3.1 The Authority will need to consider the future demand for both the assets and the services bundled with them under the current arrangement, the risks associated with that future demand and which parties are best able to manage those risks. These considerations will include:
• the residual life of the assets at the expiry date and what will need to happen when the life expires in terms of the asset's replacement/refurbishment;
• if there remains a significant residual life in the assets, the risk that they contain latent defects, what those defects might be and what capability would be required to address them;
• the nature of the services essential to asset maintenance and which enable it to perform or be available such that it can continue to deliver its designated outputs;
• the ability and willingness of the Authority in assuming duty of care for the assets;
• the degree to which the assets and/or the services they facilitate might require a significant degree of change to meet evolving business need and, if so, within what timescale; and
• in situations where the assets are owned by the Project Company, whether the Authority would require continued use of the assets after transition, and hence would need to purchase them or arrange for their transfer to a replacement supplier, or whether the assets are not needed further and should remain with the Project Company.
3.2 Proper consideration of the risks associated with any future service delivery should indicate
what options exist for bundling of future services both in terms of scope and duration.