Common use of Overarching Principles Clause in Contracts

Overarching Principles. 2.1 The ‘agreed percentage’ methodology of service contributions is core to the entire agreement. By its nature any unilateral reduction in core funding would significantly alter the ‘agreed percentages’. This is significant on two levels. Firstly it skews the reality of proportionate local service delivery. Secondly it alters the partners liabilities in that ‘agreed percentages’ are used to not only calculate contributions for delivery but for example contributions relating to redundancies or even the liability should the agreement come to an end. For this reason it is proposed that in any local service disinvestment these must be preserved. 2.2 The second over-arching principle relates to self-funded elements (ring-fenced) of the service. Licensing is the key element of the service that falls into this category. Strict rules around cost recovery mean that licensing funding cannot be used to effectively cross-subsidise other elements of the service. To this extent any proposals must be based around the budget net of licensing income and spend. In this licensing is not alone. Other elements such as contributions to the shared case management unit, grant funding for investigations, ring- fenced public health work need to also be removed from any considerations.