4.2 A grace period/bedding in period is the period at the beginning of the contract where a Procuring Authority may agree to a relaxation of aspects of the performance regime in the initial period when the PPP facilities and services become operational.
4.3 A PPP Contractor's entitlement to a grace period will be outlined within the Project Agreement. A grace period is not appropriate for availability failures - if a facility or service is not available a Procuring Authority should not be paying for it through the unitary charge.
4.4 Grace periods for performance failures need to be justified on value for money grounds prior to commercial/financial close. They may allow for lower deductions to be applied during the first month of operation or for slightly longer rectification periods. An Authority must be very clear on the benefits they seek to achieve through granting a grace period and should monitor the contract to ensure that these are delivered.