Sir Robert McAlpine denies 'pulling out of PFI' rumours

Exclusive by Rob Willock

Sir Robert McAlpine is reaffirming its commitment to PFI in the expectation that key government departments "will dramatically reduce their present exorbitant bid costs".

The company is making the unusual move in light of continued speculation about the future of PFI and reports that major contractors are losing interest because of high bid costs and slower-than-expected returns.

A company spokesman said: "It has been suggested that Sir Robert McAlpine is considering pulling out of any further PFI ventures because of the sheer size of its bid costs on the Colchester Barracks PFI. This is incorrect.

"The issue of bid costs is a major concern to us, but we are aware that the public sector recognises this and is investigating ways to reduce them, which is welcome. Contract Journal's article on the Colchester Barracks project (CJ 21 August) demonstrates this."

The spokesman also pointed to the Department of Health, which has recently reviewed its bidding process to reduce the number of procurement stages. "We are hopeful that further ways will be identified to reduce bidding costs while streamlining the procurement process, thereby delivering much needed projects more quickly and economically," he added.

"Sir Robert McAlpine is confident that PFI delivers projects that are better value for money and substantially quicker than other procurement routes. We will continue to have a major involvement in PFI, both as a constructor and investor, while expecting that the plans to reduce the present exorbitant bid costs prove effective," he said.