3. DEVELOPMENT OF CONTRACTING IN INFRASTRUCTURE INVESTMENT IN THE U.K.: THE PRIVATE FINANCE INITIATIVE IN THE NATIONAL HEALTH SERVICE

On-going change in relation to the management of public services has led to the development of many initiatives in the control of day-to-day resources as the New Public Management (Hood, 1991, 1995) continues its reforms. In this context debates about control of capital expenditure have taken a less visible role despite some earlier and influential comment on the area ( Perrin, 1978 for example). Perhaps as the flow of ideas for reform in the management of day-to-day activity have waned, recent attention has turned more systematically to the efficient use of capital resources or infrastructure. This has been accompanied by recognition of the poor state of some of the public sector infrastructure. This chapter is concerned with the implications of the changing approaches to the provision of infrastructure is the U.K. National Health Service (NHS). Its particular focus in the Private Finance Initiative (PFI) and the contractual implications this brings into infrastructure development.