e: chris@spencerconsulting.co.uk
t: 07801 649309
t: 07801 649309
Glossary of Terms
| ADSCR | Annual Debt Service Cover Ratio |
| BAFO | Best and Final Offer |
| BSF | Building Schools for the Future |
| CABE | Centre for Architecture in the Built Environment |
| CDM | Construction Design & Management Regulations |
| D&B | Design & Build |
| DBFO | Design, Build, Finance and Operate |
| Debt Service | The amount of debt interest and the principal repayments |
| Discount Rate | The interest rate used in calculating the NPV of expected future cashflows. |
| DSCR | Debt Service Cover Ratio |
| EIB | European Investment Bank |
| Equity | The ownership interest in the SPC |
| FBC | Full Business Case |
| FC | Financial Close |
| FITN | Final Invitation to Negotiate |
| FM | Facilities Management |
| GAAP | Generally Accepted Accounting Principles. |
| IAS | International Accounting Standards |
| ICT | Information and Communication Technology |
| IFRS | International Finance Reporting Standards. |
| IRR | Internal Rate of Return |
| ISOP | Invitation to Submit Outline Proposals |
| ITN | Invitation to Negotiate |
| ITT | Invitation to Tender |
| LAFO | Last and Final Offer |
| LEP | Local Education Partnership |
| LIBOR | London Interbank Offer Rate |
| LLCR | Loan Life Cover Ratio |
| Loan Stock | A loan from shareholders to the SPC. See also subordinated debt. |
| M&E | Mechanical and Electrical |
| NPV | Net Present Value |
| OBC | Outline Business Case |
| OJEU | Official Journal of the European Union |
| PA | Project Agreement |
| PB | Preferred Bidder |
| PFI | Private Finance Initiative |
| PfS | Partnerships for Schools |
| PIN | Prior Information Notice |
| PITN | Preliminary Invitation to Negotiate |
| PPP | Public Private Partnership |
| PQQ | Pre-Qualification Questionnaire |
| PSC | Public Sector Comparator |
| PSP | Private Sector Provider |
| PUK | Partnerships UK |
| Refinancing | The process of changing the terms of the finance to create refinancing benefits for the shareholders and the public sector authority |
| Risk transfer | The passing of risk under contract from one party to another |
| RPI | Retail Price Index |
| RPI-X | RPI excluding mortgage interest payments |
| SBC | Strategic Business Case |
| Senior Debt | The major funding component (typically 90% of the funds required for construction, etc.) provided by banks or bonds. |
| SPC | Special Purpose Company - a company especially established to carry out the concession |
| SPV | Special Purpose Vehicle - same as SPC |
| SSAP | Statement of Standard Accounting Practice |
| Sub-Debt | Subordinated Debt - a form of debt that has lower priority for repayment than the senior debt. See Loan Stock. |
| TUPE | Transfer of Undertakings (Protection of Employment) Regulations 1981 |
| UC | Unitary charge - the periodic payment, usually monthly, that the public sector agrees to pay for the provision of services |
| UP | Unitary Payment - same as UC |
| VFM | Value For Money |
| WLC | Whole Life Costs |
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