Private finance initiative as a new way to manage public facilities

Facilities ◽  
2014 ◽  
Vol 32 (11/12) ◽  
pp. 584-605 ◽  
Author(s):  
Nannan Wang
Keyword(s):  
Systematic Review ◽  
Private Sector ◽  
Facility Management ◽  
Public Facility ◽  
Private Finance Initiative ◽  
Contracting Out ◽  
Content Type ◽  
Private Finance ◽  
Public Facilities ◽  
New Form

Purpose – This paper aims to analyse the findings of the relevant studies, to summarise what has been done in this area, to direct future research and to improve private finance initiative (PFI) practice. PFI is a new form of contracting out public facilities to the private sector, where facility management was integrated with construction. There have been a large number of academic papers published on this subject; however, there is a lack of a systematic review of the PFI-related studies. Design/methodology/approach – The literature search focused on international peer-reviewed and published literature, with relevance to PFI. The search of literature, following the method of Tang et al. (2010) and Al-Sharif and Kaka (2004), involved the titles, keywords and abstracts, from some major electronic databases (Web of Science, Engineering Village, Science Direct (Elsevier) and Springer Link) of publications published between 1992 and 2011. The data were classified into six categories for further analysis. Findings – As a new way to procure public facility management, PFI projects have unique characteristics in comparison to conventional construction procurement. The review of the literature regarding PFI is important in terms of summarising the key findings and suggestions of studies for industry practitioners, as well as forecasting the future academic research trends in this area. The number of research works on PFI increased quickly in recent years; however, the review discovered there were still some issues not yet covered in the literature. Research limitations/implications – This review is not exhaustive in nature, as the criteria in selecting research papers only included English-written, peer-reviewed journals from some major electronic literature databases. This is the limitation of the research. Further review on a wider range of literature is recommended for researchers. Originality/value – Since PFI was introduced to the construction industry to fund infrastructure 20 years ago in the UK, it has gained interests from scholars. In this new form of contracting out public facilities to the private sector, facility management was integrated with construction. There have been a large number of academic papers published on this subject; however, there is a lack of a systematic review of the PFI studies.

scholarly journals Impression management in annual report narratives: the case of the UK private finance initiative

2018 ◽  
Vol 31 (6) ◽  
pp. 1566-1592 ◽  
Author(s):  
Victoria C. Edgar ◽  
Matthias Beck ◽  
Niamh M. Brennan
Keyword(s):  
Public Policy ◽  
Private Sector ◽  
Impression Management ◽  
Annual Report ◽  
Annual Reports ◽  
Private Finance Initiative ◽  
Content Type ◽  
Private Finance ◽  
Policy Direction ◽  
The Uk

Purpose The UK private finance initiative (PFI) public policy is heavily criticised. PFI contracts are highly profitable leading to incentives for PFI private-sector companies to support PFI public policy. This contested nature of PFIs requires legitimation by PFI private-sector companies, by means of impression management, in terms of the attention to and framing of PFI in PFI private-sector company annual reports. The paper aims to discuss this issue. Design/methodology/approach PFI-related annual report narratives of three UK PFI private-sector companies, over seven years and across two periods of significant change in the development of the PFI public policy, are analysed using manual content analysis. Findings Results suggest that PFI private-sector companies use impression management to legitimise during periods of uncertainty for PFI public policy, to alleviate concerns, to provide credibility for the policy and to legitimise the private sector’s own involvement in PFI. Research limitations/implications While based on a sizeable database, the research is limited to the study of three PFI private-sector companies. Originality/value The portrayal of public policy in annual report narratives has not been subject to prior research. The research demonstrates how managers of PFI private-sector companies present PFI narratives in support of public policy direction that, in turn, benefits PFI private-sector companies.

scholarly journals Navigating the logics of changing public facilities management

Facilities ◽  
2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ingrid Svensson ◽  
Martin Löwstedt
Keyword(s):  
Organizational Context ◽  
Facility Management ◽  
Facilities Management ◽  
Public Facility ◽  
Organizational Practices ◽  
Building Stock ◽  
Content Type ◽  
Public Facilities ◽  
Large Building

