ABSTRACT
The PFI model has a real potential for radical integration of the project team and the development of productive long-term relationships. It is not a panacea for solving all the problems of the construction industry, but some of the principles for integrated project management which have been emerging from previous chapters such as early involvement of contractors, the committed use of RM and VM, integrated design and construction, life cycle costing and collaborative relationships are an integral part of this procurement. It is a flexible model and comes in several forms according to client need and might be expanded further. The purpose of this chapter is to introduce the principles and practice of the PFI as used by public bodies in the UK and to compare similar models such as the use of DBFO or build, own, operate, transfer (BOOT) that gives it wider applicability for private procurement. The chapter is used as a case study to assess the successes and failures of PFI and as a basis for identifying elements of a more progressive model which is a way forward for the construction industry. General issues of public procurement good practice will also be discussed without wholly applying to PFI forms of procurement. The objectives of this chapter are to
● introduce the PFI process and define its specialist vocabulary and rationale;
● discuss the principles for PFI and to assess its impact on the culture of contracting;
● evaluate some of the real and perceived problems that have beset the practice of PFI and look at the solutions which are being offered and developed as best practice;
● identify the differences in practice and application between the public and the private sectors;
● discuss the impact of expanding its use to the private sector in the form of BOOT, DBFO, prime contracting or other relevant forms and other future possibilities;
● consider the current issues and the future of PFI in construction projects.
