Delivery of PFI infrastructure to originally contracted price

The results of our survey showed that departments obtained price certainty in the majority of projects. There has, however, been a statistically significant decrease as a result of public sector initiated changes to scope, since our 2003 report.

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The majority of PFI projects have been delivered on or close to price
The number of projects that delivered exactly to the originally contracted price has declined due largely to public sector changes
Survey respondents reported contractual incentives and clear output specifications to be the most important element in delivering to contracted price
The financial difficulties of Jarvis plc did not have an effect on the delivery to contracted price of the projects in our sample
Time delays and price increases are not highly correlated
Survey results show public sector and third party initiated changes as the most commonly reported cause of price increases
Not all changes were due to unavoidable circumstances