Tailored services to fit your needs
Our bespoke methodology focuses on people, processes and technology
This methodology allows us to deliver transformation in contract management and has been refined over a wide range of engagements with commercial and public sector organisations, and through the combined experience of our consultants with over 50 years in public health management and commercial legal practice.
Reset & Expiry
As with all long-term relationships there is a need, from time to time to re-evaluate and in some cases re-set the relationship. This is now happening with many PFI projects as they approach mid-life and beyond.
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JCM provides support to organisations which are responsible for the day-to-day management of PFI and other public-to- private contracts.
This support ranges from sourcing interim contract managers through to specific advice on matters such as variations, market testing, governance and the commercial aspects of the contract. We have particular expertise in the workings of contracts for the provision of managed medical equipment services.
We are experienced in carrying out assessments of clients’ contract management resources and processes and advise on what steps can be taken to better meet the contract management challenges. These steps can include training of staff, resetting of governance processes and the implementation of CLM technologies.
BAU
PFI projects were established with an inherent disadvantage for the public sector entities who are and remain responsible for the day-to-day management of PFI contracts. The private sector project companies are well resources – the funding for which is provided through the unitary charge; conversely the public sector needs to find a budget to provide adequate resources required to keep the project Co to account.
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As with all long-term relationships there is a need, from time to time to re-evaluate and in some cases re-set the relationship. This is now happening with many PFI projects as they approach mid-life and beyond.
Service specifications that were drafted 20 years ago will not now accurately reflect the public sectors requirements. Variations may may not have been tracked or logged appropriately and document management over long period poses particular challenges. Lifecycle and maintenance works have not been carried out in accordance with the terms of the Project Agreement. Often, we find that the governance and escalation processes in the Project Agreement are being applied leading to misunderstanding and even dispute.
JCM assists clients who have experienced these issues, and we work in collaboration with project companies to put the project on an even keel for the remainder of its term.
We sit alongside our clients when negotiating the commercial terms of any “re-set” agreement and we provide commercial support in the drafting of deeds of variation which are usually required when the Project Agreement is amended.
As many projects approach and reach expiry, we assist our clients to ensure that the facilities are handed back in a condition which is consistent with the Project Agreement. We are working with clients who are adopting the DHSC’s Centre of Best Practice and the IPA’s processes for assessing asset condition prior to hand back. In some cases, the Project Agreement provisions dealing with hand-back condition are less than ideal and in these circumstances we have negotiated bespoke arrangements including early exit.
Distressed projects
Despite the best efforts of those concerned some projects become distressed and in extremes, are terminated.
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Generally, it is in all parties’ interests to recover a distressed project if this is at all possible. We have advised clients, in close association with legal and financial advisors on the process and basis on which a project can be rescued. This engagement can involve negotiations with funders and in some cases administrators of the project company. Concurrently we have advised on contingency arrangements that need to be put into place if the efforts to recover the project are unsuccessful.
JCM has, working closely with their legal advisors, guided clients through the stages from preparing the grounds for termination through to the transition of services to either an in-house capability or to alternative FM providers.
It is an unfortunate fact that the termination of a PFI is then followed by litigation. We are able to support clients through this difficult, complex and expensive process by utilizing those members of our team that are legally qualified. We understand the nature of discovery and the consequences of without prejudice negotiations. Whenever the opportunities arise, we will look for a commercial settlement to any dispute.