2.18 There has been inconsistency between projects as to whether a lifecycle element needs to be added at all for some jobs. For example, a lifecycle element has been explicitly added for items such as sockets, locks and data points in some projects, but not in others.12 Although it may be reasonable to charge a small maintenance cost for potential repairs, adding a charge on the assumption that a shelving unit or lock will need replacing every ten years is questionable and undermined by the fact that many contractors have not done so and absorb it as part of their day to day business.
2.19 Ongoing maintenance cost often goes beyond the cost of simply maintaining the item in question, capital works can have implications for other ongoing services such as cleaning (Case example 2). As with the lifecycle element, we found inconsistencies as to when and what maintenance is charged, with much depending on the attitude of the private sector partner and the willingness of public sector authorities to challenge unnecessary charging.
CASE EXAMPLE 2 |
Taking down smoking shelters at a PFI building At a PFI building, the public sector authority wanted to take down the smoking shelters used by staff and visitors. The base cost of removing the shelters was £750. The ongoing cost was agreed with the SPV at £2,600 a year on the assumption that removing the shelters would result in a greater spread of cigarette butts around the site, adding to the cost of cleaning. |