2.4.28 An alternative way to indexation is to build in price review mechanisms at regular intervals of the PPP contract, say once every 5 years. However, agencies should note that this price review is generally applicable for 'soft' services, e.g. catering, cleaning and grounds maintenance. The contract should clearly define the price review procedures and basis for determining the changes in price, including who or when to initiate the review, who to be consulted on the new unitary charge and how disagreements can be resolved. Through the price review, the public agency can share in significant cost decreases arising from, for example, technological improvements. Conversely, the provider may argue that the public agency should share part of the burden of any significant cost increases outside the provider's control.
2.4.29 Public agencies should note that price reviews might involve protracted negotiations, particularly when the public agency and the private provider cannot agree on the reviewed price. For complex projects, the PPP contract can allow for the appointment of an independent reviewer at the mutual consent of both parties. This reviewer can help to revise the price during the price reviews.