A public sector body which lets a PFI contract. This may be a government department, or an agency of a department. | |
The make up of the funding employed in a business project. It usually refers to the proportions of debt to equity or senior debt, subordinated debt and equity. | |
Facilities that the Departments do not expect to vacate. The Departments will bear the costs of early vacation of core facilities if they exceed the agreed vacation allowance. | |
Monetary adjustments to the public sector comparator base costs and the risk adjustments to reflect the extent to which management can reasonably foresee being able to deliver the infrastructure services in the public sector at a lower cost in the future. | |
The value of a company or project after all liabilities have been allowed for. The equity is owned by the shareholders. | |
Management of services relating to the operation of a building. It includes activities such as maintenance, security, catering and external and internal cleaning. | |
Facilities that the Departments expect to vacate at some point during the twenty year contract. Mapeley STEPS bears the costs of early vacation of core facilities if the Departments exceed the agreed vacation allowance. | |
System of joint working and responsibility for running the contract. | |
An additional amount that a bank charges on a commercial loan over and above its own cost of providing the loan. The margin serves to provide the bank both with a profit and compensation against the risk of not having the loan repaid. | |
Facilities that the Departments expect to vacate at a specified time during the twenty year contract. The Departments bear the costs of early vacation of core facilities if they exceed the agreed vacation allowance for an initial period but then this responsibility passes to Mapeley STEPS. | |
A document giving detailed information about the services to be provided and the proposed PFI contract and inviting bidders to submit bids for the contract. | |
An invitation to bidders to submit outline high level bids. | |
The detailed standards of performance a department requires a contractor to provide. | |
The net present value of the contract price represents the amount that would have to be invested at the start of the contract to fund the expected future cash payments which an authority will be required to make to the contractor. | |
Where the Departments decide to vacate properties over and above either the core or flexible vacation allowances, the STEPS contractors' reasonable "Changes in Costs" would have to be met by the Departments. Such costs include a negotiated amount for overhead compensations which the Departments expect to amount to six months Facility Unitary Price. | |
A system to measure the contractor's performance against specified criteria. Deductions from payments to contractor can be made if performance falls below set levels. | |
A bidder selected from the shortlist to carry out exclusive negotiations with the department. | |
The discounted value of a series of payments occurring over time taking into account the extent to which a sum of money is worth more to the Government today than the same amount in the future. | |
A policy introduced by the Government in 1992 to harness private sector management and expertise in the delivery of public services, while reducing the impact of public borrowing. | |
A benchmark against which value for money is assessed. It is typically a cost estimate based on the assumption that assets are acquired through conventional funding and that the procurer retains significant managerial responsibility and exposure to risk. | |
The passing of risk under the contract between the public sector and the private finance provider. | |
The debt that is ranked highest in terms of claims on project cashflows and therefore carries the lowest risk that it will not be repaid. | |
The ending of the contract before its contractual duration. It can be triggered by a department or a contractor. | |
These are the costs that the contractor may expect to face as a result of the Departments vacating the property - for example, the costs associated with subletting or re-assigning the lease, a payment to the landlord for early surrender of the lease. Under the STEPS contract (schedule 14) the Departments will not have to pay any unavoidable costs, where properties are vacated within the contractual allowances. | |
The periodic payment that the public sector agrees to pay for the provision of services by the PFI contractor. | |
Achieving the optimum combination of whole life cost and quality to meet customer requirements. |