IDEAS home Printed from
   My bibliography  Save this paper

Involvement of small and medium sized enterprises in the private realisation of public buildings


  • Heinecke, Bastian


This paper explores the procurement of public buildings in local authorities in the UK under the Private Finance Initiative (PFI) and its consequences for small and medium sized enterprises. Following an outline of the development of PFI in the UK, the paper explains the peculiarities of local authorities' involvement. Opportunities and problems of smaller constructors in such PFI projects are then analysed. Three case studies of smaller PFI schemes are reviewed including procurement process, contract agreement, project funding, risk allocation and innovations. Because of complicated approval frameworks and contract structures more and more projects are bundled in order to obtain a better value for money. Smaller constructors, therefore, can only act as subcontractors until simpler procedures and contracts are introduced by government bodies and organisations responsible.

Suggested Citation

  • Heinecke, Bastian, 2002. "Involvement of small and medium sized enterprises in the private realisation of public buildings," Freiberg Working Papers 2002,09, TU Bergakademie Freiberg, Faculty of Economics and Business Administration.
  • Handle: RePEc:zbw:tufwps:200209

    Download full text from publisher

    File URL:
    Download Restriction: no

    More about this item


    Private Finance Initiative; Infrastructure; SME; Local Government; Privatwirtschaftliche Realisierung; Infrastruktur; KMU; Kommunalverwaltung;

    JEL classification:

    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • H57 - Public Economics - - National Government Expenditures and Related Policies - - - Procurement
    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out
    • L74 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Construction


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:tufwps:200209. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.