MoD agrees to more flexible terms

The Ministry of Defence has signed a ground-breaking agreement with service contractors that feared their profits could have been wiped out by new employment legislation.

The deal, signed last month by the MoD and service-contractor lobby group the Business Services Association (BSA), allows suppliers to vary price clauses, change payment terms and alter service specifications mid-contract. It is the first time that the BSA has such signed such an agreement with a government department.

Norman Rose, the BSA’s director-general,...

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