They continue to have reservations about the detail of plans for a public-private agency to advise on and invest in PFI projects, but some are beginning to see the benefits.
The agency's launch was postponed last week to allow for further meetings. But there is a growing feeling that the private sector will be unable to block the agency, to be called UK Capital.
The Confederation of British Industry still has reservations about UK Capital. CBI director-general Adair Turner was due to meet chief secretary to the Treasury Alan Milburn this week to discuss fears about UK Capital's role in investment. The CBI believes the private sector will suffer.
The CBI is pressing for a full round of official consultation in addition to the unofficial talks taking place.
However, construction executives are less opposed to the bank after a private briefing by Treasury PFI taskforce chief executive Adrian Montague on Tuesday. Senior figures from Ballast Wiltshier, Amec, Bovis, Gleeson, Costain, Kier, Taylor Woodrow, Tilbury Douglas, Laing, Kvaerner, Alfred McAlpine, Wates, HBG and Norwest Holst attended.
Although sworn to secrecy, several executives said afterwards that they had been persuaded that UK Capital might help to increase the flow of PFI projects to the market and to financial close.
This was because UK Capital's experts would advise government departments with little experience of PFI projects as well as providing 10-20% of the equity needed to kickstart some deals.
One executive said: "I think it is a good initiative that ought to happen and will be useful for driving forward PFI. Contractors at the meeting were generally in favour, and I don't see why the industry should be opposed to it.
"A greater degree of standardisation, which UK Capital would promote, would be good, and a greater degree of expert advice has to be good." Another said: "The fundamental problem with PFI has been the public sector's difficulty with the procurement process, and anything that improves that will stand us all in good stead.
"We are not going to oppose this. Montague was selling more of a dream than worked-up proposals, and it is very easy to be critical, but we are all sick of the public sector's lack of professionalism and this just might help." Montague, who is expected to head UK Capital, said a decision on the agency was likely to be given within the next week.
The scheme would be funded by private equity and borrowings and will also be able to give a government guarantee that projects will not hit financial difficulties.
From March next year it would have around £1bn to invest, and would act, in Montague's words, as a co-sponsor for projects. Major contractors would be able to take or leave the UK Capital offer of funding, allowing the current model of PFI projects to survive.
Contractors asked Montague for a reassurance that procurement of PFI projects would not grind to a halt while UK Capital is set up. He said the market would not be disrupted.
