More than Handback.
Many people supporting PFI or PPP contracts are familiar with the concept of “Handback”. It’s often referred to in contractual documents, in varying degrees of detail. It’s the process that happens at the point of PFI contract expiry and governs the return of the infrastructure facility to the contracting public sector body.
The steps needed to achieve a Project Exit that’s successful for all stakeholders are broader than just the contract Handback provisions. Project Exit will require preparations long before the contractual process will start. Initially these will be driven from the Project Company preparing for contract expiry as it ensures its obligations will be met.
As the contract expiry draws closer the public sector body will need to make preparation for the management of the asset after Contract Expiry, readying itself to take on the legal liabilities as the operator and/or re-procuring services and expertise that have been provided by the Project Company and its supply chain.
All of these Project Exit workstreams need to take place alongside the requirement to manage the business-as-usual operation of the facilities and services for the end users. Achieving successful outcomes without disrupting business-as-usual will need the targeted deployment of the right skills and experience to support.
Vercity has demonstrable experience of ensuring continuity of service to critical social infrastructure during periods of transition. We have a track record of managing contracts before and after the point of expiry, the removal of facilities from ongoing projects and the successful transfer of services out of operational contracts.
With a diverse portfolio of clients, including public and private sector investors and asset managers, we have a global reach, stretching from the UK to North America and the USA, and we draw on that experience to shape our approach.
For further information, please contact Patrick Hamill, Vercity’s lead on the Project Exit process.