1.4 Generally only soft services, not hard facilities management services, are suitable for value testing. The term soft service typically refers to services such as catering, cleaning and security, which do not involve significant capital expenditure or affect the value of the capital asset. Hard facilities management services such as building refits or life-cycle maintenance should not normally be value tested.
1.5 This guidance is not a substitute for contractual agreements, but should be used to help the Authority and the Project Company achieve an outcome that is satisfactory to both parties.