The Treasury is set to radically reform PFI procurement as industry disquiet grows over the Barts and Royal London hospital fiasco. Contractor Skanska was due to find out today from the Department of Health whether the pound;1.2bn scheme would be given the green light, restructured or scrapped. The department has put several hospital PFIs on hold while it assesses if they represent value for money. Meanwhile, it is understood the Treasury is likely to accept proposals by RIBA that PFI hospitals should be designed before they go out to tender. This follows criticism that the model now used is wasteful. Fresh recommendations are expected to be included in a paper on best practice that is being drawn up by the Treasury. The paper will be published in the spring at the same time as the Budget statement.
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