24 As a result of this examination we make the following recommendations:
A Authorities and contractors should always seek to understand each other's businesses and establish a partnership approach to each of their PFI projects based on a common vision of how they will work together to achieve a mutually successful outcome to the project.
B Authorities must give attention at an early stage in the procurement process of a PFI project to contract management issues and how their relationship with the selected PFI contractor will be developed.
C Authorities need always to consider when developing a PFI contract the factors which may require changes to the contract after it has been let. The authorities' priorities may change or other factors may arise such as the opportunity to take advantage of improved technology. Appropriate contractual procedures for dealing with change should be built into the contract. The procedures need to ensure that value for money is maintained when contract changes occur.
D During the procurement stage authorities must develop a staffing and training plan to ensure that they have staff with the right skills and experience to manage the contract after it has been let and to build a good working relationship with the contractor.
E Authorities should regularly re-assess their relationships with contractors, and the value for money their projects are delivering, to identify ways in which relationships can be improved.
F The Office of Government Commerce should take foward its plans to consider further guidance on contract management issues and should consider facilitating opportunities for staff from different authorities to share experiences of managing PFI contracts and relationships with PFI contractors.
We have set out in Appendix 3 points to be considered in taking forward these key recommendations.