PFI CONTRACT MANAGEMENT
The timing and planning around physical surveys, together with resolving issues associated with the transition prior to the end of the contract, will all need to be resourced and managed.
well-established methodologies – such as the application of RICS condition grades and indicative costs based on recognised pricing mechanisms – is an essential. Defects and compliance issues may also need to be considered.
Collaboration and cooperation will bring a quicker solution to any differing stakeholder views: Getting around a table, with an expert voice such as a specialist built environment management consultancy that understands healthcare and the issues around PFI, can be invaluable. Producing lifecycle models, assessing risk appetite, and creating financial modelling during handback, and following handback processes, will be as important for longevity and futureproofing of the estate.
Ensure robust commercials: Having transparency and understanding around the issues, and establishing goals to achieve robust commercials will be a key component. Aligning lifecycle financial modelling with present-day profit and loss, and looking at the wider commercial impacts such as environmental measures and their longer-term gain and social value within communities, might all play a part in the overall commercial viability of the estate.
Compliance: Being not just aware, but compliant with health and safety statutory requirements and guidance is essential, especially in healthcare settings. Estates managers within Trusts will need to maintain ‘business as usual’ with limited resource and skills shortages, so need to ensure that they are equipped or supported by external resource, and that undertaking ‘business as usual’ doesn’t compromise any of these health and safety requirements.
Conclusions As with all commercial partnerships, when they come to an end, ensuring that the transition is as smooth and efficient as possible is often dependent on the parties being engaged, collaborative, and transparent, about what has been achieved, and what is still to be finalised. The good news with PFI contracts is that by starting now there is time to properly plan this process, and – as with all successfully managed projects – understanding the remit from the beginning, what has happened in the duration of the project, and ensuring that the end aligns with the objectives and aims, even if these have evolved from the start of the project, will ensure that NHS Trusts inherit an asset rather than a liability.
References 1 Guidance: Private Finance Initiative Process. HM Treasury. Published 14 October2019. https://tinyurl. com/37ax47sj
2 Private Finance Initiative and Private Finance 2 projects: 2016 summary data. HM Treasury and Infrastructure and Projects Authority. Published 20 December 2016. https://tinyurl. com/3s84ubwz
3 Preparing for PFI contract expiry. Practical guidance for contracting authorities on managing expiry and service transition. Infrastructure and Projects Authority. Published 28 February 2022. https://
tinyurl.com/4nhjckwr
Lisa Barnes
Lisa Barnes is a Partner at Rider Levett Bucknall UK, having qualified as a Chartered Building Surveyor in 1992. Having been at RLB for nearly 16 years, she has over 30 years’ overall experience in construction and building surveying. Working across West and Wales, typically no day is the same; she is currently managing a number of commissions which encompass a wide variety of cross- functional services to enable clients to make informed decisions about the built assets they manage, including Lifecycle and Asset Management, Fire Safety, Asset Condition Surveys, Building Refurbishments, Retrofit, and Alterations.
She has special interest and expertise within healthcare estates management, having worked for clients including Royal United Hospitals Bath, Royal Cornwall Hospitals NHS Trust, and Isle of Wight NHS Primary Care Trust among others. Over the last few years, she has specialised in PFI contract handback projects, supporting healthcare estates stakeholders in managing the process and delivery of handback of their estates from private operators.
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October 2022 Health Estate Journal 45
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