The Public Private Partnerships (PPP) contract
Who decides which company will win the contract?
The Project Board.
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Who owns the school under a PPP contract?
School authorities retain the ownership of school buildings and land through the duration of the project. On completion of the construction phase the PPP operator is granted a licence which permits delivery of contractual services.
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Have any schools PPP deals been signed?
Drumglass High School in Dungannon opened in September 2000. Wellington College and Balmoral High School, Belfast, opened in January 2002. St Genevieve’s High School, Belfast opened in February 2002.
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Is it always the lowest bid that gets the contract?
The contract is awarded to the tenderer that demonstrates the best value for money option.
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Who monitors the contract?
The school authority, the school and the PPP operator will all have a role in monitoring the provision of services. Contract monitoring responsibilities and the mechanism for resolving disputes must be stated clearly in the contract. A good working relationship between a school(s) and the PPP operator should help ensure that this is carried out efficiently and effectively.
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How are standards set for the services to be delivered by the PPP operator?
The standards are established during the contractual negotiations and are included in the PPP contract.
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What are the penalties if performance standards are not maintained?
The Unitary Payment may be reduced or witheld in the event that performance standards are not met.
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What happens is a PPP contract is terminated?
The PPP contract contains termination clauses which set out what will happen in the event of termination.
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What happens at the end of a PPP contract -typically 25-30 years?
The school authority has a range of options available including extension of the PPP contract, letting a new contract for services, subject to competitive tender or take on full responsibility for the provision of services. This will be a matter for the school authority in conjunction with the Department to determine at the appropriate time. The condition of the school(s) on completion of the PPP contract is specified in the PPP contract.
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