Akbiyikli, R and Eaton, D (2004) Risk management in PFI procurement: A holistic approach. In: Khosrowshahi, F (ed.) Proceedings of 20th Annual ARCOM Conference, 1-3 September 2004, Edinburgh, UK.
Abstract
PFI is a public service delivery type of public-private partnership. The public sector PFI has been driven by a centrally adopted policy to transfer risk to the private sector. The scale and duration of PFI deals are significant, because it is the responsibility of the public sector to ensure that substantial amounts of taxpayers' money are not put at risk. Public and private sector bodies must exercise diligent care in the procurement process while negotiating contracts for PFI to ensure that project risks are fairly allocated between them. The construction industry in general has a poor reputation for managing risk and many projects fail to meet targeted schedules and cost. Systematic risk management allows an early detection of risks and encourages the PFI stakeholders to identify, analyze, quantify and respond to the risks and take measures to introduce risk reduction policies throughout the life of a PFI project. This paper will review systematic management of PFI risks and suggest that risks need to be identified and managed in all phases of the PFI procurement process.
| Item Type: | Conference Paper (Paper) |
|---|---|
| Uncontrolled Keywords: | concession; contract; PFI; procurement; risk; systematic assessment; uncertainty |
| Index terms: | partnership, private sector, public sector, service delivery, risk reduction, exercise, procurement process, construction industry, duration, risk management, holistic approach, negotiating |
| Subjects: | partnership management, conflict resolution, project controls, administrative law, industry analysis, financial risk, service delivery, contractual arrangements, business, risk assessment, health behaviours and lifestyles |
| Topics: | Project Management, Research Practice, Cost Management, Business Strategy, Health and Safety, Procurement, Stakeholder Management, Risk Management, Legal Issues, Time Control |
| Descriptive scope: | 3 PCT |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here