Strengthening governance and resourcing in PFI projects  

Effective governance and robust resourcing are critical to PFI project success. Local authorities must prioritise these to ensure strong contract management and performance monitoring.

However, financial constraints mean many struggle to recruit and fund qualified officers for key PFI roles, creating risks when paired with weak governance. 

A well-managed PFI project needs a dedicated contract management team with specialist support from finance, legal, and technical professionals. Yet, PFI managers often lack senior buy-in and oversight.  This makes identifying dedicated resources difficult to secure and can lead to officers being exposed and demoralised. 

To address these gaps, authorities must establish a structured resource plan for PFI management with clear reporting lines, defined responsibilities and HR support. Proper governance must also be in place, including appointing a Senior Responsible Owner (SRO), as per Infrastructure and Projects Authority (IPA) guidance. The SRO should hold a leadership position and oversee strategic direction. 

Optimised PFI resources must operate within a clear governance framework, focusing on four key areas: 

1. Roles and responsibilities: clarity ensures people can discharge duties effectively 

2. Accuracy and accountability: defined roles within a strong governance structure support accountability 

3. Proactivity and collaboration: regular, well-chaired stakeholder meetings are essential 

4. Audit and assurance: agreed terms of reference, minuted meetings and adherence to processes ensures transparency and provides assurance 

The SRO must provide leadership, ensure viability, support decision-making, manage risks and, critically, ensure proper monitoring of performance by the authority (as distinct from self-reporting activities carried out by the contractor under the PFI contract). By strengthening governance and resourcing, authorities can better protect and enhance the value of their PFI projects. 

Local Partnerships offers independent reviews of governance and resourcing structures to optimise PFI management.

Get in touch to discuss how we can support your projects.