A replacement for the PFI that is being pioneered in Scotland is taking so long to get off the ground that some contractors are being forced to look for work abroad

The Scottish Futures Trust (SFT) was launched in September and was heralded by the Scottish government as a more effective way of delivering public projects such as schools, hospitals and infrastructure. The Scottish government says it plans to spend £14bn on infrastructure in this parliamentary term.

However, despite Sir Angus Grossart being named chairman of the body last month, staff have yet to be appointed. This has led industry experts to warn that the construction industry is losing faith in the scheme.

“Contractors are worried,” said David Nash, consultant for lawyer Pinsent Masons Scotland. “ The government is taking too long to get its act together.”

Nash added that uncertainty in the market was making contractors wary of waiting for new projects to start. He said: “Larger contractors are already heading out to China and the Middle East. The bigger players may not be interested in staying.”

We cannot afford for projects to be mothballed while ministers pilot an untested model

Michael Levack, SBF

Michael Levack, chief executive of the Scottish Building Federation, said: “Since the SFT consultation closed in March, more than 15,000 construction workers have been made redundant in Scotland. We cannot afford for projects to be mothballed while ministers pilot an untested finance model.”

Marc Ritchie, director of Robertson Group, said his firm would stay in Scotland but added that others may look elsewhere.

“All we can do is wait,” he said. “It’s a major new procurement method and if it takes time to be done properly, then so be it.”

The government hopes the the SFT, which is a limited company, will save £150m a year compared with the PFI through improved partnering, as well as being able to raise its own funds for projects through municipal bonds.