Guidance note: Procuring Agencies should consider specifying an appropriate maximum fixed percentage for the Agreed Margins in Table 12 and Table 13.

Procuring Agencies should note that the dollar thresholds in Table 13 (Agreed Margins for Change Compensation Events that occur during the Operating Phase) should be interpreted as an average per annum over those years for which there is a cost impact and the cost amounts should be considered without any savings.  Higher dollar thresholds may be appropriate where a project is a full service PPP and should be considered on a project-specific basis in consultation with the Department of Treasury and Finance.

Where the Project is a full service PPP (i.e. provision of additional ancillary and operational services), the Proposal Requirement should be updated to reflect this model.

Relevant Margin

Applicable Fixed Percentage

$0 to $1m

>$1m to $5m

>$5m

A.  Construction Margin of D&C Contractor

[Bid amount]%

[Bid amount]%

[Bid amount]%

B.  Operating Margin of Services Contractor

[Bid amount]%

[Bid amount]%

[Bid amount]%

C.  Project Co Margin

0%

0%

[Bid amount]%

Relevant Margin

Applicable Fixed Percentage

$0 to $1m
(Nominal Operating Costs per annum)

>$1m to $5m
(Nominal Operating Costs per annum)

>$5m
(Nominal Operating Costs per annum)

A.  Operating Margin of Services Contractor

[Bid amount]%

[Bid amount]%

[Bid amount]%

B.  Construction Margin of Services Contractor or D&C Contractor

Same as Construction Margin of D&C Contractor in Table 12

Same as Construction Margin of D&C Contractor in Table 12

Same as Construction Margin of D&C Contractor in Table 12

C.  Project Co Margin

0%

0%

[Bid amount]%