In late March, NISTA published a range of guidance materials as part of the PFI contract management programme to support those in the public sector managing operational PFI projects.
In any complex and long-term service contract appropriate contract management, underpinned by a detailed understanding of the relevant areas of the contract, is key to ensuring successful operational performance, constructive relationships and management of costs.
Given the length of PFI arrangements, corporate memory can often dwindle and, with the pressures of broadly-scoped estates roles and overlapping responsibilities, the resources within the Guidance seek to support estates teams and contract managers in understanding their contracts, establishing and dealing with gaps, improving performance and building capability in the public sector.
The guidance aligns with the Cabinet Office contract management playbook, published a day earlier, but is specific to PFI projects.
Key guidance and tools now available
A foundations document, providing an introductory guide to PFI projects for those who may be new to a PFI or seeking to refresh their knowledge.
- Contract review guidance setting out scoping / structures for contract reviews and gaps analyses, providing a number of suggested templates / toolkits.
- Support for document stocktakes and ongoing document management, vital for clarity in relation to routine variations, decarbonisation projects and handback.
- Gaps and ambiguities guidance, setting a framework for gaps analysis important to ensure parties are aligned on contractual understanding and reduce the risk of disputes in relation to legal drafting arising.
- Guidelines in relation to governance to support relationships and enable timely but robust project decision-making, suggesting governance review and enhancement.
- Direction on the design, sourcing and implementation of a proactive PFI intelligent client function.
- Creating, implementing and using a contract management plan, translating contract management strategy into a practical tool, as well as guidance for contract management strategy itself.
With many project handbacks fast approaching as well as decarbonisation projects continuing at pace, alongside business-as-usual estates management and operational issues, ensuring clarity on contractual terms and oversight of on-the-ground performance is more important than ever.
The guidance provides resources that will be welcomed by public sector contract managers and the private sector alike, but capacity to fully implement those resources within contracting authorities alongside multiple competing demands will likely remain a key issue in the sector in the immediate term.
If you’d like to discuss the benefits of a PFI contract review, navigating and applying the guidance or understand more about how we can support you on your PFI projects, please contact Nick Helm or Chris Hardy.
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