Around one in five PFI contracts is not making money, according to a new survey by KPMG and the Business Services Association (BSA).
The poll of 93 private sector contract managers found 80% of those surveyed were making a profit, while 70% had made money in every year of their operation.
‘This is good news that PFI contracts are performing effectively,' said KPMG's UK head of support services, Mike Stevens.
‘The two keys to success appear to be communication and performance, as the majority of respondents (72%) felt overall performance of the contract was very good.'
The survey also found 70% of managers had to refer to their contract at least once a month, and 37% looked at them once a week.
But 94% said they were currently meeting their service level agreements.
‘Strong relationships remain paramount to the profitability of PFI contracts,' said BSA director general Norman Rose. ‘It's clear from our survey that innovation, such as better and more thorough assessment methods, and benchmarking, are beginning to provide benefits to both the private and public sector which should be encouraged, together with more flexibility in the operational phase of the contracts.'