PPP Contracts

Standards Code (Amended and Restated)

1. Introduction and Purpose

1.1 This Code covers three elements: (a) the mechanism and basis for changing, regrading or withdrawing a Category 1 Standard;

(b) the mechanism by which and the basis upon which new Category 1 Standards are produced, developed, authorised and controlled;

(c) the mechanism by which and the basis upon which LUL or an Infraco can obtain a concession from compliance with a Category 1 Standard or Draft Category 1 Standard;

1.2 This Code is divided into the following sections: (a) Introduction and Purpose

(b) Scope

(c) Responsibilities of the Parties

(d) Changes or Regradings To and Withdrawals of Category 1 Standards and New Category 1 Standards

(e) Applications for Concessions to Category 1 Standards and Draft Category 1 Standards

(f) Register of Category 1 Standards, Draft Category 1 Standards and Changes and Concessions to Draft Category 1 Standards and Category 1 Standards

(g) Disputes

(h) Changes to this Code

1.3 To the extent applicable, the provisions of this Code shall be interpreted in accordance with clause 1.2 of the Master Definitions Agreement between LUL, BCV, JNP and SSL ( the MDA ).

1.4 Words and expressions used in this Code shall, to the extent applicable and unless defined herein or the context otherwise requires, have the meaning assigned to them in Schedule 2 of the MDA.

2. Scope

2.1 This Code applies to Category 1 Standards and Draft Category 1 Standards. These are mandatory Standards due to their importance in safety, Asset return or performance which are set, owned and managed by LUL, and include Standards in relation to the following:

Safety - those requirements essential for the maintenance and improvement of system safety; safe interworking of Trains; safe engineering work on the Underground Network; and safety assurance, that are essential to enable LUL to meet its duties as Train operator, Station operator and Infrastructure Controller, and ensure the continued validity of the LUL Safety Case;

Environment - requirements essential to ensure compliance with LUL environmental obligations, both statutory and non-statutory;

Other legal requirements - requirements essential to enable LUL to discharge other statutory obligations;

Operational performance - requirements for, and details of, satisfactory operational performance which the performance specifications in the PPP Contracts will not set out in detail;

Standardisation - requirements necessary to secure commonality across the Underground Network, where this is demonstrably desirable, and would not be likely to occur without the application of Standards, including common Customer interfaces, Station layouts and facilities, and methods of using Customer operated devices which are mandatory;

Corporate identity and image - requirements necessary to preserve and develop a consistent LUL or TfL corporate identity and image, in Customer facing aspects of the Underground Network;

Interfaces - requirements essential to specify inputs and outputs across inter-organisational interfaces, in order to achieve necessary interoperability;

Reversion - requirements to prevent LUL being exposed to unacceptable financial or other consequences of the reversion of Assets at termination or expiry of the PPP Contracts;

Information - requirements to describe the appropriate information to allow LUL to manage its activities, and to permit transfer of the functions under the PPP Contracts at termination or expiry; and

Change control - requirements to define the change control processes to be operated between LUL and Infraco and by Infraco in respect of Category 2 Standards.

2.2 All Mixed Category Standards shall, for the purposes of this Code, have the status of Category 1 Standards.

2.3 Where an existing European Standard or British Standard addresses the LUL requirement sought to be addressed by a proposed change to or a new Category 1 Standard, then the relevant European Standard or British Standard ( as the case may be ) shall have the status of a Category 1 Standard.

2.4 In this Code appropriate in social benefit terms means that the result of creating a new Standard, or of a change, regrading or withdrawal of an existing Standard or of granting a concession will either: (a) be financially positive ( involving neither additional net cost nor loss of social benefit ); or

(b) have a benefit cost ratio of 1.4:1 or better, determined ( in either case ) by reference to the Business Case Development Manual.

2.5 Where and to the extent that any document prepared by or under the control of LUL is referred to in a Category 1 Standard any change, regrading or withdrawal of such document shall be made only in accordance with this Code.

