Governance

23. The MOD PFU's survey of acquisition team members dealing with operational PFI projects suggests that, in some instances, contract managers on these projects were unsure of their delegated spending authority and that this had led to cases where these delegations had been exceeded. It is essential that acquisition team members (including contract managers) work within the scope of their delegated authority.

24. Each project should have a governance arrangement which sets out the level of seniority within each of the parties' organisations at which Small Works Changes, Medium Value Changes and Major Changes10 are considered and approved.

25. Acquisition team members should carefully consider the appropriate timing of obtaining approvals. While there would be little point in pursuing a Change if no funding were available for the Change a reasonable degree of certainty is required concerning the costs and other impacts of a Change before approval is sought. The desire to avoid delays in implementing the Change may also mean that approval is sought in parallel with the engagement with the contractor on the Change.



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10 For definitions of these change terms see the amended MOD PAv1 Part 18 change text in Addendum 2