The evidence supports the strong view that PPP transfers construction risk to the private sector more effectively than historical procurement methods and is likely to deliver value for money where there is strong competition and the projects are large. This is clearer in certain sectors, for example water, than in health. Our survey confirmed that the well known problem of transaction costs for smaller projects is also an issue in Scotland.
There is not yet enough evidence to conclude whether PPP transfers post-asset completion risks any more effectively than conventional procurement. This should be a focus for future research. The issue is whether the potential benefits of PPP, such as whole life costing, are sufficient to outweigh its disadvantages, such as lack of flexibility, and whether there might be variations in the contracting approach that would increase net public sector benefits without losing the benefits of transfer of construction cost risks.