Sector:

Municipal Solid Waste

Name of Agreement:

Sample Service Contract for Collection of Municipal Solid Waste and Street Cleaning – to be read together with the schedules.  Schedules for LOT 1 relate to street cleaning and waste collection only. If government wishes to include operation of transfer station and long distance transportation services, then these are set out in schedules to LOT 2.

Type of Agreement:

Services Contract – performance and output based

Region (if known):

Middle East and North Africa

Year of Agreement/ Draft:

2011 as a sample standardized contract for a country in North Africa. 

Principal Author(s) (firm and contact person):

Annotated by:

V. Delmon, LEGPS

Purpose and Context:

To develop output based performance contract for municipal solid waste sector.

Circumstances where this contract may be appropriate:

Municipality seeking to involve the private sector in a more output focused basis.

Drafted for common law/ civil law jurisdiction:

Civil law – but could be adapted easily to common law jurisdiction.

Main Features:

Contractor is paid on the basis of a bill of quantities or as a lump sum, depending on what model is preferred (clause 30).

Contractor to perform services in accordance with performance specifications (clause 21) and as set out in Schedule 2 – many of the specifications are output focused.

Authority may issue variations to the contract (clause 6).

Contractor to have mechanism for managing customer complaints (clause 16).

Penalty regime for failure to meet service standards (clause 25),

Changes in law will result in change to the contractor’s fee (clause 29).

Contractor to provide performance security (bank guarantee) (clause 39).

Contractor is to obtain licences and permits as are required to perform the Services (clause 37).

There is a limitation of liability provision (clause 34).

Dispute resolution – negotiation, then adjudication.

Possible additional provisions that it might be appropriate to include:

This is a well-drafted balanced contract.

Provisions that may not be advisable to replicate/ may need further thought:

It might not be appropriate in all cases to use adjudication as the dispute resolution mechanism.

Provisions of wider general use:

Most of the provisions could be replicated.

Experience since coming into force (including any amendments)/ in draft form, whether it has been applied: