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Challenges in PPP Process Management: Key Failures and Solutions

Explore common failures in PPP process management including lack of support, incomplete information, silos, legal issues, and more. Discover ways to address these challenges for successful project outcomes.

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Challenges in PPP Process Management: Key Failures and Solutions

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  1. Common failures in PPP process management Maarten Groothuis

  2. Common failures in PPP process management • General project management issues • Lack of support for PPP • Decision making based on incomplete information / insufficient knowledge • Lack of public-public agreement • Silos in the tendering team • Legal issues / cases • Monitoring / contract management during building phase

  3. General project management issues • Time- and cost overruns • No contingency plans • Scope creep: new objectives are added during the project • Irrealistic targets / expectations • Etcetera

  4. Lack of support for PPP • Certain decision making stakeholders have great difficulty with PPP • Possible rationales: • perceived lack of flexibility in PPP contracts • non usage of procurement volume contracts • impact to the own service organization • Project team has to cope with resistance to change / to PPP in general

  5. Incomplete information / insufficient knowledge with decision makers • PPP projects are more complex than traditional tendering • Decision makers may “jump to conclusion”, based on the wrong facts • Project team has to be aware of this and has to invest time and effort in decision makers

  6. Lack of public-public agreement • Roles and responsibilities differ for different authority levels • As a consequence, their interests are never 100% convergent • Lack of public-public agreement in later stages of the project, delay the planning and cause frustrations

  7. Silos in the tendering team • Technical, financial and legal teams are separated for project management reasons • May lead to a poor integral approach, resulting in less value for more money • Share the integral vision and cooperate between teams, especially in selection stages of the project

  8. Legal issues / cases • Tendering is getting more and more surrounded by legislation • Legal cases seem to be part of the game • Be clear, precise and follow transparent procedures, to prevent from loss of time and money

  9. Monitoring / contract management during building phase • Cooperation with the private partner already starts when the preferred bidder is announced • Monitoring procedures often start only after availability of the service • Make sure cooperation is already supported by contract management / monitoring straight when the contract is closed

  10. Questions?

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