1 The National Audit Office examined the construction performance of English PFI contracts procured by central government which involved the construction of an asset to deliver the required service. We looked at PFI projects for which the construction element was either complete, or was due to be complete by summer 2002, according to the contract.
2 We used an issue analysis approach to design the scope and nature of the evidence required to complete this examination. That is, we set a series of high-level audit questions that we considered it would be necessary to answer in order to assess the success or otherwise of the procurement, and collected evidence accordingly. For each of the top-level questions, we identified a subsidiary group of questions, linked logically to the main questions, to direct our detailed work and analysis. Our general report 'Examining the value for money of deals under the Private Finance Initiative' (HC 739, Session 1998-99) provides an outline of this general methodology which acts as a starting point for all of our PFI examinations. We also drew on relevant issues covered in our other reports, particularly our report 'Modernising Construction' (HC87, Session 2000-01), and those dealing with accommodation projects or the financing of large PFI deals.
3 The top-level questions we set were:
■ Has there been price certainty during construction?
■ Was the project completed on time?
■ Is it a good quality project?
4 Our study has been based on a census of the 38 PFI construction projects which were complete or due to be completed according to the original timetables by the time the census was distributed in Summer 2002. We received responses from 37 public sector project managers whose projects fell within this criterion. These included eleven hospitals, seven prisons, seven roads, five buildings for the MOD, three secure training centres, two office buildings, one laboratory and one magistrates' court. We did not receive a response for the A417/A419 Swindon to Gloucester road.20
5 We collected and analysed the information from project managers on these PFI construction projects through questionnaires to assess whether these particular projects were delivered on time, within budget and the extent to which design issues were considered.
6 In addition we discussed these issues with external experts. We spoke to the Major Contractors' Group (the representative body for leading construction companies) and a number of individual leading construction companies to gain their perceptions of PFI construction and PFI incentives. We also asked them to assess current and past approaches to design and quality in PFI. These companies included Balfour Beatty, Carillion, Laing, Skanska, Sir Robert McAlpine, and Amec. We also sought views from academia and spoke to Professor Roger Flanagan, Professor of Construction Management in the School of Construction Management and Engineering at the University of Reading and Dr Mark Hall, Research Fellow at the Agile Construction Initiative, School of Management, University of Bath. The Commission for Architecture and the Built Environment (CABE) also provided insight and information into design issues for the public sector. Additionally, we consulted the Construction Industry Council.
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20 The Highways Agency has confirmed that the progress on this project has been satisfactory. Construction was completed ahead of schedule and the project cost is in line with the Agency's expectations at contract letting.