PFI Review

Sourcing Strategy and Procurement / Programme Management – PFI Review. Operational improvements and cost reductions


King's College London

Project Type:

PFI Review


Mid 2019

Project Scope

  • Review existing contractual, commercial, service delivery performance and all contractual requirements of the PFI
  • Implement service governance in accordance with new requirements
  • Identify opportunities to reduce of costs where possible
  • Development of performance transparency and reporting
  • Implementation of the change programme – taking account of risks/ impact on property, students and College operations

Project Detail

The University entered into a Private Finance Initiative (PFI) contract with a large international supplier in 1999. The contract covered the provision of 2 major properties near Waterloo, London, UK including all construction, facilities and building services. The contract included the option for a break after 15 years. The College wanted to asses if the contract was operating efficiently and in particular if Value for Money was being achieved. Coretex were appointed to deliver the review, including developing the engagement brief for a specialist M&E services consultant. It was essential for the review, cost or service negotiations, and delivery of any changes to be concluded ahead of the deadline for the break to be issued, if required.

Project Outcome

The Efficiency Review delivered in all objective areas and specifically

  • The review enabled the College to achieve £1.5m+ pa savings (against a target of £800k pa).
  • The supplier delivered the saving and the break option was not used

Coretex Process

Coretex collaborated with the KCL team to achieve the efficiency review and identified higher than expected savings. The work on the GSTT KPI project and understanding of the college’s new Performance Management dashboard and performance monitoring (which were also created by Coretex) gave Coretex unique knowledge that allowed the College to install good governance and performance regimes within the PFI partner. The process to deliver savings also included a close co-ordination at a detailed level with the PFI partner for a year to encourage their well organised delivery of the change management essential to deliver savings. Working closely with the College team the project included providing evidence to support the College’s proposed contact decisions to the College Counsel.

  • Coretex proposed and coached the client through the negotiation strategies to maximise the benefits of the review and achieve above expectation savings from the PFI
  • Operational improvements were achieved across a broad range of PFI services
  • Coretex project managed the changes undertaken by the PFI supply partner to deliver/ validate savings