Phased Unitary Charge

PFI projects in the Police and Fire & Rescue Sectors often involve the 'roll out' of accommodation over a planned schedule. Whilst PFI is service based and payment should only commence from the full Services Availability Date (see HM Treasury, Standardisation of PFI Contracts Version 4 Para 10.2.1.), it is recognised that payment might be phased in.  Therefore a pro-rata approach to build up the payment for the individual accommodation (out of 100%) may be included in the payment mechanism provided that each new addition of accommodation is fully operational at the Services Availability Date.  Where this does apply the usual mechanism is to apply revenue phasing to the Annual Unitary Charge to reflect the proportion of the total service accommodation that has become available.  The Annual Unitary Charge is therefore usually amended to reflect this as shown below. This formula takes the Annual Unitary Charge and divides by 12 to give a monthly figure. This is multiplied by the sum of the percentage weightings for the accommodation that is available in each month.

Alternatively the Schedule of Charges may already be based on the phased introduction of accommodation and a separate formula in the payment mechanism to account for the revenue phasing may not be required.

The payment mechanism has been drafted on the basis that forthcoming Fire & Rescue and Police PFI projects will be new builds and there will be no refurbishment programme for existing accommodation within the estate as part of the PFI. No drafting has therefore been included to cover an interim service period where the Facilities Management services commence in relation to existing accommodation that forms part of the refurbishment programme.