REVIEW OF THE PRIVATE FINANCE INITIATIVE (PFI): A PERFORMANCE PERSPECTIVE (UK)

The performance of (PFI) projects within the UK is influence by several factors. A key factor is the influence of high bidding cost. The nature, effect and influence of this factor and other success criteria such as value for money, and risk transfer have been investigated. The critical challenges to the effective assessment of performance exist around the measurement and calibration of these performance indicators in practice.The performance of PFI schemes and their perceived success, defined from the perspective of stakeholders as arbitrator of project success depends heavily on good management by the public and private sector and the use of balanced performance measurement systems to incentivise the private sector service provider to deliver successful projects.Project managers need to evolve the best approach to achieve this. This is imperative because the most relevant PFI success factors lie within the spectrum of influence of project managers. PFI performance was investigated using quantitative research techniques. 60 questionnaires were administered, 30 were returned and the data was analysed using SPSS version 16.0 software.