By Manfred A Hirt, Rolf Bez, Ecole polytechnique fédérale de Lausanne
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However Williams does concede that the move to outsourcing has as much to do in some cases with getting rid of intransigent 36 PPP models managers than any real belief that outsourcing will deliver better value for money. From a procurement perspective therefore the principle choice to be made in FM provision appears to be a simple one – whether to insource or outsource. The principal reasons for procuring services in house or from an external source appear to be that they can provide 1 improved control through ● ● ● ● ● 2 cost savings through ● 3 loyalty, reliability and commitment of highly skilled staff flexibility ● 5 reduction in management costs expertise of resources ● 4 specialist knowledge and familiarity with the built asset retention of staff expertise continuity of standards continuity of business strategy risk management fast response 24 hours a day 365 days a year confidentiality and security.
Clearly then the identification of outputs and the drafting of the specification are of utmost importance to the success of PFI projects as well as all performance-based PPPs. This topic will be discussed further in Chapter 4. Long-term contracting Historically, construction projects have been undertaken by what have been referred to as ‘temporary multi-organisations’. That is to say organisations – contractors, clients, property professionals etc. – that come together for a specific project with a specified project period.
Unitary payment Unlike conventional procurement strategies where bids are calculated and assessed on the basis of the current capital cost of building a school or hospital, PFI projects are assessed on the proposed charge of an SPC to finance, build and operate a facility over the duration of the contract. Because of the long term nature of the projects all costs likely to be incurred over the life cycle of the PFI project have to be reduced to NPVs in order that meaningful comparisons may be made.
Construction métallique : notions fondamentales et méthodes de dimensionnement by Manfred A Hirt, Rolf Bez, Ecole polytechnique fédérale de Lausanne