Lawyers blame PFI failures on risk transfer muddles

Greater standardisation of contracts would make Private Finance Initiative projects quicker and cheaper for contractors, said Andrew Willcock this week.

Willcock, head of construction and leader of the PFI unit at law firm Davies Arnold Cooper's Manchester office, listed the main PFI problems as a lack of standardisation of contracts, unbankable schemes and confusion over risk transfer.

"Some schemes are not bankable for a number of reasons," said Willcock, "including the aspirations of the public sector exceeding what it can afford when Trusts have difficulty matching what they want to what their customers can afford.

"Contractors need to be sure that a Trust's business plan is financially sound before they go ahead."

Willcock added that the confusion over risk of transfer would not be settled until the public sector more fully understood how the PFI operates.

However Willcock said that contractors should face up to the fact that PFI - despite its numerous problems - is the only way forward.

DAC currently advises on PFI schemes worth over œ250 million.