3. Responsibilities of the Parties

3.1 LUL carries the principal responsibility for the operation of the change process in this Code. Infracos shall also proactively promote the development of Category 1 Standards and make proposals for improving them or regrading them or for introducing new Category 1 Standards as appropriate.

3.2 LUL will keep Category 1 Standards and any concessions in effect at the Transfer Date or subsequently granted pursuant to this Code under review. Such review shall include identifying which Category 1 Standards either on their own or through interaction with other Category 1 Standards fail to comply with the ALARP principle and whether, notwithstanding the granting of a concession, there is still compliance with the principle that risks should be ALARP. The outcome of the review may be proposals for new Category 1 Standards, for revisions to Category 1 Standards, or for existing Category 1 Standards to be regraded to a different category or withdrawn.

3.3 In relation to the creation of a new Category 1 Standard, the change, regrading or withdrawal of an existing Category 1 Standard and the granting of a concession, LUL and the Infracos are responsible for: (a) providing a suitably competent drafting resource in support of their proposals for new or changed Category 1 Standards;

(b) ensuring that any proposed change to a Category 1 Standard is adequately reviewed by its organisation and that comments are provided in accordance with SQE P003 and SQE S019 ( or such other procedures as may replace these Standards from time to time ) within the appropriate time scale;

(c) ensuring that any change proposals to a Category 1 Standard are brought to the attention of those organisations under its control which will need to comply with the proposed changes, for their review and comment; and

(d) nominating and providing a suitably competent expert to sit on any Subject Committee.

4. Changes or Regradings To and Withdrawals of Category 1 Standards and New Category 1 Standards

Changes and Regradings to and withdrawals of Category 1 Standards

4.1 Any party may apply for a change, regrade or withdrawal to a Category 1 Standard.

4.2 Category 1 Standards shall only be changed, regraded or withdrawn when such change or regrading is: (a) essential to ensure the continued validity of the LUL Safety Case and to enable LUL to meet its duties as Train operator, Station operator and Infrastructure Controller; or

(b) essential for LUL to discharge its statutory obligations and liabilities; or

(c) appropriate in social benefit terms, consistent with the Key Objectives and will not materially alter Infraco's performance obligations provided always that where a change, regrading or withdrawal is effected pursuant to paragraph 4.2(c) above ( including the creation of a Draft Category 1 Standard ) and to the extent that such change or regrading results in Increased Infraco Cost and/or Increased Infraco Risk, Infraco shall be entitled to recover such Increased Infraco Cost from LUL and the parties shall agree the terms for dealing with the Increased Infraco Risk so as substantially to mitigate the effects of the Increased Infraco Risk in such terms as are reasonable in all the circumstances.

4.3 Arrangements and procedures for promoting the change, regrading, or withdrawal of Category 1 Standards shall ensure that: (a) all interested parties have the right to make proposals and have appropriate access to the process to do so;

(b) the requirements on parties making proposals do not impose an undue burden or delay on those parties;

(c) the merits of any proposal are properly and objectively assessed;

(d) interactions with other Category 1 Standards are identified and properly and objectively assessed;

(e) all necessary expertise is employed to achieve adequate drafting of new or revised Category 1 Standards;

(f) other than where there are several different ways of meeting the requirement, but one way must be mandated where it is necessary to ensure that all those to whom the Standard applies act consistently and safely in performing activities or applying processes in environments that are critical for safety, LUL shall as far as reasonably possible mandate a way which is more output-focussed than it is input-focussed or prescriptive;

(g) risks are identified at a preliminary stage and all parties materially affected, or likely to be materially affected, by a proposal are adequately notified and consulted ( including, to this end, the maintenance of an adequate register of addresses and agreed single points of contact for each organisation, who will receive information about all active Category 1 Standards management and development activity ); and

(h) the implications of any revised Category 1 Standard or withdrawal of an existing Category 1 Standard, and of any responses received following consultation, are reviewed by all affected parties.

