Contractors blamed for rising cost of PFI at preferred bidder stage

Contractors need to radically rethink their position at the preferred bidder stage of PFI contracts if they are to address the rising concerns over bid costs, solicitor Burges Salmon has warned this week.

"Contractors have only themselves to blame as they waste their own time and money when it comes to the preferred bidder stage," said partner Mark Paterson.

"It is essential they have all documents and assurances from their subcontractors and lenders together before it gets to this stage.

"Often we find teams have lovely graphs and plans but are weeks and months behind schedule, costing them thousands. It often takes the average contractor at least three months to get to the best and final offer stage," he said.

Paterson added that project managers have a major part to play to ensure that all the subcontractors, lenders and consortiums are up to speed with the project at the preferred bidder stage.

The government can help contractors, claims Paterson, by making sure documents are up to date and readily available. "It's unfair for a contractor to take all the risks if the government's asset records are not to standard," he said.