Purpose The purpose of this paper is to explore how a multitude of demands and challenges faced by public facilities management organizations’ (PFMOs) particularly in relation to a large building stock in need of measures’ are acted upon and negotiated in practice. Specifically this study asks: What are the institutional logics (IL) that constitute the organizational context of PFMOs? How does an institutional worker navigate to create change in PFMOs? Design/methodology/approach Data were collected through a case study of a public facility management organization and include interviews, a questionnaire, observations and organizational documents. The analytical focus is the work of a single actor, a project manager portrayed as “the navigator” and his institutional work (IW) of developing and implementing new organizational practices, to meet current challenges and develop a more “strategic” facility management. Findings The complex institutional landscape faced by officials in PFMOs enforce officials responsible for implementing and developing new practices to become navigators. Originality/value The findings offer a rich practice-based account of the day-to-day IW carried out by actors that try to navigate complex institutional landscapes, consisting of multiple and, at times, conflicting IL. Current challenges for PFMOs are to be portrayed as multi-dimensional and the actual work to transform organizational practices in this context is highly complex, unordered and messy. The findings point towards a need for new competences and roles to tackle current challenges; geared towards integrating different logics and perspectives.

Critical review of building handover-related research in construction and facility management journals

2019 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Lei Zhu ◽  
Ming Shan ◽  
Zhao Xu
Keyword(s):  
Systematic Review ◽  
Sustainable Development ◽  
Facility Management ◽  
The Body ◽  
Information Modeling ◽  
Smooth Transition ◽  
Future Research ◽  
Research Directions ◽  
Content Type ◽  
Future Research Directions

Purpose Although the handover stage is the key transition stage between the construction and operation, there is no critical overview of issues and research at the handover stage, hindering the achievement of sustainable development of buildings. Therefore, the purpose of this paper is to review the building handover-related issues and research in construction and facility management (FM) journals. The specific objectives of this study include: analyze the research trends and overview the handover-related publications; identify the major research topics on the handover of buildings; identify research gaps and propose future research directions. Design/methodology/approach This study opted for a four-step systematic review of papers from the well-known academic journals in the construction and FM respects. Findings The results first revealed the increasing research interest in the handover of buildings from the researchers. Moreover, the post-construction defects, poor information fidelity, poor interoperability between building information modeling (BIM) and FM technologies, and insufficient consideration of end users were identified as the most concerned challenges for a building handover. Furthermore, identifying and formalizing information requirements for handover, improving the handover process, and improving the interoperability between BIM and FM were solutions mostly emphasized by researchers. Research limitations/implications As the first systematic review of building handover-related issues and research, this study is the building block for future research on this topic. The findings provide guidance for researchers in the construction and FM research community, and help them form useful collaboration for future research opportunities and find future research directions. Practical implications The identified significant challenges and potential solutions for a building handover could assist practitioners in making rational decisions on developing or adopting relevant technologies, and reshaping their management patterns and working processes. Moreover, the findings could be severed as evidence for policymakers to initiate policies, such as documents e-submission and timely updating BIMs, to achieve the vision of model-based project delivery. Originality/value This study contributed to the body of knowledge of sustainable development by providing a new insight to tackle the hindrance to the smooth transition from the construction to the operation.

scholarly journals Financing Preference Behaviour for Private Finance Initiative (PFI) Projects

2016 ◽  
Vol 1 (1) ◽  
pp. 11
Author(s):  
Yati Md Lasa ◽  
Norizan Ahmad ◽  
Roshana Takim
Keyword(s):  
Private Sector ◽  
Publishing House ◽  
Cost Effective ◽  
Project Finance ◽  
Private Finance Initiative ◽  
Private Finance ◽  
Public Projects ◽  
Financing Preference ◽  
International Publishing ◽  
Preference Behaviour

