3.24 We have identified several examples whereby government departments and authorities are improving existing handover provisions. In one example, the Ministry of Justice (MoJ) formally changed the contract to simplify the language and add more detail on transferring employees at expiry. MoJ incurred a cost for this amendment but achieved a higher level of handover certainty in a cooperative way.
3.25 In another example which involved eight road PFI contracts, the handover provisions did not specify how the residual life of some assets should be calculated at contract expiry. Rather than making a change to the contract, HE instead developed a methodology which provides clarity to the SPVs on how they should demonstrate that the residual life requirements have been met. HE subsequently produced a Memorandum of Understanding for the SPVs to sign agreeing HE's approach. Despite developing this methodology at its own expense, HE believes that it will provide efficiency savings at expiry as the risk of disputes is reduced.