Derogations Table

All SoPC and HPP derogations should be captured in separate documents containing individual tables for SoPC and HPP Derogations in the standard format (and no other) see attached - which will set out the derogations and the project specific reason for it. Where 'value for money' is the proposed justification for a requested change then this must be properly argued and evidenced. A lack of either will result in the derogation being refused.

SoPC4 and HPP derogations must respectively be specifically identified and distinguished as such by the Local Authority in the Derogations Tables submitted to HCA. HCA will also require confirmation from Local Authorities' legal advisers that all SoPC4 derogations have been identified and included in the Derogations Table.

Only Derogations explicitly included in the relevant Derogations Table will be considered by CLG/HCA. No Derogation is considered approved unless it is included in the appropriate Derogations Table and has been specifically identified as having been approved by CLG/HCA. (Please note that Derogations can only be approved by the responsible CLG/HCA PFI Team Managers).

A marked-up copy of the Standard Form of Project Agreement and the Funders Direct Agreement (with black line changes) must accompany the Derogation Table. The Derogations Table must be the single consolidated record of all requested derogations and their status at any particular time. This means that bidder requested derogations pre-close of dialogue must be added to the Derogations Table as it stands following the agreement of all the earlier pre-ISDS derogations.

The Derogations Table will set out the derogation, the project specific reason for it and progressively the CLG/HCA approval (or non-approval) and finally IUK's, where relevant, comment as to whether a derogation will or will not be acceptable to HMT.

SoPC4 and HPP drafting indicates by the use of square brackets and footnotes where information specific to the project should be inserted or where alternative drafting is permitted. CLG/HCA consider that such changes constitute Derogations and such insertions or amendments will need to be approved however it is acknowledged that amendments may be appropriate in these areas. In some cases alternative drafting is permitted only where value for money benefits can be demonstrated. Where this applies, the value for money benefits must be articulated in order for the Derogation to be accepted.