IDEAS home Printed from https://ideas.repec.org/a/taf/conmgt/v22y2004i9p967-978.html
   My bibliography  Save this article

Public-private partnerships and contract negotiations: an empirical study

Author

Listed:
  • Marcus Ahadzi
  • Graeme Bowles

Abstract

Despite the increasing popularity in the use of the public-private partnership concept as a procurement strategy, there have been reported cases of problems associated with the initial stages of the process in terms of unduly high bidding costs and pre-contract time overruns due mainly to the protracted nature of the negotiations. Empirical research conducted in the UK has focused on the extent of these pre-contract time and cost overruns. The key attributes of both the private sector consortia and the public sector organizations that have significant bearing on the efficiency of the pre-contract processes are: the nature and strength of the consortium, the quality of the technical proposals they produce for the bid, and the quality of their financial proposals. For the public sector organizations they are the organizational capabilities and technical capabilities. The financial capabilities of the public sector are ranked lowest in influencing the procurement process. Whilst there was broad agreement on the ranking of importance for the various descriptive attributes, differences between the two sectors are revealed relating to risk, previous experience, evaluation criteria in the bidding documents and effect of public opinion. A better understanding of what is important to each party in the negotiations is an important step in improving the PPP process.

Suggested Citation

  • Marcus Ahadzi & Graeme Bowles, 2004. "Public-private partnerships and contract negotiations: an empirical study," Construction Management and Economics, Taylor & Francis Journals, vol. 22(9), pages 967-978.
    • Handle: RePEc:taf:conmgt:v:22:y:2004:i:9:p:967-978
    DOI: 10.1080/0144619042000241471
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/0144619042000241471
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/0144619042000241471?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Abraham Park & Chen Yu Chang, 2013. "Impacts of Construction Events on the Project Equity Value of the Channel Tunnel Project," ERES eres2013_97, European Real Estate Society (ERES).
    2. Marian MOSZORO, 2014. "Efficient Public-Private Capital Structures," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 85(1), pages 103-126, March.
    3. Fakhri, Issaoui & Torkia, Boussif, 2016. "The Determinants of the Asymmetric Power Effects in the context of Public-Private Partnership negotiation (PPP): theoretical Analysis and basic assumptions," MPRA Paper 69750, University Library of Munich, Germany.
    4. Eslam Mohammed Abdelkader & Tarek Zayed & Hassan El Fathali & Ghasan Alfalah & Abobakr Al-Sakkaf & Osama Moselhi, 2023. "An Integrated Multi-Criteria Decision Making Model for the Assessment of Public Private Partnerships in Transportation Projects," Mathematics, MDPI, vol. 11(16), pages 1-41, August.
    5. Linbin Zhu & Stavros Sindakis & Saloome Showkat, 2024. "Analyzing the Influence of Knowledge-Based Strategies of Chinese Multinational Contractors on the Performance of the Construction Industry in Southern African Countries," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(2), pages 8968-9000, June.
    6. Goran Amović & Rado Maksimović & Sonja Bunčić, 2020. "Critical Success Factors for Sustainable Public-Private Partnership (PPP) in Transition Conditions: An Empirical Study in Bosnia and Herzegovina," Sustainability, MDPI, vol. 12(17), pages 1-29, September.
    7. Pedro Barros & Xavier Martinez-Giralt, 2009. "Contractual design and PPPs for hospitals: lessons for the Portuguese model," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 10(4), pages 437-453, October.
    8. Krzysztof Wasowski, 2013. "Analiza wspolpracy sektora publicznego z doradcami zewnetrznymi w realizacji projektow w systemie koncesyjnym oraz w formie partnerstwa publiczno-prywatnego w Polsce (Analysis of public sector coopera," Problemy Zarzadzania, University of Warsaw, Faculty of Management, vol. 11(43), pages 136-155.
    9. Buso, Marco & Moretto, Michele & Zormpas, Dimitrios, 2021. "Excess returns in Public-Private Partnerships: Do governments pay too much?," Economic Modelling, Elsevier, vol. 102(C).
    10. Khwaja Mateen Mazher & Albert P. C. Chan & Rafiq M. Choudhry & Hafiz Zahoor & David J. Edwards & Ahmed M. Ghaithan & Awsan Mohammed & Mubashir Aziz, 2022. "Identifying Measures of Effective Risk Management for Public–Private Partnership Infrastructure Projects in Developing Countries," Sustainability, MDPI, vol. 14(21), pages 1-19, October.
    11. Pedro Pita Barros & Xavier Martínez-Giralt, 2006. "Contractual design and public-private parternships for hospitals," Working Papers 292, Barcelona School of Economics.
    12. Dennis Clerck & Erik Demeulemeester, 2016. "A sequential procurement model for a PPP project pipeline," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 38(2), pages 427-457, March.
    13. Patrucco, Andrea S. & Moretto, Antonella & Knight, Louise, 2021. "Does relationship control hinder relationship commitment? The role of supplier performance measurement systems in construction infrastructure projects," International Journal of Production Economics, Elsevier, vol. 233(C).
    14. Välilä, Timo, 2020. "An overview of economic theory and evidence of public-private partnerships in the procurement of (transport) infrastructure," Utilities Policy, Elsevier, vol. 62(C).
    15. Rachael Nsasira & Benon C. Basheka & Pross. N. Oluka, 2013. "Public Private Partnerships (PPPs) and Enhanced Service Delivery in Uganda: Implications from the Energy Sector," International Journal of Business Administration, International Journal of Business Administration, Sciedu Press, vol. 4(3), pages 48-60, May.
    16. Ru Liang & Changzhi Wu & Zhaohan Sheng & Xiangyu Wang, 2018. "Multi-Criterion Two-Sided Matching of Public–Private Partnership Infrastructure Projects: Criteria and Methods," Sustainability, MDPI, vol. 10(4), pages 1-22, April.
    17. Sladjana Benkovic & Nemanja Milanovic & Milos Milosavljevic, 2017. "A Framework for the Evaluation of the Feasibility of Public – Private Partnership in Local Government in Serbia," Journal of Entrepreneurship, Management and Innovation, Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione", vol. 14(4), pages 7-23.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:conmgt:v:22:y:2004:i:9:p:967-978. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RCME20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.