Program Partner Framework Agreement

Define AOC

Actual Outturn Costs - Actual Verified Sum of the following paid or incurred by the Principal for:

1. all Reimbursable Costs reasonably and actually incurred by the Contractor in carrying out Works

2. Margin

3. IDT Participant Costs

4. Principal Costs

Explain Additional Painshare

An amount equal to 50% of all Reimbursable Costs which would otherwise be paid by the Principal to the Contractor under a Works Contract after the Painshare Cap has been reached, which is paid in accordance with Clause 2 of Part A of Schedule 3

What Schedule stipulates Approved Subcontractors?

Schedule 10 or in a Work Order

Define Available Gainshare

The percentage of Gainshare stated in Clauses 3(a)(ii), 3(b)(ii) and 3(c)(ii) of Part A of Schedule 3

Where is the Confidentiality Agreement stored?

Schedule 12, Clause 5.7

Contractor’s Gainshare Entitlement

Amount calculated under Clauses 3(a)(iii), 3(b)(iii) & 3(c)(iii) of Part A of Schedule 3

Contractors Percentage Calculation

C/AM

Where:

C = Contractor’s Margin included in TOC

AM = The aggregate of the PSP’s margin and the Contractor’s Margin included in the TOC

Contractor’s TOC Component

Portion of TOC that is the Contractor’s estimated Reimbursable Costs, as may be adjusted in accordance with Clause 6.3(b) of Schedule 2

Where are the Core KPIs listed?

Schedule 9

HPI

High Potential Incident

Initial Limitation Amount

Item 7 of Key Details

Initial Security Amount

Amount notified by Principal to Contractor to Clause 7.1(a)

IDT

Integrated Delivery Team stipulated under Clause 4.1(b)

Major Incident

• Environmental Harm defined in Section 17 of EPA 1994

• Significant impact on Principal

Margin

Percentage in Item 11 of Key Details that is applied to Reimbursable Costs & payable in respect of Contractor’s profit & overhead

5 Minor Incident examples

1. Section 16 of EPA 1994

2. Release of sewage up to 10kL

3. Release of hydrocarbons which is not considered to be Good Industry Practice

4. Odour generation causing 5 parts per billion for over 30mins measured in accordance with the Odour Inpact Assessment Guideline

5. Environmental nuisance under Section 15 of EPA 1994

Open Book Basis

“Open book” manner (and spirit) in which the scope and TOC in each Model 1 Work Order is to be developed between parties, which:

• includes the First Pricing Principles

• Entitles all to have visibility of each IDT Participant’s cost build up and raw data

• Must have an auditable record of the cost build up

Framework Term [Cl 2.2]

Framework Commencement Date & continues until 5 years from Commencement Date

6 months prior to the expiry of the Framework Term, the parties may agree to extend the Term up to 3 occasions, for a period of 2 years on each occasion (6 year extension)