Patel, M and Robinson, H (2010) Impact of governance on project delivery of complex NHS PFI/PPP schemes. Journal of Financial Management of Property and Construction, 15(3), pp. 216-234. ISSN 1366-4387
Abstract
Purpose – This study aims to examine the impact of governance on project delivery in complex private finance initiative (PFI) projects. Governance is crucial in delivering successful projects within budget, time and in accordance with other project objectives. Design/methodology/approach – A two-stage approach was used to address the research questions. First, a literature review was carried out and second, a multiple case study approach based on detailed semi-structured interviews with project directors and senior managers was conducted to provide an in-depth insight on how two major PFI projects were planned, managed and delivered in the National Health Service (NHS, UK). Findings – Project governance influences project delivery in terms of cost, speed of completion, quality and its financial viability as it is critical in providing clear organisational structure, effective decision-making structures and control processes. The success of one scheme was attributed to an appropriate governance structure enabling necessary reviews and adjustments to be made to render the scheme financially viable and affordable. The failed scheme, subsequently abandoned at a cost of over £15 million to tax payers, was due to an inadequate governance structure creating conflicting priorities of stakeholders, complex decision making with negative impact on project deliverables such as cost and time. Originality/value – Previous research has not addressed the management aspect of governance which has a significant influence on financial outcomes of NHS PFI schemes. This will enable NHS and other public client organisations to understand the need for adequate governance structure in reducing the risks of projects running over time and incurring increase costs to ensure financial viability and affordability, particularly in large complex schemes.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | governance; national health service; organisational structures; private finance; project management |
| Index terms: | affordability, decision-making, private finance initiative, methodology, literature review, organizational structure, interview, manager, project management, project delivery, public client, private finance, financial viability, health service, governance, case study |
| Subjects: | practitioner, data collection methods, business, business management, contractual arrangements, data analysis and analytics, project delivery, economic analysis, project management theory and practice, research methods, public and environmental health, decision analysis, sociology |
| Topics: | Organizational Design, Procurement, Governance, Risk Management, Stakeholder Management, Roles and Professions, Research Practice, Project Management, Business Strategy, Health and Safety |
| Descriptive scope: | 5 PCTEA |
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