Calculation of Monthly Performance Deductions

4.6.  The Monthly Performance Deduction in respect of each Contract Month shall be calculated as follows:

PDMn = (GMUCn x MPF) x MSPR

GMUCn

 

Gross Monthly Unitary Charge for Contract Month (n)

MPF3

 

Monthly Performance Factor, which for the purposes of this payment mechanism shall be [X%]

MSPR

 

Sub-Standard Performance Ratio for Monthly Key Performance Indicators for the Contract Month




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3 In calibrating the Monthly or Quarterly Performance Factor it is expected that these factors will be set by reference to the level of operating costs (including SPV overheads and insurance premiums) as a proportion of the Unitary Charge.