In our view the contracts in the New Schools Privately Financed Project were established and let in a way that greatly assists their potential for delivering value for money.
We found that DET developed:
■ a clearly defined business case with the objectives of a faster supply of schools, possible cost savings, innovation and simplified services management
■ good tender lists with competitive tension maintained throughout the tender processes
■ a sound performance monitoring and reporting system, with provision for it to intervene in the case of poor contractor performance.
The contracts in the New Schools Privately Financed Project are at an early stage of their 30 year lives and the savings and other benefits are not guaranteed. The contracts will need to be carefully managed over the 30 year period to ensure that benefits are realised and that costs do not escalate beyond expectations.