Rokeby School: PFI Contracts
Insight MSC was engaged by a secondary school, recently built under PFI, to examine the contractual agreements between the school and the Council in relation to a proposed revision to the annual unitary charge. We then went on to build a case for renegotiation and redrafting of the agreement.
PFI agreements are complex documents, setting out the contractual relationship between the PFI Company and the Council. School have an obligation related to the PFI and these are set out in a Governing Body Agreement (GBA) between the Council and the school. The GBA had not been strictly adhered to by the parties to the agreement which further complicated matters. Our task was to initially clarify the basis on which charges had been made from correspondence and emails and to assess this against the agreement. Having done so, we also considered the commerciality of the arrangement and the sustainability of the funding model before drafting a counter response.
Insight MSC constructed a model in excel detailing the makeup of the annual charges in a clear and unambiguous way before extending the model to consider possible future options for funding. We used our expertise to identify the relevant portions of school funding and assessed the proposed charges against both the legal wording of the agreement and what the school felt had been contractually agreed via correspondence and emails. We considered all possible options and arguments and built a case for renegotiation of the charges. Finally we drafted a response and counter offer to the Council on behalf of the school.
We built a strong case for renegotiation of the terms on a fair and sustainable basis and we are still assisting the school in ongoing negotiations.
“Insight MSC supported Rokeby School in our negotiations with the Council regarding a complex PFI contract. We were impressed by their professionalism and quality of the service provided. The Insight MSC consultant took the time to fully understand issues faced by the school, unravelled the complexities of the agreement and produced an excellent response. We are very happy to continue with Insight MSC services and would recommend them without hesitation”
School Business Manager, Rokeby School