1. The information set out below should be updated to include any additional comparator projects or elements or components of comparator projects which are agreed by the TPB from time to time as being necessary to ensure that the information set out in this Appendix 1 (as updated from time to time) remains useful for the purpose of providing a cap to be applied in calculating the different cost elements (Project Development Fee, other non-prime costs and prime costs, funding, service and lifecycle costs) for New Projects coming forward through the New Project Approval Process.
2. Any adjustment to be made pursuant to this Agreement to the figures and/or percentages specified in this Appendix 1 (as updated from time to time) for the purposes of Schedule Part 4 (Partnering Services Costs) or Schedule Part 6 (New Project Pricing Report) shall be made in accordance with the following requirements:
2.1 where adjustments are to be made, they shall be made on the basis that:
2.1.1 both hubco and the Relevant Participant(s) shall act reasonably;
2.1.2 the adjustment may be an increase or a decrease. Where an increase is required, the smallest practicable increase is to be made. Where a decrease is required, the greatest practicable decrease is to be made;
2.1.3 full use is to made of relevant benchmarking data (including BCIS and other data as referred to in paragraph 4.3 of Schedule Part 6 (New Project Pricing Report));
2.1.4 the best value for money to the Relevant Participant(s) and continuous improvement are to be obtained;
2.1.5 hubco, insofar as is practicable, should be in a no better, no worse position as a result of such adjustment; and
2.1.6 no adjustment shall be made to the hubco portion percentage level specified in Proforma [2] save to the extent required and agreed between the Parties to give effect to Clause 19.1;
2.2 adjustments for inflation (other than in respect of the Partnering Services Costs, to which Section 4 (Partnering Services Costs Rates) of Schedule Part 3 (Partnering Services) shall apply) shall be made in accordance with the provisions of paragraph 2.15 of Schedule Part 1 (Definitions, Interpretation and Construction) on the basis that principal sums provided by hubco in the proformas (but not sums determined by applying percentages to such sums) shall be index linked save that references in paragraph 2.15 to the Retail Prices Index shall be construed as references to MIPS or BCIS TPI or such other appropriate indices as may be agreed between the TPB and hubco (as agreed from time to time with the Relevant Participant(s));
2.3 the Parties have agreed that only the following aspects may, on an individual New Project, be relevant considerations for suggesting adjustments to the figures or percentages specified in the proformas below:
2.3.1 Prime Cost
Where the likely prime cost element of a New Project is outside of the range of prime costs provided in Proforma [2] below, that may have an impact on the appropriate figure or percentage specified in Proforma [1] or [2]. Adjustments shall be made on the basis that all possible economies of scale are identified and passed to the Relevant Participant(s).
2.3.2 Function
The range of service needs to be comprised within the Relevant Facilities may differ from any of the projects reflected in the proformas below. Costs analysis should be provided on the basis that areas which are specific to identified function (e.g. clinical or educational) and not more general use are clearly and separately addressed.
2.3.3 Complexity
Where the specific details of a New Project in terms of design detailing, site logistics and/or buildability are materially more or less complex than the information on which the Pricing Data was based, it may be appropriate to adjust the relevant elements of the construction price in Proformas [1] and/or [2] or, if applicable, to increase or decrease relevant rates in the Bills of Quantities.
2.3.4 Programme
In respect of those elements of preliminaries that are programme dependent, the adjustment shall be made pursuant to the relevant proforma, by adjusting the programmed number of weeks.
2.3.5 Phasing
Where the optimal solution for a New Project requires a phased construction / handover period, it may be appropriate to increase or reduce time related preliminaries accordingly.
2.3.6 Location
[It would not be expected that the location of the New Project should require any adjustment.]24[Where appropriate, an adjustment may require to be made to certain of the figures or percentages specified in Proforma [1] or [2] and/or the relevant rates in the Bills of Quantities to reflect the specific geographical location of the New Project in question when compared to the geographical location on which the relevant Pricing Data was prepared. Such adjustments shall be made in accordance with the principles and approach set out in the Pricing Data25.]
2.3.7 Volume
Where there is a significant variation in the volume of materials required for a New Project when compared to the volume specified in the Bills of Quantities, it may be appropriate to increase or decrease the rate accordingly and/or to adjust the relevant percentage element in Proforma [2].
2.3.8 Planning Process
Where the Site has been selected by the Relevant Participant notwithstanding advice by hubco that there is a there is a significant risk of any Planning Appeal, Planning Call-In or Planning Proceeding and, other than as a result of breach of this Agreement by hubco or any hubco Party or failure to comply with the Planning Act by hubco or any hubco Party, there is a significant risk of any Planning Appeal, Planning Call-In or Planning Proceeding, it may be appropriate to increase the relevant element of the Project Development Fee specified in Proforma [2].
[mechanical aspects to be developed where relevant by Preferred Tenderer's Final Tender Submission26]
The Pricing Data is attached hereto.
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24 Default position, However alternative text is provided for use on Territories where the Participants and SFT consider it appropriate to accept the principle of locational adjustment.
25 Tenderers' approaches to locational adjustment, where this is permitted, will be assessed as part of the overall evaluation.
26 Bidders are expected to provide proposals as to methodologies for producing such adjustments within the relevant Partnering Services Method Statement (but are not expected to increase the scope of the possible grounds of adjustment)