1.13 The annual unitary charge of £3.6 million (as at October 2002) has two main components: an availability element of £2.5 million and a performance element of £0.73 million. The contract stipulates that the maximum abatement would be 55 per cent of the availability element and 30 per cent of the performance element in any calendar month, even if no services are delivered. The maximum abatement in any one month is therefore limited to 44 per cent of the entire unitary charge (Figure 5). This did not follow PFI guidance at the time, and currently, which recommends that payment should not be made if the service as a whole is unavailable3. The underlying concept of the payment mechanism should be one of no service, no payment. The Service does not envisage a high incidence of non-availability in relation to the 16 courts, as every attempt has and will be made to avoid disruption of court business.
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3 Further Contractual Issues: Private Finance Panel January 1997.