The Payment Mechanism

This Section of the 'Instructions and Guidance to Bidders' sets out the basis of calculation for the payment to the Service Provider for the provision of the street lighting services covered by this project, and should be read in conjunction with the Output Specification and the Contract terms for the payment mechanism (Schedule 8).  The payment mechanism determines the payments that the Authority will make to the Service Provider and establishes the mechanism for the Service Provider to deliver the services required in a way that demonstrates Best Value.  Other than where explicitly stated in the Contract, the payment mechanism is intended to form the sole basis of payment to the Service Provider.

The Authority will agree the final form of the payment mechanism during dialogue with the Bidders.  However, the Authority is unlikely, without good reason, to move from the principles set out in this paper.