F40 Potential changes in relevant costs may be dealt with in different ways under a PFI contract. (Only changes in property costs are relevant; changes in service costs are not relevant and should not be brought into the assessment.) The contract may have the effect that any significant future cost increases can be passed on to the purchaser, which would be evidence that the property is an asset of the purchaser. For example, this would be the case where the PFI payments will vary with specific indices so as to reflect the operator's costs.
F41 Conversely, where the operator's costs are both significant and highly uncertain, and there is no provision for cost variations to be passed on to the purchaser, this is evidence that the property is an asset of the operator. For example, this would be the case where the payments are fixed or vary in relation to a general inflation index such as the Retail Prices Index. Similar considerations apply to any cost savings and how they are shared between the parties.