Key areas that will need to be addressed to successfully engage with all parties are as follows:
> project risk profile will need to be considered consistent with the provisions in the Project Agreement in order to enable sign off by Project Co and lenders of the Change.
> the integrity of the building or facilities will need to be maintained should there be a requirement to install or develop new systems or energy mediums (for example, solar panels, rainwater harvesting, CHP or wind turbines).
> the FM provider's ability to deliver services to the standards required within the Project Agreement, with service fee and profit at a level so that the FM provider is in a neutral position following the Change.
> Project Co and its lenders would typically require a due diligence process to be followed in order to facilitate credit approval for any Change which may necessitate the additional cost of advisor fees. Any costs of the approval of the Change would typically be recovered as part of the Change cost itself.
> the Project IRR will need to be maintained.
> the practical implications of undertaking the Change and resultant works in respect to the services and indeed the users of the facility will need to be considered.
In order for parties to engage, the Authority should highlight the protections for Project Co in the Change provisions of the Project Agreement. Dialogue should be held at the earliest opportunity so that all parties have the opportunity to identify potential solutions, strategies, risks or issues with a view to developing a joint NZ strategy for the facility.