Participation, Barriers, and Opportunities in PFI: The United Kingdom Experience

Private finance initiative (PFI) projects play an increasingly important role for both the United Kingdom government and the construction sector. It is still a relatively new form of procurement that requires a wide range of specialist advice during the bidding stage and in-depth knowledge of how the facility will perform in the long term. This paper investigates the level of participation in PFI projects in the United Kingdom, the opportunities available for the construction sector, the types of problems experienced, and the challenges for the future. It achieves this by analyzing the results of a questionnaire survey of a large number of client and construction organizations. The study finds that there is a wide gap in the level of PFI experience between client and construction organizations, affordability of PFI projects, and high bidding costs are key issues for client and construction organizations, respectively, and, given the nature of PFI projects, there is considerable scope for knowledge transfer both during the project and between different PFI projects.