Avoiding Chaos at the End of a PFI Contract: The Importance of Maintaining an Accurate Asset Register

When a Private Finance Initiative (PFI) contract comes to an end, the transition from one contractor to another can be a minefield—especially if the asset register hasn’t been maintained properly.

This crucial document, which details the facilities, equipment, and systems managed under the contract, is often neglected, leaving facility owners scrambling to piece together an accurate picture of their assets. The consequences can be costly, risky, and operationally disruptive.

The Risks of an Outdated Asset Register

Failing to ensure that the PFI SPV is keeping the asset register updated throughout the contract leads to several challenges:

Operational Risks: Missing or inaccurate information can disrupt day-to-day operations and cause delays in maintenance or repairs.

Financial Risks: Unexpected costs arise when new contractors discover assets that weren’t documented or accounted for in the tendering process.

Compliance Risks: Regulatory requirements may not be met if critical assets, such as fire safety equipment, aren’t documented properly.

Commercial Risks with the Current Contractor: Without an up-to-date register, it’s difficult to hold the outgoing contractor accountable for the state of the assets at handover. This can lead to disputes over responsibility for wear and tear or missing equipment.

Better Contract Management: Preparing for a New Contract

To avoid these issues and ensure a smooth handover, facilities management teams must adopt a proactive approach to ensuring the SPV asset register is current. Here are some practical solutions:

1. Update Systems with Changes in Asset Information

Throughout the contract term, ensure that a robust system for recording changes in asset information, including upgrades, replacements, or decommissioned item are managed on the contract. Integrate this process into regular maintenance routines and audits.

2. Set SLAs That Ensure Accountability

Make it clear that the contractor is responsible for keeping the asset register updated and check that SLAs are adhered to.

3. Strengthen the Commercial Position with the Current Contractor

During the final stages of the existing contract, conduct asset audits to verify the register’s accuracy. If the register is incomplete, enforce financial deductions or penalties.

4. Start Early: Handover Planning and Audits

Begin asset register handover planning well in advance—ideally 12-18 months before the contract ends. Conduct detailed audits to identify gaps and discrepancies in the asset data and address them with the current contractor.

5. Contract Reviews and Clear Handover Requirements

For future contracts, define clear handover requirements. These should specify the format, level of detail, and scope of the asset register to ensure that all parties understand their responsibilities from the outset.

Conclusion: Planning for the Future

An accurate and comprehensive asset register is not just a best practice—it’s a necessity for successful facilities management. By embedding accountability into contract terms, implementing robust systems for updating asset information, and incentivising contractors to deliver on their obligations, facility owners can ensure smooth transitions and avoid costly disruptions.

The end of one contract should mark the beginning of a new, efficient phase—not a headache. By learning from past challenges and setting up strong processes, facilities management professionals can navigate these transitions with confidence.

Landmark & Associates have wide-ranging experience in supporting PFI contracts throughout their life cycle.

Our services can range from light touch acting as a “critical friend” through to full support as a subject matter expert.

Contact us for further information on our services.