What is an EHC?
An EHC comprises a review of key project documentation, a detailed questionnaire and a structured interview with the contracting authority. Based on this information, the IPA assesses and benchmarks the project's readiness for expiry across five themes:
The process also allows the IPA to identify underlying components of expiry risk including inherent project risk (factors such as complexity, service sensitivity, time to expiry), and contract based risk (e.g. standard versus non-standard terms).
The output of the EHC is a structured report which identifies, based on the IPA's commercial assessment, the key expiry issues and actions that will make a material improvement in the contracting authority's readiness for expiry and so reduce risk. The urgency of action is reflected in the five tier (RAG) rating of the project's overall readiness for expiry and for each of the five themes.
Red | Red/Amber | Amber | Amber/Green | Green |
Critical additional work required to achieve target readiness | Major additional work required to achieve target readiness | Moderate additional work required to achieve target readiness | Limited additional work required to achieve target readiness | At target readiness given the time to expiry |