2.3 It is essential that, prior to commencing the value test, a plan is agreed by both the Project Company and the Authority and signed off at an appropriate level. An early meeting should be arranged between the Project Company and the Authority to agree:
• the timetable;
• the process; and
• the roles and responsibilities of all parties involved.
2.4 The Authority must have a clear understanding of the Project Company structure, where responsibility will lie for undertaking the value testing, and which subcontracts will be tested. Conflicts of interest must be avoided. It is recommended that the following documentation should be established before the value testing process begins:
• a Memorandum of Understanding between the Authority and the Project Company, setting out how the process will be conducted, and respective roles and responsibilities;
• a project plan with agreed deadlines and milestones;
• a communications plan, including staff consultation arrangements;
• for benchmarking - an agreed pro forma document to be used to compare benchmark data; and
• for market testing - a pre-qualification questionnaire, an invitation to tender, including output specifications and payment regimes, and evaluation criteria.