Variables

Observations

Default Value/Range

Stage 2

Stage 1

19. Scope change year

It is reasonable to take the mid-point of the concession period as the scope change year.

{12} if 25

year Contract, {15} if 30

year Contract

{12}

20.Probability factor

Given the changing legislative environment for handling waste, technological advancements and other environmental issues (e.g. emissions from thermal waste treatment) a fairly high probability factor is appropriate.

{70}%

{70}%

21. Level of Scope change

The level of scope could be significant, with new facilities and major upgrades.

{50}%

{50}%

22. Premium flexibility factor (PFI option)

The premium is only applied to the PFI option as this is the charge to enter into a change notice. It is however possible, depending on the contractual provisions, that if the scope of change is sufficiently large, that the work would be tendered competitively as per conventional procurement, resulting in a zero 'premium factor'.

{10}%

{10}%