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Service delivery and performance monitoring in PFI/PPP projects

Author

Listed:
  • Herbert Robinson
  • Jon Scott

Abstract

Value for money in a PFI project depends crucially on performance monitoring to provide incentives for improvement and to ensure that service delivery is in accordance with the output specification. However, the effectiveness of performance monitoring and output specification cannot be fully assessed until PFI projects become operational. There is a need to examine the role of the performance monitoring mechanism in ensuring that 'value for money' is achieved throughout the delivery of services. Based on semi-structured interviews with key stakeholders from the public and private sectors, the case studies suggest that there are low levels of performance deductions in PFI projects during the operational phase. However, the complexity of performance measurement, inadequate resources for performance monitoring and the difficulties in the interpretation of the output specification raise questions as to whether the low level of deductions truly reflect the actual level of services delivered. There is also evidence of the public sector forgoing entitled deductions in the 'spirit of partnership' and in exchange for minor contract variations in the output specification. Both the public and private sectors are undergoing a learning process which should lead to improvements in future PFI contracts.

Suggested Citation

  • Herbert Robinson & Jon Scott, 2009. "Service delivery and performance monitoring in PFI/PPP projects," Construction Management and Economics, Taylor & Francis Journals, vol. 27(2), pages 181-197.
    • Handle: RePEc:taf:conmgt:v:27:y:2009:i:2:p:181-197
    DOI: 10.1080/01446190802614163
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    Citations

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    Cited by:

    1. Nor Suzila Binti Lop & Kharizam Ismail & Haryati Mohd Isa & Natasha Khalil, 2017. "Factors Affecting the Operational Performance of Public Private Partnership (PPP) Projects: Cases in Malaysia," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 7(11), pages 1394-1409, November.
    2. Nannan Wang & Minxun Ma & Yunfei Liu, 2020. "The Whole Lifecycle Management Efficiency of the Public Sector in PPP Infrastructure Projects," Sustainability, MDPI, vol. 12(7), pages 1-17, April.
    3. Wang, Nannan & Gong, Zheng & Liu, Yunfei & Thomson, Craig, 2020. "The influence of governance on the implementation of Public-Private Partnerships in the United Kingdom and China: A systematic comparison," Utilities Policy, Elsevier, vol. 64(C).
    4. Jeoung Yul Lee & Ilkhom Okmirzaevich Irisboev & Yeon-Sik Ryu, 2021. "Literature Review on Digitalization in Facilities Management and Facilities Management Performance Measurement: Contribution of Industry 4.0 in the Global Era," Sustainability, MDPI, vol. 13(23), pages 1-29, December.
    5. Xiaodan Zheng & Jingfeng Yuan & Jiyue Guo & Mirosław J. Skibniewski & Sujun Zhao, 2018. "Influence of Relational Norms on User Interests in PPP Projects: Mediating Effect of Project Performance," Sustainability, MDPI, vol. 10(6), pages 1-19, June.
    6. Guangbin Wang & Yingxia Xue & Mirosław Jan Skibniewski & Jiule Song & Hao Lu, 2018. "Analysis of Private Investors Conduct Strategies by Governments Supervising Public-Private Partnership Projects in the New Media Era," Sustainability, MDPI, vol. 10(12), pages 1-26, December.

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