What will a schools PFI project actually involve?
Schools PFI projects involve LEAs buying asset-based services from the private sector such as school buildings, facilities such as sports halls or specific services including heating systems, ICT or catering equipment. Usually the PFI contractor owns and operates the buildings/facilities/equipment, and would be able to generate income from commercial use outside school hours. After defining the required outputs of the project, and satisfying itself that a PFI solution has the potential to offer the best value for money, the LEA invites the private sector to bid for a PFI contract. As with traditional procurement, this is a competitive process to ensure value for money. A formal commercial contract will be entered into by the LEA with the successful bidder. PFI fees are not be fixed or guaranteed, but vary according to how well the PFI contractor performs.
