Private finance initiative as a new way to manage public facilities: A review of literature

Abstract

Purpose

This paper aims to analyse the findings of the relevant studies, to summarise what has been done in this area, to direct future research and to improve private finance initiative (PFI) practice. PFI is a new form of contracting out public facilities to the private sector, where facility management was integrated with construction. There have been a large number of academic papers published on this subject; however, there is a lack of a systematic review of the PFI-related studies.

Design/methodology/approach

The literature search focused on international peer-reviewed and published literature, with relevance to PFI. The search of literature, following the method of Tang et al. (2010) and Al-Sharif and Kaka (2004), involved the titles, keywords and abstracts, from some major electronic databases (Web of Science, Engineering Village, Science Direct (Elsevier) and Springer Link) of publications published between 1992 and 2011. The data were classified into six categories for further analysis.

Findings

As a new way to procure public facility management, PFI projects have unique characteristics in comparison to conventional construction procurement. The review of the literature regarding PFI is important in terms of summarising the key findings and suggestions of studies for industry practitioners, as well as forecasting the future academic research trends in this area. The number of research works on PFI increased quickly in recent years; however, the review discovered there were still some issues not yet covered in the literature.

Research limitations/implications

This review is not exhaustive in nature, as the criteria in selecting research papers only included English-written, peer-reviewed journals from some major electronic literature databases. This is the limitation of the research. Further review on a wider range of literature is recommended for researchers.

Originality/value

Since PFI was introduced to the construction industry to fund infrastructure 20 years ago in the UK, it has gained interests from scholars. In this new form of contracting out public facilities to the private sector, facility management was integrated with construction. There have been a large number of academic papers published on this subject; however, there is a lack of a systematic review of the PFI studies.

Citation

Wang, N. (2014), "Private finance initiative as a new way to manage public facilities: A review of literature", Facilities, Vol. 32 No. 11/12, pp. 584-605. https://doi.org/10.1108/F-09-2012-0069