4.1 With 451 projects now operational, it is possible to take stock of the performance of the PFI programme to date. This chapter outlines new research carried out by HM Treasury on the track record of PFI in major capital projects, which tests its performance particularly against its expected benefits of on time and on budget delivery. It also reports on research into two particular areas of the PFI programme, small capital value projects and IT projects, to examine the value for money that PFI is actually delivering in these sectors.
4.2 By concentrating on operational projects, this research gauges how PFI has performed in practice, both in construction and the early years of operation. However, such projects were inevitably commissioned in the early years of the PFI programme, before a number of initiatives designed to establish and spread best practice had been implemented. The dynamic nature of the PFI programme, and the Government's commitment to further improving PFI's application, means continuing appraisal in the future is essential. In particular, it is important to monitor the effectiveness in practice of PFI's operational benefits and contractual protections, including contract flexibility, the ability of authorities to manage contracts, and the maintenance of quality standards into the medium and long-term. Areas for further investigation are laid out in more detail in Chapter 7.