The Audit Commission has criticised the negotiation process for PFI projects saying it is too long-winded and should be accelerated.
In its new report ÐÇ¿Õ´«Ã½ for the Future, it cautions that the existing system of negotiating with a preferred bidder can be too complex and slow, and recommends that the process should take no longer than six to nine months.

PFIs commonly take between 12 months and two years to complete after an OJEC notice (European public contract listing) has been issued. In many cases projects can take up to four years to get off the ground.

Proposed revisions to European procurement regulations have already raised questions about the future of PFIs, by suggesting that the preferred bidder system should be abandoned due to its complexity.

The report also found that PFIs vary greatly in terms of savings. On a project worth about £130m, forecast savings can be as much as 17 per cent, while on smaller projects it can be as little as three to five per cent.

Source

The Facilities Business