Improving project performance of PPP/PFI project-based organisations

Ndoni, D and Elhag, T M S (2012) Improving project performance of PPP/PFI project-based organisations. In: Smith, S D (ed.) Proceedings of 28th Annual ARCOM Conference, 3-5 September 2012, Edinburgh, UK.

Abstract

The concept of PPP/PFI promises a radical change to improve project performance and better service delivery to the public but evidence on cost and quality gains seems to be limited considering the financial commitments entered by governments around the world. This has encouraged significant number of researches based on diverse PFI projects in the United Kingdom to understand how PPP/PFI projects have performed based on cost, time, quality and operations. Nevertheless, these reports present inconsistent project performance outcomes as different data and methodologies are presented which can lead to more confusion to understand how well PFI projects have performed. Overall, the criticisms levelled against the construction industry concerning the performance of PFI projects executed have not been encouraging. Although, previous studies have identified and investigated factors that can assist to improve project performance recent studies still suggest that how to improve project performance is a perennial problem to construction professionals and project management researchers. In addressing this problem, this paper aims to re-examine these factors to consider which positively influences project performance. Also, the paper proposes the network perspective as a means to attract and transform new knowledge to improve construction delivery processes. By implementing the network perspective, practitioners and managers can explore new areas to create value to improve their project performance. This paper empirically identifies significant factors in the context of PFI projects to improve project performance, drawing upon case studies and questionnaire survey of PFI practitioners involved in on-going PFI projects in the United Kingdom. The main findings show that: 1) collaborative networks; 2) sustainable construction products; 3) clarity in project design for buildability; 4) life-cycle costing; and 5) benchmarking and market testing are significant factors to improve PFI project performance in the construction industry. Overall, the findings of this paper show that PFI projects are no different from non-PFI projects as these issues are critically applicable to all projects. Hence, the practical implication is that practitioners and managers can use the findings to plan and enhance the performance of their projects. Also, it provides guidance on how the network approach can be a potential means to improve the performance of construction projects.

Item Type: Conference Paper (Paper)
Uncontrolled Keywords: collaborative network; project performance; public-private partnerships; private finance initiative; project-based organisations; UK
Index terms: project-based organization, survey, partnership, United Kingdom, commitment, drawing, service delivery, case study, sustainable construction, project design, buildability, manager, benchmarking, project management, costing, construction industry, testing, evidence, project performance, questionnaire, practitioner, construction project, private finance initiative, methodology, construction professional
Subjects: partnership management, design efficiency, industry analysis, performance measurement, research methods, accounting and finance, production management, Geography, service delivery, professional development, project management theory and practice, sustainable construction, psychology, technical documentation, professional practice, contractual arrangements, data collection methods, evaluation and assessment methods, organization, practitioner
Topics: Design Practice, Quality Management, Organizational Design, Cost Management, Research Practice, Project Management, Geographical Context, Engineering Principles, Information Management, Stakeholder Management, Roles and Professions, Procurement, Sustainability
Descriptive scope: 5 PCTEA

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