Construction Partnering Process and Associated Critical Success Factors: Quantitative Investigation

This paper aims at examining a customized model of construction partnering in order to highlight the relationships between the critical success factors and individual partnering process stages. It used two surveys (a simple rating method and the analytic hierarchy process) to produce empirical evidence for identifying the critical success factors and the partnering process stages. Results suggest that this study is consistent with previous findings that a general partnering process consists of three stages (formation, application, and completion/reactivation). In addition, it reaffirms that there are critical common factors affecting the whole partnering process and critical functional factors influencing individual process stages. Specifically, the four critical common factors are top management support, open communication, effective coordination, and mutual trust. Also, the critical functional factors at the stage of partnering formation are team building, facilitator, and partnering agreement; those of partnering application are joint problem solving, adequate resources, and partnering goals’ achievement; those of partnering reactivation (or strategic partnering) are partnering experience, continuous improvement, learning climate, and long-term commitment. Finally, the paper provides implications to practical application and future theory testing efforts.     

Contractor as Trust Initiator in Construction Partnering—Prisoner’s Dilemma Perspective

Partnering has been advocated for use in construction as a project-delivery approach to curb dispute and enable a cooperative contracting environment. Successful construction partnering is perceived to derive benefits to both developers and contractors. In view of significant implications to successful project delivery, there has been a surge of research and studies on construction partnering. These studies typically focus on the partnering process as well as the identification of critical success factors. Among the various success factors that underpin partnering success, establishing trust among partners is considered the most important. Moreover, skeptics have been swift to point out that establishing trust in construction is daunting. A better understanding of the role of trust and its manifestation in partnering efforts is therefore of both academic and practical value. In this study, motivating trust in construction partnering is described within the classic framework of “the prisoner’s dilemma,” which suggests the trust cycle can be kick-started if construction partners put cooperation before competition and self-interest. This paper reports a study that is designed to suggest a suitable candidate for the trust initiator. As such, the critical trust factors for two groups of construction partners in Hong Kong—developers/consultants and contractors—are first identified. It is found that “performance” and “permeability” of partners are the two most critical trust factors. “Performance” describes the partner’s competence and problem-solving ability as perceived by their counterpart. “Permeability” reflects the partner’s openness in sharing information. The result of a multiple-regression analysis further suggests that the contractor is in a position to initiate trust through competent performance and maintaining effective communication with the client. In this manner, the trust cycle can expand with reciprocal trustworthiness from the client.     

Drivers of Conflict in Developing Country Infrastructure Projects: Experience from the Water and Pipeline Sectors

Despite the considerable scholarship focused on infrastructure investment in the developing world and the substantial sums of money spent each year on developing-country infrastructure, little attention has been given to understanding the drivers of conflict that shape the trajectory and cost structures of these massive investments. The manifestation of conflict among stakeholders in infrastructure projects ranges from the renegotiation of contract terms by project partners to popular protests among consumers of privatized services. The principal objective of this research is to identify combinations of country, project, and stakeholder factors that are associated with the emergence of legal and political conflict within natural gas and oil pipeline projects and water supply concessions and leases. The analysis includes data from 26 infrastructure projects spanning 31 countries and uses an analytical approach derived from Boolean algebra. Country-level characteristics, such as extent of democracy and rate of international NGO membership, are found to be important elements in the recipes for conflict among water supply projects but not for pipeline projects. Local impacts such as service price increases (water supply) and limited provision of oil and gas to the project host country (pipelines) are also important drivers of conflict for both subsectors. The involvement of one or more international financial institutions is also associated with the emergence of conflict in projects. Contrary to expectations, public consultation is associated with conflict in both subsectors. Overall, the study findings suggest that several factors associated with conflict in infrastructure projects can be minimized with careful project design.     

Partnering Mechanism in Construction: An Empirical Study on the Chinese Construction Industry

Partnering and its principles have increasingly been introduced to the construction industry to improve the efficiency of project delivery. However, little research outlines the mechanism behind its application. This paper presents the findings of a study that was conducted to develop and test a partnering model that reveals the relationships between the critical success factors (CSFs) of partnering and demonstrates their importance to construction. With support of data collected from the Chinese construction industry, this study has revealed strong correlations among partnering CSFs, risk management, total quality management (TQM), use of incentives, and project performance. It is concluded that project success is the outcome of the interaction between a variety of techniques, and that partnering, associated with incentives, is a basic management method through which risk management and TQM can be strongly improved.     

