Navigating the Complex Realities of PFI Agreements

In Private Finance Initiative (PFI) environments, even perceived straight forward vertical interface agreements can quickly escalate into complex challenges for Facilities Management providers, the Project Company and the Contracting Authority. 

At P2P, we haven't just read contracts and delivered consultancy services. We have lived and breathed the day to day strategies and operations of complex PFI/PPP contracts. With a reputation for building trusting relationships with all stakeholders, turning poor performing into performing, improving internal and external satisfaction and confidence and sustaining improvements with the power of good quality data and ownership.

Each service stream, whether it be cleaning, caretaking, portering, waste management, grounds management, pest control, catering, patient movement, security, hard services, lifecycle and projects all revolve around simple common denominators:

Asset Management.

This is one, if not The, core foundation to successful FM delivery. This may seem quite obvious but all too often is not the case. There are many excuses (not reasons) why. There are also many Computer Aided Facility Management (CAFM) systems to house asset data. But unless you have good quality data, processes, ownership and governance then all you have is data. With PFI/PPP concessions usually having a term around 25 years there will be many changes to assets and buildings with continued maintenance, lifecycle replacement and projects. So unless assets are managed by good quality data, solid efficient processes, ownership/accountability and governance/audit - then handback of the assets at the end of the PFI/PPP concession will be challenging, risk heavy, impact on transition and with potential financial consequences and reputational damage.

Operational Performance Data

As we have said, asset management relies heavily on good quality data. But there are also many other components in FM delivery where quality data WILL drive improved performance:

• CAFM data - non exhaustive examples
  • Forecast, planned, active, on time and overdue maintenance and lifecycle obligations
  • Cost by activity, service stream and supply chain partner. Also important as hard services are not typically a bench marked service under the contract
  • Compliance to statutory, mandatory, contract obligations to applicable industry standards or best practice
• Health & Safety Performance data
  • Lost time incidents / no lost time incidents - number, type, day, time, environment etc etc
  • Close call reporting - what where why by person, team, division
  • Culture indicators
  • Driving reward and recognition
• People data
  • Employee satisfaction
  • Retention
  • Succession development
  • Training
  • Absence
  • Disciplinary
• Financial data
  • Performance by contract, sector, division, business
  • EBITDA vs budget/reforecast
    • Labour
    • Overtime
    • Holidays
    • Supply chain partners
    • Materials, consumables

At P2P, we understand all of the above dynamics deeply. Placing us perfectly to act on behalf of Project Companies to assist with measurable FM Contractor performance or, to work directly with FM Companies to proactively help them improve their delivery, governance and overall performance.

Our vast experience navigating PFI complexities and service delivery along with our four stage solution approach, helps mitigate risk, protect value, and sustain service excellence throughout the lifecycle of the contract.

P2P - Delivering your vision with our expertise