Thu, K and Akintoye, A (2007) Structure of the public private partnership/private finance initiative market in the UK construction industry. In: Boyd, D (ed.) Proceedings of 23rd Annual ARCOM Conference, 3-5 September 2007, Belfast, UK.
Abstract
Public Private Partnership/Private Finance Initiative (PPP/PFI) market has become popular for the public sector service delivery after a decade of its introduction into the UK construction industry. Its position in the industry is well rooted and substantial in size, yet the structure, nature of competition and the market orientations are little-known. This paper analyses the current PPP/PFI market structure in the UK construction industry especially its market concentration using concentration ratio method, a widely used industrial organization tool in analyzing market competitions. The capital values of all PPP/PFI projects, which involved construction activities, were used to analyse the market concentration; and the market leaders have been identified; competition among them and the top markets have been investigated. The result shows the nature of competition within the PPP/PFI market hugely differs within the sub-sectors (health, education, etc) but almost all of them fall into medium concentration or Oligopoly except education sector where competition among the firms is fierce. Top firms have their own speciality markets but most competition is within the top three sub-sectors; transport, health and education.
| Item Type: | Conference Paper (Paper) |
|---|---|
| Uncontrolled Keywords: | competition; concentration ratio; market structure; PPP/PFI |
| Index terms: | markets, construction industry, public private partnership, private finance initiative, competition, construction activity, public sector, service delivery, industrial organization |
| Subjects: | market analysis, industry analysis, administrative law, service delivery, construction operations, contractual arrangements, economic analysis |
| Topics: | Legal Issues, Site Management, Project Management, Research Practice, Business Strategy, Procurement |
| 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