Improving project management skills

25.  Staff responsible for managing PFI projects need to have the appropriate skills. Even where the right contractual framework has been put in place, departments may fail to realise the full potential benefits of projects if contracts are not managed effectively. Effective management requires a thorough understanding of the project and the contractual arrangements and an ability to build effective relationships with contractors. In our report on Managing the Relationship in PFI Projects (42nd Report, Session 2001-02) we found significant shortcomings in approaches to managing PFI contracts. Some departments, for example, provided little or no training on contract management.