The paper describes the payment mechanism and service credit regime for the Highways Agency's National Road Telecommunications Services (NRTS) Project. Part 1 addresses the question: how can value for money be ensured when changes in demand and technology are difficult to forecast? The NRTS solution includes a "cost-reflective" price structure to deal with demand uncertainty and the use of a detailed cost model for pricing variations. Part2 outlines the service credit regime. The main element is an "availability" regime that imposes a simple deduction per outage hour. Alongside this is a "compliance regime" to ensure the supplier keeps to self-defined business processes. For the covering abstract see E134653.
Abstract