4.4 The party proposing the change, regrade or withdrawal shall assign to the proposed change, regrading or withdrawal a Safety Change and Control Category in accordance with the Safety Review and Change Control Process set out in the Health, Safety and Environmental Directive B5.1.

4.5 Subject to such change, regrading or withdrawal being in accordance with the Safety Review and Change Control Process set out in the Health, Safety and Environmental Directive B5.1, LUL may, acting in its capacity as Infrastructure Controller and in its absolute discretion, revise any categorisation made in accordance with paragraph 4.4.

4.6 If the category assigned in accordance with paragraph 4.4 is category 3, LUL shall, subject to paragraph 4.9, authorise the change, regrading or withdrawal if it is appropriate in social benefit terms to do so.

4.7 If the category assigned in accordance with paragraph 4.4 ( or as may be revised by LUL pursuant to paragraph 4.5 ) is category 1 or category 2, the party applying for the change, regrading or withdrawal shall prepare a safety case paper supporting the application which complies with the Safety Control Standard 6 ( Safety Justification and ALARP ).

4.8 The safety case paper referred to in paragraph 4.7 shall be reviewed in accordance with the requirements of the Safety Review and Change Control Process set out in the Health, Safety and Environmental Directive B5.1 and in Safety Control Standard 21. LUL shall also consider whether, subject to the overriding ALARP principle, it is appropriate in social benefit terms to authorise the change, regrading or withdrawal. Subject to the provisions of paragraphs 4.9 and 4.10 the change, regrading or withdrawal shall be authorised or refused accordingly.

4.9 Notwithstanding the provisions of paragraphs 4.6 and 4.8, LUL shall not be obliged to authorise any change regrading or withdrawal if to do so would have an adverse impact on LUL's corporate identity.

4.10 The Practical Criteria for differentiating between equal solutions are: (a) ensuring ( as far as is practicable ) that LUL, the Infracos and other materially affected parties are able to meet existing or future contractual obligations;

(b) avoiding unnecessary changes in working practices;

(c) avoiding unnecessary need to develop new practices;

(d) avoiding imposing undue or unreasonable burden of costs on any particular party or parties;

(e) using best available techniques not entailing excessive costs ( BATNEEC );

(f) avoiding unnecessary barriers to innovation;

(g) avoiding as far as practicable, frequent changes in Category 1 Standards;

(h) where practicable, developing changes to related Category 1 Standards concurrently;

(i) providing all parties reasonable time to make consequential changes within their business for compliance with the changed Category 1 Standard;

(j) ensuring Category 1 Standards are sufficiently clear, adequate information is provided and requirements of those affected are clearly defined;

(k) providing all parties the maximum reasonable flexibility in deciding how they best achieve compliance; and

(l) taking into consideration the provisions of any relevant European Standard or British Standards.

New Category 1 Standards

4.11 Where currently there is neither a Standard nor a requirement for a Standard included in the Identified Standards Gap List, new Category 1 Standards or Draft Category 1 Standards shall only be created when: (a) they are essential to ensure the continued validity of the LUL Safety Case and enable LUL to meet its duties as Train operator, Station operator and Infrastructure Controller; or

(b) they are essential for LUL to discharge its statutory obligations and liabilities; or

(c) they are appropriate in social benefit terms, consistent with the Key Objectives and they do not materially alter Infraco's performance obligations, provided always that where a new Category 1 Standard or Draft Category 1 Standard is created pursuant to paragraph 4.11(c) above and to the extent that such new Category 1 Standard or Draft Category 1 Standard results in Increased Infraco Cost and/or Increased Infraco Risk, Infraco shall be entitled to recover such Increased Infraco Cost from LUL and the parties shall agree the terms for dealing with the Increased Infraco Risk so as substantially to mitigate the effects of the Increased Infraco Risk in such terms as are reasonable in all the circumstances.

4.12 The provisions in paragraphs 4.2, 4.3, 4.4, 4.5, 4.6, 4.7, 4.8, 4.9 and 4.10 relating to changes, regradings and withdrawals to Category 1 Standards shall apply equally to the procedure for creating new Category 1 Standards, with each reference in those paragraphs to Category 1 Standards to be read as references to new Category 1 Standards.

