Key performance indicators (KPIs) contained in the project deed are carefully calibrated and informed by experience in the relevant service delivery area.
During the service delivery phase, where the service standard KPIs have been set at a level that is not readily achievable by the private party and are above the level required by the government party, it may be mutually beneficial to recalibrate these KPIs. In return for changes to any KPI requirements, the government party should seek to achieve an offsetting benefit, via a reduction in its regular service payment, to maintain or improve the government party's value for money outcome.
During the service delivery phase due to changes in practice or new requirements, additional KPI's may be identified and negotiated with the private party.