Drive value and minimise risk with effective PFI management
There’s often a misconception that once a Private Finance Initiative (PFI) is signed, there’s little that can be done with it. However this is a somewhat shortsighted assumption – we’re helping our clients unlock value in their existing PFIs.
In 2020/21, the public sector is set to spend over £9 billion through PFIs. It’s for this reason that in recent years, PFIs have come under an increased level of scrutiny, often being questioned if they deliver good value to the public purse, both in terms of the cost of such initiatives and the quality of service these arrangements offer.
In the next ten years, the public sector will see an increase in expiry activity, resulting in significant constraints on market capacity. This will impact the ability to manage transitions effectively. Further to this, inadequate planning will result in reduced value for money caused by rushed decision making and activities.
We have the in-depth end-to end capability and deliver specialist support to help you minimise these risks and drive value from your PFIs. Our thorough reviews identify any financial efficiencies and/or income that can be delivered, highlight any delivery standards that can be optimised and, where PFI contracts are due to expire, can provide the detailed plans you need for successful and efficient transition.
£9bn+
annual spend on PFIs (2020/21) in the public sector.
£3bn+
aggregated spend on Unitary payments due from 2021/22 to 2025/26 for PFI contracts due to end within this period.
80+
public sector PFI contracts due to end between 2021 and 2026.
01
Contract assurance and optimisation
We’ll assess how your PFI contract is being operated and report on the effectiveness of your PFI deliverables to ensure you’re receiving the outputs and outcomes you’re paying for. Our review will identify opportunities in the PFI contract that will deliver benefit, such as benchmarking and market testing of variable cost elements, service standard changes where these are inappropriate or out of date, service level changes where these are excessive, and active contract management to ensure your ongoing performance is maintained.
02
End of contract
A PFI contract closing is a complex and often costly exercise. When your PFI contracts end, you will need to evaluate a number of significant issues, including staff TUPE considerations, insurance provision and re-tendering of services currently being provided. We can manage these decisions effectively and can provide you with a range of cost-effective solutions to keep your organisation running effectively once the PFI has ended. Early preparation for PFI is essential – we recommend having at least a 3 year forward plan in place.
03
Finance management
Our financial review of your PFI acts as a healthcheck to identify significant savings opportunities. We review aspects from the operational management of the contract finances through to more strategic considerations, and deliver a bespoke improvement roadmap and plan, together with a value for money assessment.
04
Commercialisation
Our commercialisation appraisal can provide you with income generation options utilising your PFI contract and estate. We review a range of opportunities against the PFI in conjunction with your corporate strategy, and identify those which best align, providing an optimised solution and delivery plan.
How can we help your organisation?
Get in touch01
Procurement transformation
We understand what good looks like, and are helping clients create systems and structures that put procurement at the heart of the organisation.
02
Savings delivery
We create and deliver savings programmes that unlock the value from the supply chain, routinely delivering a return on investment of up to 10:1.
03
Contract management
We provide clients with best in class contract management solutions, embedding technology, processes and up-skilling staff to maximise value.