A survey by the Major Contractors Group (MCG) reveals that bid costs for PFI hospitals have increased by more than a third in the past two years, but costs have fallen for schools projects.

While school bid costs have dropped from £3.1m in 2003 to £2.4m in 2005, hospital bid costs have risen from £7.7m to £11.5m.

The MCG looked at 57 projects carried out by 13 member firms. It found that despite the rise, costs have fallen “as a proportion of overall project values” (8% to 6%), reflecting the increasing size of schemes.

Hospital schemes showed the greatest improved in reducing delays – on average the 13 contractors said delays had been cut from 14 months in 2003 to eight in 2005.

Stephen Ratcliffe, director of the MCG, welcomed the findings, but said there were “opportunities to make them even better”. He added: “We are working closely with the Treasury on improving PFI.”

Source

Construction Manager