Together the Output Specification and the Payment Mechanism provide the means by which the Contractor's actual performance is measured against the contracted performance and the payment of the Unitary Charge for the services performed is calculated. This Output Specification guidance should be read in conjunction with Module 4 (Payment Mechanism).
The Output Specification provides an input into the Payment Mechanism in terms of quantifying the degree of any failure to deliver the required outputs. The Payment Mechanism then defines the financial effect of any such failure. It is therefore critical that the Output Specification includes a detailed Performance Measurement Framework that clearly sets out how performance is measured.
Payment of the full Unitary Charge is only made when the full service is provided. If there are any Performance Standard Failures then the applicable deductions would apply through the Payment Mechanism.