2.18 Effective contract management by the public sector can ensure the SPV is being properly held to account and maintenance work is being completed in line with the contract. While 70% of respondents stated that the annual maintenance programmes provided by the SPV are regularly monitored, just under 25% of respondents were unable to confirm whether this planned work had been completed.28,29 Our survey results also highlighted that just over 50% of respondents do not maintain an asset register, meaning authorities are not keeping an accurate record of the number, size, type and value of assets being managed under the PFI contract.30
2.19 Carrying out lifecycle maintenance often requires part or all of the service to be temporarily stopped so the work can be completed. This can be challenging when there are no natural breaks in services, such as with hospitals, whereas school contracts can complete works during holiday periods. A contract manager for a PFI hospital told us they have established monthly meetings with the relevant parties to plan maintenance across the year and ensure access can be granted at the appropriate times. If the lifecycle maintenance fund is left unspent, this money will eventually be paid out to investors, and the authority may face higher future maintenance costs after the contract expires. This will put further pressure on already stretched budgets. For example, one authority is experiencing backlogged maintenance of around £90 million for its existing portfolio of non-PFI schools. Taking over former PFI schools might add to this backlog.
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28 Question 30: Did or does the authority monitor the annual maintenance programme under the contract? Number of responses: Yes - 52, No - 23, 52/75 = 69.33%.
29 Question 30a: Was or has the scheduled work been completed so far? Number of responses: Yes - 39, No - 1, Don't know - 12, 12/52 = 23.08%, from a survey response of 52 (as not all monitor the maintenance programme).
30 Question 27: Did or does the authority maintain an asset register? Number of responses: Yes - 35, No - 40, 40/75 = 53.33%.