1.12 Because PFI deals involve the provision of services over the long-term by the private sector, the payment mechanism lies at the heart of any PFI contract. It puts into effect the allocation of risks between the public and private sectors and establishes incentives for the private sector to deliver the services agreed in a manner that provides value for money. Payment mechanisms should not contain an element of payment that is absolutely fixed regardless of the availability, timeliness or quality of service delivery. Any such fixed element would not be results-orientated, reduces risk transfer and may indicate a lack of confidence in the project by private sector funders.