2.1 This section of the guidance covers issues which need to be addressed during the period from approval of the OBC through the procurement of the project to commercial and financial close. It highlights the key aspects of the payment mechanism which need to be considered by a Procuring Authority and its advisers during the project development and negotiation phases. The specific areas covered in this section are:
o the objective of the payment mechanism
o the calibration of the payment mechanism
o the negotiation of the payment mechanism
o indexation and sculpting of the unitary charge including phased availability of services
2.2 It provides guidance on how the sector specific payment mechanisms, included within standard contracts, should be developed by Procuring Authorities to ensure they capture the specifics of their project. The use of the Standard Contract and associated payment mechanism is a requirement of Scottish Government funding. Certain sectors will also have standard specifications and accommodation schedules which should be used.