Increased Costs

4.14 Where a notice has been served under paragraph 4.13 the parties shall endeavour to agree the extent of such increase in costs and any dispute arising in connection with an increase in costs shall be a Dispute for the purpose of the Dispute Resolution Agreement.

4.15 Where any increases in costs are agreed ( or determined in accord with the Dispute Resolution Agreement ) such sums shall be paid as Exceptional Amounts provided always that Infraco shall have no liability to pay any increase in costs arising from LUL's proposal to change, regrade or create a Category 1 Standard.

Control of Category 1 Standards

4.16 Once any creation, change or regrading is authorised, Category 1 Standards shall be controlled.

Changes, Regradings and Withdrawals to Category 1 Standards requiring a rapid response

4.17 There shall be an appropriate and effective rapid response procedure, to cater for changes, regradings or withdrawals that require to be progressed, for safety or other reasons, in advance of the completion of the full procedures set out in this Code. Where the rapid response procedure is used the change, regrade or withdrawal shall, in any event, subsequently require LUL authorisation and control in accordance with the entirety of paragraph 4.

Costs of development, provision of controlled copies and IPR

4.18 All costs arising from determining and developing any proposal for the creation, change, regrading or withdrawal of a Category 1 Standard shall be borne by the proposing party. Thereafter the costs of maintaining any resulting new Category 1 Standard or change to an existing Category 1 Standard will be borne by LUL

4.19 The IPRs in the final Category 1 Standard will vest in LUL.

4.20 LUL will provide free access to a controlled copy, in an agreed medium, of all Category 1 Standards to the Infracos and others who are materially affected. LUL reserves the right to charge at cost for additional access or copies. Uncontrolled copies of Category 1 Standards may be made by Infracos at their own cost for the sole purposes of complying with their PPP Contract .

5. Applications for Concessions to Category 1 Standards and Draft Category 1 Standards

5.1 Any party may apply for a concession. The Concession Requirements are set out in paragraphs 5.2, 5.3, 5.4, 5.5, 5.6, 5.7 and 5.8.

5.2 Arrangements and procedures for promoting the granting of a concession shall ensure that: (a) all interested parties have the right to make proposals and have appropriate access to the process to do so;

(b) the requirements on parties making proposals do not impose an undue burden or delay on those parties;

(c) the merits of any proposal are properly and objectively assessed; and

(d) interactions with other Category 1 Standards and any concession authorised are identified and properly and objectively assessed.

5.3 The party applying for the concession shall assign to the proposed concession a Safety Change and Control Category in accordance with the Safety Review and Change Control Process set out in the Health, Safety and Environmental Directive B5.1.

5.4 Subject to such change being in accordance with the Safety Review and Change Control Process set out in the Health, Safety and Environmental Directive B5.1, LUL may, acting in its capacity as Infrastructure Controller and in its absolute discretion, revise any categorisation made in accordance with paragraph 5.3.

5.5 If the category assigned in accordance with paragraph 5.3 or revised by LUL pursuant to paragraph 5.4 is category 3, subject to paragraph 5.9 LUL shall grant the concession if it is appropriate in social benefit terms to do so.

5.6 If the category assigned in accordance with paragraph 5.3 is category 1 or category 2, the party applying for the concession shall prepare a safety case paper supporting the application which complies with the Safety Control Standard 6 ( Safety Justification and ALARP ).

5.7 The safety case paper referred to in paragraph 5.6 shall be reviewed in accordance with the requirements of the Safety Review and Change Control Process set out in the Health, Safety and Environmental Directorate B5.1. If the result of granting the concession sought is determined not to be ALARP, then it will not be granted.

5.8 Where the concession sought is ALARP, LUL shall then also consider whether, subject to the overriding ALARP principle, it is appropriate in social benefit terms. If so, subject to paragraph 5.9, LUL shall grant the concession.