Improving Concessionaire Selection Protocols in Public∕Private Partnered Infrastructure Projects

A critical contributor to the success of a public∕private partnered (PPP) infrastructure project is the selection of the right private-sector partner, the concessionaire, who would provide the best overall deal throughout the build-operate-transfer (BOT)[build∕operate∕transfer] development process. This paper proposes a core concessionaire selection protocol that incorporates public procurement principles, best-value selection approach, competitive selection process, and multicriteria tender evaluation. Key pointers for an improved concessionaire selection protocol are discussed and analyzed by drawing experience and learning lessons from worldwide PPP practices. These include improved project brief and tender documents, formulation of a best-value selection methodology, determination of suitable criteria and methods for prequalification and tender evaluation, capital structure (equity-to-debt ratio), financial models, and potential improvements in different stages of the concessionaire selection process. Relevant results of a questionnaire survey of international PPP expert opinions on an enhanced concessionaire selection protocol are also presented.     

First Public-Private-Partnership Application in Taiwan’s Wastewater Treatment Sector: Case Study of the Nanzih BOT Wastewater Treatment Project

Taiwan has been promoting public-private-partnership (PPP) projects in the wastewater treatment sector with the aim of improving its sustainable environment and increasing its wastewater treatment rate. The Nanzih Wastewater Treatment Project is the first PPP application in Taiwan’s wastewater treatment sector. It provides important experiences and lessons for both the public and private sectors. This paper presents a detailed study of its tender process, concession agreement, financial structure, payment mechanism, and risk management. It explains the key features of the project and provides conclusive findings on the lessons learned. These observations should be useful for practitioners and academia who are interested in the development of future PPP wastewater treatment projects in Taiwan.     

Relational Contracting and Teambuilding: Assessing Potential Contractual and Noncontractual Incentives

Integration in construction projects implies alignment of both structural arrangements and operational mechanisms, in order to effectively coordinate and streamline the combined efforts of various interacting parties, for improved project outcomes. Appropriate use of relational contracting (RC) principles may help achieve such integration. As such, the aims of the reported study are to examine the relative usefulness of various potential strategies and factors, to provide suitable contractual and noncontractual incentives, for building a RC culture, and nurturing effective teamwork in construction. Results from statistical analyses of 83 questionnaire responses from Hong Kong are presented. These results attribute various degrees of importance to different factors and strategies, both for RC and teamworking. The outcomes also suggest the need for a highly interactive and consolidated approach, both for propagating RC and building integrated project teams. It is observed that trust and trust based operational and contractual arrangements can effectively provide the required incentives, for implementing various RC-based working arrangements in construction. These should extend to assessing “relational” attributes during team selection, under cliental initiative and top management support. Outcomes of this study are expected to benefit both industry practitioners and researchers, in exploring, designing, and implementing suitable RC-based working arrangements.     

PPP项目范式选择与风险分配的关系研究

基于15个案例,分析PPP项目三种范式选择方案与风险分配之间的相关关系,结果发现:一部分项目风险的分配方案与范式选择无关,这类风险的主要特征是产生主体明确且能够防范,风险事件的发生直接针对PPP项目;另一部分项目风险分配方案与范式选择高度相关,其相关关系体现为随着范式私有化程度的提高,民间实体承担的风险也在逐渐增大,而且随着范式选择的不同,风险转移的时机和程度也有所差异,这类风险的主要特征是风险事件产生于政府或第三方,民间实体没有能力进行防范,风险损失需要在政府和民间实体之间进行分配。研究结论可为提高我国PPP项目风险分配的科学性提供指导和借鉴。     

A review of studies on Public–Private Partnership projects in the construction industry

Public–Private Partnership (PPP) in construction is gaining in popularity. Although papers published in major journals have documented real cases of PPP projects, there appears to be a lack of systematically summarizing what they have already provided. Consequently, this paper reviewed PPP studies published in the six top journals in the construction field. The objectives are to compare and contrast the findings of the studies so as to provide insights for directing further PPP research and improving the existing practices of PPP projects. To achieve the review objectives, studies were first classified as either empirical or non-empirical. Empirical studies were further grouped under three themes: risks, relationships, and financing. Non-empirical studies were grouped under five themes: financing, project success factors, risks, and concession period. Suggestions for further research are risks, financing, contractual agreements, development of PPP models, concession periods, and strategies in choosing the right type of PPP.