Contract Audit |
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Capital Project Audits, incl. ProCure21 |
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Supply Chain Management |
Contract Audits |
Contract Audit
Wychwood James is able to offer a specialist contract audit service to your organisation. Our consultants have extensive experience of auditing a range of major contracts, both publicly and privately funded, and are therefore able to provide audit reviews at all stages of the contract, including Contract Planning, Management Arrangements, Procurement, Contract Management and Post Project Evaluation.Existing internal audit teams can benefit from our experience, either by appointing our experienced consultants to work alongside their own auditors, to undertake the contract audits included within their audit plans or by appointing us on specific projects.
Top of PagePFI, LIFT and BSF Audits
Internal Audit has a valuable contribution to make during the development and operation of PFI, LIFT & BSF projects. The role is distinct from that of professional advisers on projects, as internal audit will be best-placed to review all aspects of the process and therefore ensure that the organisation and its advisers are following due process, complying with relevant legislation and guidance and are maintaining accountability for public funds.
We have extensive experience and an in-depth knowledge of PFI, LIFT &BSF processes and can assist your organisation by being a part of your dedicated audit team, either through working with your existing internal auditors or by supplementing their work.
Capital Project Audits, including ProCure21
Our staff have extensive experience in the management, control and monitoring of capital contracts. We are therefore able to assist you through each of the stages of major construction projects and can apply our expertise to identifying problems before they occur.
We are able to provide advice on all aspects of capital investment and planning, including the establishment of a project management structure, the preparation of business cases, the tendering and appointment process and contract management.
Project Management
Wychwood James has a team of consultants with direct experience of PFI, PPP, ProCure21, traditional capital and revenue projects in the public sector. Their experience covers a range of disciplines and services. This experience has been acquired as result of working directly as public sector employees. They possess the necessary expertise and professionalism to guide the public sector organisations with every stage of the development of projects from conception to completion.| Areas that we can provide advice on include: | |
| • Design Team Appointments | |
| • Business Cases | • Building the Project Team |
| • Whole Life Costing | • Project Planning & Programme |
| • Affordability Testing | • Gateway Reviews |
| • Option Appraisals | • Output Specifications |
| • Feasibility Studies | • Facilitation Workshops |
| • Writing the Project Brief | • Contract Management |
| • Risk Management Analysis | • Post Project Evaluation |
| • Procurement Planning | • Formal Public Consultation |
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Business Cases
The ultimate success of the project is totally dependent upon the development of robust strategic, outline and full business cases in line with the guidance contained in the Capital Investment Manual and issued by the Department of Health, the Green Book issued by HM Treasury, Guidance issued by the Office of the Deputy Prime Minister and Guidance Issued by DfEE. For non-recurring revenue and service delivery projects, business cases are also essential. We have several years of hands on experience of the development of business cases, of all types, in the public sector. Robust business cases are absolutely essential for project approval at all stages; a well thought through case has a significantly improved chance of approval and offers better overall value for money by avoiding re-work and timetable over-runs..
Whole Life Costing
Initial headline costs have a tendency to provide an incomplete and an inaccurate picture for sound long-term decision-making. On the other hand, the whole life costing offers an accurate picture over the entire life of service delivery contract and where appropriate asset usage. Our team of experts can offer advice and help with the development of appropriate financial modelling, including assessing the impact and sensitivities of key variables. Whole life costing offers a genuine gauge to measure the true value for money over the whole life of the project.
Affordability Testing
We can assist with affordability testing to ensure that the project being developed will not be rejected purely on financial grounds. Affordability tests provide assurance to commissioners and sponsors that the project delivered would remain within the available financial envelope; it also offers the opportunity to re-assess the needs and the options to bring the project within the affordability range. Our consultants can assist the clients with sensitivity testing and the conduct of an objective financial re-evaluation.
Option Appraisals
Identification and evaluation of options is crucial in making the right choice to address the needs identified and to deliver government policy and the organisation’s strategic objectives. We have experience of developing a range of potential options (the long list). Our team of experts can offer advice and hands on assistance to develop assessment criteria to create a short list of options for more detailed scrutiny and consideration. Our team uses a variety of techniques for this purpose, including holding focused workshops involving key decision makers to develop priorities and weightings. Where there is a statutory requirement to formally consult the local community and their representatives to help identify and develop the options for consideration, our consultants can assist in the development of a formal consultation document, setting out the advantages and disadvantages of each of the options, and the actual consultation process.
Feasibility Studies
We have conducted a number of feasibility studies enabling the public sector organisations to understand specific areas better and to help them make informed choices and take decisions underpinned by evidence. The contents of well-researched feasibility studies are important to help persuade the sceptical public and to introduce an objective independent viewpoint.
Writing the Project Brief
The plans and service provision proposals submitted by the potential bidders are only as good as that formally conveyed to them in the project brief. It is also a fact that the final facility or the service delivered is only as good as the project brief. The development of a well thought through project brief that takes account of differing and sometimes conflicting inter-departmental needs is essential to achieve the desired outcome. Our team can offer advice and assistance with the development of project briefs for a range of suppliers from professional service providers to the primary contractor responsible for the construction of the facility or the delivery of on going day-today services.
Risk Management Analysis
It is crucial to identify all potential risks and to develop appropriate risk management strategies to mitigate and manage them. It is vital that effective risk management and risk ownership is considered from the outset and is embedded as an integral part of the project development and management strategy. Effective risk management ensures that costly remedial elements and timetable over-runs are significantly reduced or eliminated. We have experience of holding and facilitating risk management workshops, developing risk management plans and quantifying each risk in overall financial terms. A well thought through risk management plan also ensures that the potential service provider has a clear understanding of what risks it is taking on, what risks are jointly held and what risks are excluded.
