ABSTRACT
This chapter presents financing models for construction projects and explores their implications for clients. It primarily focuses on private projects, more and more public projects are procured using these models. The funding of public projects through the exchequer still requires a business case to be produced and a justification for the money delivered. The greater requirement for accountability of public funds both restricts the freedom to act efficiently and increases the administrative burden through the project in order to deliver accountability. The chapter explores Private Finance Initiatives (PFI) and other public–private partnerships. It focuses on UK where substantial amounts of client construction takes place under a private model. The chapter considers the risk implications of the funding on the types of procurement. In many other countries, major construction is funded directly through the state where the delivery of the project is of greater importance than its financial efficiency.
