13.1  Key Performance Indicator regime

(a)  A comprehensive KPI regime will apply to the private party with a view to measuring performance under the contract and ensuring the government's minimum requirements are met. The detailed KPIs are articulated in specifically measurable metrics so they are capable of being reported against by the private party and independently audited. For example, in the case of tollroads, they may cover:

(i)  customer service and satisfaction (e.g. customer responsiveness, complaint resolution, billing accuracy);

(ii)  communication and community obligations (e.g. quality of marketing material, community liaison activities);

(iii)  environmental (e.g. air quality in tunnels, water discharge);

(iv)  quality assurance;

(v)  operations and maintenance requirements;

(vi)  incident management (i.e. response times); and

(vii)  aesthetics.

(b)  The private party must use its best endeavours to achieve a level of performance in respect of each KPI to a particular KPI benchmark (usually expressed as a percentage). For example, in respect of a "customer service and satisfaction" KPI, x% of customer calls should be answered within y seconds.

(c)  Each KPI will be assessed within a defined period (e.g. monthly, quarterly, annually) and failure to meet the KPI benchmark will result in the private party incurring demerit points. At the end of each financial year, the private party must notify government of the aggregate demerit points it has accumulated and the applicable KPI credit owed to government for that period (calculated by multiplying the number of demerit points by a unit dollar value e.g. $1000).

(d)  Government may pass the monetary value of the KPI credit back to users of the facility or use it for any other purpose.

(e)  The existence of the KPI regime does not detract from government's entitlement to exercise any and all other rights it may have against the private party for non-compliance. Significantly, the private party gives a number of acknowledgments designed to ensure the enforceability of the KPI regime, including that the KPI credits are a genuine pre-estimate of loss that the government will suffer if it fails to comply with a KPI and that the KPI regime is not penal in nature.