MPC0004

Written Evidence submitted by i3PT

In advance of the Public Accounts Committee inquiry into the management and expiry of PFI contracts, I would like to share the findings from i3PT Certification’s research into the topic.

It is true that some recent PFI contracts have ended acrimoniously with some questioning the value to the public Sector.  But ending in such a manner for the remaining and future PFI modelled contracts is not a forgone conclusion.

The failure at handback can be traced to

• A contract written without suitable provisions for handback
• lack of preparedness on behalf of the public sector
• the lack of digitization (reliance on multiple file types, paper files, excel and large gaps in information)
• poor procurement of specialists and a lack of understanding of the asset condition at the time of handback.

It is the latter two items (in bold) that I3PT believe can turn the tide in favour of PFI contracts as a form of ensuring continued investment in infrastructure, and good value for the Public Sector.

I3PT have for the past 9 years have developed a process and software platform to digitize the construction stage of PPP/PFI projects thus ensuring a digital golden threat of information which is available to FM providers and the Authority at Handback stage. The process involves a risk-based approach, the use of specialist inspectors, the digitization of information in conjunction with the development and management of an inspection plan to ensure the quality of the installation complies with the building regulations. This is a vital first step. If build without adequate supervision, then the asset will inevitably be in a poor condition at handback. Disputes at handback can be guaranteed.

This process and software is now being used to digitize PFI handback. A team of specialist inspectors interrogating the asset in advance of handback ensures the Authority understands the true condition of the asset early. This can inform discussion with the FM provider. All defects are documented digitally with a location pin, and photograph. All defects are closed with digital evidence in advance of handback. If they are not, the Authority has the evidence required to withhold payments and ensure value is realized. 

Such a process and software platform can ensure that the asset is handed back in the condition the Authority expects, and the value envisioned at the beginning of the contract can be realized.

I have attached our process and a copy of the Golden thread report i3PT completed in conjunction with the CIOB. I would urge you consider that the issues with PFI are more to do with the lack of digitization and gaps in information rather than a fundamental issue with the principle of PFI contracts. There are solutions to these issues and a risk based digital approach like ours is a possible solution.

A link to the Golden Thread Report by CIOB and i3PT –  https://goldenthread.co.uk/

February 2021