The Role of Cost Saving and Innovation in PFI Projects

As PFI matures, inevitably questions are being asked about the role of cost saving and innovation. This publication presents the findings of a study designed to test the proposition that PFI will yield value for money by stimulating innovation. It surveys people responsible for managing the purchasing, designing, building and operation of PFI projects, and poses questions about the extent to which cost saving improved value for money in various projects in both the construction and operation of facilities. The study also sought to discover the main reasons for variation in the levels of cost savings achieved in different projects. To do this, the factors affecting the extent of innovation achieved in a PFI project were investigated - these factors are the enablers and inhibitors of innovation. The data discussed in this report represents the opinions of informed and expert respondents, from all parts of the PFI industry, including both private and pubilc sectors.