The rise of the private finance initiative has meant that the relationships around the construction process have had to change. In the normal PFI model there is a need for someone to stand in between the client who is he “purchaser” of the serviced building and the “special purpose vehicle” which is the “provider”, and confirm when the facility is complete and ready for use. In doing so, the independent certifier triggers the start for payment of the availability charge to the SPV. These charges are inevitably large sums of money, so the role can be a challenging one, especially if there is any hint of defects.
Consultants taking on this role need to give careful thought to whether they are suited to the role. Melinda Parisotti’s useful Building article “The PFI’s poisoned chalice” (3 September 1999, page 59) dealt with limiting consultant’s liability and should be referred to if you are thinking about carrying out this work.
There is, as with most things in PFI, no standard definition of the service required from the independent certifier. Each PFI deal has pretty much thought its own way through what is wanted and has invented its own service requirement. These clearly differ depending on the type of facility being delivered – for instance, a hospital may well need a higher technical level of input than an office building. There are, however, variations in the service specification between PFI projects that suggest the role of the independent certifier needs to be thought through again.
On traditionally procured buildings there are well-established roles and responsibilities. The position of contract administrator under a design-and-build contract is a familiar one. Common sense says that there is a need for someone to be impartial between client and contractor, inspect executed work and extend completion dates, and so on. It is essentially this role that most PFI projects attempt to address through the independent certifier. The main difference is that the independent certifier covers areas other than just the building – facilities management, for instance.
It is in drafting the independent certifier’s checking responsibilities that some get carried away. At the heart of it is presumably the thought that in order to sign the facility off as complete, detailed checks will need to have been carried out on all aspects of the project. The concluding certificate of availability is often one that, because of its conclusive nature, only a very misguided consultant would sign.
The certificate of availability for a private finance initiative project is often one that, because of its conclusive nature, only a misguided consultant would sign
What is needed here is an injection of realism. The design-and-build contractor in a PFI scheme is, as in any other construction process, responsible for building to the contract specification. The independent certifier role is to impartially say that the building is ready for occupation.
This is possible without checking that Fred the brickie has laid each brick the right way up. Spot checks and the application of a degree of brainpower will identify key elements that need to be focused on. If what is wanted is a detailed check of every aspect of the scheme, from initial design parameters through to the minutiae of installation on site, then a full technical audit is needed. Most PFI deals cannot afford that level of inspection, and do not warrant duplicating the effort of the existing design and construction team.
The RIBA have been here before in their role in inspecting construction work. They have the bones of it in the architect’s conditions of engagement. This states: “At intervals appropriate to the stage of construction, visit the site to comment on the contractor’s site supervision and examples of his work relevant to the provisions of the building contract.”
It is up to the contractor to deliver a defect-free building. The independent certifier and perhaps more importantly their profession indemnity insurers should not be thought of as guarantors of this.
Postscript
Andrew Hemsley is director of consulting at Cyril Sweett. He can be contacted at ahemsley@cyrilsweett.co.uk.
