Umar, A A; Zawawi, N A W A and Abdul-Aziz, A R (2019) Exploratory factor analysis of skills requirement for PPP contract governance. Built Environment Project and Asset Management, 9(2), pp. 277-290. ISSN 2044-124X
Abstract
Purpose: The purpose of this paper is to explore the skills required for effective contract management of public–private partnership (PPP) projects over their contract duration. The growing body of literature indicating the lack of expertise in managing PPP-related projects within the public sector prompted this study. Design/methodology/approach: The study, being an exploratory one, relied on a survey of 207 survey responses from a sample of PPP experts across the globe. The data from the survey are a rich mix of responses from public policy experts, construction professionals, project finance experts, lawyers and academic researchers in PPP. Findings: It was found through exploratory factor analysis that project management, financial engineering, negotiations, risk management, forecasting, stakeholder management and technical skills were very critical for successful contract management of PPP projects. It was also found that regional characteristics influence skills prioritisation. Research limitations/implications: The results of this study can be validated on larger data sets in specific countries and across regions, sectors and variety of PPP projects. Currently, the authors conducted a general survey using convenience sampling. Practical implications: The results send a clear signal to practitioners that infrastructure regulation training programs cannot be generalised. Training should be tailored to reflect regional and country-specific characteristics. Originality/value: The increasing failures and remunicipalisations of privately financed infrastructures is a cause for concern. Little attention has been given to the complicity of PPP regulatory institutions responsible for contract governance of such projects. Studies are increasingly pointing to the absence of critical PPP skills among institutions responsible for managing PPP contracts. This lack of capacity has resulted in poor oversight of private companies providing public services resulting in poor services, and financial recklessness which threaten the sustainability of service provision.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | contract governance; infrastructure regulation; PPP; PPP skills; private sector; public sector; remunicipalisation |
| Index terms: | lawyer, practitioner, survey, technical skill, risk management, public policy, construction professional, methodology, negotiation, public sector, exploratory factor analysis, contract management, stakeholder management, private sector, forecasting, sampling, program, contract governance, infrastructure regulation, project finance, partnership, public services, duration, project management |
| Subjects: | contract management, administrative law, conflict resolution, monitoring and control systems, software systems, participation process, project controls, financial management, public policy, statistical analysis, partnership management, industry analysis, research methods, practitioner, risk assessment, prediction and forecasting, corporate governance, data collection methods, professional development, project management theory and practice, profession |
| Topics: | Digital Applications, Contract Administration, Roles and Professions, Business Strategy, Information Management, Time Control, Governance, Cost Management, Stakeholder Management, Risk Management, Research Practice, Legal Issues, Project Management |
| 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