Potential changes or variations to the service

The Model Contract (Clauses 23 and 24) sets out the specific arrangements for dealing with potential changes or variations to the service.

As noted in the Model Contract, where the Authority from time to time exercises its option to increase or decrease the Apparatus to be included in the service, it is the Authority's intention to deal with a number of these changes through the payment mechanism and the Unitary Charge will be re-calculated to reflect the increased or decreased costs to be incurred by the Service Provider.

Bidders are required to bid values for each category of Apparatus as set out in paragraph 4.1 of the payment mechanism to be used when accruing or de-accruing Apparatus.  

Where any capital expenditure is required in relation to the Apparatus to be accrued to be de-accrued from the service such expenditure is dealt with as an Authority Change under Schedule 7A of the Model Contract and such Apparatus are not accrued or de-accrued in accordance with the payment mechanism.

Whenever an Accrual or De-Accrual takes place, the forecast electricity consumption is adjusted to take account of the expected change in KwH.

It should also be noted that the payment mechanism adjustment is not applied if the actual numbers of Apparatus is found to be different from the number shown in the current inventory and/or incorporated into the Bid. It is for bidders to satisfy themselves of the number and type of Apparatus to be included in their Bid.

The scope of the net increase or decrease in the total number of Apparatus to which the Service Provider is providing the service is limited to [5%] and [2%] respectively, before the financial impact of any quantity variation will be calculated through the Authority Change process rather than the payment mechanism.

It is noted that post contract signature that there may be technological advances in Apparatus that may significantly reduce electricity consumption. These changes in Apparatus from the Service Providers' Method Statements are to be agreed through the Change procedures and the forecast electricity consumption profile will be re-based so that the Authority retains the benefit of reduced electricity consumption due to technological advances.