F10 In some cases the contract may be separable, ie the commercial effect will be that elements of the PFI payments operate independently of each other. 'Operate independently' means that the elements behave differently and can therefore be separately identified. Any such separable elements that relate solely to services should be excluded when determining whether each party has an asset of the property. In establishing whether the contract is separable, regard should be had to the terms of the contract and how the payments vary under different scenarios: it will not be relevant that the contract designates the payments as ,unitary' or, indeed, what labels they are given. In particular, where the PFI contract includes ancillary services, such as catering and cleaning, the payments for these services may be separable. A contract may be separable in a variety of circumstances, including but not limited to the following.
(a) The contract identifies an element of a payment stream that varies according to the availability of the property itself and another element that varies according to usage or performance of certain services.
(b) Different parts of the contract run for different periods or can be terminated separately. For example, an individual service element can be terminated without affecting the continuation of the rest of the contract.
(c) Different parts of the contract can be renegotiated separately. For example, a service element is market tested and some or all of the cost increases or reductions are passed on to the purchaser in such a way that the part of the payment by the purchaser that relates specifically to that service can be identified.