14.1 As indicated, it is common for PPP contracts to require a Handback survey (usually around one to two years prior to the end of contract) and for retentions to be made (by the Authority from the unitary charge) if there are outstanding works, though the early projects vary. It is important that Authorities familiarise themselves with the details of these provisions and follow the contractual process, including setting up the mechanics for any retention in good time.
14.2 The initial condition survey is not a substitute for a final survey though our recommended approach should mean that there is more visibility as to issues to be addressed and more time available to resolve them prior to any final Handback survey. It is, of course, possible for new issues to come to light later in the contract period especially as the initial survey is unlikely to identify every issue as it is sample based.
14.3 It would be useful for an Authority to understand the likely quantum of any potential retention that might be made in respect of works to be identified in any final handback survey as part of the consideration of remedies available to ensure that all issues are resolved. As with an earlier survey, issues around access and timing of works will need to be addressed.
14.4 As with other aspects of Handback, and indeed contract management, ongoing dialogue with ProjectCo and the FM provider is to be encouraged.