Demirel, H Ç; Volker, L; Leendertse, W and Hertogh, M (2019) Dealing with contract variations in PPPs: Social mechanisms and contract management in infrastructure projects. Journal of Construction Engineering and Management, 145(11): 04019073, ISSN 0733-9364
Abstract
Variations are inevitable in public-private partnerships (PPP), due to the extensive duration of these contracts and the dynamic environment in which PPPs are usually implemented. Changes may lead to variations in the contract and consequently adverse reactions by partners. For the social and financial viability of the project, it is important to have mechanisms that can actively deal with variations that occur during the project life cycle. However, formal contracts with standardized project procedures do not always offer effective ways to cope with potential project dynamism. This paper presents the results of an in-depth case study into the modus operandi of a large-scale PPP infrastructure project with regard to variations in the realization phase. It was found that variations in infrastructure projects could not be dealt with solely through the formal contract rules, but that additional social mechanisms between the public commissioners and contracted companies were needed. Changes and contractual mechanisms are extensively discussed in project management literature. Also, the use of social mechanisms - complementary to the formal contract rules - is stressed. However, the literature offers little evidence about how these dealing mechanisms work in practice. This study reflects a real-life practice in responding to variations in a PPP and presents different ways in which various mechanisms, such as contract provisions, human relationships, organizational structure, digital tools, professional knowledge, and actor competences are interactively employed by project managers to deal with variation. General conclusions are drawn about the mechanisms observed, which may be applicable in the coordination of future interaction in public and private collaborations.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | contract dynamics; contract management; dealing mechanism; public-private partnerships |
| Index terms: | collaboration, evidence, financial viability, organizational structure, contract management, variation, competence, infrastructure project, commissioner, professional knowledge, project management, case study, interaction, dynamics, coordination, project manager, life cycle, partnership, duration |
| Subjects: | infrastructure and transport systems, project controls, profession, contract management, value management, systems engineering, personnel development, data collection methods, sociology, practitioner, contractual condition, evaluation and assessment methods, business management, professional development, behavioral psychology, partnership management, project management theory and practice, management |
| Topics: | Research Practice, Roles and Professions, Contract Administration, Organizational Design, Business Strategy, Human Resources, Engineering Principles, Project Management, Stakeholder Management, Information Management, Time Control |
| Descriptive scope: | 4 PCEA |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here