Bot, Pfi and Construction Management
Bot, Pfi and Construction Management
Bot, Pfi and Construction Management
AND ESTIMATION
[PFI]
I N T RO D U C T I O N
W ha t i s P F I……
• A method procurement that first develop in Australia and adopted in UK since 1992. Public authority can arrange for
private sector bodies to provide and own services. Usually, a project company is formed and enters into long term
contract (usually 25 years) for the construction of a new asset with a long operation and maintenance. Once it done,
the government authority pays a specified charge for the service. (et al.1)
DICTIONARY
• A project has to be financed and managed by private sector companies, in return for lease charges.
INTERNET
• A public centre body (central or local government or part of the health service, generally called ‘the authority’) obtains
a service rather than asset. Usually payment will be made by the commissioning authority but in some projects such
as toll bridge, they are made by the public. Also, the possibility of charges to the public being subsidised by payments THE HOUSE OF
by the commissioning authority (e.g. a railway where the fare are subsidised for a public benefits reasons.) COMMONS SELECT
COMMITTEE ON
TREASURY
(2002)
W ha t i s P F I… … ( co n t )
• One of the government’s main instrument for the delivery of high quality and cost effective public services. It enables value for
money and improvements to be obtained by requiring the private sector in competition to be innovative in design and operation of
PRIVATE
asset – based services, manage an appropriate level of risk and adequately maintain assets on a long term basis FINANCE
PANEL
(1995)
• PFI is now established as a major form of Government procurement. PFI has introduced changes in the way public services are
procured and managed (NAO 2001) // A policy introduced by the government in 1992 to harness private sector management and
expertise in the delivery of public services. The approach to enable the department to undertake projects which they would be
NATIONAL
unable to finance conventionally. AUDIT
OFFICE
•It is a design and build finance and operate (DBFO) system. It usually involves the provision, by a private sector consortium, of
property based services for a period of a minimum 30 and more, usually 60 years, to a public sector ‘ purchaser’. In exchange for
these services over lease cost to the private sector supplier. This monthly cost is revised periodically as the contractor progression. BROADBENT AND
LAUGHLIM
(2003)
• Public sector does not simply sign a contract to buy a prison, a train, a computer system. It pays to have a specified services
supplied at guaranteed level of performance. The government chooses the quality services the public require and then goes out
UK CHANCELLOR
and acquires those services from private companies with the finance and expertise to deliver. OF THE
EXCHEQUER
A D VA N TA G E S
Sharing
risk and
Introduction
Delivery of reward
of the
a high
resources
quality and
and expertise
cost
of the private
effective Delivery of
sector into
public public
the public
services services by
sector
the private
Innovation sector at a
in the guaranteed
design and level of
operation performance
of asset
D i s A D VA N TA G E S
Failure of
Lack of concessionaire
understanding on to deliver
PFI knowledge services required
and concept
The KLIA Express and Transit starts operations in 2002 is a daily high-
speed, non-stop air-rail connection between Kuala Lumpur
International Airport (KLIA) and Kuala Lumpur City Air Terminal
(KLCAT).
[PROJECT MANAGEMENT
CONTRACT]
(PMC)
I N T RO D U C T I O N
• Professional services that uses specialized, project management techniques to oversee
the planning, design and construction of a project from its beginning to its end.
WHAT
• CM is a firm outside the organisation’s organisation that acts as an agent for the owner.
The owner will assigned CM contract to a CM firm or agency that capable and
WHO knowledgeable coordinating all aspects to coordinate the project (4 party arrangement).
A D VA N TA G E S
Improves the concern The owner
between the contractor A
made the
and the owner teamwork
selection of
consist a
the design
huge
firm and
Owner can concentrate amount of
construction
on overall project no worker is
contractors
day – to – day problems formed
High amount of
money needed Owner needs to
to use all the choose the
services contractor wisely
because the
selection based on
competitive bidding
CM firm need to using fee and
guide the owner qualification
properly when
choosing
C A S E S T U DY
Pembinaan BLT Sendirian Berhad (PBLT)
[BOT]
WHAT I N T RO D U C T I O N
WHERE
WHO
A form of Often use in Transfer of the Private
WHEN
procurement process works have finance and
whereby the engineering, been partnership,
contractor infrastructure completed and owner and the
agrees to and oil and gas government
build, operate contracts. after they have
and transfer been operated
the works to for an agreed
the employer. period.
A D VA N TA G E S
Reduces public
borrowing and To minimize
direct spending the Unlimited
and which may continuing finding to
improve the involvement the private
host of finance
government's government
credit rating.
D i s A D VA N TA G E S
No credibility if
the government
provides too
much support to
the promoter
It is more difficult
to maintain the
contract
C A S E S T U DY
Shah Alam Expressway (SAE)
1) TH 437.B68 2007; Cost Planning of PFI and PPP Building Projects; Abdelhalim
2) RUJ TH 9.E45 2012; Dictionary of Construction Terms; Fenwick Elliot LLP; British Library
4) RUJ TH 438. C62 2000; Construction Project Management (Fourth Edition); Richard H.
Clough, Glenn A. Sears, S. Keoki Sears; John Wiley & Sons Inc; 2000
R e f e r e n c e s ( c o n t. . )
i. https://www.slideshare.net/zrienia/pfi-slide
ii. https://www.irbnet.de/daten/iconda/CIB_DC24075.pdf
iii. https://www.slideshare.net/syafa_187/ppp-projectsinmalaysia
iv. http://www.ijbs.unimas.my/repository/pdf/Vol13No2-paper4.pdf
v. http://www.pblt.com.my/v5/
THANK YOU
THE END!