Common failures in PPP process management

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Common failures in PPP process management

• Maarten Groothuis

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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

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General project management issues

• Time- and cost overruns
• No contingency plans
• Scope creep new objectives are added during the
  project
• Irrealistic targets / expectations
• Etcetera

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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

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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

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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

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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

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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

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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

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Questions?