3.4 It is essential that, prior to commencing the benchmarking and/or market testing exercise, a plan is formulated and agreed by both parties and that it is signed off at an appropriate level. The plan should cover the scope and terms of reference of the benchmarking/market testing exercise including approach, respective roles and responsibilities and the proposed timetable.
3.5 The parties should consider agreeing a 'memorandum of understanding' to deal with the process to be applied, the timescale for outcome, the parameters of the negotiation and the partnership behaviours expected. The public sector client must have a clear understanding of the corporate Project Company structure and where responsibility will lie for undertaking the benchmarking or market testing and on which sub-contracts. Conflicts of interest must be avoided. An essential part of this process is to define what success will look like.