1.27 In PFI deals for serviced office accommodation availability of the services specified to the required standards is necessary if a PFI contractor is to receive full payment of the unitary charge. The payment mechanism puts into financial effect the allocation of risk and responsibility between the authority and contractor. It determines the payments the authority will make to the contractor and the incentives for the contractor to deliver the service required. The performance measurement system should consist of output measures, and, where appropriate and practical, include surveys of the users of the services provided. Nor should the system be too complex as this can lead to disputes. PFI contracts should clearly set out:
■ The required service standards;
■ The performance measurement system and associated performance deduction systems; and
■ The means by which the authority is able to monitor the contractor's performance against such required service standards.
1.28 In this deal: