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1 – 10 of 350
Article
Publication date: 1 April 2017

Emmanuel Botlhale

Public procurement accounts for a big proportion of public budget outlays, hence, it is important that there be demonstrated Value for Money (VfM) in public purchases. To ensure…

Abstract

Public procurement accounts for a big proportion of public budget outlays, hence, it is important that there be demonstrated Value for Money (VfM) in public purchases. To ensure VfM in public procurement, Botswana introduced a modern public procurement system in early 2001. The system is yet to be subjected to VfM analysis. Using document analysis, this paper explores two main research questions: (i) what are key public procurement challenges in Botswana?; and (ii) how can public procurement in Botswana be improved? It is concluded that the public procurement system in Botswana is not constructed on a VfM basis. It is consequently suggested that there is a need for public procurement reforms and the adoption of various private sector continuous improvement tools such as Lean, Kaizen and Six Sigma.

Details

Journal of Public Procurement, vol. 17 no. 3
Type: Research Article
ISSN: 1535-0118

Article
Publication date: 29 March 2013

Charles MacDonald, Derek H.T. Walker and Neveen Moussa

This paper aims to present and describe a value for money framework that can be used on alliance projects to improve the consideration of, and reporting of, value for money.

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Abstract

Purpose

This paper aims to present and describe a value for money framework that can be used on alliance projects to improve the consideration of, and reporting of, value for money.

Design/methodology/approach

Development of the framework used a combination of interviews with domain experts, reflection on practice and a Delphi panel to develop and refine a value for money/best value outcome framework for alliance projects.

Findings

The results indicate that a robust framework for demonstrating value for money in an alliance project is feasible, and a framework was developed and tested through the Delphi panel.

Research limitations/implications

The paper briefly describes the research approach but focuses on the outcome rather than the process.

Practical implications

The research aim of this paper is to expand the conceptual view and to illustrate how a practical assessment of value for money in project alliancing can be achieved. It presents the framework and describes it in sufficient detail for readers to be able to adopt and adapt it.

Social implications

Value for money in infrastructure projects has profound implications for society; this extends and enhances techniques used to assure value for money.

Originality/value

The paper provides a value for money framework across the whole project design to delivery cycle.

Details

Facilities, vol. 31 no. 5/6
Type: Research Article
ISSN: 0263-2772

Keywords

Article
Publication date: 1 July 2006

Michael Pitt, Norman Collins and Andrew Walls

The paper aims to define and measure value for money (VFM) within the concept of private finance initiative (PFI), and investigate the principal factors in which opinions are…

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Abstract

Purpose

The paper aims to define and measure value for money (VFM) within the concept of private finance initiative (PFI), and investigate the principal factors in which opinions are formed.

Design/methodology/approach

Literature review of texts, published papers, and reports are used to identify relevant parameters to the research. The sources support the arguments of opinion within the paper.

Findings

PFI is still perceived by the government as the most cost effect means of procuring public infrastructure. The positive aspects of PFI are the competition generated by the concept, and improved risk management. Negative aspects include the lack of agreed formulae by all stakeholders by which to benchmark VFM, and an increasing sceptical electorate to the PFI concept of providing short and long term VFM.

Research limitations/implications

By virtue of PFI being a dynamic, changing, and complex means of procurement, this research will be valid in its own right. However more up to date government policies must be consulted to take the determination of VFM in any further research.

Practical implications

The research and conclusions will provide add to the current debate as to the viability of PFI, with VFM the main key point as to the ongoing success of the governments strategy this method of procurement.

Originality/value

The paper adds, to the “VFM” drivers that have been identified by identifying principle factors in creating VFM. This will be a sound basis for the justification of VFM in PFI.

Details

Journal of Property Investment & Finance, vol. 24 no. 4
Type: Research Article
ISSN: 1463-578X

Keywords

Article
Publication date: 1 August 2003

David Heald

In Private Finance Initiative (PFI) projects, value for money (VFM) tests and accounting treatment are distinct but related issues. VFM analysis should be concerned with total…

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Abstract

In Private Finance Initiative (PFI) projects, value for money (VFM) tests and accounting treatment are distinct but related issues. VFM analysis should be concerned with total risk, not just with the sharing of risk, which dominates the accounting treatment decision. A framework is developed for logical thinking about what is meant by “best VFM” in the context of PFI projects. This involves consideration of the full set of alternatives, not an artificially diminished subset. The credibility of analytical techniques can be tarnished if they are misused to legitimate a predetermined decision. A reduction in construction risk may be a powerful source of VFM gains under PFI, but, under UK accounting regulation, this should not influence the accounting treatment decision. New complications about how VFM should be interpreted arise directly from the process of public sector fragmentation: affordability to the client is not necessarily the same as VFM for the public sector as a whole. Only public auditors, such as the National Audit Office, can gain access to PFI documentation on the conditions necessary for a comprehensive assessment of both accounting treatment and VFM. However, such studies require the kind of theoretical underpinning provided in this article, as otherwise the findings are likely to be ambiguous and hence vulnerable to rebuttal. In particular, VFM judgements must make explicit the basis of comparison on which they rest.

Details

Accounting, Auditing & Accountability Journal, vol. 16 no. 3
Type: Research Article
ISSN: 0951-3574

Keywords

Article
Publication date: 2 November 2015

Collins Ameyaw, Theophilus Adjei-Kumi and De-Graft Owusu-Manu

The purpose of this paper is to explore the various approaches prescribed in literature in the assessment of value for money (VfM) of public–private partnership (PPP) projects…

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Abstract

Purpose

The purpose of this paper is to explore the various approaches prescribed in literature in the assessment of value for money (VfM) of public–private partnership (PPP) projects with the aim to develop a theoretical framework for measuring VfM in Ghana.Public–private partnership (PPP) has long been recognized as an effective way of procuring public infrastructure to deliver value for money, but the subject has received little research attention in Ghana.

Design/methodology/approach

The methodology comprises a multi-stage critical review of relevant literature; review of Ghana’s National Policy on PPP and review of the Public Procurement Act, 2003 (Act 663). This paper was underpinned by an interpretivist philosophy and is inductive in nature.

Findings

The approach for VfM assessment largely depends on the jurisdiction of the project. Multiple methods (qualitative and quantitative) are used along the project cycle in the bid to achieve VfM. The most common assessment approaches include public sector comparator shadow bid, lease-purchase analysis, cost benefits analysis, public interest test central guidelines and competitive bidding. The study developed a theoretical framework for assessing VfM in Ghana.

Research limitations/implications

The research was purely exploratory and non-empirical; and hence cannot be generalized in a broader context.

Practical implications

Implementation of the National PPP policy and for PPP to thrive in Ghana, a framework to guide the assessment and achievement of VfM is crucial. The steps outlined if followed would help ensure the public receives the best of all PPP deals in Ghana.

Originality/value

This paper is unique providing insights into a conceptual basis for assessing VfM and provides a basis for future empirical study.

Details

Journal of Financial Management of Property and Construction, vol. 20 no. 3
Type: Research Article
ISSN: 1366-4387

Keywords

Article
Publication date: 27 April 2020

Ernest Kissi, Theophilus Adjei-Kumi, Samuel Twum-Ampofo and Caleb Debrah

The non-achievement of projects of best value remains a perennial problem within the construction industry. This paper aims to identify the latent shortcomings affecting the…

Abstract

Purpose

The non-achievement of projects of best value remains a perennial problem within the construction industry. This paper aims to identify the latent shortcomings affecting the achievement of value for money (VfM) within the Ghanaian construction industry.

Design/methodology/approach

From a comprehensive literature review and pilot survey, 18 variables responsible for the non-achievement of VfM were identified. Through purposive and snowballing sampling techniques, a questionnaire was administered to the target professionals. Factor analysis was used to establish the latent shortcomings underlying the same dimensions of VfM achievement in the Ghanaian construction industry.

