2.18 PFI construction contracts are fixed price contracts with heavy financial costs for the contractors if they do not deliver on time. But using PFI is not a panacea for solving construction problems. In October, we published the results of our second survey of PFI construction projects for the period 2003-2008.19 We found that 69 per cent of construction projects in our sample were delivered within a month of the due date. Eighteen per cent were delivered over six months late, the latest being 36 months late. Of the projects experiencing delays, under half experienced price increases; in the cases where delay has only been as a result of those risks allocated to the private sector, the public sector's price of the projects has not increased as a result of the delay.
2.19 The majority of price increases were due to changes requested by the public clients during construction. But ten per cent had price increases without any changes. The public sector often has to pay for costs arising from any risks it retains such as asbestos, planning permission, the purchase of land, and the costs arising from any delay that these cause. Similarly, poor contracting can lead to claims from the private sector.
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19 Performance of PFI construction, National Audit Office (October 2009).