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Common failures in PPP process management

Common failures in PPP process management

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Common failures in PPP process management

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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?