Country: Global / Non-Specific
In infrastructure projects involving existing assets or utilities, the data provided prior to commencement of the contract is often inaccurate, resulting in inaccuracies in the assumptions for financial modeling and performance standards. This note considers the problem and provides sample wording for an initial benchmarking period at
the beginning of a contract.
General: A benchmarking period enables the operator to establish, with the participation of the awarding authority, the base case for performance and asset condition during a preliminary phase of the project. The disadvantages are that: -
The alternative solution is for the base data to be established prior to contract commencement by consultants or other third party; however, it is often difficult to establish the performance parameters where day to day management is not being overseen as it is difficult to verify data such as billing through isolated verification.
This document has been prepared for the purposes of the PPP Legal Resource Center (PPPLRC). It is a checklist for general guidance purposes only and should not be used as a substitute for specific legal advice for a project.
Updated: January 27, 2022