•  Standard Form Documentation should be used without amendment, save in those instances which are genuinely project specific, and for which a strong project specific and, as appropriate, value for money justification is provided. 

•  All proposed derogations to Standard Form Documentation and standard guidance must be submitted by the local authority (procurer) to HCA/CLG and, in the case of the SOPC 4 required drafting provisions incorporated into the Standard Form, IUK for consideration. An explanation of key structuring principles (e.g. treatment of land and development works) should also be provided pre-ISDS.

•  Derogations are considered by HCA/CLG and (in the case of any SoPC 4 changes only) IUK at 2 points in the procurement process:

o  Pre-ISDS - authority requested derogations; and

o  Pre-Close of Dialogue - bidders requested derogations

•  Authorities should note that ISDS documentation cannot be issued until all pre-ISDS (authority) derogation requests have been resolved.

•  Authorities should note that dialogue cannot be closed until all derogations have been resolved.  (CLG / HCA at their discretion, may allow some fine tuning after close of dialogue to HPP provisions - but not to SoPC provisions)

•  Authorities must submit all requests for derogations from standard guidance in Derogations Tables which must follow the standard format (see templates attached).  A separate table should be provided for derogations from SoPC4 required drafting and another for derogations from HPP drafting.  The tables should be provided in separate documents.

•  Pre-ISDS derogations must be included in the Pre-Close of Dialogue bidder requested Derogations Tables to ensure consolidated records of all requested derogations and their status are maintained.

•  All derogation tables must be accompanied by a marked-up PA, FDA and relevant narrative paper(s).

•  CLG/HCA/IUK (acting for HMT) will provide a response on all initial derogations (provided all required paperwork is provided and is satisfactory) within 6-8 weeks. The consolidated response will be made by HCA to the local authority.

•  CLG/HCA/IUK responses should generally be regarded as final. If an Authority and/or bidders wish to continue to seek derogation, this will be subject to CLG/HCA/IUK willingness to consider further.  The derogations process would re-commence and continue until all derogations sought are resolved.  This subsequent process will be outside the 6-8 week timescale.

•  HMT sign-off (which will be given through IUK) is required before financial close can take place.