2.40 The authority will need to agree how it is paying for the variation - whether this will be a one off payment (which may be appropriate for low value changes) or whether the cost of the variation will be included in a revised unitary charge and paid over time. Where the authority is paying up front for a variation, authorities should consider all aspects of the project including protection under scenarios such as early termination or sub contractor failure.
2.41 It should generally be assumed that:
• the payment for any capital works will be made on the achievement of milestones or on completion through lump sum capital payments; and
• the payment for any change to facilities management services are made through an adjustment to the unitary charge.
2.42 Where a variation includes a cost for lifecycle, authorities should also seek to pay the lifecycle cost through the unitary charge paid over the life of the project.
2.43 In funding changes with public sector capital, there are a number of issues which authorities should consider. They key ones are: