Contractual and Commercial Issues

The Local Authority intends to follow the guidance and Model Contract included in the Housing PFI Procurement Pack produced by the 4ps, HCA and CLG, as issued in [     ] 2009.  Please either confirm that you accept the principles set out in that guidance and the drafting of the Model Contract, or provide comments explaining how your proposed approach differs from the guidance and Model Contract.  Please also provide preliminary comments on the following contractual matters:

•  Contract period [and approach to residual life of assets]

•  Major risks of the project, how these will be dealt with in the contract structure and which organisation within your consortium would ultimately bear the risk

•  Proposals for monitoring service delivery

•  Termination events and consequences of early termination

•  The change mechanisms, covering all aspects of change i.e. programme growth, change in the service specification and legislative change.

•  The interface of the services within the project with [              ].