By: Steve Frizell

Aligned with reviewing any and all 'Return Condition' provisions in the contract and conducting the pre-handover survey ("Key challenges" above, you should expect to see residual inventory requirements and the records relating to planned and preventative maintenance activity that has been conducted. Significant risks to the Owner (and any follow-on contractor) at handover include the obligations and rights (if any) to existing stock/spares and parts etc., as well any major equipment overhaul, capital equipment lifespan replacement and potential (or actual) obsolescence at, or soon after, contract expiry. The question doesn't specifically present the issue, but another aspect of some PFI contract handover obligations may include the application of TUPE provisions.