19.5.1  Purpose

19.5.1.1  The substance of a PF2 deal should be the procurement of a Service. The payment mechanism is therefore often structured around the availability or unavailability of the Service, with unavailability resulting in a reduced payment by the Authority or, in certain circumstances, no payment. This Section applies to projects where the payment mechanism or an element thereof has been structured in this way. This Section should be read in conjunction with any relevant sector specific guidance issued by other Government Departments or Local Partnerships.

19.5.1.2  Among the most obvious examples of projects in which payment depends on availability are those that involve the provision of a building-based Service (such as a hospital, school, prison or office accommodation). Such projects are looked at in particular detail as they give rise to many issues which do not occur in other sectors - for example, the issue of paying for space that is technically unavailable but which is still used by the Authority (see Section 19.5.8 (Service Unavailable but Used)).