2.A.8.  Workforce Information

The Contractor has provided to the Authority and the Authority has agreed the details set out in Appendix 2 (Workforce Information) of this Schedule 20 which shows in respect of each of the Services, the following information:

(a)  the workforce which the Contractor proposes to establish to provide the Service (the "Proposed Workforce") classified by reference to grade, job description, hours worked, shift patterns, pay scales, rates of pay, terms and conditions and pension arrangements;132 133

(b)  the monthly costs of employing the Relevant Employees who are expected to be engaged in the provision of the Services.  These costs (the "Remuneration Costs") have been calculated on the basis of (amongst other things) the information contained in the First Employee List134; and

(c)  the costs, including any lump sum payments, which have been agreed between the Parties for the purposes of any reorganisation which may be required to establish the Proposed Workforce or a workforce which is as close as reasonably practicable to the Proposed Workforce [(including but not limited to costs associated with dismissal by reason of redundancy or capability and costs of recruitment)].  These costs (the "Reorganisation Costs") have been calculated by the Contractor and the Sub-Contractors on the basis of (amongst other things) the information contained in the First Employee List.135

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132  This should be reviewed against the bidding assumptions in respect of the project.

133  These details are taken from the Contractor's final bid. Authorities and their advisers should ensure that sufficient details are included in bids to ensure that all the assumptions made by bidders are transparent. Otherwise, it will be difficult for Authorities to audit the adjustments which are to be made to the Unitary Charge to reflect changes in the employee information in the Final Employee List.

134  These details are taken from the Contractor's final bid. Authorities and their advisers should ensure that sufficient details are included in bids to ensure that all the assumptions made by bidders are transparent. Otherwise, it will be difficult for Authorities to audit the adjustments which are to be made to the Unitary Charge to reflect changes in the employee information in the Final Employee List.

135  These costs are the non-recurring costs of establishing the Contractor's workforce. These might include, for example, possible redundancy costs if the workforce whom the Contractor expects to inherit from the Authority does not match the required profile. The drafting is reasonably wide, although it is a requirement that both parties are agreed as the extent, and methodology of calculating, the Reorganisation Costs, and Authorities and their advisers may wish to consider carving out some costs on a project specific basis.  NB: it is assumed for the purposes of this document that any re-profiling of the workforce is carried out by the Contractor after the Service Transfer Date. If it has been agreed that the Authority will undertake this responsibility, the wording may need review.