Construction Economics Assignment

Added on - 21 Apr 2020

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Running head: CONSTRUCTION ECONOMICSConstruction EconomicsName of the StudentName of the UniversityAuthor Note
1CONSTRUCTION ECONOMICSTable of ContentsIntroduction......................................................................................................................................2The Non-Profit Distribution Model: An Overview.........................................................................3Core Principles Underpinning the NPD Model of Scotland........................................................3Difference between the PFI and the NPD Models for procurement of funds.............................4Critical Evaluation of NPD Projects: Scotland Construction Industry............................................5Factors contributing to the success of the NPD Projects.............................................................6Factors contributing to the negative implications of the NPD Model.........................................8Scopes of Improvement in NPD..................................................................................................9Conclusion.....................................................................................................................................10References......................................................................................................................................12
2CONSTRUCTION ECONOMICSIntroductionThe government of any country in the world is a body of people who are bestowed withthe responsibility to control the different aspects of a country such that the overall welfare of thecountry remains maintained to a consistent level and keeps on increasing. Among the variousresponsibilities of the governing authorities, one of the primary responsibilities is to developproper infrastructure in the country and focus on the development and efficient distribution ofwelfare increasing services including health, education, monetary beneficial services and others.These goods are mainly of the nature of public good, which means that these goods and servicesare non-excludable and non-rival in nature (Warner and Sullivan 2017).These services, to be built and distributed among all the sections of the society, requiresufficient capital and other resources, which are often not possible for the government alone tofund. For this purpose, the government often enters into different types of negotiations andpartnerships with the private sector investors and service providers to gather sufficient resourcesto provide these services to the residents of the country (Zhang and Chen 2013). In this contextthe most widespread framework of public private cooperative structure, which has been existingand implemented by the governing authorities of most of the countries, is the Private FinanceInitiative. Under the PFI Model, a public private partnership is formed for the procurement offund to deliver public sector infrastructural services, from the private sector investments.However, in the recent times, the government of Scotland has been trying to replace this PFIModel with a newer model of public private partnership, which is known as the Non-ProfitDistribution Model (Oyedele 2012).
3CONSTRUCTION ECONOMICSThe assignment tries to take into account the overall driving principles of this NPDModel of procurement of funds, the difference of the same from the traditional PFI Model andthe positive as well as the negative aspects of the NPD Model and in its implementation. Theassignment also tries to find the possible way outs for the problems, which arise in theimplementation of the Non-Profit Distribution Model for procurement of private sectorinvestment for funding public sector projects, keeping into, account the economy of Scotland(Hwang and Choi 2017).The Non-Profit Distribution Model: An OverviewThe governing authorities of Scotland have developed the Non-Profit Distribution Modelfor procurement, in the recent years as an alternative way of collecting funds for infrastructuraland other projects in the public sector, in the form of private sector investments. Since theimplementation of the procurement plan in different sectors, the same has gained immensepopularity and has even superseded the traditional Private Finance Initiative Model(Scottishfuturestrust.org.uk, 2017). The government of the country has even startedimplementing the NPD Model in different sectors like that of education and health and has alsoplanned to roll the same for procuring fund to develop the transport sector of the country(Asenova 2013).Core Principles Underpinning the NPD Model of ScotlandThe Non-Profit Distribution Model, as is implemented by the government of Scotland, inthe contemporary period, is based on several principles, which aim to make the procurement offunds for public sector infrastructural and other public good and services production and
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