Maximising value from contractual partnerships


Are your built environment delivery partnerships (e.g FM, development, construction) leaking value?

Considerations

  • Are your built environment delivery partnerships still appropriate post Covid-19?
  • Where are the opportunities to make short term savings?
  • Is the sharing of risks and returns still fair between you and your partner(s) over the longer term? Will you leak value over a sustained period?
  • Is your partner still equipped to deliver for you?

Insight

Contracts and partnerships to deliver built environment projects and services are typically designed around long-term objectives. Over time such arrangements need to perform and adapt to ensure they remain fit-for-purpose and continue to deliver value.

Even under normal circumstances there is always a risk that the value driven by such arrangements is eroded over time, if they do not evolve with stakeholder need and market conditions. There is a much higher risk that the arrangements designed under different market conditions are now leaking value due to the major impact of the pandemic on property markets.

Therefore such long-term arrangements should be reviewed to consider their appropriateness and efficiency against key issues such as purpose, delivery impact, cost of operation, risk share and opportunities for improvement & value enhancement.

At a more granular level, there could be specific areas for immediate but sustainable cash savings:

  • Reconciliation of billing against agreed scope
  • Compliance against rate cards
  • Mark-ups on pass through costs
  • Allocation of overheads

We understand that long term delivery arrangements are complex and our specialist team can help to identify opportunities for short term cash savings as well as recurring lifetime savings. Our professionals cover the whole range of disciplines required to drive such value for example – contract understanding, contract management and training, risk assessment, renegotiations and contract improvements, disputes, defaults and terminations.

For more information please contact:

Stuart Howie Principal Planning devlopment and regeneration stuart.howie@avisonyoung.com