Project Financing Initiative (PFI) projects require the private sector to invest an enormous amount of capital for the development of public projects. The private sector has to seek cost-effective financing sources for their survival in the long-term concession. Conventional financing uses widely; however, Islamic financing promises better financing through profit and loss sharing. This paper reviews financing preferences for PFI projects and the factors influencing the choice of funding. The results show that religious perspective, quality of services, financing facilities and reputation are the factors that are expected will influence the financing preference behaviour, either Islamic or conventional finance.© 2016. The Authors. Published for AMER ABRA by e-International Publishing House, Ltd., UK. Peer–review under responsibility of AMER (Association of Malaysian Environment-Behaviour Researchers), ABRA (Association of Behavioural Researchers on Asians) and cE-Bs (Centre for Environment-Behaviour Studies, Faculty of Architecture, Planning & Surveying, Universiti Teknologi MARA, Malaysia.Keywords: Conventional project finance; Islamic project finance; preference; Private Finance Initiative

Completing abandoned public facility projects by the private sector: results of a Delphi survey in the Iranian Water and Wastewater Company

2020 ◽  
Vol 18 (5) ◽  
pp. 547-566 ◽  
Author(s):  
Hadi Sarvari ◽  
Matteo Cristofaro ◽  
Daniel W.M. Chan ◽  
Norhazilan Md. Noor ◽  
Mohammadreza Amini
Keyword(s):  
Private Sector ◽  
Delphi Survey ◽  
Survey Method ◽  
Public Facility ◽  
Content Type ◽  
The Public ◽  
Factors Influencing ◽  
Water And Wastewater ◽  
Descriptive Survey ◽  
Management Competency

Purpose Completion of abandoned public facility projects is one of the major concerns of governments struggling with budget issues. Various research studies have shown that this can only be solved with the help of the private sector. Therefore, this study aims to investigate the capacity of the private sector to complete abandoned public facility projects through the study of the Water and Wastewater Company in Iran. Design/methodology/approach The Delphi survey questionnaires, which were distributed to and responded by a panel of experts – i.e. three groups of employers of the Iranian Water and Wastewater Company, consulting agents and private sector stakeholders engaging with Water and Wastewater Company projects – identified 50 critical factors allowing the private sector to carry out abandoned facility projects. These have been categorized into four components: financial capacities, management competency, knowledge and expertise and resources and facilities. A descriptive survey method was used to determine and prioritize these factors. Findings The survey findings indicate that knowledge and expertise are the main important clusters of factors influencing the completion of abandoned public facility projects. The value of these results is essential in providing the sound basis for mutual trust between the private sector and the public sector for greater participation, thereby helping to complete abandoned public facility projects. Originality/value To the best of the authors’ knowledge, this is the first study attempting to investigate the capacity of the private sector to complete abandoned public facility projects through an empirical analysis of factors influencing their completion.

Qualitative assessment of public facilities: the “public bus”

2016 ◽  
Vol 28 (2) ◽  
pp. 275-294 ◽  
Author(s):  
Shreya Das ◽  
Debapratim Pandit
Keyword(s):  
Service Quality ◽  
Qualitative Assessment ◽  
Public Facility ◽  
Transit System ◽  
Content Type ◽  
Service Levels ◽  
Public Facilities ◽  
Design Attributes ◽  
User Groups

Purpose – The purpose of this paper is to develop a method to benchmark the service quality of any public facility based on users’ perception, by taking the case of “bus design”. While some researchers have defined level of service (LOS) for highways, transit system and pedestrian facility to measure their service quality, limited attempt has been made to measure users’ perception of service quality for other public facilities which cannot be described by quantitative service levels. Design/methodology/approach – In this research, an average weighted scoring technique has been integrated with the method of successive interval scaling to develop a five graded LOS scale that benchmarks users’ perception of service quality for “bus design”. The method has been exemplified by taking five types of buses currently operating in Kolkata that represent five types of “bus design”. This method can be applied for other public facilities. Findings – By applying the method an LOS scale from LOS A to LOS E was developed for “bus design” in Kolkata that represent users’ perception from “very good” to “very poor”. “Bus design” has been described by a list of attributes identified in this research. “Degree of criticality” of different design attributes based on users’ requirements was used to identify the key attributes for improvement which was also found to vary for different bus user groups in Kolkata. Originality/value – This research is the first ever attempt to benchmark service quality of a qualitative facility like “bus design” based on users’ perception instead of expert opinion as used by previous researchers.

