The NSW Government's Working with Government - Guidelines for Privately Financed Projects observes that the PSC has inherent limitations because:
■ it requires costs (and revenues) to be forecast over the life of the proposed concession. It is difficult, even for the most skilled experts, to make accurate estimates over such a long time-frame
■ estimating the impact of risks on costs (and revenues) over the life of an asset is a complex and often subjective exercise.
Despite these limitations in assessing future costs and revenues and risks, the public sector comparator appears to be sufficiently precise to be a useful tool for assessing alternative procurement routes. Its accuracy in relation to school facilities is likely to improve with use.