Example of Inappropriate Experience

A large local authority appointed advisers with appropriate experience for design and development of a wide ranging city centre economic regeneration project. As elements of the regeneration scheme developed, it became apparent that a potential PFI project could become an integral part of it. The role of the appointed advisers was simply extended to include advice on the PFI project, despite the lack of any previous PFI experience on the part of the individuals concerned. As a result, a wholly inappropriate PFI scheme was developed which met the design objectives of the city centre regeneration scheme, but failed totally PFI risk transfer and value for money tests.

4.5.6 The quality of references is clearly important. Whilst advisers may submit their own referees, particularly their most recent and relevant public sector clients, the Taskforce also encourages procurers to make their own enquiries. A better exchange of information between public sector procurers on their experience of advisers is one of the most effective mechanisms for raising and maintaining quality standards.

4.5.7 As part of an improvement in the on-going monitoring and evaluation of advisers' performance, procurers are encouraged to use the standard reference form included at Annex C to record information on the performance of advisers and make forms available upon request to other procurers who seek references in order to help choose a preferred bidder from the shortlist. It is best to complete the reference forms as soon as possible after the work has been carried out. Procurers should heed the information set out at the beginning of the form.

4.5.8 What is the perceived quality of resourcing? It is advisable to establish at the outset the named individuals in the advisory team. Be clear about the role of each of the advisers, including seniority and experience of the adviser required. There needs to be the right balance within the team.

4.5.9 Although it will not be cost effective to insist on senior advisers performing routine tasks, procurers cannot afford to have inexperienced advisers performing vital roles. Ensure that the individuals with greatest expertise are actually made available as and when required at key stages. Obtain a contractual commitment from a senior person representing the advisory firm that the right specialist resources will be available when needed and that procurers can draw on them directly.

4.5.10 Ensure that there is sufficient back-up within the firm to cover for key personnel if necessary. Beware of successful individual advisers being 'stretched' across a number of different projects for different clients. Your project may not always be the adviser's top priority.

4.5.11 Don't underestimate the skills required in negotiating a PFI project. Negotiations can be lengthy, complex, involve large teams and cover a variety of skills. The private sector project bidder will be well prepared and highly experienced in the variety of tactics and strategies. Procurers' advisers need to be robust enough to help deliver a good deal (and even, on occasion, disagree with the public sector client when it is wrong). The comments of other procurers who have used the advisers previously will be particularly useful.

4.5.12 Appoint on the basis of value for money (under the EC rules, the economically most advantageous tender or lowest price). However, beware of relying too much on low hourly rates. The cheapest option is not always best value for money. Mistakes from inappropriate or inexperienced advisers can be extremely costly in the long run, perhaps even threatening the success of the project itself. A good track record in delivery of the required service is essential.

4.5.13 What is the proposed timetable? An unrealistically short timetable may put pressure on advisers. They should be asked to comment on how realistic they see the timetable as well as whether it is likely to make a difference to their fees and appointment.