has been retained as an option for specialist schemes which may be operational 24/7. 4. Commissioning The LRA had only one process for Specialist and standard commissioning commissioning, which applied for all drafting options have been included. schemes regardless of how complex the commissioning requirements were for that type of facility. D: Changes to reflect best practice 1. Equipment LRA does not include standard Optional standard drafting has been Schemes should develop an drafting in relation to equipment. inserted detailing CHP and Project Co's equipment strategy for Stage 1 respective obligations concerning approval. Particular attention will supply, installation, commissioning, need to be given where clinical maintenance and replacement of equipment is procured by CHP (or a equipment. third party) but has an impact on the design and needs to be installed during the construction phase. 2. Variations Currently there is insufficient clarity Amendments have introduced greater While all schemes have greater and visibility of costs of developing, clarity around how variations are priced flexibility to request variations, for the implementing and pricing a variation. and profit margins. majority of LRAs CHP will be the gatekeeper to any variation requests to ensure such requests are Project Co may recover additional necessary and deliverable, and to administration costs incurred in discourage speculative variation processing and implementing the enquiries. variation, but it should not be permitted to charge a profit margin on any Variation pricing amendments reflect variations. current DH guidance (in the context of PFI schemes). A Schedule of Rates will be incorporated for typical Services Amendments to ensure transparency of future costs before Financial Close. 3. Benchmarking of hard Currently, the hard FM cost is fixed Benchmarking and/or market testing In our experience, an occupier's FM costs for the term of the LRA, and there is has been introduced, to take place at 5 satisfaction or otherwise with a LIFT
has been retained as an option for specialist schemes which may be operational 24/7. 4. Commissioning The LRA had only one process for commissioning, which applied for all schemes regardless of how complex the commissioning requirements were for that type of facility. Specialist and standard commissioning drafting options have been included. D: Changes to reflect best practice 1. Equipment LRA does not include standard drafting in relation to equipment. Optional standard drafting has been inserted detailing CHP and Project Co's respective obligations concerning supply, installation, commissioning, maintenance and replacement of equipment. Schemes should develop an equipment strategy for Stage 1 approval. Particular attention will need to be given where clinical equipment is procured by CHP (or a third party) but has an impact on the design and needs to be installed during the construction phase. 2. Variations Currently there is insufficient clarity and visibility of costs of developing, implementing and pricing a variation. Amendments have introduced greater clarity around how variations are priced and profit margins. Project Co may recover additional administration costs incurred in processing and implementing the variation, but it should not be permitted to charge a profit margin on any variations. A Schedule of Rates will be incorporated for typical Services While all schemes have greater flexibility to request variations, for the majority of LRAs CHP will be the gatekeeper to any variation requests to ensure such requests are necessary and deliverable, and to discourage speculative variation enquiries. Variation pricing amendments reflect current DH guidance (in the context of PFI schemes). Amendments to ensure transparency of future costs before Financial Close. 3. Benchmarking of hard FM costs Currently, the hard FM cost is fixed for the term of the LRA, and there is Benchmarking and/or market testing has been introduced, to take place at 5 In our experience, an occupier's satisfaction or otherwise with a LIFT