CC challenges scathing report on poor value PFI schools

A report published today (Thursday) which claims that schools built under the Private Financial Initiative (PFI) do not deliver better value for money than schemes funded directly has been challenged by the Construction Confederation (CC).

The CC points out that the Audit Commission report, PFI in Schools, is not representative of the current situation as it surveyed just 17 of the earliest PFI school projects.

It said that there are now around 500 refurbishment or new-build projects underway and the process has improved from those early pioneer contracts.

CC president John Gains said that local authorities are often offered more expensive but better value options which they reject in favour of lower cost tenders. "There are wide variations in local authority resources and experience in selecting contracts and clearly there is a need for sophisticated guidance in procurement issues. There must be a greater sharing of experience and Best Practice within the public sector."

Gains added that overall the report, which recognised that procurers and providers were already learning from their experience, was 'helpful' as it did not solely concentrate on criticism.

"A National Audit Office report released just over 12 months ago concluded that more than 80% of public bodies involved in PFI projects believed they were achieving satisfactory or better value for money from their PFI contracts," he said.