6. In addition to the capital cost of the change, the SPV will need to price in the cost of on-going maintenance of the item together with any lifecycle replacement cost. Because of the nature of low value changes, these costs are unlikely to apply. For medium and high value changes, contract managers should review maintenance and lifecycle fees on a case by case basis and not accept an automatic mark-up for all changes.
7. When a change is requested late in the operational phase, it is unlikely to need a lifecycle contingency and similarly, the related maintenance cost should be low. Authorities will want to know that the lifecycle replacement has taken place and may wish to impose conditions whereby the money is refunded to the authority if the lifecycle work is not carried out.