4.1. SFT is working with public body partners to develop a proposal for a collaborative approach to PPP contract management through a shared service as it considers that this is key to optimising the savings referred to at 3.2 above.
4.2. Consolidation of contract management expertise across groups of Authorities could realise savings not only in administrative costs but crucially in better management of the contracts enabling Authorities to realise opportunities to drive out better value through their contracts.
4.3. Contract management is required both at an operational level to ensure that the Authority gets the services which it is paying for and pays no more than is due and at a strategic level to drive improved value from the contract and to deal with changing requirements over the life of the contract.
4.4. Bringing together a number of Authorities, would provide the opportunity to create a structure involving a range of expertise, levels of skills and experience and could be reinforced by a centre of expertise within SFT.
4.5. SFT has already begun discussions with a number of local Authorities in the south east of Scotland to develop an approach to a collaborative working and this will be taken forward over the coming months. Piloting in this area matches the boundaries of the first hub territory to have moved into operation. Managing contracts through a service matching hub territory boundaries makes sense as in future the Authorities within these boundaries will have DBFM agreements with a single partner on common terms that could deliver even greater value when centrally managed.
4.6. One area which would be considerably improved by the creation of a collaborative contract management resource is the operation of the insurance premium risk sharing provisions in many contracts. With a view to maximising potential savings in this area, SFT proposes to contact all Authorities with PPP Contracts to recommend that they carry out a review of the sharing position and will continue to provide assistance on how that could be carried forward.
4.7. SFT will also continue to act as a centre of expertise in this area, providing ongoing support on existing contracts.