2.1 Subject to paragraphs 1 (Entitlement to make Deductions) and 5 (Repeated Failures) of this Section 3 (Deductions from Monthly Service Payments), the amount of the Deduction in respect of a Performance Failure is calculated using the following formula:
D = PFD x DP
where:
D | means the amount (in pounds sterling) of the Deduction in respect of the Performance Failure; and |
PFD | means: (a) in the case of a Minor Performance Failure, the sum of £[ ], index linked; (b) in the case of a Medium Performance Failure, the sum of £[ ], index linked; (c) in the case of a Major Performance Failure, the sum of £[ ], index linked; |
2.2 In the case of a Service Event for which no Rectification Period is specified in the Performance Standard, a Performance Failure occurs immediately upon the occurrence of the Service Event and, if it is not Remedied within the relevant Remedial Period, it will reoccur at the expiry of the Remedial Period and the Remedial Period shall recommence and so on until such time as the Performance Failure has been Remedied.
2.3 No Deduction may be made by the Authority from the Monthly Service Payment for the relevant Contract Month in respect of any Minor Performance Failure if the total number of Minor Performance Failures which have occurred in the relevant Contract Month is not more than [ ].
Where two or more Performance Failures occur in a Functional Area during a Day, only the Performance Failure that results in the highest Deduction will apply.