Passenger Service Contract Guide



1. Introduction

Before drafting a Transport Services Contract, some form of gateway procedure should have been adopted that would include a thorough feasibility study, a review of options, and a continuing assessment of value for money at particular stages of the procurement process, including before the process commences and immediately prior to execution of the Transport Services Contract, as was indicated in the body of the Toolkit.

A key difference of approach between civil law and common law jurisdictions is the interpretation by the judiciary of Transport Services Contracts between what was written and what was intended. Under civil law, Transport Services Contracts need not set out what is already included under the civil code. These points were also highlighted in Introduction to the Guide for a .

1.1 Purpose

The three main objectives of a Transport Services Contract are the following:
  • Promote understanding of the main responsibilities and risks undertaken by parties to the Transport Services Contract;
  • Specify service levels to be delivered by the private sector and the flow of payments from the Passenger Transport Authority (PTA) to the Contractor without extended negotiations;
  • Establish consistent approach and pricing among bidders in any competitive tendering procedure following the introduction of the reforms.

    
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