Is this the end for PFI (private finance initiatives)? Brought in by John Major in 1992, extensively utilised by the Blair government and every occupant of No. 10 since, no matter their political stripes, PFIs have, in recent years, become…

The day to day pressures of managing a PFI contract tends to lead one to focus on operational issues, yet the importance of devoting considerable time and energy to keeping on top of PFI costs cannot be undervalued. Take a…

The complexity and length of PFI contracts and the upward pressure on the unitary charge (due to inflation, the cost of contract variations and the contractors’ desire for profit, among other things) mean that multi-million pound deficits can accumulate if…

The need to control PFI costs is of paramount importance to any public sector organisation, yet often those responsible for PFI finance and the contract arrangements can work ‘in silo’ creating (inadvertently) a lack of cost control. Collaborative working, therefore,…

As most PFI contracts span a period of 20 to 30 years, they tend to have built-in provisions for periodic price realignment, based on market rates for similar services. Although the responsibility for managing this process rests with the contractor,…

With HM Treasury now allowing procuring organisations to keep all the savings they achieve from effective management and the realignment of PFI contracts, this provides an ideal opportunity for you to review the governance, structure and scope of your operational…

Our focus is on operational PFI Contracts: How to get the most from partner changes. With most PFI contracts having an average lifespan of 20 to 30 years, it is inevitable that some of the parties will change during that…

Despite the mounting pressure of ever more limited budgets and strict HM directives to actively pursue savings in PFI contracts, it is surprising how few organisations have completed a thorough review of their PFI-related costs. Recent discussions with senior managers…

The adverse financial ramifications of large PFI contracts that were negotiated in healthier economic times are only now becoming clear to many public sector organisations across the UK. Such agreements were entered into with the best of intentions and were…