The data says:

•  Contract drafting for expiry lacks clarity in c.70% of contracts

•  There are limited rights and leverage at expiry

•  CAs do not fully understand the contractor's financial performance and drivers at expiry

We also found:

•  CAs do not have detailed understanding of their contracts including their rights and contractors' obligations at expiry

•  CAs are generally optimistic about private sector engagement, but did not understand consistently the changing private sector drivers at expiry

•  As a result, the commercial approach to expiry was frequently insufficiently developed and often reactive

•  This is connected to the lack of skilled resource in projects

Learnings:

•  CAs need to understand the contractual rights and obligations better, noting that earlier contracts do not benefit from SoPC standardisation

•  CAs need to develop detailed and proactive commercial strategies

•  CAs need to appraise themselves of the private sectors drivers

•  IPA needs to address the lack of commercial acumen across projects and support commercial strategies where relevant