Achieving best value in private finance initiative project procurement

Hdl Handle:
http://hdl.handle.net/10149/58378
Title:
Achieving best value in private finance initiative project procurement
Authors:
Akintoye, A. (Akintola); Hardcastle, C. (Cliff); Beck, M. (Matthias); Chinyio, E. (Ezekiel); Asenova, D. (Darinka)
Affiliation:
Glasgow Caledonian University. School of the Built and Natural Environment; Glasgow Caledonian University. Division of Risk; University of Central England. School of Property and Construction.
Citation:
Akintoye, A. et al. (2003) 'Achieving best value in private finance initiative project procurement', Construction Management and Economics, 21 (5), pp.461-470.
Publisher:
Routledge
Journal:
Construction Management and Economics
Issue Date:
Jul-2003
URI:
http://hdl.handle.net/10149/58378
DOI:
10.1080/0144619032000087285
Abstract:
The wherewithal of achieving best value in private finance initiative (PFI) projects and the associated problems therein are documented. In the UK, PFI has offered a solution to the problem of securing necessary investment at a time of severe public expenditure restraint. In PFI schemes, the public sector clients must secure value for money, while the private sector service providers must genuinely assume responsibility for project risks. A broad-based investigation into PFI risk management informs the discussion in this paper. It is based on 68 interviews with PFI participants and a case study of eight PFI projects. The research participants comprised of contractors, financial institutions, public sector clients, consultants and facilities management organizations. The qualitative software Atlas.ti was used to analyse the textual data generated. The analysis showed that the achievement of best value requirements through PFI should hinge on: detailed risk analysis and appropriate risk allocation, drive for faster project completion, curtailment in project cost escalation, encouragement of innovation in project development, and maintenance cost being adequately accounted for. Factors that continue to challenge the achievement of best value are: high cost of the PFI procurement process, lengthy and complex negotiations, difficulty in specifying the quality of service, pricing of facility management services, potential conflicts of interests among those involved in the procurement, and the public sector clients' inability to manage consultants.
Type:
Article
Keywords:
private finance initiative; PFI; best value; risk management; procurement; facilities management; qualitative research; financial institution; risk allocation; value for money
ISSN:
1466-433X
Rights:
Subject to restrictions, author can archive post-print (ie final draft post-refereeing). For full details see http://www.sherpa.ac.uk/romeo/ [Accessed 16/12/09]
Citation Count:
22 [Scopus,16/12/09]

Full metadata record

DC FieldValue Language
dc.contributor.authorAkintoye, A. (Akintola)-
dc.contributor.authorHardcastle, C. (Cliff)-
dc.contributor.authorBeck, M. (Matthias)-
dc.contributor.authorChinyio, E. (Ezekiel)-
dc.contributor.authorAsenova, D. (Darinka)-
dc.date.accessioned2009-04-01T10:50:31Z-
dc.date.available2009-04-01T10:50:31Z-
dc.date.issued2003-07-
dc.identifier.citationConstruction Management and Economics; 21 (5): 461-470-
dc.identifier.issn1466-433X-
dc.identifier.doi10.1080/0144619032000087285-
dc.identifier.urihttp://hdl.handle.net/10149/58378-
dc.description.abstractThe wherewithal of achieving best value in private finance initiative (PFI) projects and the associated problems therein are documented. In the UK, PFI has offered a solution to the problem of securing necessary investment at a time of severe public expenditure restraint. In PFI schemes, the public sector clients must secure value for money, while the private sector service providers must genuinely assume responsibility for project risks. A broad-based investigation into PFI risk management informs the discussion in this paper. It is based on 68 interviews with PFI participants and a case study of eight PFI projects. The research participants comprised of contractors, financial institutions, public sector clients, consultants and facilities management organizations. The qualitative software Atlas.ti was used to analyse the textual data generated. The analysis showed that the achievement of best value requirements through PFI should hinge on: detailed risk analysis and appropriate risk allocation, drive for faster project completion, curtailment in project cost escalation, encouragement of innovation in project development, and maintenance cost being adequately accounted for. Factors that continue to challenge the achievement of best value are: high cost of the PFI procurement process, lengthy and complex negotiations, difficulty in specifying the quality of service, pricing of facility management services, potential conflicts of interests among those involved in the procurement, and the public sector clients' inability to manage consultants.-
dc.publisherRoutledge-
dc.rightsSubject to restrictions, author can archive post-print (ie final draft post-refereeing). For full details see http://www.sherpa.ac.uk/romeo/ [Accessed 16/12/09]-
dc.subjectprivate finance initiative-
dc.subjectPFI-
dc.subjectbest value-
dc.subjectrisk management-
dc.subjectprocurement-
dc.subjectfacilities management-
dc.subjectqualitative research-
dc.subjectfinancial institution-
dc.subjectrisk allocation-
dc.subjectvalue for money-
dc.titleAchieving best value in private finance initiative project procurement-
dc.typeArticle-
dc.contributor.departmentGlasgow Caledonian University. School of the Built and Natural Environment; Glasgow Caledonian University. Division of Risk; University of Central England. School of Property and Construction.-
dc.identifier.journalConstruction Management and Economics-
ref.assessmentRAE 2008-
ref.citationcount22 [Scopus,16/12/09]-
or.citation.harvardAkintoye, A. et al. (2003) 'Achieving best value in private finance initiative project procurement', Construction Management and Economics, 21 (5), pp.461-470.-
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