3.19 To streamline the procurement process a comprehensive suite of new standard documentation will be launched. This will include:
• new draft PF2 guidance titled Standardisation of PF2 Contracts;
• a standard facilities management output specification for PF2 accommodation projects;
• a standard payment mechanism for PF2 accommodation projects; and
• new PF2 Lean Sourcing procurement guidance.
3.20 The Government believes that the enforcement of standard procurement and contracting guidance for existing PFIs has achieved real success in ensuring greater consistency of approach across sectors and in settling the risk allocation between the public and private sectors. See Box 3.C for further details of the new guidance that has been published alongside this policy document.
3.21 The standardised service output specification template and payment mechanism, as set out in Chapter 4, have also been developed. These will reduce the time spent on the individual development and negotiation of these documents.
Box 3.C: Standardisation of PF2 Contracts Standardisation of PF2 Contracts, published today in draft form, provides mandatory contract guidance for the new PF2 model. Contract standardisation ensures consistency across sectors in setting the risk allocation between the public and private sectors. This reduces the length and cost of the procurement process for all involved. Standardisation of PF2 Contracts provides detailed drafting provisions to be incorporated into PF2 contracts either on a "required" basis (where the exact wording should be used), or on a "recommended" basis (where the drafting should be used as a basis for adaptation to different sectors). The updated guidance: • provides new guidance and drafting on all aspects of the new model. This includes details of the new approaches to: preparing projects for market, hard facilities management services and lifecycle, soft facilities management services, utilities risk, allocation of insurance risk, provision of information and transparency and funding requirements; • has been updated to deal with developments in the market and changes of law since 2007; and • has been restructured so it is now more accessible and easier to navigate. It is accompanied by a guide to the new provisions entitled "PF2 : A User Guide". |