Governance Boards including Private Sector representatives

7.11  This example (see figure 5) illustrates the type of project governance structure that could be put in place to address specific issues related to securing funding, including conflicts between the main contract and sub contracts, during the run up to contract award and financial close on a PFI procurement.

7.12  In this example new boards have been created which sit alongside and are additional to the internal boards (for example as described above). These additional joint boards are instigated to deal with the specific activities that are key to achieving contract award. Joint boards - i.e. with representatives from both the public and private sectors - can function effectively as many of the issues are outside the sole control of either party. However there remain activities, such as confirming the requirement and affordability envelopes, or seeking internal(e.g. HMT) approvals etc., that will need to be dealt with via the internal project governance arrangements.

7.13  In this example two additional boards are formed: