Issue | PRIME position | PRIME expansion position | Benefit |
Payment of LST overheads in Facilities Unit Price (FUP) adjustment for contract changes | Additional 23% added to cost of change to cover LST overheads and margin | Reduced to 7% for service changes and 12.5% for new properties | The Department estimates that this will save £9m a year by completion of the Jobcentre Plus rollout |
Payment of Landlord's service charges | Service charges pass through cost with complex reconciliation mechanism | Risk transfer for service charges i.e. included in the Facilities Unit Price at buildings identified as having service changes This only applies to the PRIME expansion estate, agreement to be reached on the PRIME estate | This reduces contract management time and improves cost certainty |
Business Rates Savings Sharing Mechanism | Mechanism for CILOR ■ Share reduction in Rateable Value ■ Year 1, 50% share, Years 2-5, 10% share ■ Plus reasonable costs (fees for rating surveyors) | Mechanism for Business Rates ■ Share of reduction in Business Rates payable ■ 20 % share ■ Inclusive of reasonable costs | This is an Incentive for LST to reduce the Department's Business Rates as it is updated and aligned to market norms |
Timescale for supply of temporary accommodation | 6 month timescale | If LST cannot supply temporary accommodation in 20 days the Department can use alternative suppliers | This is an incentive for LST to supply needs rapidly |
Third party income schemes, e.g. mobile phone masts on buildings | LST had complete freedom to implement third party income schemes | LST now requires the Department's agreement to such schemes and will have to share income 50:50 with the Department | The Department has control over schemes that could cause staff issues or political concerns |
Business Driven Capital Works | Fee rates specified, but few other provisions as anticipated volumes were expected to be low | Fee rates reduced and provisions added for management of process ■ Separate provisions for Jobcentre Plus and large programmes ■ Performance measures enhanced ■ Opportunity to use another supplier if performance is poor ■ Reporting system introduced based on customer feedback ■ Compensation for loss for time overruns ■ Abortive fee percentages agreed ■ Contributions from LST's maintenance budget formalised and extended | The Department benefits from reduced fees and improved process for managing projects |
Life Cycle Maintenance Regime | Complex reconciliation mechanism to ensure LST's budget is spent and share savings | Simplified reconciliation mechanism with greater transparency ■ Based on 3 year rolling plans ■ Reconciliation of budget to actual spend ■ £200,000 a year reduction in LST's price to reflect simplified management processes. The Department's potential liability for sharing in overspends capped at the lower of 25% or total savings for the previous two reconciliation periods | The Department benefits from ease of management, and transparency increases the incentive for LST to spend budget |
Response Times | Specific response times e.g. for light bulb replacement | Priority response times driven by business need | Public areas will receive high priority response |
Health and Safety | Extensive Health and Safety requirements, but some gaps | Addition of obligations: ■ LST to train managers in their responsibilities ■ LST to keep training records ■ Schedule of rates agreed for off-site risk assessments e.g. Department for Work and Pensions staff working in other organisation's premises | This supports the Department's Health and Safety strategy |
Cleaning and Security | The specification did not provide for specific Jobcentre Plus requirements | Specification updated to include: ■ Cleaning of job points ■ Customer Care Officer (CCO) role included | Supports Jobcentre Plus implementation |
Change Mechanism | Cost of Department's changes agreed on a case by case basis | Formulas agreed for changes to ■ Working/opening hours ■ Change to CCO role for Jobcentre Plus | This reduces contract management time to agree changes |
Work order management | Customers are responsible for managing outcome of calls to the Customer Service Centre | LST Building Services managers now have explicit responsibility for managing the outcome of calls to the Customer Service Centre | This improves LST's management of reactive work |
Accommodation Standards | Standard defined for ex DSS accommodation | Review showed that overall standards support Jobcentre Plus. Contract drafting to remove reference to old style accommodation | Updated RAS in line with Jobcentre Plus and expanded PRIME requirements |