(04 Jun 2014, 6:22 pm)Dan wrote If this is repeatedly occurring, can the contractor terminate the agreement early? If not, would this not be worth considering opposed to repeat fines for the same reasons each time (with customers ultimately paying the price due to the lower quality of service received)?
The sample Nexus contract I posted some time ago answers most of these questions.
7. FORMAL WARNINGS
Formal Warnings may be issued by Nexus to the Contractor in respect of:-
a. Persistent failure to provide a reliable service.
b. Unreasonable use of damaged and/or dirty buses.
c. Operation of Services in a manner leading to justifiable public complaints.
d. Non observance by the Contractor of any of its obligations or duties specified in any of the Schedules detailed at Appendix A to this Agreement
8. TERMINATION
If more than three warnings are given in any twelve months period, Nexus will have the right to terminate the Agreement without notice. For the purpose of this clause if Nexus issues a breach notice in accordance with Clause 13(3) of this Agreement, and the Contractor remedies the breach, it will be counted as a Formal Warning.
Regarding point d. Appendix A contains the seven schedules, which include service spec, vehicle and driver spec, fares, etc.