1.1  Adjustment Formula

Apparatus which fails to comply with the requirements of the PS1 Performance Target A at the end of each Month shall lead to Adjustments to the Monthly Payment in accordance with the following formula9:

Adjustment

=

MUC x 0.4 x (1   (Y / X))

Where:

 

 

X

=

X1 + [multiplier to be inserted by Authority]10X2

Y

=

Y1 + [multiplier to be inserted by Authority]Y2

X1

=

[                    ] being the initial number of Lighting Columns that are not Deemed to Comply at the Service Commencement Date;

X2

=

[                    ] being the initial number of Illuminated Traffic Signs that are not Deemed to Comply at the Service Commencement Date;

Y1

=

being the aggregate number of Lighting Columns Removed by the Service Provider as Certified by the Independent Certifier pursuant to Clause 13 (Inspection and Completion) of the Contract from the Service Commencement Date up to and including the last day of the Month for which the Adjustment is being calculated.  

Y2

=

being the aggregate number of Illuminated Traffic Signs Removed by the Service Provider as Certified by the Independent Certifier pursuant to Clause 13 (Inspection and Completion) of the Contract from the Service Commencement Date up to and including the last day of the Month for which the Adjustment is being calculated.  

For the avoidance of doubt, in this calculation, if Y1 is greater than X1, Y1 shall be deemed to equal X1.  On completion of the Core Investment Programme, Y1 shall be deemed to equal X1. The same rules shall apply with respect to Y2 with regards to X2.




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9 On a project specific basis, an Authority may wish to differentiate between different items of CIP Apparatus for the purposes of the PS1 adjustment. The example above assumes that Illuminated Traffic Signs are treated separately from Lighting Columns.

10 The X2  and Y2 multiplier (which may be smaller than 1 or greater than 1) should be decided on a project-specific basis and should be based on the capital value placed on the different categories of CIP Apparatus represented by X2  and Y2 relative to X1 and Y1.