2.12 The first issue which parties will need to agree is "what value constitutes a low value change?" The definition of low, medium and high value changes should be relative to the overall value of the project. For example, parties may take the view that changes which have an individual total cost not exceeding £10,000 should qualify as a low value change. This amount has been used in the draft protocol but should be regarded as negotiable. Alternatively, projects may agree that a number of changes up to an agreed annual value could qualify as low value changes.
2.13 Low value changes are likely to be changes which are requested repeatedly over the life of a contract: e.g. putting up shelves; supplying and putting up notice boards. Wherever possible, a low value change to the facility should be carried out by a suitably qualified on-site employee of the contractor (e.g. a caretaker or janitor) so that specialist labour charges are avoided. Where a contractor has not bid on the basis of its existing staff working on low value changes as a routine part of their job authorities should see if the contractor can move to this basis of working. This in itself would be a contract variation and would need to be negotiated. If all else fails authorities should seek to negotiate a standard day rate by which any additional contractor staff time is priced. The contractor will need to make the case as to why the additional resource is necessary and why it cannot be carried out by on-site staff. The recommended approach for a low value change is that authorities should agree a detailed catalogue of prices and timescales for these small works and services. The catalogue can be derived from existing pricing schedules such as Spons pricing books or BMI Price book (Building Maintenance Index). Systems for revising the prices in the future should also be agreed. For example, RPIX or the indexation used in the Contract can be linked to the catalogue or projects could agree to re-tender the works with local contractors if appropriate. The price in the catalogue should be made up of:
• the cost of the materials (charged at cost to the authority);
• the cost of the labour (if the change is not to be carried out by an onsite employee of the contractor).
2.14 Authorities should agree a separate schedule of rates for specialist labour (e.g. design, construction, installation or commissioning). Where it is agreed that specialist contractors are required for a low value change, these rates should be used. It should be agreed that no due diligence should be needed for low value changes and that they should be processed without any additional SPV handling fee or mark-up (or that a handling fee should only apply beyond an agreed annual aggregate limit).
2.15 If a low value change results in a maintenance or lifecycle cost, this cost should be identified by the contractor in the response to the authority's initial request for a variation. However, it is unlikely that this type of variation will attract this additional cost.