Impact of the financing on project quality

3.1.11  The second part of Remit Item 1 whether the PPP financing method had impacted on the quality of construction.

3.1.12  It is the view of the Inquiry that while the financing method was not responsible for the defective construction, aspects of the way in which the PPP methodology was implemented on these projects did increase the risk of poor quality design and construction. In this regard, however, the approach adopted on the Edinburgh scheme was quite typical of that adopted generally at the time.

3.1.13  The Inquiry is of the view that a fundamental weakness of the process adopted was the lack of properly resourced and structured scrutiny of the building work at an appropriate level of detail by the external appointment or direct employment of those with requisite experience acting on behalf of the City of Edinburgh Council. There was an over-reliance on the part of the Council, without adequate evidence, that others in the project structure, including those building the schools would comprehensively fulfil this essential role.

3.1.14  However, the method of financing the project, per se, did not negatively influence the quality of construction in the Edinburgh schools. There is no reason why properly managed privately financed public sector buildings should not be capable of delivering buildings constructed to a very high standard, if best practice approaches to ensuring the quality of design and construction are properly incorporated. There does however need to be a greater understanding amongst clients and those advising them as to what does represent best practice in this regard.