Accrued penalties

5.30  The issue of accrued service provider contract penalty points at the start of a new sub-contract should be handled in line with the contract. As a general principle, the possibility of resetting to nil should apply only at sub-contract level, and not to the incumbent contractor if it wins the contract. There should be no automatic wipe-clean at Project Company level, because the lead PPP contractor has always been responsible for management of the contract.

Market Testing - tips and pitfalls

•  Plan early

•  Get human resources, with the right breadth of skills, on board early

•  Make sure there is funding to cover all costs

•  Review the operating specification

•  Avoid significantly changing the risk profile of the project

•  Allow time for funders' intervention

•  Develop the market

•  Avoid conflicts of interest

•  Ensure openness, probity and transparency

•  Develop clear and objective evaluation criteria

•  Keep users informed of progress

•  Consult with staff and unions