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Value through innovation in long‐term service delivery : Facility management in an Australian PPP

Graham Brewer (School of Architecture and Built Environment, University of Newcastle, Callaghan, Australia)
Thayaparan Gajendran (School of Architecture and Built Environment, University of Newcastle, Callaghan, Australia)
Marcus Jefferies (School of Architecture and Built Environment, University of Newcastle, Callaghan, Australia)
Denny McGeorge (School of Architecture and Built Environment, University of Newcastle, Callaghan, Australia)
Steve Rowlinson (Department of Real Estate and Construction, University of Hong Kong, Hong Kong, China)
Andrew Dainty (School of Civil and Building Engineering, Loughborough University, Loughborough, UK)

Built Environment Project and Asset Management

ISSN: 2044-124X

Article publication date: 5 July 2013

863

Abstract

Purpose

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Public‐private partnerships (PPPs) and other innovative procurement mechanisms are frequently used to deliver both an asset and a public service over a protracted period. The value streams to the parties involved can be complex, but generally arise from the satisfactory provision of infrastructure that is fit for purpose throughout its life. This research aims to investigate the effectiveness of the facility management (FM) function in delivering long‐term value to both the client and consortium.

Design/methodology/approach

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This paper describes a case study of a PPP in Australia that delivered social infrastructure in multiple locations to a state government. Drawing upon multiple perspectives from within the consortium, it utilises inductive principles to identify the influences on value generation through innovation by the FM function.

Findings

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The ability of an Australian FM contractor to provide value within a PPP context has been shown to reflect some of the attributes described in literature. However, the extent of innovation, especially in the design and construction phases, has been limited by organisational history and capability, and relational and contextual issues.

Originality/value

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This research highlights a flaw in the rhetoric relating to PPP delivery, namely the disconnection between the asset delivery and service delivery phases, which stifles the consortium's capacity to innovate and maximise value. It reveals a set of influences that both resonate with the literature and plausibly explain the suboptimal performance of the FM function within an Australian PPP. By using highly iterative analysis leading to within‐case generalisability, it provides a robust basis for wider investigation of the problem.

Keywords

Citation

Brewer, G., Gajendran, T., Jefferies, M., McGeorge, D., Rowlinson, S. and Dainty, A. (2013), "Value through innovation in long‐term service delivery : Facility management in an Australian PPP", Built Environment Project and Asset Management, Vol. 3 No. 1, pp. 74-88. https://doi.org/10.1108/BEPAM-03-2012-0008

Publisher

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Emerald Group Publishing Limited

Copyright © 2013, Emerald Group Publishing Limited

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