The data says:

•  CAs believe current asset condition to be largely good and that it will largely be in the same position at expiry, but this is tempered by our assessment of the level of CAs understanding of condition (see "We also found")

•  c.80% of contracts have asset condition requirements at expiry

•  However, c.70% believe that these asset condition terms are not clear - yet this lack of clarity is in contrast to the low anticipation of disputes

•  c.70% of CAs subject to an EHC believe there was sufficient time between survey and expiry for asset rectification works to be completed

We also found:

 •  Asset condition would appear to be a lower risk than we anticipated

•  We believe there is a risk that CAs' views on current asset condition were insufficiently informed by asset surveys and data, and that CAs may be comparing assets condition with their typically poorer non-PFI estate

•  CAs may be overly optimistic about the time between surveys and expiry, particularly if disputes arise about the required asset condition and scope of rectification

Learnings:

•  CAs should seeks more data to support asset condition

•  CAs should engage early with the private sector to clarify asset condition requirements at expiry

•  Condition surveys may need to be undertaken earlier than specified to allow time for remedial works and resolution of potential disputes

•  IPA should develop advice and guidance on asset condition