scholarly journals What happens when the private sector plans hospital services for the NHS: three case studies under the private finance initiative

BMJ ◽  
1997 ◽  
Vol 314 (7089) ◽  
pp. 1266-1266 ◽  
Author(s):  
A. M Pollock ◽  
M. Dunnigan ◽  
D. Gaffney ◽  
A. Macfarlane ◽  
F A. Majeed
Keyword(s):  
Private Sector ◽  
Case Studies ◽  
Hospital Services ◽  
Private Finance Initiative ◽  
Private Finance

Key legal issues in projects procured under the private finance initiative

1997 ◽  
Vol 4 (3) ◽  
pp. 195-202 ◽  
Author(s):  
HELEN PAYNE
Keyword(s):  
Private Sector ◽  
Public Procurement ◽  
Legal Issues ◽  
The European Union ◽  
Public And Private ◽  
Private Finance Initiative ◽  
The Public ◽  
Private Finance ◽  
To Come ◽  
Public And Private Sector

Over the last few years several projects have been procured under the Private Finance Initiative, which brought with them some challenging, often novel, legal issues. A new statutory framework has been established creating new legal entities and regulating the powers and obligations of those new entities. The public procurement regime of the European Union has had to be carefully considered by both the public and private sector parties as failure by either to adhere to the strict rules and procedures can result in the imposition of sanctions. Attitudes to the way in which contracts are structured have had to change. The public sector had to step back from the more traditional involvement and control it has exercised in the past, and permit the private sector to come up with innovative solutions to the public sector's output requirements. The issues of force majeure and change of law have had to be looked at very closely and mechanisms for the sharing of the risk negotiated between the public and private sectors. A uniform approach to these legal issues would be welcomed along with some standarization of fundamental terms.

Organising cleaning in Norwegian public FM

2014 ◽  
Vol 12 (4) ◽  
pp. 382-410 ◽  
Author(s):  
Nora Johanne Klungseth
Keyword(s):  
Private Sector ◽  
National Survey ◽  
Chief Executive Officer ◽  
Design Methodology ◽  
Chief Executive ◽  
Facility Management ◽  
Integrated Models ◽  
Content Type ◽  
The Future

Purpose – This paper aims to give an overview of the alternatives that Norwegian municipalities have regarding organisational models for their facility management (FM) and cleaning organisations, and to investigate what organisational models they apply, if building category or size of municipality influences their use of organisational models and whether their FM and cleaning organisations are organised similarly within identical municipalities. Design/methodology/approach – The research is based on a national survey conducted during year 2010. All Norwegian municipalities were invited to respond. The survey asked the head of the FM departments (or the chief executive officer [CEO] if the first could not answer) what organisational models they used for their FM and cleaning organisations and what changes they planned for the organisation in the future. All questions were asked according to different building categories to determine whether building category had any influence on their choices. Findings – Limited research has been published regarding the structure of the FM organisations in Norwegian municipalities and even less regarding their cleaning organisations. The results show that Norwegian municipalities prefer integrated models and also purchasing services from the private sector prior to applying decoupled models as inter-municipal alternatives and Municipal Limited Companies. The results do also indicate that Norwegian municipalities’ interest in such models is rising and that they seem to be moving away from traditional and integrated alternatives. Research limitations/implications – Although all municipalities were invited to the survey, only one-third responded. Originality/value – The article may represent a first thorough overview of what organisational models and what combinations of models Norwegian municipalities use for their FM and cleaning organisations. Compared to former studies, this article explores a greater variety in organisational models and a greater variety in researched building categories.

Sign in / Sign up

Export Citation Format

Share Document