2.71 Whilst there is a significant transfer of risk from the DoE to the Project Company for the Pilot PPP Schools Bundle, the contracts in place mean that there is no scope to amend elements of service scope or specification, or complete alterations to the buildings without proceeding through the contractual change/variations process. The contractual change process requires significant legal and financial resource for the following:
a. Amending contracts to reflect changes.
b. Re-calculating the Unitary Charge to account for additions or removals from the contract. This is a complex process which can involve costing services to be removed, procuring additional services, updating the lifecycle model for additional spaces/equipment.
c. Updating the Financial Model.
2.72 No significant contractual variations have been progressed on the Pilot PPP Schools Bundle so there is no opportunity for an analysis of costs to be completed against minor works completed at the Conventional Schools; this should be considered in future reviews where there may have been more contractual variations. It should be noted that flexibility in further PPP bundles, relating to variations, has increased when compared to the Pilot PPP Schools Bundle.
2.73 The DoE listed flexibility as an advantage of the Conventional Schools, namely through:
a. Minor works during operational life (e.g., extensions and remodelling to respond to curriculum changes or school needs).
b. Ability to request quotes from multiple contractors as opposed to one from the Project Company. It is noted that whilst there is not specific wording around demonstrating value for money quotes in either PA Schedule 12 (Change Procedure) or in relation to Lifecycle works, this is more common in recent PPP contracts.
c. Principals and ETBs have more autonomy and control in making changes to service delivery and the building itself.