1 The present value of expected payments to 2031-32 of £171 billion, discounted at 3.5 per cent.
2 Source: HM Treasury (2007).
3 Committee of Public Accounts 35th Report of 2002‑03 (HC 567) PFI Construction Performance.
4 We asked for the total cost of these changes over the lifetime of the contract, so as to take into account any ongoing costs. Fifty changes had a capital cost of over £100,000; the remaining 20 were changes to services with a present value life time cost of over £100,000.
5 HMP Altcourse/Fazakerley, HMP Lowdham Grange and Northumbria Healthcare – Hexham.
6 This figure does not include those who simply listed the inclusion of lifecycle as the main difference between PFI and conventionally-procured assets.
7 The latter case is Hereford hospital, a first-wave PFI hospital in which the FM provider fee was not specified in the contract. In later versions of the PFI contract, this anomaly was rectified.
8 BMI Building Maintenance Price Book (2006 edition).
9 Royal Institute of Chartered Surveyors, BMI Building Maintenance Price Book (2006); also SPON'S Estimating Guide to Electrical Works (2006).
10 Two of the projects in our sample, which use the same FM contractor, had sought advice from PUK following concerns over the time taken and management fees involved in processing small changes. A new change protocol was agreed in August 2007, which will include a catalogue of standardised costs for small changes. As the catalogue has yet to be agreed, there is no evidence of what impact, if any, this will have on the base costs of small changes.
11 Several interviews conducted in 2007, focus groups.
12 On average, lifecycle has been explicitly added to a fifth of changes.
13 North Tyneside – Four schools project.
14 East Riding schools, Wirral schools.
15 OGC Public Sector Construction Database 2006, for works up to a value of £2 million.
16 Thirty six per cent of contract managers said that both agreement and completion of changes was a little slower or much slower than agreed timetables.
17 The STEPS PFI contract differs from most PFI deals in that the contract involved the sale or transfer to the private sector of over 600 existing properties, along with their ongoing facilities management arrangements, which are then managed by a private sector partner.
18 This finding is consistent with surveys of operational PFI projects carried out by Partnerships UK in 2004 and 2005. See Appendix 1 for the statistical basis for this and the following paragraph.
19 See Appendix 1 for the statistical basis for this. There is no correlation at all between staff resources devoted to change and the number of changes.
20 Out of 210 altogether (as of June 2007).
21 See 4ps and PUK operational reviews among others.
22 E.g. Brooklands Avenue project, Cambridge.
23 National Audit Office (2000), The Financial Analysis for the London Underground Public Private Partnerships, HC 54, Parliamentary Session 2000-01; National Audit Office (2004), London Underground PPP – Were they good deals?, HC 645, Parliamentary Session 2003-04; National Audit Office (2004), London Underground: Are the Public Private Partnerships likely to work successfully?, HC 644, Parliamentary Session 2003-04.
24 Other measures for the extent of change, such as the number of changes and the cost of changes as a proportion of the unitary charge were also tested, but no significant correlations were found.