Although the courts are delivering benefits, the Service needs to improve on contract management

5  The Service considers that it has a modern building which meets all its operational needs. The combination of Crown, County and Magistrates' Courts at Laganside Courts has improved upon the previously dissipated nature of court provision in Belfast. Initial reactions from court users have been positive and a preliminary review of throughput has indicated increased availability and efficiency of the courts. Nevertheless, the Service did not undertake all the actions it might have prior to occupying the new complex. Performance monitoring was not fully operational and consequently, for an initial period, there were limited means by which performance against service standards could be measured.

6  The contract has in place a number of mechanisms which should help to protect value for money in the future, but there are limitations with the way availability and performance of the new building are reflected in the payments made to Consul. The monthly unitary charge of £300,000 paid to Consul includes fixed elements that limit the total abatement for unavailability to 44 per cent of the total amount due, even if the entire building is out of action.

In addition, the abatements to the unitary charge if one of the Courts is unavailable appear relatively small. For instance, the non-availability of a standard Crown Courtroom would reduce the service payment by approximately £18 an hour, less than £150 a day. Such a deduction for non-availability seems limited and unlikely to be commensurate with the abortive costs associated with the postponement of proceedings for a day. In such circumstances, however, the Service would take action to ensure business continuity. The performance element of the monthly unitary charge is also proportionately small. An unacceptable standard of performance for a range of services, such as reprographics or cleaning, would result in a deduction of only some £6,000 a month.

7  The Service secured a reduction in the unitary charge from £4.2 million to £3.6 million a year in return for agreeing to limit the size of any abatement for non-availability or poor performance. The negotiated reduction was closely linked to what could be afforded for the new courts and ensured that a hard bargain on price was negotiated with Consul. The Service considers that the level of abatements is appropriate in relation to the estimated profitability of the facilities management element of the deal.