Given the length and scope of PFI contracts, change is inevitable, so the effective administration of PFI change management, in terms of both the change process and its associated costs, is fundamental to successful PFI contract management. In this article…

With the elections on the way, the NHS has predictably become a political football with accusations and counter accusations flying around in the mediasphere. One of the major points of contention is private-sector involvement in this much-loved public institution. The…

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…

PFI (private finance initiative) – the mechanism for funding major infrastructure and construction projects, where completed assets remain, at least initially, in private ownership, and the cost of their construction is paid off, often with significant interest, over many years…

Is this the end for PFI? In May this year an interesting article came out in the GCR (Global Construction Review) on the CIOB (Chartered Institute of Building) website, titled ‘Bye-bye, PFI: UK signals effective end of private finance initiative’.…

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…

Leading government efficiency-focused think tank IfG (Institute for Government) and US project management association PMI (Project Management Institute) recently released a new report concerning PFI value, titled ‘How to get better private finance deals for infrastructure’. The report took an…

Since the revelations of the Labour Conference in September, analysts and pundits have been asking some important questions. They include, in this austerity lashed economic climate, where does Labour believe the potentially hundreds of billions will come from to pay…

In the words of Colin Leys, co-chair of the independent think tank, The Centre for Health and Public Interest (CHPI): “This money was designated by parliament to pay for patient care, not to pay dividends to a small number of…

‘PFI deals will cost taxpayers £209bn over next 35 years’, ‘One in five PFI assets will remain in private, rather than public ownership even after the contracts have ended’, ‘Every adult in Britain faces a debt of £4,119 to pay…

You will know from experience, as we do, that size and term can impact on the complexity of a project and the relationships that govern such a venture. And, as PFI agreements by their very nature tend to be sizeable…

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…

The PFI monitoring calendar is an essential tool for you, as the client, to stay on top of the responsibilities of your PFI contractor and its sub-contractors, as well as your own responsibilities. In this article we focus on how…

Although it sounds like a mundane issue, a good PFI document management and filing system is an essential tool for effective contract management. The need for an efficient filing system for management of any complex contract should be self-evident; however,…

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…