8.14 As outlined in Chapter 5, the process of standardising PFI contracts helps spread best practice, improving PFI procurements across the public sector, and significantly reduces the length and cost of PFI procurement. These standard terms maintain the individual flexibility of a particular procurement to set its needs and requirements, but provide a standard form for those aspects of PFI common to all its procurements. Further action to drive through these advantages, and ensure they are enjoyed across the public sector, will improve the value for money of PFI projects being procured across the board.
8.15 The Government accepts that it is important, if all parties are to gain from the effective implementation of the guidance on the standardisation of PFI contracts, that there is not significant variability from transaction to transaction in the application of the standardised PFI contract. It is also important that a more regular assessment and consultation with private and public sectors as to how the application of the standardised PFI contract is undertaken. In future, therefore, the Government's approach to developing and implementing the standardised PFI contract will be as follows:
• there will be a regular dialogue with the private and public sectors over how successfully the standardised PFI contract is being applied;
• any future change to the standardised PFI contract will be incremental, rather than a wholesale review, and will be on the basis of specific issues raised by public or private sectors or resulting from new legislation being enacted which impinges on the standardised PFI contract; and
• the Government will act to ensure more rigorous enforcement of the standardised PFI contract across both public and private sectors with a more robust line to be taken by the Project Review Group, Gateways and by HM Treasury.
8.16 To help with this process, HM Treasury has agreed with Partnerships UK that it will increase the resources it will make available to both public and private sectors to support the adoption of the standardised PFI contract across the programme. In particular, Partnerships UK will:
• provide greater resources through its Help Desk to public and private sectors in implementing the standardised PFI contract; and
• engage with private sector and public sector authorities on a regular basis to assess progress in implementing the standardised PFI contract, reporting quarterly to HM Treasury.
8.17 HM Treasury will periodically review the application of the standardised PFI contract, taking account of Partnerships UK's recommendations and any other representations which the private and public sector may wish to make. These reviews will be focused primarily on the implementation of the standardised PFI contract across the public sector and address new issues and concerns which may arise which are not adequately addressed by the current standardised PFI contract. The Government will, however, seek to avoid any wholesale review of the standardised PFI contract or shift the current risk sharing balance of the standardized PFI contract, unless there are strong arguments for doing so in light of the findings of any review.