Term Sheet - Template Services Agreement: Open Term
Term Sheet - Template Services Agreement: Open Term
Term Sheet - Template Services Agreement: Open Term
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[Guidance Note: This Term Sheet has been prepared to assist a party to understand the Template
Services Agreement: Open Term dated 31 August 2018 (the Template Open Term Services
Agreement). Accordingly, this Term Sheet sets out and explains (at a high-level and in a summary
form only) certain provisions contained in the Template Open Term Services Agreement. This Term
Sheet does not contain a summary of all of the provisions contained in the Template Open Term
Services Agreement and parties should have regard to the underlying Template Open Term Services
Agreement.]
1. Agreement Agreement The parties agree to be bound by the terms (set out
in the Key Terms section and the Schedules) of the
Services Agreement.
2. Key Terms Section Key Terms This section of the Services Agreement sets out the
key commercial terms and conditions on which MSD
agrees to fund and to procure from the Provider, and
the Provider agrees to provide Eligible Tenants on an
“open term” basis.
This means that MSD will pay the Provider IRRS in
respect of Tenants placed in Properties for the
duration of each relevant Tenancy (subject to any
early termination or Abandonment).
These will be populated by the parties at the time
the Services Agreement is entered into, and some
are explained in further detail below:
Structure of Documents The Relationship Agreement sets out the core terms
The Services Agreement will applicable to MSD’s and the Providers’ contracting
arrangements for the provision of Housing and/or
take precedence over the Housing Services.
Relationship Agreement
The terms of the Relationship Agreement apply to all
Services provided to MSD pursuant to any Services
Agreement, including this Services Agreement.
The Relationship Agreement contains further generic
detail on some topics dealt with in this Agreement.
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Data sharing The parties are to share Data with each other on a 6
monthly and annual basis (as applicable in respect of
the relevant Data).
There are specified outcomes which apply to the
Provider if the Provider’s Data is not satisfactory.
Schedule 1: Services
This Schedule describes the services to be provided by the Provider and the related requirements for those
services.
4. Referrals of Eligible Tenants 2 MSD does not guarantee that it will make any
referrals of Eligible Tenants to the Provider.
5. Market Rent Reviews 3 The Market Rent component of the Agreed Rent for
each Property is subject to an annual Market Rent
Review.
The Provider and MSD must agree (and amend the
Services Agreement) for the Market Rent Review to
be effective.
This Schedule describes how and under what circumstances MSD will pay the Provider.
6. IRRS and IRR 1-3 MSD will only pay the IRRS for a Tenant that it has
referred to the Provider, or otherwise approved, for
the duration of the Tenant’s Tenancy.
If a Tenant becomes an Ineligible Tenant, MSD must
notify the Provider within five Business Days of
determination. The Provider must then notify the
Tenant of their ineligibility within five Business Days.
MSD may recover from the Provider any payment of
IRRS made in respect of an Ineligible Tenant where
the Provider has failed to notify MSD of a change in
circumstances or a Tenant who has abandoned their
property.
This Schedule sets out the Step-in Rights that will apply during the Term.
8. Parties acknowledgement The Step-in Rights set out in Schedule 3 are only
intended to be utilised in exceptional or extraordinary
circumstances which have serious implication for
MSD and/or Housing Clients.
9. When step-in applies 1 MSD will have Step-in Rights, so that it can step in
and provide some or all of the Services where it
reasonably considers that it needs to due to serious
circumstances such as:
• because of serious injury or death to persons,
serious risk to the health and safety of persons,
serious risk of material damage or destruction or
serious risk to property, or the Provider’s
registration under the HRTM Act has been
revoked; or
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Schedule 4: Definitions
This Schedule defines terms used throughout the Services Agreement and incorporates the definitions and the
interpretation rules from the Relationship Agreement.
This Schedule contains the Property Management Requirements which the Provider is required to comply with.
This Schedule contains the Tenancy Management Requirements which the Provider is required to comply with.
This Schedule contains a form of Variation Agreement which contains generic options by which MSD and the
Provider can vary the agreement.
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Term Sheet – Template Services Agreement: Open Term (31.08.2018)