PPP Contracts

Schedule 3.3 - Assurance

Purpose

1 The purpose of the provisions in this Schedule is for Infraco to demonstrate to LUL that its processes in relation to the activities set out in paragraph 3.1 below are Controlled Processes, thereby providing LUL with confidence that Infraco is complying with its obligations under the Contract.

Assurance Chain

Assurance Chain has the meaning ascribed to it in Standard 2-05107-701 ( Safety and Technical Assurance ) as amended from time to time under the Standards Code and as further described in this paragraph 2:

Level in the Chain	Participant type	Area of concern/ responsibility
(1)	LUL	Network/system
(2)	Infraco	system/Assets
(3)	Main contractors and sub-contractors	system/sub-systems/Assets
(4)	Suppliers	Equipment

Assurance Regime

3.1 Infraco shall develop and, subject to paragraph 3.5 below, implement and comply with a regime ( the Assurance Regime ) to ensure that its processes for: (a) the initiation, development, design, construction, delivery, testing, commissioning and handover of new, refurbished or altered systems and assets;

(b) the maintenance, operation and management of systems and assets;

(c) the withdrawal from service, de-commissioning and demolition, as appropriate, of systems and assets; and

(d) the obtaining of all necessary consents required under Law or Legislation in relation to any Development, are Controlled Processes. The Assurance Regime shall demonstrate that Infraco's assurance arrangements in relation to the above are consistent with, and adequately linked to, its assurance arrangements in relation to safety and generally explain how the Assurance Regime meets the above requirements.

3.2 Infraco shall, within six (6) months of the Transfer Date, submit to LUL its Assurance Regime.

3.3 Infraco shall prepare and submit a report ( Annual Assurance Report ) to LUL every Contract Year which shall describe any changes to the Assurance Regime and update the overall explanation of how the Assurance Regime meets the purpose set out in paragraph 3.1 above.

3.4 The parties shall consult and confer together in relation to the Assurance Regime and in relation to each Annual Assurance Report for a reasonable period ( not less than six (6) weeks ) after delivery of the relevant document to LUL by Infraco. Within six (6) weeks thereafter, LUL may give notice to Infraco requesting any changes it wishes Infraco to make to its Assurance Regime or an Annual Assurance Report ( as the case may be ) or any elements thereof ( such notice shall be in writing and shall include an explanation of why such changes are proposed ).

3.5 Infraco's Assurance Regime and Annual Assurance Reports shall not become final until approved by LUL. LUL may withhold such approval only to the extent that it has reasonable grounds for believing that the application of the regime as described in the Assurance Regime or the Annual Assurance Report ( as the case may be ) will not result in Infraco meeting the obligations set out in this paragraph 3 and achieving the purpose set out in paragraph 1 above.

3.6 If LUL withhold approval of the Assurance Regime or an Annual Assurance Report or approves the aforementioned subject to conditions or amendments, Infraco may either: (a) accept the Assurance Regime or Annual Assurance Report ( as the case may be ) with such conditions and amendments, in which case it shall adopt and comply with the Assurance Regime or Annual Assurance Report ( as the case may be ) as amended as if such conditions and amendments had been proposed by Infraco itself; or

(b) dispute LUL's withholding of approval or its conditions or amendments on the basis that LUL has no reasonable grounds for believing that it will result in Infraco failing to meet the obligations set out in this paragraph 3 and to achieve the purpose set out in paragraph 1 above. In the case of (b) the provisions of clause 49 ( Dispute Resolution ) of the Contract shall apply. Pending the resolution of any dispute, the Assurance Regime and the Annual Assurance Report shall be deemed to be approved save in relation to the matters in dispute, and the provisions of the last approved Assurance Regime as amended by any changes described in the Annual Assurance Report which are not in dispute shall, so far as is reasonably applicable, continue to apply in relation to such matters.

3.7 During the Contract Period, Infraco shall provide assurance in accordance with paragraphs 4 and 5 below to LUL that Infraco's Assurance Regime is suitable to comply with the obligations set out in this paragraph 3 and to achieve the objectives set out in paragraph 1 above.

Assurance Plans

4.1 Infraco shall prepare assurance plans as required by Standard 2-05107-701 ( Safety and Technical Assurance ) ( Assurance Plans ) as amended from time to time under the Standards Code.

4.2 In relation to the initiation, development, design, construction, delivery, testing, commissioning and handover of new, refurbished or altered systems and assets, Infraco's Assurance Plans shall: (a) define Infraco's assurance milestones; and

(b) define Infraco's proposals for providing evidence of assurance to LUL at each assurance milestone, by way of tests, demonstrations or otherwise.

4.3 Infraco shall submit to LUL Assurance Plans which are required to be submitted to any regulatory body and, upon LUL's request, any other Assurance Plans.

4.4 The parties shall consult and confer together in relation to the Assurance Plans submitted to LUL for a reasonable period ( not less than six (6) weeks ) after its delivery to LUL by Infraco. Within fourteen (14) days thereafter, LUL may give notice to Infraco requesting any changes it wishes Infraco to make to its Assurance Plans or any elements thereof ( such notice shall be in writing and shall include an explanation of why such changes are proposed ).

4.5 An Assurance Plan shall not become final until approved by LUL. LUL may withhold such approval only to the extent that it has reasonable grounds for believing that it is inconsistent with Infraco's Assurance Regime.

Audit

5 LUL and Infraco shall co-operate in the development of a framework and programme of assurance audits to be carried out by LUL in accordance with clause 15 ( Audit ) of the Contract and Schedule 5.12 ( Audit ). The framework shall provide details of the activities and processes which LUL shall adopt in undertaking assurance audits. The programme of assurance audits shall be a twelve (12) month rolling programme which shall be joint reviewed and updated every twelve (12) weeks by LUL and Infraco.

Assurance Meetings

6.1 LUL and Infraco shall co-operate in the development of a programme of assurance meetings for the exchange of feedback in relation to assurance, where appropriate with other Infracos and other contractors.

6.2 Assurance meetings shall include: (a) an engineering partnership meeting ( being a joint meeting of LUL and the Infracos ) to review:
(i) formal investigation reports and action monitoring;

(ii) forthcoming works plant and equipment submissions;

( iii ) outstanding Improvement and Prohibition Notices imposed by HM Railways Inspectorate or the London Fire and Emergency Planning Authority;

(iv) outstanding Chief Engineer's Regulatory Notice;

(v) asset condition assessments and asset certificates; and

(vi) Infraco Assurance Regimes and Assurance Plans; and
(b) partnership meetings ( being separate meetings between each of the Infracos separately and LUL ) to consider proposed changes to the elements to be contained in an Asset Management Strategy, Annual Asset Management Plan and a Work Package Plan; and

(c) such other assurance meetings as the engineering partnership meeting deems appropriate.

6.3 LUL shall provide feedback to Infraco at the engineering partnership meetings on the workings of the Assurance Regime and the level of confidence which LUL is deriving under it.

PPP Contracts

Navigation

Elsewhere on tfl.gov.uk