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Department of Health Standard Form Project Agreement (Version 3)
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Last modified date:8 June 2007
Published August 2003 with amendments in July 2004 and February 2007.
In August 2003 the Department of Health Private Finance Unit introduced the second revision to the NHS standard form of project agreement first published in December 1999. This supersedes the second version published in November 2000.
The attention of anyone wishing to use the project agreement is drawn to the "Important Notice" set out on the front of the revised version. That notice provides details of the restrictions that apply to the use of the standard form and those schemes on which it can be used.
A full description of all of the amendments has not been included. Instead of this, two versions of each of the project agreement and the schedules are provided, one of which highlights the amendments which have been made to the November 2000 version. The other document is a "clean" version of the new version.
The schedules are included in 2 'zipped' files, the first contains a document with all of the unchanged schedules and clean copies of each of the amended schedules and those schedules which are new to this version. Marked up copies of all the amended schedules are included in the second file.
In addition two further documents are included. These are both alternative versions of Clause 30 dealing with employment issues. The first addresses the situation in which ROE does not apply (for example, hard fm schemes), the second deals with projects where there are no staff transferring.
Amendments and updates: July 2004 and February 2007
Published below the main Version 3 documents are four documents which track changes since Version 3 or add to it:
i. 'Changes to standard form 3': This contains a revised list of the agreed amendments to and typos in Standard Form version 3. Some of them are necessary to implement the revised Treasury Guidance on the Standardisation of PFI Contracts.
ii. 'Permitted Borrowings and Senior Debt Amount': the finalised Treasury guidance on permitted borrowings and senior debt amounts has been adapted for use with the NHS Standard Form and is set out in this document, revised February 2006.
iii. 'Standard form Early Works Agreement': first published February 2006
iv. 'Standard form Independent Tester Agreement (for use in Schedule 15)': revised February 2006
Below these are two more documents - the new versions of the Payment Mechanism and energy principles papers - following the consultation and review exercise conducted by PFU.
v. Payment Mechanism (Schedule 18): revised February 2006
vi. Revised Energy Principles Paper: revised February 2006
vii. Calibration Model
The energy principles paper assists readers in understanding the new energy provisions in the payment mechanism. It includes drafting relating to the Greenhouse Gas emissions Trading Scheme Regulations 2005. Guidance on these Regulations is available on the DEFRA website.
Changes to the main body of the payment mechanism include a simplified approach to performance failures, whilst retaining the concept of deductions related to whole tariff for unavailability. Further explanatory guidance on the key improvements has been published on this website.
A calibration model has been procuded which allows trusts and bidders to estimate the likely value of risk transfer resulting from the calibrated payment mechanism.
A guidance note has been prepared to assist users of the revised Payment Mechanism (schedule 18)
Contacts
If you have any queries in respect of the standard form project agreement you are asked to contact one of the following members of the Private Finance Unit:
Sarah Brooke 020 7633 4119
Sarah Draper 020 7633 4108
Ingrid Hoffbauer 0113 2546906
Katherine Ibbotson 0113 2545525
Paul Townsend 0113 2545194
Rebecca Wilson 020 7633 4123
Paul Webster 0207 6334121
- These documents have been zipped up. Click here to download Winzip. (opens new window)
- Download the full Standard Form Project Agreement Version 3 (ZIP, 189K)
- Download the full Standard Form Project Agreement Version showing changes from Version 2 (ZIP, 410K)
- Download Clause 30 - where ROE does not apply but there are staff transfers (ZIP, 29K)
- Download Schedule 30 - where there are no staff transfers at all (ZIP, 15K)
- Download document with all of the unchanged schedules and clean copies of each of the amended schedules and those schedules which are new to this version (ZIP, 544K)
- Download marked up copies of all the amended schedules (ZIP, 441K)
- Download Changes to standard form 3 - revised February 2006 (RTF, 334K)
- Download Permitted Borrowings and Senior Debt Amount - revised February 2006 (RTF, 329K)
- Download the standard form Early Works Agreement - first published February 2006 (RTF, 123K)
- Download the standard form Independent Tester Agreement (for Schedule 15) - revised February 2006 (RTF, 115K)
- Download Payment Mechanism (Schedule 18) - revised November 2006 (DOC, 527K)
- Download calibration model for the Payment Mechanism (schedule 18) (XLS, 5278K)
- Download guidance note on the Payment Mechanism (schedule 18) (PDF, 63K)
- Download the Energy Principles paper - revised February 2006 (PDF, 82K)
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