Project management and the private finance initiative

3.1 Introduction
This part of the report presents the results from 18 telephone
interviews with practitioners involved in the PFI process. The aim
of the interviews was to examine practitioners’ involvement and
role in managing PFI projects and their perception of the way
project management is undertaken by public and private sector
organisations. In particular, the interviews explored the different
management arrangements of PFI projects and whether project
managers need additional skills.
The research included six PFI projects in three sectors, comparing
central government, local government and the National Health
Service (NHS). In terms of project types, the central government
projects fell into judicial and custodial categories, while the local
authority projects were in education and community services,
supported by NHS projects. The research included
representatives from the client side, the special purpose vehicle
(SPV), and internal and external consultants to the projects, as
shown in Table 3.1. The remainder of this section outlines the
main findings of this part of the research, and Appendix E shows
the interview schedule used.
There is a large amount of information presented here, so
summaries are included at the start of each section and an
overall summary included at the end of the section.
3.2 Background and PFI experience
of respondents
The interviews showed that those involved in managing PFI
projects in the private and public sector operate within relatively
complex management structures, and are drawn from a variety
of professional and educational backgrounds, with various job
titles combining different roles (see Table 3.2).
None of the interviewees held formal project management
qualifications, all gaining their project management experience
through on-going professional practice.
The practitioners representing SPVs had a variety of professional
backgrounds. Two were RICS members, one a chartered builder
chapter three
Interviews with PFI practitioners
9 chapter three Interviews with PFI practitioners Project management and the private finance initiative
(CIOB), and one was a general practice chartered surveyor. Two
respondents had a background in facilities management and
one was a civil engineer. One held a degree in economics and
one was a lawyer. All of the SPV representatives had considerable
experience of PFI projects ranging from seven to nine years.
Public sector practitioners acting for the awarding authority
came from a variety of backgrounds including architecture,
accounting, business management, and civil service. Three
interviewees were actively involved in the day-to-day
management of PFI projects and two were project directors
tasked with overseeing the project for the client. The three
project managers had no prior experience of PFI projects but had
considerable experience in managing conventional projects, and
two of them reported to project directors who had undertaken a
number of PFI projects in the past. Of the project directors, one
was a civil servant with no formal construction industry
qualifications while the other was an architect.
Job roles were most varied amongst interviewees working for
SPVs in accordance with the type of company for which they
worked, and the phases of projects on which they were engaged.
Three interviewees represented the SPV during the operational
phase and they were titled general managers. One was a project
manager representing the SPV during construction phase. There
were two companies specialising in PFI work. One provided
management functions and oversaw the project from start to
finish. The other was employed directly by a PFI investment fund
and was tasked with identifying potential PFI projects, engaged
in preparing and submitting bids, securing PFI contracts, and
managing the whole process from construction through
to operation.
The two directors and the consultant to local government were
involved in all stages of the PFI process.
The consultants to the PFI projects tended to be more specialised
in nature. Four came from an engineering background, one was a
Chartered Building Surveyor and the other was a Chartered
Accountant. Two respondents were termed ‘project managers’,
one specifically employed as employer’s agent and independent
certifier. The other three consultants provided specific advice
including financial and technical.