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Glossary of main terms

2G contracts
Second generation contracts which started on 1 April 2001 in all Units. These contracts continued in NW and SW until 31 March 2006 and in NE and SE until
31 March 2007.

3G contracts
Third generation contracts which were tendered in two phases. NW and SW were tendered first. They have used these contracts since 1 April 2006. NE and SE started to use these contracts on 1 April 2007.

Budget
Money allocated by Transport Scotland to manage and maintain the network during a financial year. This includes operations and works contracts.

Category 1 defects
Serious road faults, such as potholes, that should be repaired within set timescales.

Contract control and management system (CCMS)
A computer-based financial management system supplied and operated by the OCs to a specification provided by Transport Scotland.

The system gives everyone working on the contract, including Transport Scotland and PAG, access to information about how operations and works contracts are being managed and where money is being spent.

Contract price fluctuation factor (CPF)
Inflation adjustments to the OCs’ tendered rates and prices.

Financial year
The period between 1 April 2007 and 31 March 2008.

Key performance indicators (KPIs)
The contracts state that a list of indicators must be provided by the OCs to show how they are performing and to allow comparisons between Units.

Network
The system of motorways and trunk roads in Scotland. The network is 3,128 km long and varies from urban motorways to rural single carriageways (see figure 1). In addition, a total of 107 km of motorway is covered by the M6 DBFO and M77 PPP projects.

Notice of non-conformance (NNC)
The process used in the 3G contracts to flag up where the OCs are not complying with the contract. This is issued by PAG.

Operations
Work carried out by the OCs.

Orders
Instructions issued by Transport Scotland to the OCs. These give details of operations (not works contracts) to be carried out under the contract by the OCs. The OCs should not start operations until an order has been issued.

Quality management system (QMS)
Quality management is fundamental to the contracts. A QMS is drawn up by each OC to show how it will carry out every function required of it under the contract.

Remedial notice
A procedure used under the 3G contracts where Transport Scotland can issue a notice when an OC commits a default. This is part of the performance management procedures and may lead to withholding amounts from payment.

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