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News
School PFI contracts 'a disaster'
Headteachers across Kirklees have blamed a private financial initiative (PFI) building and maintenance scheme for shoddy workmanship and poor standards of cleaning.
The heads had been promised the scheme would free up their time from overseeing buildings, but say the reality has been more red tape.
PFI schemes let private firms finance and run buildings in exchange for an annual fee for up to 30 years.
Twenty schools across Huddersfield and Dewsbury signed up for the PFI scheme but the projects to refurbish and maintain schools soon ran into trouble as contractor Jarvis suffered financial problems.
A report by councillors has now revealed the scale of the problems and the frustrations caused to headteachers and council managers.
At the outset, heads were told that the initiative would free them from having to manage buildings for the next 30 years – including grounds maintenance, caretaking, cleaning, catering, transport and security.
However, there has been a need for the continued involvement of heads who believe the new system is "inflexible, time consuming and frustrating" and has led to a drop in standards, the report says.
Headteachers at all 20 schools said the prices for ongoing work were too high. Councillors say there is a "clear suspicion" that some of the costs for works are "excessive".
Cleaning standards following the PFI scheme have also slipped, according to some heads. Schools have
also complained to the council about poor quality workmanship, materials and finishes.
"Councillors were informed that as well as difficulties with the quality of some works there were some problems with the programming of works.
"For example, works being done in the wrong order resulting in completed works having to be undone or damaged," the report notes.
It adds: "It is also important to recognise that within the Jarvis schools some of the works were of a very high quality – and some sub-contractors took pride in their work.
It is worth noting that all methods of procuring major contracts have the potential for failures of various sorts including late delivery of projects, final costs exceeding budgets or dissatisfaction with the performance of completed projects."
Some of the problems were due to lack of clarity regarding specifications, the report says.
Councillors concerned about the quality of on-site facilities management have asked for an urgent review of the situation and a follow-up report in six months.
The report makes a number of recommendations. One suggests that in future schools' expectations about PFI schemes should not be "unrealistically raised".
The report also says that the council "fundamentally misjudged the scale of the management effort required to effectively manage a project of this scale, given the inherent risks in the project." It concludes that the council could not have predicted the problems it would face.
"Members (of the report panel) do not feel that the council could have anticipated and identified the financial instability of the contractor and contract overspends once the contract was in place."
A Jarvis spokeswoman said it was providing facilities management services as part of the contract and had a good relationship with the council.
The report will be discussed by Kirklees Council tomorrow.
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