Procurement Planning
The public sector is obliged by law to exercise transparency and objectivity to ensure fair competition not just under our domestic law but also under the provisions of the EU law. We have a good appreciation of the generic public sector standing financial instructions and standing orders and the OJEU procurement process. We also have a considerable level of experience of bid evaluation, including the development of detailed evaluation criteria and evaluation models. We can help to develop a step-by-step procurement plan to ensure that objectivity is maintained, the right choices underpinned by evidence are made and value for money is delivered. Our approach can also ensure that the process and the conduct of decisions are fully auditable and capable of standing up to any potential judicial challenges in the way the decisions were taken. Our consultants have first hand experience as, both, conductors and recipients of audit; they attach a considerable amount of weight to the maintenance of a sound audit trail
Design Team Appointments
We have written a number of specialist briefs for design teams. The output from the design team is only as good as the design brief. We can ensure that the design brief reflects both broad and specific needs and considers design tools and evaluation processes in line with best practice.
Building the Project Team
The success of the project is dependent upon having a dedicated and well-trained project team. We can help to select and develop the project team and guide and train them in the early stages to ensure they operate at optimum efficiency. In the early stages of the project, our consultants can take on the role of the project team to establish a sound foundation for the handover in the future.
Project Planning & Programme
We can help develop project plans and programmes at various levels to ensure that only the relevant elements are presented to the relevant groups and bodies. We can help develop Gantt Charts and critical paths. We can also help the clients to understand the inter-dependencies of key activities in the project plan. We have experience of developing tools to measure performance against plans and identification of the dynamics of change to explain any deviations from the plan. Our team members are trained in the use of project management tools such as Microsoft Project.
Gateway Reviews
It is a mandatory requirement to conduct OGC gateway reviews of all projects over £1m. Without a successful OGC review, the project’s progress to the next stage could be severely delayed; a formal approval for the project would not be granted until this review has been successfully completed. We have experience of developing submissions for the gateway reviews. The conduct of gateway reviews also improves the chances of delivering a successful project.
Output Specifications
Output specifications are essential to convey to the potential bidders the primary purpose of the facility or services and the intended outcome when the facility or services becomes operational. We have a team of ex-public sector staff with first hand experience of developing output specifications for a range public sector facilities and services. The team possesses the capability to talk to public sector employees in a language they can understand.
Facilitation Workshops
Local Authorities and the public sector are very complex organisations with many facets. Many of the differing and sometimes conflicting requirements and priorities of individual departments can only be resolved through close interaction and liaison. Workshops are a proven vehicle for bringing together a range of people with diverse expertise and sometimes holding inward-looking parochial views. Workshops are an excellent fora for the exchange and cross fertilisation of ideas. To achieve the best results from any workshop, expert, neutral and focused facilitators are required. Wychwood James has experience of designing the contents of workshops, providing trained facilitators to facilitate at workshops and producing reports and making recommendations. This helps the organisation to take the right decisions that all internal stakeholders can buy into.
Contract Management
Entering into a contract with a partner is only the beginning of mutual commercial relationship. Success of such a relationship is dependent upon the performance of the contract to specification. For the public sector, most of the contracts would mean a commercial relationship spanning several years. For this reason, it is crucial that this relationship is thoroughly documented and key elements are capable of regular objective measurement. Wychwood James has experience of developing performance measures, measurement systems, failure reporting and communication systems and establishing effective all party liaison teams to discuss and address issues of concern.
Post Project Evaluation
It is a mandatory requirement to conduct post project evaluation of all projects costing in excess of £1m. We have experience of developing the benefits management plans as a part of the full business case as well as conducting the post project evaluations after the project has been delivered. Post Project Evaluation reports are a crucial barometer for sharing best practice and learning points to benefit future projects. Many of these reports would land on the ministers’ desks and will be deposited in the House of Commons Library.
Formal Public Consultation
It is very often the case that the services provided currently would not necessarily be the requirement in the future. This may arise as a result of changes in legislation and changing priorities. When the proposed service provision is significantly different from the current, the local authority has a statutory obligation to conduct a formal genuine public consultation and seek the views and input of the community and their representatives before any decisions are taken on the way forward. This is a very time consuming and complex process. The success of it and avoidance of any potential challenges leading to a judicial review are dependent upon the process being adhered to and within the spirit of the law. Our team has direct experience of developing formal public consultation documents and the process, including the consultation plan, to conduct such consultations.
Supply Chain Management
For the past two years, our team of consultants have been working with NHS Estates developing the audit programme for the review of the ProCure21 Framework Agreements and have undertaken reviews of two of the Principal Supply Chain Partners.
The programme we have devised would be of value to other organisation as they seek to review the performance and operations of their selected contractors. This applies to public and private sector organisations that have appointed partners under Framework Agreements.
Areas that our Supply Chain Management review will evaluate include:
• Initial review of the procedures and accounting records of the Partner in respect of the Framework in order to provide assurance that the Partner is acting in accordance with the terms and conditions of the Framework Agreement
• To ensure that the following costs are charged to projects at an agreed cost and are validly attributable to projects.
• Materials
• Off-Site Overheads and Profit Margin
• Other Direct Costs (e.g. Prelims, Site charges)
• Plant, Vehicle and Equipment Costs
• Staff Costs
• Sub-Contractor Costs
• An in-depth review of sub-contractor / consultant costs if necessary under the Framework.
Contract Audits
In addition to construction projects, we have extensive experience in the audit of contracted out services. Often overlooked, these audits play an important role in providing assurances to the organisation that services are received in accordance with the original specification and contract. Any contracted out service can be selected for auditing, including Agency Staff, Management Consultants, Vehicle Maintenance and Waste Management Services.