The health and education sectors represent two-thirds of the contracts studied in our survey. They are both performing well. Contracts in both sectors are currently meeting Service Level Agreements in 90% of projects, 80% of contracts in each sector are profitable and 70% have been profitable in every year of operation. The reports of 'very good' performance are also up on last year. Both sectors have their concerns. The managers in the education sector are the most sceptical about the inclusion of soft services. Although 66% felt that including them provided a better service, all of those in the survey who thought that the inclusion of soft services did not provide a better result for the public sector were in education. This will only add to the current debate on their value for money and the exclusion of soft services from PFI contracts. Alternatively there may be a need to re-examine the procurement process to understand if the process itself constrains creation and delivery of effective solutions.