Understanding of Private Finance Initiative (PFI) Implementation in Malaysian Construction Industry: Main Contractor Perception

摘要

Private Finance Initiative (PFI) provides a major opportunity for improving project performance, whilst offering direct benefits to the whole of the supply chain. Many research studies reinforced this assertion although there is less critical analysis examining the nature of PFI in practice and whether the claims made for it are consistently justified. However in today’s competitive environment, contractors continue to operate on tight margins and, common to all project stakeholders, the financial imperative remains the commercial manager’s principal consideration. Trust in hard-earned and relationships are still characterized by a cost driven agenda. Major contractor expressed a lack of public sector experience and poor specifications briefs as the most common problems encountered with PFI procurement. Whilst high bidding costs and the acceptance of risk transfer were encountered, these were less commonly expressed by contractor’s problems. This research area is expected to produce an actual scenarios that happening in the Malaysian construction industry. The research is intended to explore and investigate the implications of the PFI to the Malaysian construction industry and concentrate to main contractor perceptions and improve the performance of PFI projects and the effectiveness of associated managerial processes. In addition to this, research conducted was illustrating the mechanism applied in managing PFI implementation and performance associated with contractor needs. Finding from this research may also provide new insight on the theoretical perspectives on PFI implementation in a contractor perception and also other parties involve.