Having staff with the right skills is critical to good contract management

15  Even where the right contractual framework has been put in place, the authority may fail to realise the full potential benefits of the project if it does not manage the contract effectively. This requires a thorough understanding of the project and the contractual arrangements and an ability to build effective relationships with contractors.

16  Most authorities considered that the staff in their contract management teams had sufficient skills and experience. But authorities' responses to our survey suggested a considerable variation in the extent of training provided in contract management skills, with some authorities providing little or no training. As part of the training that is required, lessons from managing current projects need to be disseminated quickly. There are also difficulties in achieving staff continuity. Authority staff who have experience of PFI procurement may be transferred to other PFI procurement teams or they may find that their experience is marketable outside the public sector.

17  Authorities would welcome further guidance on managing relationships with contractors and have identified a number of areas where further guidance would be helpful. Contractors also believe that there should be further training for authorities. They have emphasised the need for authority staff to have greater commercial awareness, which could be achieved through specialised training or work placements with commercial organisations.