PFI In Government Accommodation

This document is a guide for people involved in the procurement of government accommodation services. It provides updated guidance on the application of the Private Finance Initiative (PFI) in addressing the accommodation needs of the government. It supersedes the guidance document issued in November 1995, entitled "Private Finance Initiative in Government Accommodation" (the "Purple Book") and enables readers to apply best practice in PFI projects. The document has been prepared for use by Central Government bodies but there is much in the practice and process that will be of value to other parts of the public sector.

It must be stressed that this document is issued for guidance only. It is not intended to be a definitive work since the process of PFI procurement is one which is evolving and developing, Rather, it is a statement of best current practice.

The general principles underlying the PFI have not changed since the Public Book was published but their application in contracts has developed creating a clearer and stronger procurement process and enhanced value for money. This updated guidance addresses the PFI process, risk, some contractual issues and the procurement process of the project.

This guidance is to be read and used in conjunction with other guidance published by the Private Finance Panel and HM Treasury since the first edition of 1995.

Further guidance will be published by HM Treasury and the Private Finance Panel which will also be relevant to accommodation projects.

A full list of Guidance notes published and to be published appears on page 35 of this document.