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.

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
Table of Contents provided by Publisher. All Rights Reserved.

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