Governance and Knowledge Management for Public-Private Partnerships

by Robinson, Herbert; Carrillo, Patricia; Anumba, Chimay J.; Patel, Manju

• ISBN13: 9781405188555
• ISBN10: 1405188553
• Edition: 1st
• Format: Hardcover
• Copyright: 2010-03-01
• Publisher: Wiley-Blackwell

Summary

There is a growing demand for public infrastructure in transport, healthcare, education, energy, water and other sectors to improve the level of services and to support socio-economic development. However, governments worldwide are experiencing difficulties as public resources are often insufficient to meet the increasing need for new projects and to upgrade existing infrastructure. A key issue is the increasing role of the private sector in financing and operating public infrastructure. The respective roles of the public and private sectors in the delivery of traditional public infrastructure and services have been the subject of intense debate particularly in recent years. This has led to renewed interest in PPP/PFI projects in developed and developing countries and the need to manage knowledge on best practices. PFI/PPP projects are required to represent value for money when measured against an equivalent project delivered through traditional public funding. However, this requires an effective governance structure and knowledge management framework to facilitate the development of appropriate project management structures, processes and to capture, share and apply knowledge on best practices to safeguard against poor decision-making, error and fraud, illegal transactions resulting in poor value for money, significant delays and project failure.These demands place high expectations on the technical and managerial ability of actors, teams and the efficiency of the processes used in public private partnerships. It is therefore essential to understand the need for effective governance and the role of knowledge management to improve the performance of PFI/PPP projects. The book provides an in-depth understanding of different dimensions of governance and how they affect project management structure, processes, and decision-making ability of actors and teams involved in PFI/PPP projects. The role of knowledge management strategy, the need for benchmarking knowledge management efforts, specific tools and methodologies for capturing, sharing and applying knowledge to accelerate learning and capacity building are also examined.This book is divided into four parts. Part 1 provides the policy and strategic context of PPP/PFI projects and how to translate them into action by examining the key phases and processes from planning, design development, construction to operation and service delivery. Part 2 examines the principles of governance and specific governance issues, methodologies and tools used in key stages. Case studies are presented on recent practices and experience using projects of varying degree of complexity and organisational challenges from simple to complex PFI schemes involving mergers or co-location on to single or multiple sites. Part 3 examines the theory and principles of knowledge management and the tools used for implementation. Case studies are included reflecting recent practices on the strategies and challenges in identifying the types of knowledge required and in developing a knowledge strategy based on the experience of different stakeholders in PFI/PPP projects. Part 4 examines the challenges and options in developing knowledge through capacity building to accelerate learning. An example of the application of a practical tool/framework developed through a major research project evaluated by industry partners is included.The book is an essential reading for all those involved and interested in PFI/PPP projects including policy makers, industry practitioners, academics and students studying construction management, project management, surveying, architecture, engineering and related subjects involved in the delivery of capital investment projects. The practical tools for governance and knowledge management described and incorporated make it particularly useful for PPP/PFI consultants, contractors and client organisations.

Author Biography

Dr Herbert Robinson is Reader in Construction Economics and Project Management at London South Bank University, UK.

Professor Patricia Carrillo holds a personal chair in Strategic Management in Construction, in the Department of Civil and Building Engineering at Loughborough University, UK.

Professor Chimay J. Anumba is Head of the Department of Architectural Engineering at Penn State University, USA.

Dr Manju Patel is Acute Sector Planning Lead at NHS Grampian in Scotland, UK and holds a council seat in the Institute of Health Engineering and Estates Management.

