3.23 Linked to effective contract management is effective asset management. Infrastructure assets typically have a high proportion of fixed costs relative to variable costs. This cost relationship is not unique to PFI, but highlights the need for PFI projects to be considered in the context of the public sector's total asset base. Increases in throughput or occupational density may be the most straightforward route to savings on a per unit basis.
3.24 An example of this approach at the local government level is Total Place5 which takes a whole area' approach to public services with the aim of providing better services at lower cost. This might mean rationalising overall estates and/or subletting space in a PFI project to other public or private sector tenants.
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