7. Not only are the requirements of PFI Contracts typically complex but, crucially, they typically need to be managed in a live environment where essential public services are being provided. By way of example, an SPV providing PFI services to an acute hospital will typically need to deliver the requirements of the PFI Contract in the context of a 24/7/365 operating model. This has important practical implications for both public and private staff on the ground. Understanding the precise nature of the services to be delivered, the prioritisation of responses to issues and subsequent reporting is far from straightforward.
8. Consultees shared that the above dynamics could result in those staff delivering services receiving conflicting instructions. By way of example, what is most important to the user of the PFI services at a particular time is not necessarily what the PFI Contract sets as the highest priority. The private sector highlighted concern that in cases where they respond to the Public Authority's operational priorities on the ground, they can run the risk of having Deductions made against them. Other practical issues like obtaining access to an area to carry out a repair or remedy a fault can cut across the Public Authority's operational priorities at that time. Collaboration (including a degree of contractual flexibility) and judgement are often necessary to resolve such issues. If a Public Authority (or its advisers) takes a very rigorous, and literal, approach to managing its PFI Contract, there is a risk that some of that operational flexibility could be lost, as the approach would force the SPV (and its O&M Provider) to focus on pure compliance, rather than responding to local needs. Several O&M Providers shared with us that they have been forced to prioritise contractual compliance over serving local needs, as a result of being exposed to situations like the examples mentioned above.
9. O&M Providers and Management Service Providers emphasised that the judgement required to address issues of local prioritisation and how best to deliver the service to support the Public Authority's wider operations, requires knowledgeable and experienced staff on both sides. Public and private sector consultees highlighted how it is becoming increasingly difficult to retain and attract staff with either sufficient experience of these complex contracts, or a desire to learn about them. Consultees working in the health sector described these issues as "toxic", causing us to question whether the manner in which PFI Contracts are managed is always mindful of the potential effect that a particular approach may have on the wellbeing of public and private frontline staff.