Aims and Objectives

The objectives of the payment mechanism are to:

•  Set out how the Service Provider can achieve the maximum possible Unitary Charge over the life of the Contract by achieving the performance standards set out in the Output Specification

•  Define the maximum Unitary Charge

•  Provide incentives for the Service Provider to meet the performance standards by placing the Unitary Charge at risk for failure to meet those standards

•  Provide incentives for the Service Provider to correct any failures as rapidly as possible and to avoid repeated failures by the use of rectification periods and escalation of deductions

•  Match payments to outputs to reflect relative importance

•  Set out clearly the contractual obligations of the Local Authority and the Service Provider as far as the Unitary Charge and payment deductions are concerned

•  Provide an incentive for the Service Provider to innovate and secure efficiency gains over the life of the Contract

•  Assist the Local Authority to meet its Best Value obligations for the leisure project.