Supplementary memorandum by Merseytravel
(LR 78A)
THE FUTURE OF LIGHT RAIL AND MODERN TRAMS
IN BRITAIN
RECTIFICATION AND
FAULT ATTRIBUTION
AGREEMENT
Further to giving evidence to the Committee's
Inquiry into Light Rail on Wednesday 9 March on behalf of Merseytravel,
I thought it might assist the Committee to provide a short written
briefing note on the Rectification and Fault Attribution (RAFA)
Agreement for Merseytram.
Under the proposed terms of the contractual
structure for Merseytram, Merseytravel will enter into separate
contracts with:
— The Concessionaire—responsible
for operation and maintenance of the system;
— The Project Manager—responsible
for detailed design, supervising construction, systems integration
and programme management;
— The Vehicle Supplier—responsible
for providing trams; and
— The Contractor—responsible
for construction, services and meeting the programme.
In order to ensure co-operation and co-ordination
between these partners, each party will be required to enter into
a Master Agreement. The Master Agreement will, contractually,
require each party to integrate their work into a single fault
attribution and financial claims resolution process.
Should any systems faults emerge then all of
the parties must work together to remedy the fault under a quick
resolution procedure, before blame is attributed.
Once this problem has been resolved the Master
Agreement then enables the partners to settle financial liability
for the fault separately. If, however, agreement between the parties
regarding liability cannot be reached through dialogue, then a
further adjudication process can be triggered.
Merseytravel has elected to proceed using the
RAFA Agreement as it ensures that any problems that may arise
during the commissioning or operational phase of the project are
fixed at the earliest opportunity irrespective of fault.
Merseytravel believes that the RAFA Agreement
provides a win-win scenario. In addition to protecting the public
interest by ensuring that the contractors' priority is to first
resolve any problems that arise, it also protects the interests
of the private sector by enabling our partners to resolve any
financial liabilities to their satisfaction.
I trust this briefing note assists the Committee
in its Inquiry but please do not hesitate to contact me should
Members require any further information.
Neil Scales
Chief Executive and Director General
15 March 2005
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