Table of Contents

Foreword

About the Authors

Introduction

The Context

Key Drivers of PPP/PFI

Definitions and Key Features

Types of PPP/PFI Projects

Evolution and Development of PPP/PFI

Need for Governance and Knowledge Management

Organisation of the Chapters

Part 1

Part 2

Part 3

Part 4

References

Policy and Strategic Framework

Introduction

The Policy Framework

Policy environment

Policy theory and objectives

Monitoring and evaluation

Institutions and roles

Expertise and resources

Processes

Information and knowledge systems

Governing Principles of PFI Projects

Value for money and risk transfer

Whole life cycle commitment

Facilitating the delivery of 'core' public services

Payments for services based on performance

Management Strategy

Team composition

Contract and interface management

Stakeholder engagement

Funding Strategy

Debt and equity component

Project structuring, bankability and credit enhancement

Sustainability Strategy

European and International Perspective

Concluding Remarks

References

Implementation and Delivery Mechanisms

Introduction

Needs Assessment and Business Case Development

The output specification

Risk transfer

Risk pricing

Advertisement, Pre-Qualification and Bidding

Competitive Negotiation and Dialogue Procedures

Evaluation of Bids

Value for money

Affordability

Preferred Bidder and Financial Close

Whole life cost plan

Financial modelling

Due diligence

Construction Activities

Operation and Service Delivery

Performance monitoring

Payment mechanism

Handing back

Concluding Remarks

References

Governance in Project Delivery

Introduction

Definitions and Principles of Governance

Key Components of Governance

Organisational structure

Control and monitoring mechanisms

Planning and Development Phase of PPP/PFI Project

Organisational structure and accountability

Project approval processes

Project controls and gateways

Post-project evaluation

Construction Phase of PPP/PFI Projects

Design controls for construction

Project management

Project performance

Operation and Service Delivery Phase of PPP/PFI Project

Control and monitoring of service delivery

Organisational structure

Concluding Remarks

References

Case Studies on Governance in the Health Sector

Introduction

Overview of Health Sector and Evolution of PFI/PPP Projects

Case Study Findings on Early PFI Schemes

Case Study Findings on Complex PFI Schemes

Analysis and Discussion of Case Studies (5.1-5.4)

Reporting structure and levels of responsibilities

Effective controls

Project management

Risk management

Critical success factors (CSF) in projects

Critical failure factors in projects

Project outcome

Concluding Remarks

References

Knowledge Management in Collaborative Projects

Introduction

Knowledge and Associated Concepts

Knowledge Management

Theory of Knowledge Creation

Types of Knowledge and Project Complexity

KM Life Cycle

KM Systems

KM technologies

KM techniques

Learning in Project Organisations

Developing a Business Case for KM

Development of a KM Strategy

KM Toolkit for PFI/PPP Projects

Concluding Remarks

References

Case Studies on Knowledge Transfer

Introduction

Key Problem Areas and Scope for Learning

Outline business case

PB

FM

The Need for Knowledge Transfer

Improvement Capability and Organisational Readiness

Concluding Remarks

References

Knowledge and Capacity Building Challenges

Introduction

Roles and Participation

Motivation and Perception

Value for Money, Costs, Innovation and Risks

Enablers and Barriers

Expertise and knowledge

Procurement periods

Other barriers

Unique PFI issues

Scope for Learning and Developing Knowledge

Output specification and client requirements

Project management structure

Risks

Design innovation/quality

Standardisation of documents

Market capacity and public perception

Developing Knowledge for Capacity Building

Knowledge centres

Dedicated PPP units

Best practice and guidance documents

Traditional training and CPD events

Knowledge sharing networks and communities of practice

Conferences, seminars and workshops

Staff exchange and secondment

External advisers and technical assistance

Research and innovation capacity

Concluding Remarks

References

The Knowledge Transfer Framework

Introduction

Knowledge Transfer Issues

Knowledge transfer needs

Types of knowledge to transfer

Mechanisms for knowledge transfer

Knowledge transfer problems

The Knowledge Transfer Conceptual Model

Improving PFI/PPP Participation and Exploring Opportunities (Stage 1)

Building a Knowledge Map and Transfer Capability (Stage 2)

Creating an Action Plan for Learning and Capacity Building (Stage 3)

Evaluation of Framework

Industrial Application, Dissemination and Benefits

Concluding Remarks

References

Conclusion

Governance Issues

Knowledge Management and Capacity Building Issues

Sustainability of PFI/PPP Projects

Reference

An Example of Output Specification Accommodation Standard

Output Specification Facilities Management Standard

Example of Performance Parameters Car Park

Performance Measurement System

Index

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