Case Study: How Meckworth attained value for money for a Public Sector Client

Meckworth, one of a few PFI consultancy firms specialising in public-private partnership projects, undertook some work for a public sector client facing challenges with the level of operational maintenance service being provided by their private sector partners and their payment mechanism (pay mech).  The client sought assistance in improving the level and standards of the agreed operational maintenance. Through a meticulous review process and strategic analysis, Meckworth successfully helped to ensure the public sector client either received the agreed services as per the project agreement or ensured the mechanisms in place for not having received the agreed upon service were implemented, thus ensuring the client were getting value for their money or not paying for services not received.

The public sector client had entered into a PFI project agreement with a private partner to deliver essential infrastructure services. However, the service standards outlined in the agreement were not being achieved and the client felt they were paying for services that they were not receiving. Recognising the need for expert intervention, the client engaged us to conduct a thorough assessment of the project agreement, operational maintenance, service standards and pay mech.

Meckworth initiated the project by conducting a comprehensive review of the PFI project agreement, focusing specifically on the operational maintenance agreement, service standards and pay mech provisions. By analysing the contractual terms, service standards and payment mechanisms, Meckworth identified areas where adjustments could be made to improve the standards of the operational maintenance agreements and service standards without compromising contractual obligations. Leveraging our expertise in contract and financial management, Meckworth developed a tailored strategy to optimise the level of service whilst keeping within the existing contractual obligations.

We collaborated closely with the public sector client to to firstly ensure all the required data and reporting was produced to the public sector client by their private sector partners.   Following this a thorough review of the services being provided and a review of the pay mech was initiated on a monthly basis.  As services were not being provided as per the contractual obligations, Meckworth activated the required mechanisms to ensure deductions to the monthly fee were applied in line with the existing agreement. 

By helping the public sector client to exercise and utilise the payment mechanism, resulting in the monthly payment deduction value increasing by more than 90%, the client experienced substantial cost savings and enhanced financial sustainability.  This also placed some emphasis on the private partners to ensure the services were being provided as per the project agreement or risk receiving financial implications.

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