4.17 To increase the visibility of lifecycle costs in PF2 projects, an open book approach to lifecycle costs will be adopted between the procuring authority and the contractor. This will ensure that the provision of services and associated expenditure is transparent and the public sector understands exactly what it is paying for.
4.18 To accompany this client-contractor transparency and to ensure that any unforeseen surplus lifecycle funding is fairly addressed, the public and private sector parties will review the actual and planned lifecycle expenditure every five years. Any genuine surplus that is identified will be recorded and any aggregate lifecycle surpluses at the contract expiry will be shared equally between the procuring authority and the contractor. The authority will have the option of requiring an independent lifecycle review.
4.19 The lifecycle surplus will be calculated through a comparison of anticipated lifecycle spend with actual lifecycle spend. By leaving the surplus in the project company lifecycle fund, the surplus will still be available for 'topping up' purposes if the actual lifecycle expenditure is higher than anticipated, but the open book approach will ensure that any reduction in the surplus is justified.
4.20 For more detail on the lifecycle provisions refer to sections 9.2 (Lifecycle fund) and 9.3 (Expiry of the contract) in the Standardisation of PF2 Contracts.