Critical parameters influencing value for money variations in PFI projects in the healthcare and transport sectors

Christian Henjewele, Ming Sun, Peter Fewings

    Research output: Contribution to journalArticle

    34 Citations (Scopus)

    Abstract

    Achieving good value for money (VFM) is the principal objective of any private finance initiative (PFI) project while sustaining it throughout the contract life is the greatest challenge. Empirical evidence is required to understand uncertainties surrounding VFM of PFI before finding effective ways to improve it. Variations in costs, time and client requirements are explored, between successive review stages of PFI projects from the strategic business case stage through to the operational phase. The magnitudes of these variations are
    established and critical parameters that influence them are identified. The research methods include a documentary analysis of the full business cases of five PFI projects and a questionnaire survey of 44 PFI projects from the healthcare and transport sectors in the UK. The findings reveal that the current VFM assessment of PFI projects is often carried out under conditions of considerable uncertainty with frequent changes in costs, timescales and client requirements. The list of critical parameters can help practitioners to identify priority areas and achieve a long-lasting VFM. The study broadens the understanding of whole life aspects of VFM of PFI projects and the interactivity of project parameters at different stages.
    Original languageEnglish
    Pages (from-to)825-839
    JournalConstruction Management and Economics
    Volume29
    Issue number8
    DOIs
    Publication statusPublished - 2011

    Keywords

    • Private finance initiative, value for money, criticality index, influential parameters, uncertainty

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