PFI Expiry - the critical dependency on building surveying

A potential storm is coming. Huge demands on a decreasing specialist labour market may lead to spiralling costs or even unavailability as clients, investors and suppliers compete for scarce resources.

In 2018 the National Audit Office reported by 2040 some £200bn will have been committed to PFI - an enormous amount. However, truth is, most of this spending would be required whether the vehicle was PFI or any other funding model. Given the history of PFIs and some of the negative press, some of this spending will be money well-spent, but some, sadly, may represent poor value for money. Ensuring the public purse and society at large maximises value for money throughout the entire life of the PFI is of paramount importance, especially as many PFI projects relate to critical infrastructure such as hospitals, schools and other community assets that were built for service users.

As many PFI projects are beginning to mature and reach the end of their natural lifespan, understanding the key drivers for a successful expiry is key to value for money outcomes and operational continuity of our critical infrastructure. One such driver is the “expiry” or “handback” survey, where the condition of each asset, and all core elements like boilers, air conditioning systems and so on, within the project are assessed and a view taken on the need to undertake asset replacement so that the assets meet the condition requirements set out in  the PFI contract. Getting this survey right, can be seen as mission critical.

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