Innovation and new ways of working have led to performance beyond that required by the contract ("over delivery") and generally this has not led to an increase in costs. Some innovations have resulted in cost savings. PFI contracts should allow for the development and use of innovative practices in order to generate benefits which can be shared between both parties.

There are many types of innovation being used to deliver contracts. Better and more thorough assessment methods were also cited as ways in which existing working practices were improved.

In only 19% of cases did this innovation lead to increases in service delivery costs, while 70% saw no change in the charge for the services they provided and 11% saw a decrease. Contract managers have cited a number of examples where the whole basis of the provision of the service has been rethought.