4.1 hubco shall produce a report for each New Project, which shall:
4.1.1 analyse:
(a) for Stage 1 Approval, its predicted maximum cost of the relevant New Project (including all profit, overheads, contingencies and other costs chargeable to the relevant New Project);
(b) for Stage 2 Approval, its predicted cost of the relevant New Project (including all profit, overheads, contingencies and other costs chargeable to that New Project),
based on appropriate construction method statements and programmes provided with the report and in either case compared to:
(i) the appropriate Comparators for the relevant elements or components of such overall cost (as adjusted pursuant to paragraph 3.1.1 above);
(ii) the actual costs (and prices) of Approved Projects;
(iii) other relevant projects agreed between the Relevant Participant(s) and hubco pursuant to paragraph 3 above;
(iv) general market level of pricing, charges, costs and fees for all elements and components of similar projects:
(v) in the Territory (outside of the hub initiative);
(vi) nationally in the Community Services sector (outside of the hub initiative); and
(vii) general market level of pricing, charges, costs and fees for all elements and components of similar projects in other hub territories, including information in respect of equivalent projects based on any benchmarking data and indices which may from time to time be provided by the Scottish Futures Trust and/or the Scottish Government in respect of the hub initiative,
and explain how such results, taking into account all aspects (whether or not cost related) of hubco's proposals for the New Project, demonstrate that the New Project would provide value for money to the Relevant Participant(s);
4.1.2 during Stage 1 include a fully costed risk register showing the allowances included within the predicted maximum cost to reflect matters which cannot be fully priced at that stage given the level of design development carried out to date; and
4.1.3 during Stage 2 show how the matters included within the costed risk register submitted as part of the Pricing Report in the Stage 1 Submission have been resolved within the predicted cost.
The make up of the proposed costs for all elements and components of the New Project (as contained in the Pricing Report) shall be provided on an open book basis, with hubco providing evidence of the steps taken at each level of hubco's supply chain (including in relation to funders, where applicable) to ensure value for money and continuous improvement in value for money (including those aspects of the proposed New Project which have been subject to competitive tender within the proposed supply chain).
4.2 hubco shall:
4.2.1 provide the Relevant Participant(s) with drafts of the Pricing Report for comment in advance of the Stage 1 Submission or Stage 2 Submission, as the case may be; and
4.2.2 update any draft report submitted to reflect the results of any further exercise(s) carried out pursuant to paragraph 4.4 or paragraph 4.5 and re-submit it,
all in accordance with the programme referred to in paragraph 3.1.2 above.
4.3 For each stage of the New Project Approval Process for each New Project, the costs contained in the Pricing Report shall, as a minimum, reflect the results of open book pricing exercise(s) undertaken by hubco and the proposed Contractor (or their proposed subcontractor(s)) and, if applicable, each proposed Service Provider (or their proposed subcontractor(s)) from within the supply chain (including funders) to be maintained by hubco from time to time pursuant to paragraph 1.2 of Section 1 (Specification) of Schedule Part 3 (Partnering Services).
4.4 Where hubco considers it appropriate or the Relevant Participant(s) so require, hubco shall, in addition to complying with paragraph 4.3, also procure competitive tenders in respect of specific elements and/or components (as identified by hubco or required by the Relevant Participant(s)) of the costs of the New Project from within the supply chain (including funders) to be maintained from time to time pursuant to paragraph 1.2 of Section 1 (Specification) of Schedule Part 3 (Partnering Services).
4.5 Where, in relation to any stage of the New Project Approval Process for any New Project :
4.5.1 hubco considers it appropriate (in respect of any element or component of the costs for such New Project for which there is not a Comparator); or
4.5.2 hubco and the Relevant Participant(s), each acting reasonably, have agreed (in respect of any element or component of the costs of such New Project, whether or not there is a Comparator); or
4.5.3 the Relevant Participant(s) so require (in respect of any element or component of the costs of such New Project, whether or not there is a Comparator),
hubco shall, in addition to complying with paragraph 4.3 and, where applicable paragraph 4.4, also carry out or procure the carrying out by the proposed Contractor (or its proposed subcontractor(s)) and/or any proposed Service Provider (or its proposed subcontractor(s)) of a Market Test in respect of all or any element or component of the costs for the New Project. It shall be the decision of the Relevant Participant(s) whether it is hubco, the proposed Contractor or its proposed subcontractor, a proposed Service Provider or its proposed subcontractor who is to carry out the Market Test in respect of each relevant element or component.
4.6 Where a Market Test is carried out pursuant to paragraph 4.5.3 in respect of any element or component of the costs for a New Project for which there is a Comparator, paragraph 3.2 shall not apply to such element or component.
4.7 In the event that:
4.7.1 Market Testing is to be carried out in respect of any element or component of a New Project for which there is a Comparator;
4.7.2 the requirement for such Market Test was not reflected in the agreement (or determination) of the Project Development Fee Cap; and
4.7.3 such requirement will materially increase the cost to hubco of carrying out the Project Development Partnering Services as part of the relevant New Project Approval Process beyond that which could properly have been anticipated at the time of agreeing or determining the Project Development Fee Cap, taking into account the likely costs of carrying out competition within the proposed supply chain,
the Relevant Participant(s) and hubco shall agree the appropriate adjustment to the Project Development Fee and the Project Development Fee Cap.
4.8 The Parties may agree written protocols with express reference to this paragraph 4 which explain or clarify an aspect of the procedure for producing Pricing Reports and such protocols shall be read as if incorporated into this paragraph 4.
4.9 hubco shall:
4.9.1 maintain a full record and audit trail of each benchmarking exercise and make all such records (including details of all tenders and information received) available for inspection by each Participants and its authorised representatives (including, without limitation, the National Audit Office) upon reasonable notice from that Participant; and
4.9.2 provide to the Relevant Participant(s) and the TPB, in a comprehensive and accurate manner, all information necessary to enable the Relevant Participant(s) and/or the TPB to review and assess all matters relating to the benchmarking exercises undertaken or commenced by hubco.