Legal Support Services and Damage Claims

Description

Introduction This document constitutes a Request for Information (RFI) issued as part of an early market engagement exercise and does not form part of a formal tender or call for competition. The purpose of this RFI is to engage with the market to seek insight and feedback on the proposed scope of services, lotting structure, pricing mechanisms, and the draft performance management framework, including Service Level Agreements (SLAs) and Key Performance Indicators (KPIs). Cadent requires legal support services to process and manage civil claims arising from interactions with third parties. These claims relate to recovery of losses incurred by Cadent in the normal course of operations. The service provider will be responsible for efficiently progressing these matters in accordance with relevant legislation, the Civil Procedure Rules, and Cadent's internal processes. Proposed Lotting Structure • Lot 1 - Legal Support Services • Lot 2 - Damage Claims Cadent are seeking feedback from the supply chain whether this service should remain as a single contract or be split into two separate contracts. Performance Management Monthly and quarterly KPI's will be used to assess activity, financial recovery, legal progression, timeliness, compliance, reporting, and collaboration. A monthly meeting will be held with case managers and senior partners where updates on cases must be provided. Service Credits may apply when the provider fails to meet one or more KPIs. Cadent are seeking feedback from the supply chain on the KPI categories listed above and whether there are any issues or feedback to incorporate into our strategy. Proposed Commercial Model Cadent are seeking feedback from the supply chain on the optimal commercial model for this type of service to incorporate into our strategy. | 2 PR-CT-F-043 Request for Information V-001, 21.11.2024 Lot 1 - Legal Support Services: Draft Scope of Requirements The portfolio of claims to be managed under this contract includes, but is not limited to: • Recovery of contractual sums - including claims related to Connection works, alterations, diversion works, and other operational services. • Theft of Gas Claims - pursued under the Gas Act 1986 and associated license obligations. • Recovery of Sums for Plant Protection Works. • Other miscellaneous invoices covering a range of services. • Recovery from Former Employees - where permitted under employment contract terms. Cadent would require the supplier(s) support in defending claims brought by third parties, including small claims requiring urgent response and general litigation support (pre‑action engagement, pleadings, hearings, negotiation). The supplier(s) must demonstrate strong litigation and recovery experience and provide full lifecycle management including merits assessment, litigation strategy, advocacy, ADR, enforcement, and management of both defended and undefended matters. They must maintain a robust case-management system, build strong working relationships, provide strategic advice, and deliver transparent invoices. The supplier(s) must also offer informed, case‑specific advice to Cadent on how far each claim should be pursued, based on an evidence‑based assessment of the likelihood of recovery. This assessment must consider all relevant indicators, including propensity‑to‑pay (P2P) scoring, land or asset ownership checks, employment status, and any available financial intelligence. The supplier(s) must advise whether the circumstances justify progressing beyond pre‑action to litigation, or whether alternative recovery routes are more appropriate. This includes recommending suitable enforcement options such as Charging Orders where the debt or owns property, Attachment of Earnings Orders where stable employment is confirmed, or other enforcement mechanisms where appropriate. The supplier(s) must present clear recommendations outlining expected recovery prospects, and cost‑benefit considerations to support Cadent in making informed decisions regarding case escalation. Pre-Issue Processes To ensure consistency, compliance, and effective case preparation, the supplier(s) must adhere to the following Pre-Action Protocol Requirements: • A Pre-Action Protocol (PAP) Letter of Claim is required only for business-to-individual cases. • For all other cases where PAP does not apply, the supplier(s) must follow the general pre-action requirements of the Civil Procedure Rules. Case Preparation Requirements • For all Theft of Gas referrals, the supplier(s) must obtain and document a propensityto-pay score before taking legal action.| 3 PR-CT-F-043 Request for Information V-001, 21.11.2024 • Tracing Requirements - Where a debtor's address is unknown, unverified or disputed, the supplier(s) must conduct a trace and provide results prior to issuing legal proceedings. Workload Expectations Cadent anticipates the following approximate volumes: • Small Claims: Approximately 30 cases per month, generally falling below £5,000 in value. • High Value Claims: At any given time, 20-30 ongoing matters with values above the small claim's threshold. A small number of these may range between £100,000 and £1-2 million and typically involve asset damage or theft of gas under relevant statutory frameworks. Lot 2 - Damage Claims: Cadent requires legal support services to process and manage recovery of damages to its assets and, on a limited basis, the defence of claims brought against it by third parties. The services primarily relate to negligence-based damage claims, statutory claims, and construction-related disputes, and include both volume-driven lower-value work and complex, high-value matters. Damage Claims is split into two workstreams: 1. Low Value Claims (Below £10k): a. Debt Recovery b. Full Legal Action 2. High Value Claims (Over £10k) The supplier(s) would be required to manage and progress claims including, but not limited to: • Claims arising from damage to assets, predominantly founded in negligence. • Claims where third parties have failed to comply with relevant Health and Safety Executive (HSE) guidance when undertaking works. • Statutory claims against other statutory undertakers pursuant to the New Roads and Street Works Act 1991 (NRSWA). • Claims against occupiers under the Gas Act permitting works to be undertaken resulting in damage. • Limited support in defending claims brought against the contracting authority, typically within the Small Claims Track. Draft Scope of Requirements 1. Low Value Claims - Debt Recovery: • Issuing a First Letter Before Action (LBA) • Issuing a Second Letter Before Action. • Drafting and issuing a Part 36 Offer where appropriate. 2. Low Value Claims - Full Legal Action: • Issuing a First Letter Before Action (LBA) • Issuing proceedings and obtaining judgment in default where applicable. | 4 PR-CT-F-043 Request for Information V-001, 21.11.2024 • Managing defended matters through to resolution, with the contracting authority undertaking telephone mediation. • Enforcement of judgments via High Court Enforcement Officers (HCEO) where required. 3. High Value Claims: • These matters typically fall under the Pre-Action Protocol for Construction and Engineering Disputes. • For context there were 13 high value claims were instructed in the last 12 months, ranging from £10,500 to £1.5 million. 4. Defence of Third Party Claims: • The supplier(s) may be required, on a limited basis, to assist with defending claims brought against the contracting authority,including Small Claims matters. 5. Disbursements Workload Expectations Cadent anticipates the following volumes: 1. Low Value Claims (Below £10k): a. Debt Recovery = Circa 550 claims per annum. b. Full Legal Action = Circa 132 claims per annum. 2. High Value Claims (Over £10k) = Circa 10-15 per annum.

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