Under PFI/PPP contracts the Services are provided by the Contractor and the quality of the Services provided is measured through the performance measures linked to the Payment Mechanism. Failures in performance will result in deductions from the Unitary Charge in accordance with the Payment Mechanism. Therefore the Contractor has a financial incentive to meet the contractual performance standards. It is the Contractor's responsibility to take whatever steps that are necessary to achieve the required standard. However there may also be clauses within the Contract that oblige the Contractor to adopt and comply with a particular quality assurance system.
The WIDP Contract (Clause 88) requires the Contractor to follow the quality standards set out in the Authority's Requirements (Schedule 2). This Schedule will have evolved out of the Output Specification used by the Authority's project team in the procurement process.
WIDP Guidance on the Output Specification includes a requirement for the Contractor to comply with ISO 9001 and ISO 14001. The obligation on the Contractor includes the appointment of a Quality Manager and the maintenance and audit of the quality assurance system. The Contract Management Manual should set out what measures the Authority will put in place to ensure that the Contractor discharges its obligations and how the Contractor's systems dovetail with the Authority's own quality management requirements.