Small changes take longer to process under PFI than in conventionally managed accommodation, but there have been no delays to urgent changes

2.26  For most small changes, a price is agreed between the public sector authority and the SPV within a month and changes are then completed within a month (Figure 12). Sixty seven per cent of public sector contract managers who answered our questions said that agreement or completion of changes was a little or much slower than agreed timetables16 and both public and private sector contract managers believe that efficiencies can be made. There are also a small minority of relatively straightforward changes which have seen more significant delays, causing frustration to front-line users.

2.27  Generally, small changes under PFI take longer to process than similar changes for conventionally procured managed accommodation. Fewer than 20 per cent of PFI schools and hospitals agreed or carried out small-value change requests within a week. This timescale would be more common for conventionally outsourced jobs of a similar nature and size although in some instances there may have been good reasons for the extra times taken (such as the need to agree a lifecycle element). For instance, small works changes undertaken by contractors on buildings occupied by HM Revenue & Customs under the STEPS contract17 are nearly always authorised within two to three days and implemented to an agreed programme, or if there is no such programme, then as soon as reasonably practical.

2.28  The types of change requests that have taken longer than expected by authorities have been non-urgent building works. In sectors such as hospitals where there may be a need for urgent changes, PFI contracts usually contain separate provisions for changes that need to be processed as a matter of urgency. Our survey respondents said that contractors had responded to these urgent requests in a timely manner.

2.29  Service improvements are usually easier to negotiate, as the price can be based on existing rates. Where service improvements have been required as a matter of urgency, contractors have been able to respond very quickly (Case example 5).