PFI Handback Advisory
Receive an asset, not a liability.
Documents
At the end of a PFI contract, the project company should return all project-related documents to the public sector authority. This includes project records that detail the history of the project, meeting minutes, decisions made, changes, and their rationale. The complete set of drawings for the built environment, such as architectural, structural, and engineering drawings, should also be handed over. Along with these, manuals that detail the operation and maintenance procedures for different systems within the project should be returned. Any legal documents, agreements, contracts, or permits that were part of the project should also be handed back.
All documents should be returned in an organised manner. Physical documents should be neatly filed and labelled, and digital documents should be structured in a logical file hierarchy. It’s also recommended to create an index or directory of the documents, outlining what each document or set of documents contains. All documents should be reviewed for completeness and accuracy before being handed over.
Physical
Upon expiration of the PFI contract, any physical assets like buildings or facilities that were constructed or maintained under the contract should be returned in good operating condition to the public sector authority. This might include hospitals, schools, or other public infrastructure. The expectation is that these physical assets are not only structurally sound but are also fit for the purpose they were designed for, meeting all the standards and codes that were applicable at the time of their construction.
Physical structures should be returned in their fully operational and well-maintained state. Prior to the handover, a thorough inspection should be conducted by a certified professional to ensure everything is in compliance with the relevant standards and regulations. A report of this inspection should be shared with the public sector authority, along with any necessary certificates of occupancy or other similar documents.
Knowledge
The project company should transfer any specific knowledge or “know-how” gained during the project back to the public sector authority. This could include unique processes, innovative solutions, or other lessons learned during the project. If there are any licences associated with the project, such as software licences for building management systems or proprietary technology, these should be transferred back to the public sector authority, provided they are not personal to the project company.
Knowledge transfer can be a complex process, and should be planned well in advance of the contract’s expiry. It may involve workshops, training sessions, or even secondment of staff from the public sector authority to the project company. Detailed documentation should also be provided, capturing lessons learned, processes, and techniques. Licences that are transferable should be formally reassigned to the public sector authority.
Stock
Any stock, including spare parts, supplies, and equipment that was purchased for the project should be returned. This could include maintenance tools, medical equipment for a hospital project, or educational supplies for a school project. These items should be inventoried and handed over in an organised manner, so they can be quickly put to use by the public sector authority.
Stock should be audited, catalogued, and then physically handed over to the public sector authority. This could involve moving supplies and equipment to a location chosen by the authority, or it may mean leaving the equipment in place and simply handing over control. In either case, a complete inventory should be provided, detailing what each item is, its condition, and any other pertinent information.
Protection
The project company should provide details of any outstanding guarantees or warranties for the project or elements within the project. This could include warranties for workmanship, equipment, or systems within the project. It’s crucial that these are handed back so the public sector authority can claim against them if any issues arise after the handover. If the project company has taken out any insurance policies on the project, details of these should also be provided.
Guarantees and warranties should be compiled into a single document or set of documents, outlining what each one covers, the term of the guarantee or warranty, and any actions required to maintain them. Contact details for the parties responsible for honouring the guarantees or warranties should also be provided. These documents should be handed over in digital and physical format for ease of reference.
Staff
The handback of staff at the end of a PFI contract is a critical aspect of the transition. Staff who have been employed under the project company may have valuable knowledge and experience that is important to retain. The process should be carefully managed in accordance with labour laws and contractual obligations to ensure a smooth transition. This may involve transferring staff to the public sector authority or to a new service provider. Clear communication, careful planning, and the provision of any necessary training or support will be key to ensuring a successful handback of staff.
Lifecycle Management After Handback
Lifecycle management is a critical aspect that comes into play after the handback of a PFI contract. It involves maintaining the functionality and efficiency of the asset over its lifecycle, ensuring that it continues to deliver value and meet the needs of the public. After handback, the public sector authority takes responsibility for lifecycle management, which may involve ongoing maintenance, upgrades, replacements, or even eventual decommissioning. Careful planning and budgeting are required to manage these tasks effectively and ensure the asset remains fit for purpose.
Handback of Managed Equipment Services (MES)
The handback of Managed Equipment Services (MES) at the end of a PFI contract involves transitioning responsibility for the management, maintenance, and replacement of key equipment from the project company to the public sector authority. This includes medical equipment in a hospital setting or IT infrastructure in a school. Handback should ensure that all equipment is in good working order and that any warranties, maintenance records, and relevant training materials are provided to the authority
FAQ’s
All project-related documents should be returned. This includes project records, architectural, structural, and engineering drawings, operation and maintenance manuals, and any legal documents, agreements, contracts, or permits that were part of the project. These should be organised, filed neatly, and presented with an index or directory for easy reference.
Any physical assets like buildings or facilities that were constructed or maintained under the contract should be returned in their fully operational and well-maintained state. Prior to the handover, a thorough inspection should be conducted by a certified professional to ensure compliance with relevant standards and regulations. A report of this inspection, along with necessary certificates of occupancy or similar documents, should be shared with the public sector authority.
Knowledge transfer is comprehensive and may involve workshops, training sessions, or even secondment of staff from the public sector authority to the project company. Detailed documentation capturing lessons learned, unique processes, and innovative solutions should be provided. Any licences associated with the project should be formally reassigned to the public sector authority, provided they are not personal to the project company.
Any stock, including spare parts, supplies, and equipment, should be audited, catalogued, and physically handed over to the public sector authority. An inventory detailing each item, its condition, and any other pertinent information should be provided. The specific process may involve moving items to a location chosen by the authority or leaving the equipment in place and simply handing over control.
All outstanding guarantees or warranties should be compiled into a single document or set of documents, detailing what each one covers, the term, and any actions required to maintain it. Contact details for the parties responsible for honouring these guarantees or warranties should also be included. These documents should be handed over in both digital and physical formats for ease of reference.
Staff transition should be handled with care and in compliance with labour laws and contractual obligations. Employees may be transferred to the public sector authority or to a new service provider. Throughout the process, clear communication is essential to mitigate uncertainties. It may also be necessary to provide training or support to ensure a seamless transition. In some cases, staff members may choose to leave or retire; contingency plans should be in place to handle such situations and to ensure continuity of service.
After the handback of a PFI contract, the public sector authority assumes responsibility for lifecycle management. This involves maintaining, upgrading, or replacing components of the asset as necessary over time to ensure it continues to function efficiently and meet the needs of the public. This requires careful planning, budgeting, and execution, potentially involving specialised staff or service providers. It’s crucial to align lifecycle management strategies with broader public service goals and budgets.
The handback of MES should involve a thorough audit of all equipment, confirming that it’s in good working order. Any warranties or maintenance agreements should be transferred to the public sector authority, along with detailed maintenance records. Furthermore, training materials or sessions may need to be provided to ensure that the authority’s staff can effectively manage and maintain the equipment. In some cases, arrangements may need to be made for the ongoing support or replacement of certain equipment.
