Abstract
The Private Finance Initiative (PFI) procurement model is a complex system which includes long-term commitment; customers' satisfaction and through-life collaborative working. The projects based on this type of procurement has start from the year 1992 in the UK and year 2006 in Malaysia. Along the process, the PFI projects face few problems despite its advantages. These problem has effected the projects performance such as delay and cost overruns. It seems that the problems occurred are repeatable despite many types of research delved into solving the issues. This paper seeks, to find out the most common problems occur in PFI projects and highlights the best solution to tackle the problems. It also looks at whether similar problems occur in Malaysian construction industry. This research has summarised and critically review the literature on the repeated issues and problem in PFI projects which effect the performance of the projects in term of time, quality and money. It was found that similar problems occur and that similar suggestions were proposed. This shows that the proposed solutions have weaknesses somewhat and hence need to enhance further. This research highlighted the potential of incorporating knowledge management concept through its elements to address the problems. Finally, the paper proposes recommendations to improve the performance of PFI projects with the enhancement of knowledge management especially at the initial and planning stage up to bidding stage where the problem reviewed in the literature always occurred.
Highlights
A construction project is a complex process that integrates interests of a large number of stakeholders towards the eventual goal of realizing a constructed facility (Oyegoke et al 2009; Brown et al 2001)
The research was conducted using an analysis of literature reviews where all the selected journal papers, theses, reports related with Private Finance Initiative (PFI) had been review an analysed to find out the issues and problems highlighted by the writers
Still not reaching its tenth years of implementation which started in the year 2006 (Ninth Malaysian Plan 2006), PFI is considered new in Malaysia compared to a country like the United Kingdom, which has started PFI since the year 1992
Summary
A construction project is a complex process that integrates interests of a large number of stakeholders towards the eventual goal of realizing a constructed facility (Oyegoke et al 2009; Brown et al 2001). There is various procurement use in the construction industry; these includes conventional, design and build, negotiation, partnering, public, private partnership and Private Finance Initiative (Lædre, et al, 2006). In a PFI procurement, the private sector partner has sole responsibility to get ready the public service such as school or hospital and involved form the bidding stage until construction, in use stage until hand over the back stage. They will be responsible for the maintenance during in-use stage (Akintola A., Mathias B., 2009).
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