Akintoye, A; Beck, M; Hardcastle, C; Chinyio, E A and Asenova, D (2003) Outsourcing the Risk Analysis Function in 'Private Finance Initiative' Projects. Journal of Construction Procurement, 9(1), ISSN 1358-9180
Abstract
The optimisation of risk transfer and risk management in 'Private Finance Initiative' (PFI) projects involves the accurate assessment of these risks. The manner in which risks are analysed and the extent, to which this function is outsourced in PFI projects, is examined in this article. The discussions are informed by an investigation conducted at Glasgow Caledonian University. Literature was reviewed, upon which a survey instrument was developed. A qualitative methodology was adopted, and involved a total of 90 interviews with diverse PFI participants in the UK. The 'AtlasTi' software was utilised in the analysis of data. The interviews revealed that the bulk of the risk analysis function in PFI is usually done in-house, while a minor part is often outsourced to technical, legal and financial cum insurance experts. Other disciplines consulted, albeit occasionally, include traffic engineering, environmental science, planning and surveying. The objective is to outsource those aspects where in-house expertise is deficient. When tasked with risk analysis, consultants were adjudged to usually render a good job.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | outsourcing, risk analysis, private finance initiative, grounded-theory |
| Index terms: | interview, surveying, survey, methodology, private finance initiative, risk analysis, environmental science, outsourcing, insurance, investigation, risk management, traffic engineering |
| Subjects: | health monitoring assessment and metrics, data collection methods, risk assessment, business, environmental science, contractual arrangements, economic analysis, transportation engineering, environmental hazards, research methods |
| Topics: | Engineering Principles, Health and Safety, Procurement, Sustainability, Risk Management, Research Practice, Business Strategy |
| Descriptive scope: | 5 PCTEA |
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