Challenges in public private partnerships in construction industry: A review and further research directions

Abstract

Purpose

Public private partnerships (PPPs) face challenges in implementation and operation, and need efforts to improve their performance. The purpose of this paper is to review the PPP literature quantitatively and qualitatively, in order to establish challenge themes and set research directions.

Design/methodology/approach

More than 4,000 papers published between 2008 and 2017 were retrieved. From this collection, papers from five major international journals were selected to explore extant PPP research findings under six main PPP challenges including: challenges related to financial management, concession period and price determination, operational phase, risk management, PPP project procurement and stakeholder management (SM). Initially, the papers were categorised quantitatively into the identified challenges and subsequently the articles were qualitatively analysed and discussed.

Findings

Poor SM, the complexity of risk management models, project delivery time and cost overruns, inadequate consideration of whole life-cycle aspects and over-reliance on a Public Sector Comparator for evaluating PPPs are found to be the most commonly encountered issues. These all warrant more extensive attention and innovative solutions.

Practical implications

PPP projects have faced many challenges in practice and also existing research findings have limited application in practice. Challenges highlighted in this research can be a focus area in practice to improve the performance of PPPs.

Originality/value

No previous reviews have explored the challenges relating to PPP projects and how they can then addressed by further studies in the field. This review is intended to address that gap, and should help to shed light on further research directions to address the emerging challenges in PPP procurement.

Citation

Jayasuriya, S., Zhang, G. and Jing Yang, R. (2019), "Challenges in public private partnerships in construction industry: A review and further research directions", Built Environment Project and Asset Management, Vol. 9 No. 2, pp. 172-185. https://doi.org/10.1108/BEPAM-01-2018-0024