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

    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

    Fingerprint

    Finance
    Costs
    Industry

    Keywords

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

    Cite this

    @article{6550f32f06724898b4c17d900cbb7776,
    title = "Critical parameters influencing value for money variations in PFI projects in the healthcare and transport sectors",
    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 areestablished 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.",
    keywords = "Private finance initiative, value for money, criticality index, influential parameters, uncertainty",
    author = "Christian Henjewele and Ming Sun and Peter Fewings",
    year = "2011",
    doi = "10.1080/01446193.2011.592204",
    language = "English",
    volume = "29",
    pages = "825--839",
    journal = "Construction Management and Economics",
    issn = "0144-6193",
    publisher = "Routledge",
    number = "8",

    }

    Critical parameters influencing value for money variations in PFI projects in the healthcare and transport sectors. / Henjewele, Christian; Sun, Ming; Fewings, Peter.

    In: Construction Management and Economics, Vol. 29, No. 8, 2011, p. 825-839.

    Research output: Contribution to journalArticle

    TY - JOUR

    T1 - Critical parameters influencing value for money variations in PFI projects in the healthcare and transport sectors

    AU - Henjewele, Christian

    AU - Sun, Ming

    AU - Fewings, Peter

    PY - 2011

    Y1 - 2011

    N2 - 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 areestablished 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.

    AB - 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 areestablished 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.

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

    U2 - 10.1080/01446193.2011.592204

    DO - 10.1080/01446193.2011.592204

    M3 - Article

    VL - 29

    SP - 825

    EP - 839

    JO - Construction Management and Economics

    JF - Construction Management and Economics

    SN - 0144-6193

    IS - 8

    ER -