MORE PUBLIC sector projects have been completed on time and within budget since Private Finance Initiative funding became available, said under secretary of state for transport David Jamieson to an ICE Yorkshire conference.
He endorsed the government's commitment to these schemes following successful projects in the past, largely due to better partnering arrangements to deliver projects cost effectively.
Jamieson was speaking at the Exceeding customer expectations conference in Leeds.
'The fact that the private sector contractor doesn't get paid until it delivers means there is a far greater incentive to start and finish construction on time, ' said Jamieson.
He added that National Audit Office figures showed that before PFI, only 30% of government construction jobs were completed on time and within budget, compared with 75% now, where contractors are only paid on completion of works.
'All the evidence suggests the extra money being invested in PFI really does flow through into improved services, ' he said.
He added that long term PFI projects also provided the construction industry with more constant work, encouraging more investment in innovative solutions.