Payment Mechanism

The Payment Mechanism sets out the basis of calculation for the payment to the Service Provider for the provision of services covered by this Project.  The Payment Mechanism is included at Schedule • to the Model Contract and reflects the Local Authority's service requirements as set out in the Output Specification.  In addition, more detailed guidance on the Payment Mechanism appears at Appendix 5 to these Instructions.

Other than where explicitly stated in the Model Contract, the payment mechanism will form the sole basis of payment to the Service Provider.  The Local Authority will agree the final form of the Payment Mechanism during the negotiations with the Preferred Bidder.  However, the Local Authority is unlikely, without good reason, to move from the principles set out in Appendix 5 and Schedule •.