Common use of Reduction in Scope Clause in Contracts

Reduction in Scope. 76.3.1 Health may from time to time, by giving the Service Provider written Notice, remove any of the Services or reduce the scope of this Services Agreement (Reduced Scope). 76.3.2 If Health no longer requires the Service Provider to meet any of the Outcomes relevant to the Reduced Scope, Health will Notify the Service Provider of the extent to which that Outcome no longer needs to be met. If no such Notice is provided, the Service Provider must continue to meet the Outcomes. 76.3.3 If Health issues a Notice under clause 76.3.1: (a) the Reduced Scope will no longer form part of this Services Agreement from the date specified in the Notice; (b) Health's liability to pay the Charges and any other relevant Health obligations ▇▇▇▇▇ in accordance with the Reduced Scope; (c) the Charges will be equitably adjusted to reflect the Reduced Scope in a manner consistent with Schedule 4 - Pricing Framework; and (d) each Party will comply with its obligations under the Disengagement Plan in relation to the Reduced Scope. 76.3.4 Subject to Schedule 4 – Pricing Framework, the Service Provider is only entitled to compensation for any Unavoidable Losses associated with any Reduced Scope (if any) incurred by the Service Provider that are: (a) directly attributable to the Reduced Scope; and (b) substantiated to Health's satisfaction (including through the provision of appropriate evidence). 76.3.5 The Service Provider is not entitled to compensation for: (a) payments that would be due after the date of the reduction in scope; or (b) Loss of prospective profits or any other indirect or consequential Losses. 76.3.6 The Parties acknowledge and agree that the longer the period of Notice given by Health of its intention to reduce the scope of this Services Agreement under clause 76 then the greater the Service Provider's ability to minimise the Unavoidable Losses described in this clause 76. 76.3.7 No compensation is payable to the Service Provider under this clause 76 or otherwise if: (a) a machinery of government change results in a removal of Services from Health to any other Agency and the Service Provider is the provider of outsourced ICT services to the other Australian Commonwealth Agencies; or (b) the Services are removed from the scope of this Services Agreement as a result of a WoG Arrangement between the Commonwealth (or an Agency) and the Service Provider under clause 4. 76.3.8 Health is not liable to pay compensation under clause 76 in an amount which would, in addition to any amounts paid or due, or becoming due, to the Service Provider under this Services Agreement, exceed the total Charges payable under this Services Agreement.