Private developer scheme
A private developer scheme (PDS) is a form of public procurement in which the construction of a built asset is undertaken and funded by a private developer, but the asset is then occupied by the government, who pay rent to the developer for a minimum term under a leasehold agreement. The level of the rent is generally a function of the total development costs (including the land).
Private developer schemes are a form of partnering, which can sometimes involve the transfer of public land to a private developer. They are typically used to procure public buildings such as courts or hospitals. They are best suited to projects where the residual value of the development at the end of the lease is high.
Private developer schemes differ from private finance initiative (PFI) schemes in that the developer does not generally operate the completed development, and under PFI schemes, at the end of the lease, the development generally reverts to public ownership.
 Related articles on Designing Buildings Wiki
- Crown build.
- Private finance initiative.
- Procurement route.
- Public private partnership.
- Public procurement.
 External references
Featured articles and news
What will the General Data Protection Regulations (GDPR) mean for you when they come into force in May?
Business Secretary chairs a new taskforce to monitor and advise on mitigating the impacts of Carillion’s liquidation.
Sir John Armitt is appointed the new chair of the National Infrastructure Commission.
High quality and high density homes - is it what we need or is it storing up trouble?
Government announces its intention to strengthen planning rules to protect music venues and neighbours.
National Audit Office reports that there is little evidence that PFI offers better value than other forms of contracting.
What is liquidation and how does it apply to contractors in the construction industry?
Scrutiny is placed on Carillion's controversial 2013 decision to extend subcontractor payment terms to 120 days.
RSHP unveil their involvement in a boundary crossing which will provide a new entry point into Hong Kong.
With PFI currently under the spotlight due to Carillion, this introductory article explains what they are.
Estimates suggest that up to 30,000 small firms could be at risk of non-payment as a result of Carillion's collapse.