Legal Services and Damage Claims

Cadent Gas requires legal support services for debt and damage recovery covering two independent internal workstreams. Although these are two separate internal workstreams, the intention is to award the entirety of the service requirements to a single supplier to deliver both elements.

Workstream 1 - Legal Support Services

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.

This process uses SAP, which will be facilitated by the Cadent lead rather than access to the system. Additionally, there is a separate system for costings called Apperio which Cadent will facilitate access as required.

Cadent would require the supplier 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 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 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 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 debtor owns property, Attachment of Earnings Orders where stable employment is confirmed, or other enforcement mechanisms where appropriate. The supplier 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 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 must follow the general pre-action requirements of the Civil Procedure Rules.

Case Preparation Requirements

For all Theft of Gas referrals, the supplier must obtain and document a propensity-to-pay score before taking legal action.

• Tracing Requirements - Where a debtor's address is unknown, unverified or disputed, the supplier 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.

Workstream 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.

This process uses Evoclaim case management system, which Cadent would give access to the successful supplier. Additionally, there is a separate system for costings called Apperio which Cadent will facilitate access as required.

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 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.

Scope of Requirements

1A. 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.

1B. Low Value Claims - Full Legal Action:

• Issuing a First Letter Before Action (LBA)
• Issuing proceedings and obtaining judgment in default where applicable.
• Managing defended matters through to resolution, with the contracting authority
• undertaking telephone mediation.
• Enforcement of judgments via High Court Enforcement Officers (HCEO) where required.

2. 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.

3. Defence of Third Party Claims:

• The supplier may be required, on a limited basis, to assist with defending claims
• brought against the contracting authority, including Small Claims matters.

4. 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.