Flexible service provision

PF2 will continue to combine asset design and construction with responsibility for maintenance and renewal in a single contact. This will ensure that the contractor continues to be incentivised to consider future operational costs as decisions are made during the project's design and reconstruction.

Flexibility has been a significant problem for PFI projects in the past, this will be addressed through:

•  reducing the number of services included in PF2 projects. Services, such as cleaning and catering, will be excluded from the contract and provided separately through shorter term contracts in order to provide the public sector with the flexibility to alter service specifications over time;

•  providing procuring authorities with the discretion on the inclusion of certain minor maintenance activities at the project outset; and

•  providing additional flexibility on the provision of services once a contract is in operation and at the contract's end.