Most authorities consider that their PFI projects are good value for money

7  We asked the authorities in our survey for their current perception of the value for money of their contracts. We also asked them how it matched up to their original expectations when the contract was let (Figure 1). Over half the authorities in our survey said that the value for money of their PFI projects was currently good or excellent. In total 81 per cent of authorities said that value for money was currently satisfactory or better, 15 per cent said it was marginal and 4 per cent said it was poor. There has been a slight decline, however, in perceived value for money since contracts were let. Some 86 per cent of authorities considered that the value for money of their PFI projects at the time of contract letting was satisfactory or better, 14 per cent said it was marginal and none said it was poor. There was generally positive feedback from users of the services although in some projects authorities and contractors were addressing areas where user feedback suggested improvements could be made.

8  These figures demonstrate the high expectations that authorities have for the success of PFI projects in delivering value for money in public services. But they also indicate that value for money is not guaranteed. Authorities need to ensure that the value for money anticipated at the time of contract letting is delivered in practice. To do so requires careful project management and a close attention to managing the relationship with contractors. Authorities also need to consult with users about their level of satisfaction with the services being provided. These important matters are addressed further in this report.