The UK Treasury has issued the long awaited Code of Conduct for Operational PFI/PPP contracts (13th June 2013). This code has been discussed for some time as is part of the ongoing commitment of the Treasury to make operational savings in PFI and reduce public sector costs. The code continues to be 'voluntary' and as it has evolved it has become a more balanced collaborative approach between public and private sector participants in PPP projects with 8 objectives for each, as opposed to a longer wish list for the private sector.
To try and ensure the Code is implemented the Treasury have
spent some time engaging with the various parties involved in a PPP
( funders, construction contractors, service providers, investors,
as well as various public sector bodies) to seek a balanced
approach to which they would all commit. As such, the Code has been
launched with over 50 signatories from both the private and public
sectors who have agreed to abide by it. These parties will need to
engage with their own supply chains to ensure that any operational
savings initiatives are delivered by everyone involved. The extent
to which significant operational savings are achievable will vary
from project to project but, even with the best intentions, it is
so often the individual relationships on a project that can
ultimately make the difference between a successful outcome, or
not.
Further details, including all documentation, can be found on the
Government website: https://www.gov.uk/government/publications/code-of-conduct-for-operational-pfippp-contracts
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
