Commercial Management
PFI projects are highly structured, with a complex set of legal agreements and funding arrangements, and the output specifications of the project fully sub-contracted to construction and operating specialist companies. However, this does not obviate the need for effective commercial management to ensure that expected project returns are achieved and, where possible, surpassed.
Commercial management can include;
- negotiations with the client over implementation of the project agreement and impact of variations to output specification
- recovery of the cost of variations in order to maintain project returns and IRR
- management of sub-contractors to deliver in accordance with relevant agreements
- negotiations with sub-contractors over variations or commercial disputes
- endeavour to obtain best value insurance premiums, either through negotiation or obtaining competitor broker quotes
- efficient financial management to minimize projects costs
