As we near the handback phase of many PFI (Private Finance Initiative) projects, a range of new PFI-related roles are popping up across regions, disciplines, and organisations. But are these positions truly filling the market, or are we seeing a skills gap, with demand outpacing supply?
Key Issues Facing PFI Handback
Several factors are converging to create strain on PFI projects as they approach handback:
The Challenge of Attrition
The White Fraiser Report highlighted this issue, calling for additional resources for both SPV owners and the public sector to effectively manage PFI contracts. It warned that while improving compliance is important, it shouldn’t harm inter-party relationships or staff recruitment efforts. Similarly, the House of Commons Public Accounts Committee noted many authorities lack the skills needed to manage PFI contract expiry effectively.
Relationships in a Complex Landscape
Many PFI contracts rely heavily on informal agreements and relationships to ensure high service levels, which the formal contract terms might not fully capture. These subtleties can be lost with staff turnover, leading to challenges in retaining institutional knowledge. As expiry nears, projects often see a surge in work and complexity, coupled with aging assets and tighter budgets—all adding more pressure on already-stretched teams.
Risks and Consequences of a Skills Shortfall
Beyond the “why” of the skills gap lies the “so what.” Without experienced personnel, the risks become apparent:
Is There a Solution?
There are some resources available. The Infrastructure and Projects Authority (IPA) has been recruiting for a central pool to bridge the skills gap, and the Local Government Association offers skills and training programs through Local Partnerships. However, these initiatives were launched in 2021 amidst numerous other challenges, and many of these issues are still felt across the sector.
A Call for Resilience
Resilience is essential in PFI project teams, especially as contracts reach their end. The importance of succession planning, early recruitment, and overlapping senior roles to prevent a leadership vacuum cannot be overstated. The message is clear: proactive planning, resilient leadership, and early team engagement are critical to navigating this period.
The handback phase presents both challenges and opportunities. Strategic planning and early resource management can help mitigate the capacity and capability gap. Regardless of a project’s stage, whether it's 12 years or 12 months from expiry, these issues demand attention.