The Recycling Adjustment should take the form of a rate per tonne applied to each tonne of Contract Waste recycled in excess of the target. If the tonnage of Contract Waste recycled is less than the target then the Recycling Adjustment will be negative i.e. a deduction. The target should be a percentage of Contract Waste so that it varies with the tonnage of Contract Waste.
The rate per tonne should be bid-back by the bidders during the tender process. This allows bidders to take the costs of recycling into account in determining the rate per tonne that they bid. It is crucial that there is a clear definition of recycling included in the Contract. WIDP recommends the use of the National Indicator definition of recycling and composting.18
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18 See http://www.communities.gov.uk/publications/localgovernment/finalnationalindicators Annex 4 Indicator 191.