Retrofitted Paymech for PPPs

A payment mechanism (or paymech) can be added to an operational PPP contract at any time – whether two years in or 20 – and the benefits can be transformational. Take the opportunity to review how the contract is working and address problems or inefficiencies, all the while improve transparency and auditability.

• **Prevent disputes: **Partners can review the contract terms with us and agree to make changes where SLAs and KPIs are ambiguous or operationally flawed in practice.
• **Reduce penalties: **Easy access to the contract terms and tools to manage performance, helps reduce service and availability failures to mitigate penalties.
• **Save hours of reporting: **Our fully integrated paymech calculates all penalties and while P3rform manages contract performance reporting in a flash.

Identify and address problems in the existing contract operations During the operational and maintenance (O&M) phase of a PPP, it may become clear that contract terms are ambiguous, aren’t feasible, or have become obsolete due to the contract’s age. Our team will meet the partners to ensure all contract terms are agreeable, visible and measurable and then translate them into the software for performance reporting and deduction calculations.

Review and clean existing data As part of the retrofit process, we will help you clean your data to ensure a strong foundation for reporting and transparency moving forward. This could include reviewing the asset register, service categories and priorities, removing redundant KPIs and SLAs, if improvements can be made to how data is input and managed, building new reports if required, and assessing user profiles to maintain data security.

Create efficiencies in maintenance and service provision Ensure resources are directed efficiently, without disruption and disagreement. Retrofitting a paymech also provides the opportunity to improve sustainability practices, such as reviewing energy use. Consumption can be compared against annual targets, allowing forecasts and reduction actions, before pain share or gain share payments are calculated.

Re-examine and apply more rigorous financial auditing Gain greater insight into performance. What has gone right and wrong over the month, and what can we do better? What where the biggest costs and where were the most penalties accrued? Track monthly payments in order to identify ways to improve service provision.

Reassess new technology to enable cost effectiveness and enhanced efficacy With contracts spanning 30 years or so, it’s highly feasible that technology not available (or too expensive) at the outset would now be beneficial. Retrofitting a paymech is an ideal time to review how technology such as building information modelling (BIM) or sensors and IoT could be used, and form part of the contract. A delivery framework with KPIs and SLAs can be added to the paymech, documenting what is expected and how the cost can be spread.

Features

• Contract Review & Cleanup: Identify ambiguities and clean data for stronger reporting foundations.
• Automated Deductions: Calculates penalties and rebates based on updated SLA/KPI logic.
• Performance Transparency: Tracks service delivery and availability in real time to prevent disputes.
• Sustainability Insights: Integrates energy consumption tracking for gainshare/painshare calculations.
• Technology Integration: Supports BIM, IoT, and sensors to modernize legacy contracts.