Providing professional expertise to undertake an independent ‘health check’ on adherence to PFI contractual obligations

Facilities management service providers (FMCo) and Special Purchase Vehicles (SPVs) involved in PFI contracts across all sectors, are coming under increasing pressure to fully evidence compliance to their contractual obligations. The risks of failing to do this can lead to large performance deductions, lengthy negotiation and costly formal dispute resolution.
Thomson FM can provide the expert, independent and technical consultancy support to undertake a Contractual Compliance Review on behalf of the FMCo, SPV or Trust/Authority

The key benefits of a thorough and professional review will be to either give you complete confidence of contractual compliance or to clearly identify any shortfalls, so that these can be prioritised and rectified. Our review will summarise the key contractual obligations and include a full and independent audit to determine the extent to which each requirement is being achieved. If the findings are that some obligations are not being met, we will identify and RAG-rate the required remedial actions, suggest the most appropriate task owners, and propose a programme for resolution.

Thomson FM has provided technical and commercial consultancy support to the PFI sector for twenty years and as part of our Contractual Compliance Review, our expert consultants will:
• Review and identify contractual service obligations,
    including any variations
• Create a schedule and annual calendar of obligations and deliverables
• Audit the level of contractual compliance currently achieved
• Undertake variation cost modelling and identify any ‘change of law’ cost
• Provide a RAG-rated Remedial Action Plan
• Provide evidence of contractual compliance for future audit purposes
• Produce a Summary Report following the review
• Create a follow up Contractual Compliance Audit Programme
• Provide support to deliver the Remedial Action Plan

Delivering Professional Expertise

  • Review of contractual documents
  • Identification and review of contract variations
  • Creation of a Schedule of Obligations
  • Contractual compliance audit
  • Development of remedial action plan to improve performance and minimise deductions
  • Risk mitigation
  • Robust evidence of contractual compliance
Contractual Compliance Review