So we all agree this pricing inflation is happening with or without PFI.
It happens because the in-house expertise has gone & is now in the hands of v smart contractors.
In my industry, IT, you ve senior IT directors wanting a new IT system based on a trade fair they went to or an article in the FT, they think they can project manage, order up a load of shiny kit and then realise they haven't enough power points, the new s/w wont talk to older legacy s/w, they never budgeted for training, the new s/w doesn't or cannot do what the older system could, no structured cabling in areas that they need SC in order to work!!!
and i kid you not, spend £10m on a new IP phone system, that then went out of s/w and h/w support less than 12months later, which then needed an expensive new upgrade in order to be compliant with the regulator, this was with a private sector company, the people i was liaising with would joke "we'll just have to put our prices up" and they did.
The level of managerial control over these things is incredible, its non existent, they have a budget and spend up to it, with zero knowledge of what they doing.