Part 13: General Schedule 8: Permitted contract modifications Materialisation of a known risk
Paragraph 5 states an amendment to a public contract is allowed if it is required to manage a known risk which has materialised through no fault of the contracting authority or supplier, and which means the contract may not be delivered to the contracting authority’s satisfaction, as long as it is in the public interest to amend the contract (rather than award a new contract under Part 3). The Contracting Authority must not use the amendment to change anything in the contract which is not impacted by the known risk and the amendment must not increase the estimated value of the contract by more than 50% (unless it is a utilities contract, in which case the 50% threshold does not apply).
	Paragraph 6 defines a known risk as a risk which the contracting authority considers could jeopardise the satisfactory performance of the contract but could not, due to its nature, be addressed in the contract from the outset. The tender or transparency notice must have indicated that the known risk meets this description and that the contract may require amendment due to the known risk.
	Paragraph 7 explains that the public interest in relation to this type of contract amendment must include a consideration of whether a new contract could provide more value for money and may include technical and operational considerations.