4 Service Performance Deductions
The Service Performance mechanism is designed to provide a means of testing the qualitative factors and response / rectification times associated with the delivery of the accommodation services. The services that could be provided under a Fire and Rescue Service PFI or Police PFI accommodation scheme include:
• Hard FM (Planned Lifecycle and Reactive Maintenance)
o Building Maintenance (all trades)
o Mechanical Services
o Electrical Services
o Fixtures and Fittings (Maintenance and Renewal)
o Utilities (Energy Management)
• Soft FM (Planned and Reactive Services)
o Caretaking, Porterage, Janitorial and Site Supervisory
o Site Security and Health and Safety (including Pest Control)
o Cleaning and Waste Management (including Disposal)
o Grounds Maintenance
o Catering (including Vending)
o Window Cleaning
o Furniture (Maintenance and Renewal)
o Contract Management (Management KPIs)
These services will be defined in a Schedule of the Project Agreement called the Output Specification. The definitions of services will include performance measures (Key Performance Indicators) and the required performance levels against these measures.
Some of these services aim to maintain the accommodation at a certain specified standard for all of the time that it is required for use. Cleaning is an example of such a service. The Output Specification will define the required level of cleanliness and will describe how this should be measured – i.e. it will define the key performance indicators (KPIs) for the cleaning service. If the required performance levels are not met for this service as defined in the Output Specification, then Performance Deduction Points may accrue leading to deductions being made against the Monthly Unitary Payment.
Some services are 'responsive' services where the Contractor is required to respond to certain events that have occurred - for instance repairing a broken window. The performance in relation to these services has two components. One component is the time taken to resolve the issue (the 'Rectification Period') and the other is the quality of the work that is undertaken. Both components of performance will be defined in the Output Specification. For each relevant Rectification Period that is not met, the Contractor will accrue Performance Deduction Points that will convert into deductions being made against the Monthly Unitary Payment. The Contractor could also accrue Performance Deduction Points for work that is carried out within the required times, but not to the required quality.
If an Area is Unavailable at the same time as a Service Performance Shortfall relating to that Area has occurred, then the Unavailability Deduction mechanism will take precedence over the Service Performance Deduction mechanism. The Contractor will not be simultaneously subjected to Unavailability Deductions and Service Performance Deductions for an Area. This applies whether or not the cause of the Unavailability is related to a particular Service Performance Shortfall. For instance:
• A window is broken and the Contractor fails to rectify the problem within the required Rectification Period as defined in the Output Specification. If the Area is deemed Unavailable as a result of failing to rectify the broken window, then Unavailability Deductions will apply. If the Area is not deemed Unavailable then Service Performance Deductions will apply;
• An Area is deemed to be Unavailable because the ambient working temperature has fallen outside of acceptable levels. Simultaneously, bins have not been emptied and the Area has not been cleaned to acceptable levels – hence cleaning KPIs have been breached. Only the Unavailability Deductions will apply in this case for the period of time that the Area is Unavailable.
The definition of the Service Performance Standards, relevant Rectification Periods and the associated performance and monitoring regime should be based on the Output Specifications and required services that the Contractor priced for. In setting the Service Performance Deductions every effort should be made to cross-relate the required Service Performance Standards with the specification of the required Services. The following decision tree provides an overview of the process for assessing whether a Service Performance Deduction applies.
The deductions that apply under the Service Performance Deductions should be limited each month to 30% of the total Monthly Unitary Charge (or a more appropriate proportion based on the level of services being provided). As outlined above limitations on the total deductions still apply and where an Area is Unavailable, Service Performance Deductions cannot be made in relation to that Area.