Findings

A total of six components were identified and explained as external factors; institutional culture and policy constraints; technical and decision-making factors; human-related factors and accountability and transparency constraints. The relative importance index was used in analysing the strategies to addressing the shortcomings.

Social implications

The prevalent situation of poorly delivered projects and the continuous campaign for VfM necessitated the need for a study into explaining the latent shortcomings in achieving VfM within the Ghanaian construction industry. It is recommended that governments give VfM in public projects serious attention. This would help to reduce the overall cost of construction projects without compromising quality. When VfM is taken seriously, governments can save more money and undertake more projects as well as gain public acceptance in terms of transparency and accountability.

Originality/value

This study has set the pace for further research in the VfM analysis by identifying the latent shortcoming, which other developing countries can emulate.

Details

Journal of Public Procurement, vol. 20 no. 3
Type: Research Article
ISSN: 1535-0118

Keywords

Article
Publication date: 24 July 2020

Mumuni Ishawu, Chen Guangyu, Emelia Darko Adzimah and Aliu Mohammed Aminu

Governments all over the world are increasingly entering into partnership agreement with the private sector through public–private partnership (PPP) models for the development and…

Abstract

Purpose

Governments all over the world are increasingly entering into partnership agreement with the private sector through public–private partnership (PPP) models for the development and management of public projects and services. Thus, the purpose of this study is to first examine the factors that enter into government's attitude, value for money (VFM) and PPP-based waste management projects (WMPs) in Ghana. Further, this study examines the relationship between PPP-based waste management and VFM, along with the mediating role of government's attitude.

Design/methodology/approach

Data were collected through a survey questionnaire from four metropolitan municipal assemblies of Ghana. This study’s sample consisted of 230 respondents, and structural equation modeling was employed to conduct an empirical analysis. The structured model had evaluated the critical success factors (CSFs). Subsequently, the measurement model helped in the path analysis of the proposed model.

Findings

The authors found a nonpositive relationship between PPP-based WMPs and VFM; however, government's attitude will influence the achievement of VFM. Reliance on quality targets is ranked as the highest CSF in PPP-based WMPs in Ghana. Also, incentives for private sector participation and effective private sector participation are ranked as the least CSFs.

Limitations

Most of the questionnaire's items were self -rated by employees of municipal assemblies who were not policymakers. This must have increased the possibility of common method bias. In addition, the study was limited to Ghana (a developing economy); therefore, the generalization of the results should be done with much caution.

Practical implications

This study suggests to develop a network of private sector consortiums considering international and national participants who are engaged in PPPs in order to ensure successful delivery and hence valuing for money.

Originality/value

This study offers a novel perspective to investigate the relationship of PPP-based WMPs and VFM and shows how the government's attitude mediates this relationship.

Details

International Journal of Managing Projects in Business, vol. 13 no. 6
Type: Research Article
ISSN: 1753-8378

Keywords

Article
Publication date: 6 October 2023

Hawa Ahmad, Suhaiza Ismail and Zamzulaila Zakaria

Drawing on institutional work (Lawrence and Suddaby, 2006; Lawrence et al., 2011), this study aims to explore how the concept of value for money (VFM) is understood in terms of…

Abstract

Purpose

Drawing on institutional work (Lawrence and Suddaby, 2006; Lawrence et al., 2011), this study aims to explore how the concept of value for money (VFM) is understood in terms of the private finance initiative (PFI) implementation in Malaysia.

Design/methodology/approach

In-depth interviews with 25 actors involved in the implementation of PFI projects at two public universities in Malaysia were conducted. The interviews focused on the ways in which participants in the projects make sense of VFM in their ongoing involvement with the projects. In addition, a review of publicly available documents was conducted to understand the ways in which the notion of VFM is reflected in the policies and procedures of the government. Data from the interviews and documents were analysed using thematic analysis.

