PPP Timelines

3.3 Average PFI procurement times, from initial project tender to financial close, have stubbornly remained at around 35 months. This average has, however, varied by sector; the average procurement time for schools was 22 months in 2008 whilst in sectors such as housing and waste procurement times have consistently been significantly longer.

3.4 The period from the initial project tender to that appointment of the preferred bidder is the most expensive phase of procurement, as this is when multiple bid teams are in competition. In the past, significant bid costs have been incurred by the private sector over this period which ultimately are borne by the public sector in the form of higher contract costs. On average this period took just under 2 years for past PFIs and in the worst PFI cases took over 60 months2.

3.5 International comparisons on procurement timelines are imperfect as they are affected by differing legal systems, cultural behaviours, interpretation of EU regulations and pre- and post-procurement processes. Nevertheless, the UK procurement timelines do appear to be slower than European comparators and are significantly slower than those achieved in Canada.

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2 HM Treasury Data on PFI projects http://www.hm-treasury.gov.uk/infrastructure_data_pfi.htm