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Procurement & Contracts Coursework - Assignment Example

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Procurement and NEC3 ECC Contract By Course Institution Date Task A: Procurement Report to the Ministry of Health, UK RE: Proposal for a PPP-PFI Procurement Route for the Hospital Expansion Project Date: Introduction Public-Private Partnerships (PPP) differ from conventional procurement routes…

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Procurement & Contracts Coursework

57). One of the key attributes of PPP is that it not only facilitates public-private partnerships during the construction phase, but it provides for post-construction services to be managed by a private agency. It has been argued that by taking this approach, the construction design is usually conducted contemplating subsequent services which ultimately lowers the cost of services. Moreover, the nature and duration of the PPP encourages a relationship of trust and facilitates the free flow of information (Hoppe & Schmitz, 2013). Likewise, Private Finance Initiative (PFI), project procurement, a form of PPP, is particularly important when the public budget is constrained by economic difficulties such as the current economic downturn. PFI is a method by which the public sector secures “value for money” and the private sector “service provider” assumes the risks associated with the project (Akintoye, Hardcastle, Beck, Chinyio, & Asenova, 2003, p. 461). Given that the global economic downturn has impacted the UK government’s ability to deliver and meet the demands for health services, a PFI-PPP procurement route is the more innovative and least costly option over traditional procurement routes. ...
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