The process of comparing the method, time or cost of an operation, service or product against those of other organisations, preferably thought to be the best in the field. | |
Design, Build, Finance and Operate contracts. A contract let under the principles of the private finance initiative whereby the same supplier undertakes the design and construction of an asset and thereafter maintains it for an extended period, often 25 or 30 years. | |
A contract where a single supplier is responsible for designing and constructing a built asset. | |
A method used to convert future costs and benefits to present values using a discount rate. | |
The annual percentage rate at which the present value of a future pound is assumed to fall away through time. | |
Management of services relating to the operation of a building. Includes such activities as maintenance, security, catering and external and internal cleaning. | |
The discounted value of a series of future costs, benefits or payments. | |
A description of arrangements whereby part or all of a contractor's financial records for a project can be seen by the authority. | |
The specification of the Department's requirements in terms of the desired outputs rather than inputs. | |
A bidder selected from the shortlist to carry out exclusive negotiations with the Department. | |
A contract involving a main supplier, the Prime Contractor, which has a well established supply chain of reliable suppliers of quality products to encourage increased quality and value for money resulting from an element of consistency and standardisation. | |
A policy introduced by the Government in 1992 to harness private sector management and expertise in the delivery of public services, while reducing the impact of public borrowing. | |
The process by which the terms of the funding put in place at the outset of a PFI contract, are later changed during the life of the contract, usually with the aim of creating refinancing benefits for the contractor. | |
The passing of risk under the contract from the public sector to the private finance provider. | |
A company specially established to carry out the contract. Shareholders will nearly always comprise several companies often including a construction company and facilities management provider. | |
The periodic payment, usually monthly, that the public sector agrees to pay for the provision of services by the PFI contractor. | |
The optimum combination of whole life cost and quality to meet a customer's requirements. | |
Taking a view of the construction, operation and maintenance of the asset over the whole life of the project. |