Project management and the private finance initiative

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in executive roles were over-represented. The link between individual involvement and job role was most prominent for those that had been involved in other privately financed projects. The majority of privately financed infrastructure projects were in England and Wales (71%), with a further 22% based in Scotland and 7% based in Northern Ireland (Figure 4.6). Outside the UK, projects in Asia and the Republic of Ireland had the highest levels of involvement by respondents (10% and 8% respectively). This pattern echoes the findings in the 2001 survey regarding project management commissions generally. Figure 4.6: Location of privately financed infrastructure projects England and Wales Scotland Asia Ireland Northern Ireland Mainland Europe America Africa Oceania 0 10 20 30 40 50 60 70 80 % of respondents 4.4 PFI-active project managers The analysis in this section concerns questions that were answered only by Faculty members who had been personally involved in PFI projects 16 . Only 7.9% of these respondents had a formal project management qualification (compared with 7% for all respondents and 5.4% for non-PFI-active respondents). However, 89% of these respondents had some form of qualification compared with 84% of non-PFI-active respondents. Almost a quarter of those active in PFI had only worked on one project (Figure 4.7). A further 32% had been involved in two or three projects, meaning that over half of those involved in PFI (57%) had worked on three projects or less. As would be expected, the proportion of individuals fell with an increase in the number of projects. However, 16% had worked on more than 10 different projects in their career to date, indicating a small subset of individuals specialising in PFI. Two types of PFI project dominated those that members had worked on (Figure 4.8). Some 44% of those active in PFI had worked on hospital projects. Additionally, 48% had worked on schools projects. Other types of projects involved smaller proportions of respondents. For example 12% had worked on a housing PFI project, a less well-developed PFI sector, and 9% had worked on a PFI court. These are all in areas which have tended to make up a smaller proportion of total PFI schemes across the country, compared to the extensive use of PFI within the healthcare and education sectors. This compares closely with data from OGC which attributes 22% of all PFI projects across the UK to the Department of Health, and 16% to the Department for Education and Skills, making these the two most active government departments in PFI. In addition, 14% of projects originated from the Scottish Executive and therefore covered a range of sectors, including education and healthcare. 16 Again, some 73% of respondents were in the public sector and 20% in the private sector. 17 The Scottish government has vigorously used the PFI for new public service developments, whereas in Wales enthusiasm for PFI has been low, principally due to a poor economic case for using PFI and the relatively small size of projects (Greer, 2003; Osmond, 2003). Geographically the PFI projects worked on by members were spread around the country (Figure 4.9). The most popular location was London (32%). The South East was also an important area, with 29% of respondents having worked on projects there, as were the North West and West Midlands (27% and 22% respectively). Scotland emerged as an important location for PFI (25%). This contrasts sharply with Wales (9%) and Northern Ireland (5%) and reflects the divergence of PFI adoption by the devolved institutions 17 . Figure 4.7: Number of PFI projects worked on by respondents 23 chapter four Survey of RICS Project Management Faculty Members Project management and the private finance initiative % of PFI active respondents 30 25 20 15 10 5 0 Other health care Other education 1 2 3 4 5 6 7 8 9 10 More Number of PFI projects than 10 Figure 4.8: Type of PFI project School Hospital Other Office Housing Court Transport Prison London South East North West Scotland West Midlands South West North East Yorkshire and the Humber East Midlands East of England Wales Northern Ireland 0 5 10 15 20 25 30 35 40 45 50 %of PFi active respondents Figure 4.9: Location of PFI-active respondents 0 5 10 15 20 25 30 35 % of PFI-active respondents
Figure 4.10: Approximate value of PFI projects including the construction element % of PFI active respondents 60 50 40 30 20 10 0 £0 - 5 million £5 - 25 million £25 - 100 million This is supported by data from the Office of Government Commerce (OGC) 18 , which demonstrates that Scotland, London and the South East all take a greater share of PFI projects compared with other regions. In terms of the value of projects worked on by Faculty members, the questionnaire responses show a fairly normal distribution (Figure 4.10). Over 50% of respondents have worked on projects valued at between £25 and £100 million. The proportion of respondents declines for lower and higher valued projects, so that 15% have worked on projects valued at more than £1 billion. A similar pattern can be seen with respect to the capital value of the construction element of the projects. However, these proportions are boosted for lower value projects and decline for higher value projects. For instance, only 3% of respondents have worked on projects for which the capital value of the construction element exceeds £1 billion. Respondents were asked which PFI stakeholders they had worked for when they had been involved in projects. Figure 4.11 shows the profile of the responses. Nearly half (45%) had worked for the awarding authority and just over a third (34%) had worked for the project company or SPV. Respondents were involved in a number of different stages of the PFI process. A high proportion had worked on either the inception, bid (pre- and post-preferred bidder) and construction stages. Two-thirds of the respondents had worked on each of these four stages. However, this continuity ends when a scheme becomes operational. Only 30% of respondents had worked on fully operational projects. Only a quarter of respondents (26%) devoted a significant proportion of their time (over 80%) on PFI project work. Nearly half of those who were PFI-active (45%) spend less than 20% of their time working on PFI projects. It seems that PFI is a minor part of the day-to-day work of these respondents. Approximate value Indivual projects Capital Value of construction element £100 - 500 million Figure 4.11: Employers of PFI project participants Awarding authority / client Project company / SPV Construction company Private practice consultancy Investor / funder Facilities management provider Inception Bid (pre preferred bidder stage) Bid (post preferred bidder stage) Construction Operation £500 - 1000 million 0 5 10 15 20 25 30 35 40 45 50 18 www.pfi.ogc.gov.uk Project management and the private finance initiative chapter four Survey of RICS Project Management Faculty Members Other £1 billion and over % of PFI active respondents Figure 4.12: EPFI stages work on by PFI active members 0 10 20 30 40 50 60 70 80 % of PFI active respondents 24
Page 1 and 2: Project management and the private
Page 3 and 4: The Private Finance Initiative (PFI
Page 5 and 6: The project manager’s role also v
Page 7 and 8: view. This means that project manag
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Page 11 and 12: 1.4 Report structure This report co
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Page 15 and 16: guidance on risk management. By imp
Page 17 and 18: can be shared and disseminated acro
Page 19 and 20: Table 3.1: Matrix of interviewees C
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Page 31: Table 4.1: Involvement in PFI Organ
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Page 41 and 42: 5.5 Project management knowledge an
Page 43 and 44: chapter six References Allen, G. (2
Page 45 and 46: chapter seven Appendices Appendix A
Page 47 and 48: Appendix B: Useful websites • 4Ps
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