Modelling Client's Value for Money Uncertainties in PFI Projects

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Analysis of factors affecting value for money in UK PFI projects

PURPOSE - the paper reports findings from a study on factors that made value for money (VFM) in PFI projects vulnerable to variations. It identifies the top influencing factors, ranks them according to the relative strength of influence, and explores their interactivity. DESIGN/METHODOLOGY - the study uses documentary review of full business cases of five PFI projects, published reports, and scholarly publications to identify the list of factors; and a questionnaire survey of 44 PFI projects in the UK to establish the ranking of importance. FINDINGS - the findings reveal that PFI projects are more strongly affected by client-driven internal factors than external factors. Internal factors, such as design change in the development phase and requests for new works or services in the operational phase were also likely to act independently, while external factors, including conditions for approval, movement in construction costs and change in PFI guidelines, worked interactively. PRACTICAL IMPLICATION - the research findings add to the knowledge of priority factors that need to be addressed to enhance the achievement of long-term VFM in PFI projects. ORIGINALITY/VALUE - the study is one of the few studies that have investigated VFM of PFI projects from a whole life cycle and dynamic perspective. It reveals not only a list of main influencing factors of project VFM, but also interrelationship between these factors

De-marginalising the public in PPP projects through multi-stakeholders management

Purpose: This paper takes a critical look at the process of multi-stakeholder consultation and management in a PPP project environment and attempts to fill gaps in the existing literature. It considers the various problems encountered on PPP initiatives around the world that have eventually led to public opposition and failure of some PPP projects. The paper tackles two interconnected aspects: definition of the principal project stakeholder (PPS) and the management of the principal project stakeholder (MPPS), as a multi-stakeholder. Design/methodology/approach: The paper critically analyses the existing theory and practice on project stakeholder management through case studies and other sources and establishes the uniqueness of a PPP project environment, which influences PPP multi-stakeholder management approaches. Findings: the paper highlights current tensions and public protests across Africa, North and South America, Australasia and Europe around PPP projects, which seem to be centred on public stakeholders’ marginalisation. It finds that the public outcry across continents is characterised by a marginalised public who are crying out for full information on the more widely used PPP projects. Social/Practical implications: The paper advocates for a paradigm shift by accepting multi-stakeholding as central to PPP project management. The paper proposes a multi-stakeholder management model, which will move the public from the margins of the PPP project space to the centre where fundamental decisions are made from conception to facility ownership and operation. Originality/value: The paper takes a pragmatic approach to the problem of exclusion of the public in PPP projects. The paper is one of few publications in the PPP literature that bring the public to the centre of PPP project processes