Benchmarking and Market Testing - Key Messages:

• start planning early;

• agree a project plan and keep to it;

• allocate dedicated personnel to manage the process for the public sector;

• make sure there is funding to resource the process;

• agree the detailed methodology up front;

• review the operating specification;

• avoid significantly changing the risk profile;

• allow time for funders' involvement; and

• keep users informed of progress.

For benchmarking:

• agree sources of benchmark information;

• the Project Company's own costs are not a benchmark;

• allow time for several iterations of benchmark data; and

• allow time for clarification and negotiation.

For market testing:

• encourage bidders to develop a competitive process;

• avoid conflicts of interest;

• ensure openness and fair competition; and

• develop clear and objective criteria.