This guide is a summary of the key aspects of the Contract and is intended to be intelligible to interested readers, without requiring any specialist legal knowledge. It should not be treated as legal advice, as by its very nature it is a summary and is not intended to be comprehensive of all the terms of the Contract or of any individual term. Reference should be made to the relevant clause of the Contract for fuller details of the actual contract.
As at the date of writing, the Scottish Government policy on new PPP procurements is that they should be taken forward on a "non-profit distributing" ("NPD") basis unless there are exceptional project risks which would require a different approach.
NPD is a means of capping private sector returns on PPP contracts, and further details are provided in Appendix 5. Users of this guide should note that SGHD has published two versions of the Contract - an NPD version (Version 1) for use of NPD procurements and a non-NPD version (Version 4). The vast majority of contractual provisions are identical across both versions, although we have highlighted specific areas of difference within paragraph 34 and Appendix 2 of this guide.