9.4.1 In projects where the Assets are unlikely to revert to the Authority on termination, and the Contractor is taking a risk on their residual value, then it is in the interests of the Contractor properly to maintain any Assets. Accordingly, the Authority may be less concerned to put in place protections in respect of asset condition on expiry of the Contract (unless it retains an option to purchase).
9.4.2 In contrast, if the Assets are likely to revert to the Authority on termination at no cost or a fixed price, then the Authority will have to ensure that the price it is paying for the Service during the term of the Contract (and on which its value for money assessment has been made) includes coverage for appropriate maintenance obligations. Generally, the transfer or reversion to the Authority at the end of the Contract will be at zero cost. In these circumstances, the Contract should provide for sums to be retained in the final years (or alternatively bonding to be provided by the Contractor) if handback surveys reveal that significant maintenance is likely to be required to ensure that the relevant Assets meet the handover requirements at the end of the term of the Contract (see Section 10 (Surveys on Expiry and Termination)).