1.2 The contractor to a PFI contract involving construction of a built asset is nearly always a company specially established to carry out the contract, referred to as a special purpose vehicle. The shareholders of the consortium will usually comprise several companies, often including a construction company, and a facilities management provider. The consortium may also employ the services of a design company.
1.3 This arrangement means that the same partners are potentially involved in a long term relationship over the whole contract life. If they are shareholders in the project they have a long term financial interest in the project. This differs from traditionally procured assets, where construction companies usually have no interests in the long term performance of the assets.4
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4 By traditional procurement we mean the practice of tendering for each key stage of a construction project such as design, construction and the subsequent facilities management. In traditional procurement contracts were often awarded on the basis of the lowest priced bids rather than on the basis of all aspects which might affect value for money.