3.10 The cost to the public sector has been affected by the rising cost of facilities management since Carillion agreed the price for maintaining the buildings in the original PFI contracts. Since Carillion collapsed, other facilities management companies have experienced financial difficulties and the Cabinet Office, which monitors these markets, expects a general price correction for previously under-priced contracts.
3.11 At Midland Metropolitan, the estimated costs of facilities management for 30 years have increased from £111 million to £177 million and at Royal Liverpool, estimated facilities management costs have increased from £117 million to £128 million.
3.12 There is a risk that the Sandwell and Liverpool Trusts will not maintain the hospitals to the same standard as expected under the PFI arrangements. At Midland Metropolitan the real-terms cost of maintaining the hospital is forecast to reduce from £75 million to £65 million. The Liverpool Trust has yet to forecast the costs of its maintenance contract.