Publication - Progress report

Annual State of the NHSScotland Assets and Facilities Report for 2012

Published: 11 Jan 2013
Part of:
Health and social care

A review of asset and facilities management performance in NHSScotland, identifying the current state of the estate and facilities management, highlighting areas of best practice and areas for improvement.

Annual State of the NHSScotland Assets and Facilities Report for 2012
Annex E

Annex E

Review of PPP/PFI Facilities Management Contracts

One of the areas identified by Health Facilities Scotland for examination is the operational management of the current PPP/PFI contracts across Scotland.

Contracts have been entered into for facilities management services as part of PPP/PFI contracts since the mid 1990s. The terms and conditions of early contracts are inconsistent and are being managed by Boards at a variety of levels. To date there has not been coordination of the management of these contracts at a national or regional level.

At present there are 26 contracts across 9 NHS Boards covering a variety of services, the value of these contracts is £963m. This figure will, depending upon the contract, include the unitary charge (the cost of the buildings etc), rates, utilities and facilities management cost. A significant proportion of this figure will, due to the nature of the contracts be fixed however opportunities may exist around the semi-fixed and variable costs to, in conjunction with the contractors, explore the delivery of a high quality more cost effective service.

In order to extract best value and increase the quality delivered through these contracts there will be closer cooperation across the service, a greater sharing of experience and a more consistent approach to the management of these contracts. This will ensure the services provided by the contractors, on behalf of the NHS in Scotland are patient centred, deliver a consistent high quality and are value for money.

Working closely with the Scottish Futures Trust a detailed analysis of the current contracts and their management will be undertaken, and best practice will be identified and shared.


Email: James H White