CILOR: Contributions in lieu of rates or any subsequent replacement, including Uniform Business Rates.
Core space: Space that the Department do not expect to vacate. The Department can, however, vacate an amount of core space through paying Land Securities Trillium its unavoidable costs.
Flexible and flexi-core space: Space that the Department expects to vacate and has bought the right to vacate through the unitary charge.
Facility price: The proportion of the unitary charge relating to a property.
Governance: System of joint working and responsibility for running the contract.
Invitation to Negotiate: A document giving detailed information about the services to be provided and the proposed PFI contract and inviting bidders to submit bids for the contract.
Life Cycle Capital Expenditure (LCCE): Expenditure to maintain the fabric of the estate including the replacement of building components, plant and equipment.
Net Present Value: The net present value of the contract price represents the amount that would have to be invested at the start of the contract to fund the expected future cash payments which an authority will be required to make to the contractor.
Performance measurement system: A system to measure the contractor's performance against specified criteria. Deductions from payments to the contractor can be made if performance falls below set levels.
Private Finance Initiative (PFI): A policy introduced by the Government in 1992 to harness private sector management and expertise in the delivery of public services, while reducing the impact of public borrowing.
Public Sector Comparator (PSC): A benchmark against which value for money is assessed. It is typically a cost estimate based on the assumption that assets are acquired through conventional funding and that the procurer retains significant managerial responsibility and exposure to risk.
Required Accommodation Standards (RAS): The standards, specifications, procedures and other requirements for the provision of the buildings.
Risk transfer: The passing of risk under the contract between the public sector and the private finance provider.
Termination: The ending of the contract before its contractual duration. It can be triggered by the Department or contractor.
Unitary Charge: The periodic payment that the public sector agrees to pay for the provision of services by the PFI contractor.
Value for money: Achieving the optimum combination of whole life cost and quality to meet customer requirements.