5.9 LUL shall not be obliged to grant a concession to a Category 1 Standard or a Draft Category 1 Standard if to do so would have an adverse impact on LUL's corporate identity.

5.10 Concessions may be granted subject to conditions and on a temporary or permanent basis. A temporary concession shall state the date by which compliance with the relevant Standard must be achieved.

Concessions to Category 1 Standards and Draft Category 1 Standards Requiring a Rapid Response

5.11 There shall be an appropriate and effective rapid response procedure, to cater for concessions that require to be progressed, for safety or other reasons, in advance of the completion of the full procedures set out in this Code. Save in relation to temporary approved non-compliances which have been closed out in accordance with Standard SQE S012 ( procedure for temporary approved non-compliances - site dispensations ), the rapid response procedure shall not be an alternative to such full procedures, and shall require LUL authorisation and control in accordance with this Code.

5.12 Any party may request the extension of a concession granted. In determining whether such extension shall be granted LUL shall give consideration to the Concession Requirements.

5.13 Where there are two equal solutions in relation to a concession , the Practical Criteria referred to in paragraph 4.10 shall apply so far as relevant for differentiating between them.

6. Register of Category 1 Standards Draft Category 1 Standards and changes and concessions to Draft Category 1 Standards and Category 1 Standards

LUL will maintain a register of all Category 1 Standards and Draft Category 1 Standards and changes made in accordance with this Code which shall, in the case of any change, record accurately, in each case, the basis upon which it was determined that the change met the Objective Requirement; and a register of concessions granted in accordance with this Code which shall record accurately, in each case, the basis upon which it was determined that the concession met the Concession Requirements. LUL will provide the Infracos free access at all reasonable times to the registers maintained in accordance with this paragraph.

7. Disputes

7.1 LUL's authorisation, confirmation or refusal to authorise the creation, change, regrading or withdrawal of a Category 1 Standard and LUL's grant of, confirmation of or refusal to grant a concession against a Category 1 Standard or a Draft Category 1 Standard shall be final and binding on LUL and the Infracos and shall not be challenged nor referred to dispute resolution under the Dispute Resolution Agreement or otherwise except upon the grounds that: (a) the procedures of this Code have not been followed;

(b) the Practical Criteria have been incorrectly followed; or

(c) the Objective Requirements or the Concession Requirements have not been applied

7.2 For the avoidance of doubt, LUL's authorisation, confirmation or refusal to authorise the creation, change, regrading or withdrawal of a Category 1 Standard or LUL's grant of, confirmation of or refusal to grant a concession against a Category 1 Standard or a Draft Category 1 Standard shall be binding upon Infracos pending any final determination under the Dispute Resolution Agreement.

7.3 In the event of the parties failing to reach agreement on any matter arising in relation to LUL's authorisation, confirmation or refusal to authorise the creation, change, regrading or withdrawal of a Category 1 Standard or LUL's grant of, confirmation of or refusal to grant a concession against a Category 1 Standard or a Draft Category 1 Standard, ( save for any Dispute which is to be determined in accordance with paragraph 4.14 or paragraph 5.12 ) the parties shall create a Subject Committee and the matter shall be referred to the Subject Committee for determination. In the event of the Subject Committee failing to reach unanimous agreement, the matter shall be a Dispute for the purpose of the Dispute Resolution Agreement save that the provisions of clause 3.1 of the Dispute Resolution Agreement shall not apply and the parties shall be entitled to refer the Dispute to the PPP Board in accordance with the provisions of clause 3.2 of the Dispute Resolution Agreement as if the provisions in clause 3.1 of that agreement had been complied with.

8. Changes to This Code

8.1 Each of LUL or the Infracos shall have the right to make proposals for changes to this Code. Such proposals shall proceed in accordance with paragraph 4 as if this Code was a Category 1 Standard and may lead to changes in this Code which shall be authorised and controlled in accordance with paragraph 4.

PPP Contracts

Navigation

Elsewhere on tfl.gov.uk