Pros And Cons Of Incomplete Contract In Private Finance Initiative (Pfi) Project

Abstract

A contract is incomplete when it did not clearly spell out among others the parties’ responsibilities and duties for all realised contingency and it contain loophole, some provisions being left out, and the wording used contain element of vagueness. Incomplete contract is said to be inevitable especially for projects with lengthy contract period, a lot of risk and/or uncertainty, such as Private Finance Initiative (PFI) projects. IC has both its PROs (positive) and CONs (negative) implications. Flexibility to deal with uncertainty when it arises is the PROs of IC while the CONs are inefficiencies and costs, contract amendment and others. PFI is among the key alternative procurement used in Malaysia. However, there has been criticism about PFI e.g. lopsided contractual agreement, absence of robust and transparent agreement, and vagueness in terms of sustainable element. Based on the issues mentioned, it is therefore, significant to carry out this research to assess the PROs and CONs implications of IC in PFI projects. Research method begin with literature review and followed by two rounds of Modified Delphi method. 18 and 13 panellists involved in the MD. The results from the research have identified eight (8) PROs and six (6) CONs. Findings of the research are significant for the improvement of future PFI project whereby PFI stakeholders can come out with proper action to deal with implications of IC.           

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About this article

Publication Date

26 December 2017

eBook ISBN

978-1-80296-950-4

Publisher

Future Academy

Volume

2

Print ISBN (optional)

-

Edition Number

1st Edition

Pages

1-882

Subjects

Technology, smart cities, digital construction, industrial revolution 4.0, wellbeing & social resilience, economic resilience, environmental resilience

Cite this article as:

Syaimasyaza*, M. N., Khairuddin, A., Fairullazi, A. M., & Farihah, H. S. (2017). Pros And Cons Of Incomplete Contract In Private Finance Initiative (Pfi) Project. In P. A. J. Wahid, P. I. D. A. Aziz Abdul Samad, P. D. S. Sheikh Ahmad, & A. P. D. P. Pujinda (Eds.), Carving The Future Built Environment: Environmental, Economic And Social Resilience, vol 2. European Proceedings of Multidisciplinary Sciences (pp. 459-465). Future Academy. https://doi.org/10.15405/epms.2019.12.44