Rutter, D and Gidado, K (2005) PFI projects: Their scope for delivering vfm. In: Khosrowshahi, F (ed.) Proceedings of 21st Annual ARCOM Conference, 7-9 September 2005, London, UK.
Abstract
One of the key initial requirements for Private Finance Initiative (PFI) deals is to provide a convincing evidence of Value for Money (VFM). In the United Kingdom, this evidence is based on the four pillars set out by the National Audit Office (NAO), namely: i.Setting clear objectives, ii.Application of the proper procurement processes, iii.Getting the best available deal, iv Ensuring the deal makes sense. VFM is also supposed to be achieved through the three Es economy, efficiency and effectiveness. Whilst each of the three Es has been defined individually, no attempt has been made so far, to provide a coherent framework in which to measure an outcome in terms of VFM. This paper proposes a set of measures based on the definitions of economy, efficiency and effectiveness, in order to arrive at a framework for measuring VFM. This framework is then used to evaluate the NAO's own analytical framework, with a view to judging the scope for VFM in PFI projects.
| Item Type: | Conference Paper (Paper) |
|---|---|
| Uncontrolled Keywords: | private finance initiative; value for money; procuring department |
| Index terms: | private finance initiative, effectiveness, evidence, analytical framework, value-for-money, efficiency, procurement process, United Kingdom, audit |
| Subjects: | evaluation and assessment methods, data analysis and analytics, contractual arrangements, evaluation, Geography, performance management, performance measurement |
| Topics: | Procurement, Geographical Context, Research Practice, Value Management, Quality Management |
| Descriptive scope: | 3 PCA |
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