessing future funding) f) Revoking current policy levers and benefits

Managing poor performance. 7.3.1. Freeport delivery will be managed through the processes set out in the Freeports Framework. Should an issue arise, DLUHC will first attempt to resolve it in collaboration with the Governing Body EMF and if applicable the Accountable Body. For persistent issues which are recorded at the annual review or are the result of other assurance activities DLUHC will seek to agree a tailored improvement plan with the Governing Body EMF and the Accountable Body as outlined in the Freeports Framework. 7.3.2. DLUHC’s support for the Freeport is contingent on compliance with this MoU, Appendixes’, and Schedules. DLUHC support of the Freeport may be withdrawn where there are significant concerns with the Freeport, for example including but not limited to the following scenarios where there is: a) Consistently poor progress against agreed delivery commitments and/ or limited commitment to full and effective Freeport delivery; b) Evidence of the misuse of public funds; c) An inability to manage the governance of potential security risks and illicit activity associated with the Freeport; d) Non-compliance with commitments on retained business rates and/or tax site delivery; e) Failure to comply with the minimum requirements of a Freeport (for example, failing to establish an operational customs site), as set out in HMG Freeports policy documentation; f) Activity or negligence leading to the risk of exposure to the wider Freeports Programme to reputational risk (for example, through failures of governance). 7.3.3. The Governing Body, Accountable Body and Billing Authorities accept and agree to all the terms having made full and proper enquiry before agreeing to the statements contained in this MoU. 7.3.4. DLUHC will not resort to performance measures as a first response to address concerns relating to Freeport delivery, except in the high-risk areas of continued concern. Where appropriate, HMG will consider: a) Engagement with relevant government officials (for example, additional bespoke meeting to understand and rectify problems) b) Increased frequency and/or depth of assurance testing c) Delay or reduction of Seed Capital capital seed funding and/ or revenue capacity funding: to ensure probity of public funds, funding may be partially or fully withheld until improvements in the Freeport are made. The specific amount and type of funding withheld will depend on the circumstances of the Freeport and the specific concerns which need to be addressed. As part of this process, consideration will be given to the impact that withholding funding may have on the delivery of Freeport projects and operations alongside the risk posed to DLUHC, other government departments and the Accounting Officer of making payments d) Withholding or delaying government support (including but not limited to investment promotion and the use of government branding) e) Exclusion from future government benefits (for example, support in accessing future funding) f) Revoking current policy levers and benefits