PFI projects are not providing value for money because they are being “undermanaged” by public sector managers, MPs have told the government.

A report released on Tuesday by the Commons’ Public Accounts Committee said: “Negotiating good deals is important but managing them well afterwards is key to value for money.”

It cites poor management of project changes as a key reason for the lack of value and calls for the government to tackle the problem. In 2006, changes on PFI projects cost £180m.

More training should be put in place to support public sector contract managers in managing project changes, the report says.

It points to a lack of competition on project changes, with only 27% of changes over £100,000 being subjected to competition.