Involvement of small and medium sized enterprises in the private realisation of public buildings

Bastian Heinecke

No 2002/09, Freiberg Working Papers from TU Bergakademie Freiberg, Faculty of Economics and Business Administration

Abstract: This paper explores the procurement of public buildings in local authorities in the UK under the Private Finance Initiative (PFI) and its consequences for small and medium sized enterprises. Following an outline of the development of PFI in the UK, the paper explains the peculiarities of local authorities' involvement. Opportunities and problems of smaller constructors in such PFI projects are then analysed. Three case studies of smaller PFI schemes are reviewed including procurement process, contract agreement, project funding, risk allocation and innovations. Because of complicated approval frameworks and contract structures more and more projects are bundled in order to obtain a better value for money. Smaller constructors, therefore, can only act as subcontractors until simpler procedures and contracts are introduced by government bodies and organisations responsible.

Keywords: Private Finance Initiative; Infrastructure; SME; Local Government; Privatwirtschaftliche Realisierung; Infrastruktur; KMU; Kommunalverwaltung (search for similar items in EconPapers)
JEL-codes: H54 H57 L33 L74 (search for similar items in EconPapers)
Date: 2002
References: View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:tufwps:200209

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