Findings

It is found that the advocacy work of macro-level actors, as well as micro-level actors, has promoted PFI implementation to achieve VFM. However, to the micro-level actors, VFM is just a concept that carries different interpretations, depending on how PFI fits their everyday functional discourses. In addition, direct negotiation and lack of commercial appreciation are disruptive not only to the achievement of VFM but also to the public sector reform agenda of the country.

Originality/value

The present study contributes to the discourses on the concept of VFM that is assumed to be inherent in PFI. The findings are based on micro- and macro-level actors and cover both advocacy and disruption of VFM achievement.

Details

Journal of Accounting & Organizational Change, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1832-5912

Keywords

Article
Publication date: 1 March 2017

Rizal Yaya

This research evaluates the value-for-money (VFM) obtained from public-private partnership (PPP) schools in Scotland, based on headteachers questionnaires, local authority…

Abstract

This research evaluates the value-for-money (VFM) obtained from public-private partnership (PPP) schools in Scotland, based on headteachers questionnaires, local authority interviews and Scottish School Estate Statistics. The period covered is 2000-2012, when 395 new schools were commissioned. The PPPs were better in building condition and maintenance standards and conventionally-financed schools were better in terms of teacher access and improvement in staff morale. There was transfer of knowledge whereby the high standards of the PPPs then became the new standards for the conventionally-financed schools. Concerns about PPP VFM relates to the high cost of unitary charges and contract inflexibilities. A higher percentage of headteachers of conventionally-financed schools (63.64%) considered their new schools resulted in good VFM compared to PPP schools (42.86%).

Details

Journal of Public Procurement, vol. 17 no. 2
Type: Research Article
ISSN: 1535-0118

Article
Publication date: 12 May 2022

Khalid Almarri

The amount of expenditure required to scale up smart infrastructure projects is often enormous. Public–private partnership (PPP) is one of the proposed and viable solutions for…

Abstract

Purpose

The amount of expenditure required to scale up smart infrastructure projects is often enormous. Public–private partnership (PPP) is one of the proposed and viable solutions for addressing the financial issues of smart infrastructure projects. However, the most important criterion in choosing PPP over other procurement methods is that the project under the PPP method should deliver the best value for money (VFM) while also including defined economic and social objectives, rather than relying exclusively on efficiency factors. While PPP provides a variety of advantages for developing infrastructure, significant challenges may arise as a result of smart infrastructure initiatives. Diverse PPP approaches have been used to build smart infrastructure around the world, with varying degrees of success. The purpose of this study is to identify the VFM factors that are suitable for smart infrastructure projects and to examine the impact of their interrelationships.

Design/methodology/approach

The methodology for this study consisted of three stages: identifying VFM factors in PPP for smart cities based on an extensive literature review, analyzing data from a sample of 90 PPP practitioners using a Likert scale questionnaire and estimating interrelationships among VFM factors using structural equation modeling (SEM).

Findings

After performing a SEM analysis on the gathered data, the best fitted measurement model consisted of 11 VFM factors acting as indicators of three latent variables for smart infrastructure projects (clear output specification for measuring performance, efficient dispute resolutions, optimized risk allocation and business models, improved and integrated community services, economic sustainability, appropriate capital structure and collaterals, smart asset management, diffusion of smart technologies, technical innovation, Ince) and three clusters of their interrelations (economic sustainability, integration drive, optimization and smart technology).

Practical implications

This research has resulted in a useful and readily applicable list of factors and clusters of value for money criteria for the implementation of PPP in smart infrastructure projects, assisting public sector management by providing a measure of pre-conditions that can be used as an assessment tool when determining whether a PPP should be used instead of conventional methods.

Originality/value

In addition to the theoretical and methodological contributions, this study produced a usable and readily adaptable list and clusters of value for money factors for the implementation of PPP in smart infrastructure projects.

Details

Construction Innovation , vol. 23 no. 4
Type: Research Article
ISSN: 1471-4175

Keywords

1 – 10 of 350