The challenge
The council faced significant challenges in managing the complex components and costs associated with the unitary charge (UC) payments for the PFI project. It needed help to identify critical issues and propose effective solutions.
With the handback deadline of October 2025 approaching, it needed a clear understanding of the UC components and the financial implications of various handback scenarios.
The project company overseeing the initiative also indicated that increased costs might lead to a potential insolvency event if the scope of works wasn't revised.
How we helped
We conducted thorough reviews of both forward- and backward-looking calculations to identify and understand the UC components and associated costs. By examining various indexation and sculpting factors, we ensured accuracy and transparency, aiding the council in future reviews of invoiced amounts.
Through close collaboration, we enhanced the council's understanding of UC payment fluctuations. We also worked together to prepare an options assessment to evaluate the financial implications and associated risks of different handback scenarios.
This proactive approach enabled the council to make informed decisions and mitigate potential risks.
The results
The council gained a clear and accurate understanding of the UC components, empowering it to manage future invoiced amounts effectively.
The options assessment offered a strategic roadmap for navigating the handback process, ensuring the council was well-prepared for potential financial and operational challenges.
Finally, by addressing the increased costs and potential insolvency risk, we helped the council negotiate a revised scope of works with the project company, securing a sustainable and viable path forward.
This extensive collaboration not only helped in resolving immediate concerns but also positioned the council for continued success in managing its schools' estate.
