The Performance Deductions shall be calculated with reference to [refer to the relevant Performance Measurement Framework] of the Output Specification Schedule using the following formula:9
PD= ∑(PSFn * PDFn)
where:
PSFn | The number of Performance Standard Failures in Performance Deduction Category 'n' |
PDFn | The Performance Deduction per Performance Standard Failure in Performance Deduction Category 'n' in accordance with Appendix 4 |
Provided that the Performance Deductions shall not exceed the Performance Deduction Cap in any one Contract Year [Note: to be deleted where there is no cap on Performance Deductions.]10
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9 The Authority should consider drafting for a ratchet mechanism for prolonged or persistent failures by a Contractor (see Section 7.5 of SoPC4).
10 Only yearly as opposed to, for example, monthly or quarterly caps on deductions should be accepted.