SPV & LEP Management
The term “SPV” refers to Special Purpose Vehicle and, in our business, this typically refers to the project company that is formed for the sole purpose of delivering the project to the end user client.
In the PFI (private finance initiative) projects that we have been involved with up to now, this delivery will mean design, build, finance and operation of the project. The shareholders of the SPV usually consist of Bouygues group companies such as Bouygues UK and Ecovert FM, as well as a major partner (e.g. HSBC).
The SPV will arrange finance for the project with external investors and then subcontract construction and service operations to Bouygues UK and Ecovert FM, while maintaining the overall contractual responsibility and obligation for the successful delivery of the project and in the best interests of all the SPV shareholders.
At Bouygues UK, we provide a management service to the shareholders of the SPV. As well as the duties associated with the general management of the company, the service can and does include matters such as:
- compliance with funding obligations
- company law
- health and safety law
In conjunction with rigorous processes and systems we also ensure efficient and timely preparation of management and financial accounts, tax calculations and compliance with tax obligations and audits.
We also provide management of and compliance with contractual obligations and the control of variations. A significant part of our work is the detailed and regular reporting to the shareholders and funders ,as well as attendance at and management of SPV board meetings. As the delivery of the company's obligations includes the services over the whole life of a project (typically for 30 years or more), we are also required to ensure effective asset management which includes maintenance and life cycle programmes.
Local Education Partnership (LEP) Management
This is a company that is formed at the beginning of each Building Schools for the Future (BSF) Schools Programme to manage and fulfil the role of a long term strategic partner to the Local Authority and its stakeholders.
This entails working with the Local Authority and the Strategic Partnering Board (SPB) to build relationships with and work closely with local stakeholders, including governing bodies, school staff, unions, pupils, parents, local businesses and the wider community to name but a few. A general understanding of the Local Community Strategy and the Local Authority's visions together with the schools development and improvement plans is essential to developing a robust partnership and a successful project.
Currently the programme deals with secondary schools throughout the country including voluntary aided schools, PFI schools and those with special needs. The Primary Capital Programme has also recently been embraced by Partnership for Schools (PfS) where the role out programme has yet to be determined.
The team, during the bidding/commercial process secure two or three projects known as Sample Schemes. These are then used (together with other data) as the basis for developing further schools (Non Sample Schemes) within the programme.
Depending upon the scope of the OJEU the LEP also has the opportunity to develop various other schemes such as leisure facilities, libraries, housing etc thereby increasing its portfolio. The main advantage of engaging the LEP in these circumstances is to capitalise on the very short procurement route and relationships built up within the team.
The LEP will engage with a building contractor and where applicable, an ICT and Facilities Management provider to deliver the schemes within the programme and utilise similar resources for any additional work that the LEP is successful in winning.
