Source · Select Committees · Public Accounts Committee
Recommendation 20
20
In its written evidence to us, Affinitext told us that the primary objective of withholding...
Conclusion
In its written evidence to us, Affinitext told us that the primary objective of withholding annual payments was to ensure contractual compliance rather than maximising cash savings for the authority through imposing high penalties. It explained that if the process of withholding payments, which can take place many years before contract end, is seen by both parties as a means of “catching the other out,” this could damage relationships before the really challenging aspects of expiry need to be faced.49