With Private Finance Initiatives (PFI) and other complex PPP (Public Private Partnership) contract arrangements something of a 'hot topic', we will begin by focusing on the current challenges facing PFIs and similar contract arrangements within the Facilities Management (FM) sector. As we know, effective FM is crucial to the success and performance of any business - particularly now that there is an emphasis on quality FM to provide 'through-life' service support.

WHAT DO PFIS BRING TO THE TABLE?
HM Treasury states that 'PFI was introduced to engage the private sector in the design, build, finance and operation of public infrastructure, with the aim of delivering good quality and well maintained assets that provide value for money for the taxpayer.'

According to a report published by HM Treasury last year, PFIs have gone on to generate approximately £55 billion of private sector investment as a result of over 700 completed PFI projects. On the surface, this certainly seems positive but the concept of PFIs and their implementation has many people divided.

With PFI contracts typically lasting 25-30 years, it is argued that PFIs have in fact enhanced the 'profile' of FM, as the work required to maintain and run a building and its services is now equally as important (if not more in some instances) than the cost of the build itself.

CHALLENGES IN A CHANGING WORLD
Darent Valley Hospital, was, in 1997, the first PFI hospital to be obtained. A National Audit Office report on the build, which completed two months ahead of schedule, confirmed that the contractor 'delivered the facilities and services the Trust contracted for, and to a quality that overall was satisfactory'. It was also noted that the collective performance of FM services each month had been at least 95% - the minimum service standard required for the contractor to be paid in full for certain services.

Despite this, problems did occur and there were lessons to be learnt. Ten years later and there are still challenges facing PFIs within the FM sector.

COMPLIANCE
There's no two ways about it - meeting regulatory compliance requirements is a must. Although this is not always easy within a PFI or general asset and infrastructure management environment.

There isn't always clarity as to who is accountable for complying to what. In addition, there can be a lack of checks and means by which compliance is measured.

It's vital that all parties are clear on their responsibilities and regular independent checks are conducted to ensure that activities are carried out in such a way that they meet compliance regulations and quality insurance.

HEALTH AND SAFETY
Similarly, ensuring that health and safety management is delivered in compliance with mandatory health and safety regulations, can be a challenge.

As outlined in the Controls Assurance Standards issued by the Department of Health, health and safety standards constitute 'a managed environment which ensures, as far as is reasonably practicable, the health, safety and welfare of all service users, staff, visitors, contractors and all others who are affected by the activities of the organisation.'

Within a PFI environment, who deems responsibility for this? Even the Controls Assurance Standards admit that 'the law on health and safety is voluminous, wide-ranging and complex'. Again, this re‐affirms the need for clarity, agreed processes, and effective checks.

LATENT DEFECTS
Issues including not using enough wall ties, installing the wrong kind of fire doors and ensuring that modular wiring has been earthed properly, can have significant repercussions if not dealt with correctly.

Proving who did what, when, and whose responsibility it is to rectify the problem, is not always possible within a PFI environment.

Following an incident at a PFI school in Edinburgh, a 250-page document identified fundamental defects which led to a wall collapse, including not enough wall ties and the wrong types of ties being used. The document also highlighted the 'over-reliance on the part of the council, without adequate evidence, that others involved in the project would fulfil the role of carrying out quality assurance processes'.

This article outlines significant challenges faced by PFIs within the FM sector and the need for FM practitioners to play a vital role in the decision process throughout a PFI build. We welcome your comments on how to overcome these challenges and your thoughts on the relationship between PFIs and FM.

300 NORTH SPECIALISE IN RECRUITING EXPERTS WITHIN FACILITIES MANAGEMENT. FOR MORE INFORMATION VISIT WWW.300NORTHRECRUIT.CO.UK OR CALL 0113 336 5161.