Public-Private Partnerships: Managing Risks and Opportunities
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Public Private Partnership is a key issue in the construction industry – causing much concern among contractors, funders and facility managers. Demand has been building for a thorough analysis …
This edited book will familiarise both researchers and construction professionals working with public private partnerships (PPP) with the issues involved in the planning, implementation and day-to-day management of public private projects. It will show how current risk management methods can help the complex process of managing procurement via such partnerships.
The chapters - most authored by a practitioner/academic partnership - are organised round the concepts of best value and use the findings of a major research project investigating Risk Assessment and Management in Private Finance Initiative Projects. The analysis of this research will be supplemented with contributions by leading international experts from Hong Kong, Australia and Singapore, covering hospitals, schools, waste management and housing - to exemplify best practice in PPP-based procurement.
designs and builds a new service facility or substantially improves an existing one. The service provider retains ownership of the completed facility and operates, maintains and repairs it for the duration of the contract, which is typically 20±30 years. The government grants concessions to recover the cost by collecting user charges and tariffs (Tiong, 1992; Tillman, 1997; Bennett, 1998). Privatisation involves the sale of a state-owned asset either by auction, public stock offering, private
managed for a fee (1) (2) Package deal Turnkey Design-and-build British Property Federation Design, build, finance and operate (and/or private finance initiative) Partnering A stand alone (partnering) strategy Management contracting Construction management 36 Public-private partnerships ment approaches abound, and new concepts occasionally emerge in the market. A detailed description of the different forms of procurement is outside the scope of this chapter. The overview serves merely to
Peter J. Edwards is an Associate Professor at RMIT University in Melbourne, Australia, with responsibility for offshore delivery of undergraduate and postgraduate degree programs. He has an extensive Contributors xiii background in the construction industry, professionally and academically, and has authored over 80 academic publications. He serves as ad-hoc referee for a number of international journals and has been the recipient of research funding for a number of projects. His research
physical noise, psychological noise, and personal defence mechanisms. Personal factors include such influences as age, gender, status, profession and value system. Differences in these personal factors cause different perceptions of reality. External pressure refers to those pressures emanating from other indivi- 82 Public-private partnerships duals or groups that may cause incongruent expectations and reaction notwithstanding similar perceptions of the message (e.g. lobby groups reacting to a
aspects only of a larger grouped PFI scheme. The contractor and project funder will wish to avoid or minimise exposure to risks which they are unable to control: typically such conditions must be satisfied as a pre-condition to project funding. If a key condition cannot be satisfied and the project is abandoned, the costs of detailed design may be at risk: these can be substantial and could either be borne wholly by one of the parties or shared. (4) Future changes: the formula to allocate risk