6918 Legal Advice for PFI Insurance

The Cabinet Office have undertaken a Further Competition against Lot 1: Finance & Complex Legal Services of the Crown Commercial Service (CCS) Finance & Complex Legal Services Framework Agreement (RM3787).

The Infrastructure and Projects Authority (IPA) has determined that, as part of the PFI Contract Management Programme, in the interests of good project management, it should provide further guidance in relation to the insurance requirements in SOPC version 3 (update, Dec 2005) and SOPC version 4.

In order for the guidance to be provided, the following scope of works has been proposed:

• A)Legal advice on the interpretation of insurance provisions in SOPC with specific detailed advice on:

the insurance sharing mechanism;

the development of the Joint Insurance Cost Reports (JICR); the definition and calculation of Project Insurance Costs (PIC); and the undertakings of the broker under the Brokers Letter of Undertaking (BLU);

• B)A Guidance Note IPA will prepare a guidance note on the SOPC PFI Insurance provisions, with specific HMT/IPA views on the actual interpretation of these provisions. The Supplier will be responsible for confirming that the Guidance Note does not deviate from its Legal Advice; and,

• C)Benefit of Advice. The advice should be given for the benefit of the IPA, all central government departments and their arm's length bodies, the devolved administrations of Wales, Northern Ireland and Scotland, NHS Trusts and all other PFI contracting authorities.