3.3 In 2009, we highlighted contract management skills as one of the priorities across Government which needed attention.36 In our report on PFI in hospitals we found that most NHS Trusts were managing their contracts well day-to-day but needed support with certain complex issues. The Department of Health's Private Finance Unit had provided valuable guidance and advice. It had also convened meetings of NHS Trusts where they could share experiences. The Department told the Committee of Public Accounts that its central team overseeing the programme of PFI hospitals was now smaller. It hoped, however, that NHS Trusts would contribute financially to a club which would procure contract management support.
3.4 On the M25 project, the Highways Agency's reliance on advisers built up over time as the Agency lost key staff. This risked the advisers controlling projects and holding too much project knowledge.37
3.5 A central coordinating role drawing on accumulated experience can assist the delivery of intended outcomes and the achievement of value for money. This approach has been effective for PFI projects, where the Treasury has added significant value by standardising contracts. The Treasury also took action in 2008 and 2009 to maintain a flow of PFI contracts to stimulate national and local economies whilst continuing to apply standard PFI value for money tests. Part of its action was to set up The Infrastructure Finance Unit which was available to lend to projects to address the scarcity of debt finance.
3.6 Specialist private finance units within departments have generally provided helpful support to projects by staff who have experience of PFI issues. The Treasury and the National Audit Office have jointly set out a model of the current best practice of how departments are managing PFI programmes.38
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36 Comptroller and Auditor General, Commercial skills for complex government projects, Session 2008-09, HC 962, National Audit Office, November 2009.
37 Comptroller and Auditor General, Procurement of the M25 private finance contract.
38 National Audit Office and HM Treasury, Managing complex capital investment programmes utilising private finance, March 2010.