Authorities' commercial awareness needs to be improved

2.17 Although many contractors thought that authorities' staff were performing their duties well, 37 per cent of contractors indicated that authorities' contract management teams could benefit from training in specific areas. In particular, they highlighted the need for authorities to understand the operations of commercial organisations (Figure 18 overleaf). They suggested that authority staff should be seconded to commercial organisations to gain a greater

17		Staff performing duties well contribute to a good relationship

		Source: National Audit Office survey of contractors

Contractors' views on where authorities' commercial awareness could be improved

Defence Fixed Telecommunications Service
'For new staff it would be beneficial for them to have understanding of business management, management accounting and managing PFI contracts'.

Royal Parks Agency (Note 1)
'Greater understanding of the need for a PFI partner to, at least recoup capital invested'.

German White Fleet
'Contracts administrators need more commercial training, and specialisation within sectors, eg logistics or transport. This will enable them to understand the contractor and the nature of the service provided'.

National Insurance Recording System 2
'Increased awareness of the operations of a commercial organisation, either through specific training or work placements with a commercial organisation'.

NOTE

1. Since our survey, there have been significant management changes within the Royal Parks Agency resulting in a marked increase in commercial awareness. The Agency considers there was a need for all parties to understand better the transfer of risk in PRI projects.

Source: National Audit Office survey of contractors

understanding of how they work. Authorities could also benefit from exchanges of staff between authorities to gain experience of how others manage their relationships. There may also be benefits to the private sector through secondments to the public sector to gain a fuller understanding of how it works.