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satisfied that the contract sanction to be imposed is appropriate and proportionate to the circumstances giving rise to the PCT’s entitlement to terminate the Contract.


If the PCT decides to impose a contract sanction, it must notify the Contractor of the contract sanction that it proposes to impose, the date upon which that sanction will be imposed and provide in that notice an explanation of the effect of the imposition of that sanction.


Subject to Clauses 17.28 and 17.30 to 17.33, the PCT shall not impose the contract sanction, until at least [twenty eight (28)] days after it has served notice on the Contractor pursuant to Clause 17.26 unless the PCT is satisfied that it is necessary to do so in order to protect the safety of the Contractor’s Patients, or protect itself from material financial loss.


Where the PCT is entitled to terminate the Contract for serious breach pursuant to Clause 17.14 or 17.15, it may impose any contract sanction on the Contractor with immediate effect upon notification to it under Clause 17.26 and shall not be required to grant notice under Clause 17.27.


Where the PCT imposes a contract sanction, the PCT shall be entitled to charge the Contractor the reasonable costs of additional administration that the PCT has incurred in order to impose, or as a result of imposing, the contract sanction.

Contract Sanctions and the Dispute Resolution Procedure62


If there is a dispute between the PCT and the Contractor in relation to a contract sanction that the PCT is proposing to impose, the PCT shall not, subject to Clause 17.33, impose the proposed contract sanction except in the circumstances specified in Clause 17.31.1 or 17.31.2.


If the Contractor refers the dispute relating to the contract sanction to the Dispute Resolution Procedure within [twenty eight (28)] days beginning on the date on which the PCT served notice on the Contractor in accordance with Clause 17.26 (or such longer period as may be agreed in writing with the PCT), and notifies the PCT in writing that it has done so, the PCT shall not impose the contract sanction unless:


there has been a determination of the dispute and that determination permits the PCT to impose the contract sanction; or

62 See footnote to PART 17 generally.

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