Project Management Essay Example | Topics and Well Written Essays - 2250 words - 2

Project Management - Essay Example The PFI is termed as a more formal approach for PPP adoption. PFI in simplest form is termed as Design Build Finance and Operate (DBFO) system. Procurements of material can be made using different modes in general, but the Private Finance Initiative (PFI) and Public Private Partnership (PPP) stands distinctly apart in that it allows the contribution of private parties as well in public sector projects. This not only helps in having better options for the project manager, but it also provides momentum to the project towards its completion on time. The PFI generally involves long term contracts ranging from 15-30 years with private sector contractors for providing quality services as per the agreement terms. The PPP forum states that1 such an arrangement ‘typically involves the joint ownership of a special purpose vehicle established under company law’. These are in fact the basic minimum conditions that need to be taken into account. Things like financial background, track record, mutual chemistry of the private partner with the public sector organization are the one’s which need to be taken into while finalizing the partnership program Inviting PFI/PPP is not free from potential disadvantages, if there are some problems in the execution process. The contractual obligation in PFI/PPP is meant to safeguard all the parties involved, but at times the cumbersome process and the terms of the contractual agreement works to the disadvantage of potential bidders. In addition the amount of flexibility that is available in purely public sector project is missing in PPP projects. Quite often the pressure of delivering on time takes its toll on the workforce, who finds themselves stretched beyond their limits, but such voices often remain mum because private companies do not encourage the unions within their companies. A prerequisite for such partnerships is to