Despite government enthusiasm for the initiative, major contractors are concerned that excessive red tape is hampering the delivery of vital projects.
The UK's major contractors have warned the Government that it must cut the paperwork if the controversial Private Finance Initiative is to work.

The Department of Health is said to be standardising its systems as much as possible in an attempt to streamline PFI procurement procedures.

The Major Contractors Group, which includes Bovis Lend Lease, Carillion and Amec, has expressed grave concerns over the current viability of the PFI. John Spanswick, md of Bovis Lend Lease, said: "If the Government doesn't resolve this issue quickly, it's likely that none of the new wave of hospitals will be completed before the next election."

The Department of Health is working on a standard PFI contract that will mean NHS trusts will no longer have to draw up contracts individually. According to Peter Coates, head of private finance at the Department of Health: "We believe the best way to improve the process is to standardise systems as much as possible."

Up to 80% of the PFI's paperwork will be standardised, cutting down on bespoke documentation and reducing the need for expensive lawyers.

Many m&e contractors are heavily involved in the construction of new health facilities. The AEEU estimates that as many as 20 000 industry jobs could be tied up with the PFI.

While the PFI has come under attack from many in the union movement, the AEEU remains in favour. Speaking at the ECA conference in Stratford-upon-Avon, general secretary Sir Ken Jackson said: "The AEEU is the only major union to support the Government's PFI investment.We stand for success in the UK economy."

The PFI has been attacked by critics who claim that buildings built under the process are expensive, cramped and poorly designed.

Source

Electrical and Mechanical Contractor