Sustainable competitive advantage in PFI: A systematic and holistic approach to identify the csfs in risk management in PFI, taking into account the whole life cycle

Taking into account the envisaged future expansion of PFI this study main goal was to assess and propose a model for the Sustainable Competitive Advantage of PFI. The model integrates an Adequate Social Political Economic Framework, with the management of risk uncertainty over the whole life cycle and the Critical Success Factors of a PFI, which are Clear Strategy, Effective Leadership and Knowledge Management.The political and economic context was determinant for PFI emergence and development. It was a response to government needs for finding, and was favoured by the political and macro economic environment. Nevertheless the framework for risk allocation between the private and public sector is not as through as could be desired. RM techniques are used extensively, but often fail to account for the holistic, systemic, long-term nature of the projects.PFI delivers 'VFM, as the focus on measures to control costs is always present. It delivers a better service although customer responsiveness is derived mainly by the necessity to comply with the contracted service provision.PFI is a competitive procurement tool versus the traditional forms of governmental procurement as it induces improvements in: Efficiency, Quality, Innovation and Customer Responsiveness. Increased efficiency is brought by the need a strict cost control to deliver VFM. 'Freedom to innovate' is key as it gives the private sector the opportunity to propose less costly solutions over the whole life cycle.The research permitted to conclude that the sustainability of PFI's competitive advantage is going to depend upon the continuing focus throughout the whole life cycle on efficiency gains (cost control), innovation, quality and provision of a better service. A case study methodology was used to test and validate the proposed models.