PFI contracts slammed by Public Accounts Committee

Contracts awarded for the concession period of PFI projects have come under fire from the Public Accounts Committee.

Watchdogs on the committee gathered evidence from the 500 PFI schemes currently in the operational phase.

They have attacked the way contract changes are handled and the lack of competition for new work as companies already operating buildings like schools and hospitals win the vast majority.

The committee report said: “At present, only 27% of project changes over £100,000 are subject to competition.

“The arguments for handing additional work to an incumbent contractor are not persuasive nor do they hold sway in every project.

“Public sector authorities should raise this percentage so that alternative bidders compete to undertake the work whenever possible.”