Public Private Partnership Contracts

Many organisations in the public sector are reliant on the delivery of services through public-private partnerships or initiatives. However, the negotiation of such contracts has proven fraught and the outcomes debateable.

This unique course brings together the commonest issues, to provide a single source for a reviewer’s all round understanding of the risks and core controls.

Suitability and duration

Suitability: Intermediate

Duration: 2 days

Who should attend

This course is designed for all reviewers, particularly internal auditors that need to review a Public Private Partnership agreement.

Benefits

Skills

After completion of this course, you will be able to:

• Appreciate the nature and distribution of public private partnerships
• Demonstrate an understanding of the issues related to public private partnerships
• Evaluate and audit a public private partnership agreement
• Form an audit opinion of the adequacy and effectiveness of a public private partnership agreement

Support Materials

This course is accompanied by a substantial manual that includes full briefing notes..

Programme

Public Private Partnerships – dynamics

• The intention and drivers behind public private partnerships
• Statistics related to uptake of PPP in the UK
• Estimates of the numbers of good and bad PPP contracts

Public Private Partnerships – issues

• Contracts that failed strategic or financial expectations - examples
• Contracts that resulted in dispute or in court – examples
• Contracts that demonstrated failure of governance or adversely impacted the community – examples
• Contracts that had issues corrected after negotiation – examples
• Lessons learnt from contract issues

Public Private Partnerships – reviewing strategy

• Right to audit and inspect
• Pre-letting strategic objectives and benefits analysis
• Pre-letting risk analysis and due diligence
• Pre-letting tendering process and negotiation strategy
• Contract term and duration – penalties for early termination
• Right to terminate – renew - vary
• Authorisation and authority for binding, and for variations and amendments
• Survivorship – matters that continue after the contract terminates
• Treatment of assets supplied or loaned under the partnership agreement
• Partner commitments, warranties, performance bonds, and distribution of risk and loss
• Limitation of liability and waivers
• Indemnity against third party claims, insurance by partner, employer’s liability insurance
• Financial instruments, pricing, tariffs, invoicing and payments, under, over and advance payments, payment of legal fees and costs
• Payments of commission to third parties and tied or independent Status of Partner
• Installation, commissioning and acceptance
• Service Level Agreements and standard of performance
• Inter-party communications and co-operation
• Ownership of data and process
• Disputes and arbitration
• Termination states and procedures
• Third party funding withdrawal
• Non-exclusive remedies and liquidated damages
• Reviewing – opinion on effectiveness, performance, yield and value for money, accountability and administration
• Reviewing – opinion on governance, regulation, ethics and financial control