4. Process relating to contracts affecting Essential Services and National Interest
Process for Contracts Affecting Essential Services and National Interest
This page provides details on the process for a party to a Contract of National Interest who wishes to renegotiate the price of the contract under the Re-Align Framework, including information on the Notice of Negotiation for Contract of National Interest and Notice for Repricing.
Please note that all information or documents disclosed by you or the other person for the purpose of the Framework or the proceedings before the Adjustment Relief Assessor are confidential and must not be disclosed to any third parties.
This page includes the following sections:
Step 1: Affected Business serves Notice of Negotiation for Contract of National Interest
Step 2: Affected Business and Other Party renegotiate contract during 4-week Negotiation Period
Step 3: End of Negotiation Period and Start of Repricing Period
Step 4: Case proceeds to an Assessor
Step 5: Assessor Conducts Hearing and Makes Determination
Step 6: Registrar Informs Affected Business and Other Party of Assessor’s Determination
Withdrawal of Notice for Repricing
FAQs
Step 1: Affected Business serves Notice of Negotiation for Contract of National Interest ↩
An eligible party to a Contract of National Interest (“the Affected Business”) who wishes to renegotiate the price of the contract must serve a Notice of Negotiation for Contract of National Interest. The contract must first be certified by the Relevant Minister as a Contract for National Interest before the Notice of Negotiation for Contract of National Interest may be served.
Please refer to the following links for the methods by which your eligibility will be assessed:
(a) On the applicable methods of determining if your business’s annual revenue does not exceed $30m at a global group level, please refer to this link.
(b) For the applicable method of determining if your business has experienced at least a 70% fall in monthly average gross income, please refer to this link.
| Before serving the Notice of Negotiation for Contract of National Interest, the Affected Business should prepare the supporting documents (set out here) which should be enclosed to the Notice of Negotiation for Contract of National Interest. |
The Affected Business must serve the Notice of Negotiation for Contract of National Interest on the following Recipient(s), where applicable:
- Any other party to the contract (“the Other Party”).
- The Affected Business’ guarantor or surety, or the issuer of a performance bond, in relation to the Affected Business’ obligations under the contract.
- Any assignee of any party to the contract.
The Notice of Negotiation for Contract of National Interest must be served by the later of:
(a) 4 weeks from the date of issuance of the certificate by the Relevant Portfolio Minister to the Affected Business; or
(b) 26 February 2021.
| Service by the electronic system To serve the Notice of Negotiation for Contract of National Interest using the electronic system, you must have an email address as well as the email address(es)* of the Recipient(s): |
*Email address is (i) an email address at which you have corresponded with the Recipient regarding the contract; or (ii) if (i) is not available, an email address which the Recipient has represented to you as the address to which communications may be sent.
Step 2: Affected Business and Other Party renegotiate contract during 4-week Negotiation Period ↩
After the service of the Notice of Negotiation for Contract of National Interest, there will be a 4-week Negotiation Period commencing after the date of the Notice of Negotiation for Contract for National Interest during which the Affected Business and the Other Party are encouraged to renegotiate the price of the contract.
During this Negotiation Period, the Other Party cannot lodge or serve a Notice for Repricing.
Step 3: End of Negotiation Period and Start of Repricing Period ↩
At the end of the 4-week Negotiation Period, the two possible outcomes are:
- Parties have successfully renegotiated the price of their contract.
- Parties have been unsuccessful in their renegotiation of the price of their contract.
A 2-week Repricing Period starts after the end of the 4-week Negotiation Period.
If parties have successfully renegotiated the price of their contract by the end of the 4-week Negotiation Period, they may proceed with the amended price of their contract. The Affected Business does not need to serve a Notice for Repricing in this situation.
In contrast, where parties are unsuccessful in their renegotiation by the end of the 4-week Negotiation Period and the Affected Business wishes to seek a repricing of the contract, the Affected Business must, within the 2-week Repricing Period lodge the Notice for Repricing with the Adjustment Relief Registrar, and serve a Notice for Repricing within the same period on the following Recipient(s), where applicable:
- The Other Party;
- Any other party to the contract;
- The Affected Business’ guarantor or surety, or issuer of a performance bond, in relation to the Affected Business’ obligations under the contract; and
- Any assignee of any party to the contract.
Note: If the renegotiation is unsuccessful and the Affected Business does not lodge a Notice for Repricing within the 2-week Repricing Period, the Affected Business will not be entitled to the relief of repricing. The original contract terms (including price) will apply.
| Submission and service by the electronic system To submit to the Registrar and serve the Notice for Repricing on the Recipient(s) using the electronic system (if you have an email address, and have the email address(es) of the Recipient(s)): |
Step 4: Case proceeds to an Assessor ↩
The Registrar will review the Notice for Repricing.
If the Registrar is satisfied that the Notice for Repricing is in order, the Registrar will send to the Affected Business, the Other Party and their assignees by way of email:
- An acknowledgment of receipt of the Notice for Repricing.
- A notice of the appointment of one or more Assessors.
- If applicable, a notice of the date and place for the hearing.
Step 5: Assessor Conducts Hearing and Makes Determination ↩
Where Notice for Repricing is lodged
Where the Affected Business has lodged a Notice for Repricing and they are acknowledged by the Registrar, the Registrar will appoint an Assessor(s) to make a determination on the Other Party’s Notice for Repricing.
Mode of Hearing
The hearing will generally be conducted over email. The Assessor(s) may request for clarifications or further documents by email.
If the Assessor(s) is of the opinion that the interest of justice would be better served by an online or physical hearing:
- Online hearings will be conducted via Webex.
- Physical hearings will be held at a venue to be advised by the Registrar.
Please note for online or physical hearings:
- The Assessor(s) may permit a party to be accompanied by an interpreter at the hearing. The party will be responsible for sourcing their own interpreter.
- No party may be represented by an advocate and solicitor at proceedings before Assessor(s).
If a party to the contract or his assignee is absent from the hearing, the Assessor(s) may deem that that party (or that party’s assignee) has withdrawn the Notice lodged by him; or may proceed to hear and make a determination on the case.
If a person had a good reason for being absent, he may make an application to set aside the determination made in their absence (see here).
Step 6: Registrar Informs Affected Business and Other Party of Assessor’s Determination ↩
After the Assessor(s) has made a determination, the Registrar will inform the Affected Business, the Other Party, and their assignees.
There is no appeal against an Assessor’s determination, and it will be binding on all parties to the contract and their assignees.
The Registrar may publish the facts of the case, the arguments and the determination without disclosing the names of the parties concerned or any information that may disclose their identities.
Withdrawal of Notice for Repricing ↩
Where an Affected Business who has lodged and served a Notice for Repricing wishes to withdraw that Notice, the Affected Business must lodge a Notice of Withdrawal with the Registrar and serve the Notice of Withdrawal on the following Recipient(s) where applicable and if you had served the Notice for Repricing on them.
- The Other Party;
- Any other party to the contract; and
- Any assignee to any party to the contract.
The Notice of Withdrawal must be lodged and served before the Assessor(s) makes a determination concerning the repricing of the contract.
| Submission and service by the electronic system To submit to the Registrar and serve the Notice of Withdrawal on the Recipient(s) using the electronic system, you must have an email address as well as the email address(es) of the Recipient(s): |
FAQs ↩
1. Can the Assessor(s) adjust anything else other than the price of the contract? For example, the length of the contract?
No. The Assessor(s) is only empowered to adjust the price of the contract.
2. What will the Assessor(s) take into account when repricing the contract?
The Assessor(s) will take into account all relevant factors, including the changed business environment of the parties, in determining the price to be applied to the contract.