Common use of Minor Infractions Clause in Contracts

Minor Infractions. Each Utility, or its implementation contractor, will monitor contractor performance. Minor infractions regarding Program rules, as determined in the sole discretion of the applicable Utility or implementation contractor, will be corrected and/or investigated. Examples of minor infractions, include but are not limited to: • Unintentionally incorrect or incomplete data submittals; • Unintentionally incorrect or incomplete equipment ratings; or • Evidence, including legitimate customer complaints, of: o Deficient service and/or equipment; or o Misleading sales or commercial practices. Contractors will be notified regarding minor infractions identified, along with planned remediation strategies, which may include but are not limited to coaching, additional written guidance, an increased level of quality assurance/quality control/inspections performed on their projects and/or required training or retraining. Repeated minor infractions may be escalated to be considered as a major infraction if a contractor has not taken action to address the underlying problems causing such infractions despite the remediation actions taken. Any infraction that poses a significant threat to human health and safety will automatically be considered a major infraction. Major Infractions Each Utility, or its implementation contractor, will monitor contractor performance and share evidence of major infractions with the other Utilities. Major infractions regarding Program rules will be corrected and/or investigated. Examples of major infractions include, but are not limited to: 1 The seven Investor-Owned Utilities include Atlantic City Electric Company, Elizabethtown Gas Company, Jersey Central Power and Light Company, New Jersey Natural Gas Company, Public Service Electric and Gas Company, Rockland Electric Company, and South Jersey Gas Company. 2 As defined in the BPU’s June 10, 2020 Order in Docket Nos. QO19010040, QO19060748, and QO17091004. • Any actions that pose a significant threat to human health and safety; • Evidence of intentionally incorrect or incomplete data submittals; • Evidence of intentionally incorrect or incomplete equipment ratings; • Evidence of dishonesty, fraud, deception, misrepresentation, false promise or false pretense; • Evidence the contractor has engaged in repeated acts of negligence, submissions of incorrect or incomplete data, significantly deficient service, unethical, misleading, or illegal sales or commercial practices, or other failures to meet standards of business conduct and/or professional standards required under their licensing or technical requirements; • Evidence the contractor has been convicted of, or engaged in acts constituting, any crime or offense involving moral turpitude or relating adversely to the contractor’s business. For the purpose of this subsection, a judgment of conviction or a plea of guilty, non vult, nolo contendere, or any other such disposition of alleged criminal activity, shall be deemed a conviction; or • Evidence that any of the contractor’s personnel is presently engaged in drug or alcohol use that is likely to impair such personnel’s ability to conduct contractor’s business with reasonable skill and safety. For purposes of this policy, the term “presently” means at this time or any time within the previous three hundred sixty-five (365) days; • Repeated minor infractions without , signs of improvement, as determined by a majority of the Utilities; • Misrepresentation within the contractor’s participation agreement (where applicable); or • Violation of New Jersey licensing requirements. Contractors will be notified in writing of major infractions identified by a Utility (or determined by a majority of the Utilities, as applicable), along with planned remediation strategies, which may include but are not limited to probation, suspension, or disbarment from the Programs. For the purposes of this policy, these actions shall be defined as: Probation: Defined period of days where every pending Program project for that contractor will be inspected before issuing payment and all applications pending will require pre-approval from a Manager or higher for all Programs for all Utilities. Suspension: Defined period of days where the contractor will be prohibited from submitting any new applications to any Program or participating in any new Program customer application as a subcontractor. Existing applications that are in process and deemed complete prior to the suspension will be allowed to proceed; provided however that the Utilities will have the right but not the obligation to inspect up to100% of the contractor’s remaining projects. A contractor that has been suspended is precluded from using any Utility forms or software.

Minor Infractions. Each Utility, or its implementation contractor, will monitor contractor performance. Minor infractions regarding Program rules, as determined in the sole discretion of the applicable Utility or implementation contractor, will be corrected and/or investigated. Examples of minor infractions, include but are not limited to: • Unintentionally incorrect or incomplete data submittals; • Unintentionally incorrect or incomplete equipment ratings; or • Evidence, including legitimate customer complaints, of: o Deficient service and/or equipment; or o Misleading sales or commercial practices. Contractors will be notified regarding minor infractions identified, along with planned remediation strategies, which may include but are not limited to coaching, additional written guidance, an increased level of quality assurance/quality control/inspections performed on their projects and/or required training or retraining. Repeated minor infractions may be escalated to be considered as a major infraction if a contractor has not taken action to address the underlying problems causing such infractions despite the remediation actions taken. Any infraction that poses a significant threat to human health and safety will automatically be considered a major infraction. Major Infractions Each Utility, or its implementation contractor, will monitor contractor performance and share evidence of major infractions with the other Utilities. Major infractions regarding Program rules will be corrected and/or investigated. Examples of major infractions include, but are not limited to: • Any actions that pose a significant threat to human health and safety; 1 The seven Investor-Owned Utilities include Atlantic City Electric Company, Elizabethtown Gas Company, Jersey Central Power and Light Company, New Jersey Natural Gas Company, Public Service Electric and Gas Company, Rockland Electric Company, and South Jersey Gas Company. 2 As defined in the BPU’s June 10, 2020 Order in Docket Nos. QO19010040, QO19060748, and QO17091004. • Any actions that pose a significant threat to human health and safety; • Evidence of intentionally incorrect or incomplete data submittals; • Evidence of intentionally incorrect or incomplete equipment ratings; • Evidence of dishonesty, fraud, deception, misrepresentation, false promise or false pretense; • Evidence the contractor has engaged in repeated acts of negligence, submissions of incorrect or incomplete data, significantly deficient service, unethical, misleading, or illegal sales or commercial practices, or other failures to meet standards of business conduct and/or professional standards required under their licensing or technical requirements; • Evidence the contractor has been convicted of, or engaged in acts constituting, any crime or offense involving moral turpitude or relating adversely to the contractor’s business. For the purpose of this subsection, a judgment of conviction or a plea of guilty, non vult, nolo contendere, or any other such disposition of alleged criminal activity, shall be deemed a conviction; or • Evidence that any of the contractor’s personnel is presently engaged in drug or alcohol use that is likely to impair such personnel’s ability to conduct contractor’s business with reasonable skill and safety. For purposes of this policy, the term “presently” means at this time or any time within the previous three hundred sixty-five (365) days; • Repeated minor infractions without , signs of improvement, as determined by a majority of the Utilities; • Misrepresentation within the contractor’s participation agreement (where applicable); or • Violation of New Jersey licensing requirements. Contractors will be notified in writing of major infractions identified by a Utility (or determined by a majority of the Utilities, as applicable), along with planned remediation strategies, which may include but are not limited to probation, suspension, or disbarment from the Programs. For the purposes of this policy, these actions shall be defined as: Probation: Defined period of days where every pending Program project for that contractor will be inspected before issuing payment and all applications pending will require pre-approval from a Manager or higher for all Programs for all Utilities. Suspension: Defined period of days where the contractor will be prohibited from submitting any new applications to any Program or participating in any new Program customer application as a subcontractor. Existing applications that are in process and deemed complete prior to the suspension will be allowed to proceed; provided however that the Utilities will have the right but not the obligation to inspect up to100% of the contractor’s remaining projects. A contractor that has been suspended is precluded from using any Utility forms or software.