7.  Collaboration

The NAO recognises the importance of a collaborative approach in order to achieve successful expiry.

'Early preparations, and a collaborative approach between public and private stakeholders, can help to ensure a successful exit from these contracts. This will require all parties seeking to understand each other's goals, establishing a partnership approach on each PFI project, and sharing experiences on how to manage contract expiry across all levels of government.'5

'IPA should: developing an investor strategy which manages the relationship with private sector PFI stakeholders - equity investors, management service companies, contractors - across all PFI contracts. Such a strategy should also consider working with other government bodies, such as UK Government Investments who may have interactions with similar sector companies.'6

'The cooperation between the authority and SPV depends on the strength of the relationship.' 7

'A successful exit from a PFI contract requires both careful preparation and delivery of the contractual obligations. This part examines some of the components of this, such as understanding the contract, assessing future service requirements and relationship management.'8

As stated in section 3, it is widely accepted that collaboration is key to a successful expiry, and that a collaborative handback process should be developed and appropriately resourced, commencing at least 5-7 years before expiry. But what does that entail? Collaboration is a word bandied around without focus on what it really means, let alone what is required to achieve it.

The Institute for Collaborative Working leads the way in this regard, as the thought leaders underpinning the international standard on collaborative working (ISO 44001- Collaborative business relationship management systems - Requirements and framework).

If a collaborative approach is desired, then proven processes should be implemented to achieve it; for example:

Developing and managing the relationship

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5 NAO Report 'Managing PFI assets and services as contracts end' (29 May 2020), para 16

6 Ibid. para 16 f.

7 Ibid. para 2.16

8 Ibid. para 3.1