6.1.1 Don't underestimate the potential complexity and difficulties of a PFI negotiation and make sure the key individual advisers are present at all important meetings.
6.1.2 A visible public sector client as project sponsor/manager will generally carry more weight with the private sector during a negotiation than an adviser alone.
6.1.3 All advisers must be kept up to date with developments. A Steering Group is therefore useful to:
• keep everyone up to date; and
• drive progress, to check that everyone is doing what they should, by when they should, and identify any problems.
6.1.4 Steering Groups should meet as often as necessary. This will probably be more regularly in an active negotiation than in the early stages of the transaction. The size of Steering Groups or any other Working Groups should, however, be limited to the minimum number of people necessary. It keeps costs down and increases efficiency (although do ensure advisers are represented). Working Groups should only be set up to undertake specific tasks, by specific dates and be disbanded on completion of their remit.
6.1.5 Don't lose touch with advisers individually. Informal discussions, either socially or in the office can reveal a lot about how each thinks and things are going, giving invaluable insights into the team, the transaction, etc. A sign of a good quality adviser is his/her regular presence in the client's offices.
6.1.6 Departments should work closely with advisers and take every opportunity for as many people as possible within the procuring organisation to learn from them, in order that they may be able to apply expertise to future projects.
6.1.7 Be clear about the total approval process; within the procuring client organisation, the Spending Department and Treasury as appropriate. The approvals required must be taken into account when preparing the timetable.
6.1.8 Ensure that although a lot of the work may be being done by external advisers, the public sector client/sponsor must retain, and be seen to retain, overall control of the process.
6.1.9 Set out in a detailed brief the activities expected at each stage of the process. Make sure that advisers produce activity profiles which match budget estimates. In this way, increases in budgets can be properly verified.
6.1.10 Produce regular reports on all advisers and their activities, including work carried out and the costs of the work. Note variances against project timetables and earlier workplans and budgets, and obtain action plans for recovery when these occur.
6.1.11 Produce narrative explanations of how the project is progressing in relation to the Outline Business Case and expected outputs.
6.1.12 The project manager should manage advisers, not the other way round. Seek out and talk to people with experience of managing advisers.
6.1.13 CUP Guidance 61 gives guidance on contract management.