Elements of the contract

•  The commencement date of the contract; the term of the contract including the ability to extend the term and at whose option. This information would include details of future transfers of assets of significant value to Government at no or minimal cost, and details of the right to receive the asset as well as when this might occur;

•  Description of change control provisions (i.e. what happens if ownership of a party changes);

•  Service delivery (including maintenance) and quality requirements in terms suited to the non-technical reader. Performance measurement may be linked to an agreed set of standards or key performance indicators, which will generally relate to the quality, amount and frequency of service provision;  

•  What and when assets are to be transferred by the public sector to the contractor;

•  Operation and/or maintenance provisions in the contract expressed in non-technical terms;

•  The price to be paid by the public, and the basis for future changes in this price. This should include a statement setting out the basis on which price is computed or projected;

•  Provisions for renegotiation;

•  Significant guarantees or undertakings between the parties. This would include loans entered into or agreed to be entered into;

•  A statement that the Auditor-General's ability to carry out the audit function under the Public Finance and Audit Act 1983 has not been diminished by the contract(s) by, for example, removing or limiting access to records, information, etc. that should otherwise be available;

•  A description of the events of default;

•  A description of termination rights (including for convenience, for default and any other grounds of termination);

•  A statement as to contractual remedies available to the Government in respect of breach or losses otherwise caused by the other party or parties, and remedies against the Government in any circumstances;

•  A description of exit/disengagement arrangements, including the basis for calculating the cost of disengagement;

•  A description of the situations in which the Government may exercise its contractual right to step-in (i.e. assume all or some of the service delivery obligations of the private party for a period of time);  

•  A description of any pre-determined dispute resolution process;

•  A description as to how insurance proceeds are to be used in the event they are called upon (e.g. reinstatement of the asset, payment to the financiers); and

•  Any other key elements of the contractual arrangements if they have not been covered above.