DIFFERENT APPROACHES AND MODELS OF PPPS Partnerships with the private sector come in many forms with a wide array of delivery frameworks to choose from. In helping to identify the many arrangements of PPPs, the following section provides a brief assessment of the varied approaches and type of PPP models. "The choice of model and/or approach to PPPs varies depending on the market sector and type of project, but is usually structured to try and improve efficiency, quality of service and price. MODELS AND THEIR STRUCTURE "There is a spectrum of organizational models under which PPPs are typically implemented. Partnerships can range from being under the direct control of the level of government involved in the partnership, to a model that transfers a great deal of responsibility over the provision of the public service to the private partner. APPROACHES While it is commonly cited that a ‘true’ form of PPP is a collaborative model where both the private and public sectors agree to share the risks and rewards of a particular project, there are a variety of approaches that illustrate the possible power-sharing and decision-making arrangements. A partnership with the private sector can fall under a consultative approach whereby the government seeks out expert advice from the private sector or community groups. "There are also contributory arrangements which are identified as ones where the public sector provides funding to the private partner that is in turn responsible for carrying out the development and management of the project. Last, under community development approaches, the private and public sectors come together in a particular community and jointly contribute their strengths to achieve a common goal. "There is also a combina... ... middle of paper ... ...from bearing the costs of design and construction, the transfer of certain risks to the private sector and the promise of better project design, construction and operation. The main pros and cons of this model are summarized below: Pros: • Private sector may bear a significant share of the risks • High level of private investment. • Potential for efficiency gains and innovation is high. • Attractive to private investors in an untested or developing PPP market. • Most suitable for social sector infrastructure projects (schools, dormitories, hospitals, community facilities, etc.). Cons: • Complex to implement and manage the contractual regimes. • Government has direct financial liability. • Negotiation between parties may require long time. • Regulatory efficiency is very important. • Contingent liabilities on the government in the medium and long term.
...as a good option to fix their current existing system and expertise their employees due to which they could have got the appropriate intellectual personnel with the success of the project.
As I just mentioned, I believe that to a certain extent, Project Share is at once altruistic and good business, but this view relies upon a perception of the business value of social outreach and community image that is difficult to accurately quantify. It also bears comparison to other industries and other business models. Project Share is undoubtedly helpful to the many customers who receive its benefits, and the assigned article states that “NYSEG’s bad-debt level is 20 percent lower than that of the average U.S. utility company.” It also points out that the costs of managing Project Share gre...
In the role of government, the public sector is the sole actor of implementing a strategy. But as the limits of public intervention were recognised and accepted, state action turned to governance. In this mode, the state recognise that more stakeholder must be involved in the formulation and implementation of strategies and this involve the private sector as well as citizens. This shift was also brought because of the private sector has the financial recourses that the public sector has not anymore (Rydin, 2013, p.3-5).
...ce, J., & Lehmann, M. (2005). Corporate Awakening – Why (Some) Corporations Embrace Public–Private Partnerships. Business Strategy and the Environment, 14, pp. 216-229. doi:10.1002/bse.471
Most projects, whether big or small, are undertaken either to create a new structure, such as a plant, an airport, an Olympic stadium, a bridge, a new product, etc., or to modify an existing structure, such as a plant expansion, adding a new production line, expanding a highway, etc. In most cases, the late completion of the project, such as finishing the Olympic stadium two weeks after the opening of the Olympics, or having a new airports' opening delayed until after the elections, etc., generally carries with it some significant negative ramifications for the project owner. At the same time, there are many cases where the early completion of the project will provide the project owner with significant positive ramifications, such as the market share gained by preempting the competitions' launching of a new product, or the increase in sales achieved by bringing the plants productive capabilities on-line sooner, etc.
One of the main advantages of VE is that building an approved and confident work environment in which all parties and project team members are engaged in the project and working as the owner from initial stage of civil engineering projects. Also, VE is more focusing on value improvement and not just savings of cost. Additionally, Value engineering enhances the client’s satisfaction by knowing their exact needs and expectation (DBIA, 2010).Moreover, it strengths the collaboration between the client and the contractors therefore the contractor will participate by been proactive in any likelihood of risk by giving advice to mitigate risks.
Project Management Institute (PMI) (2013). Project Management Professional (PMP) Handbook. [ONLINE] Available at: http://www.pmi.org/certification/~/media/pdf/certifications/pdc_pmphandbook.ashx. [Last Accessed 20 April 2014].
Another example of business ownership is a partnership. Examples of partnerships used in business are accounting firms and solicitors firms. A partnership has two or more owners. They work, manage and are responsible for the running of the business. Individual partners may concentrate on a certain aspect of the business where they have expert knowledge. As there is more than one owner, larger amounts of capital can be fed into the business via personal funding or bank loans. Partnerships have an unlimited liability.
The history of PMO can be regard as the evolution of PMO’s definition. When did the project management office appear? The earliest record about PMO which was referred to farming improvement appeared in1800s in the UK (Darling & Whitty, 2016). As a well-known modern PMO, which was used in aerospace industry in 1950s, PMO did have a series of evolution. The PMO first appeared in business and government areas in 1960s, and continued progress to contemporary (Darling & Whitty, 2016). Since mid-1990s, plenty of organizations attach great importance to the role of PMO, and set up the PMO departments or groups to boost the process of projects (Kutsch, Ward, Hall & Algar, 2015). There is no doubt that PMO has changed a lot. It not only has been evolving and adapted to the development of the times, but also has a new interpretation on the function and assume more responsibilities
It is important to include and identify stakeholders in the policy development process. By doing so, the stakeholder ca...
The physical- financial entity is a balance of two different components working towards the same common goal. Each one has their areas of focus and attributes to contribute to the project. If one has more influence than the other, an imbalance could occur and result in problems with the development and its success. The physical side must work with the architects, engineers, and construction team to create the schematic design and budget possibilities for the project in the predevelopment stage. This will include alternatives and rough preliminary designs. When the development moves over to the document development stage, they become responsible for the construction documents, budgeting, and schedules for the actual construction of the project. The financial side of the development involves the business side of the project. This is where the market and marketability studies will be conducted and various feasibility and investment analysis reports will be submitted. The financial entity of the development will continue to work through the predevelopment and document development stages to put forth the best suited analysis for the market, feasibility, and marketability studies.
Furthermore, there is good price certainty at the award of the contract because of full set information. However, there are some disadvantages to the process. First, it is very consume time in the pre-contract process due to the strategy is sequential and construction cannot be started before the completion of design. Also, the contractor is not appointed at the design stage, so the contractor and supply chain have no input into the design or planning of the project. Moreover, there are divided responsibility of design and construction, so it is easy to cause disputes in the post-contract processes.
The interface between the two actors could become a provincial development tool as long as the state of a developing country, especially, is resolute to come up with proactive activities that bring economic alteration and further on, a position in the global economy. These could be achieved by endorsing public-private alliances, according to local conditions. The access of individuals to basic services like primary education, health, water resources, energy represents an important mean in order to eliminate poverty and record progress of the community. There are many public and private sectors here in Bangladesh. These sectors are consistent with each other. This relation can either be positive or be negative. The positive relation is openly known as partnership relation and the negative can certainly be called competitive relation. So both types of relations do exit between public and private sectors in
Scott Jardine, 2007, “Managing risk in construction projects – how to achieve a successful outcome – an article”, PricewaterhouseCoopers.
In this subject, we are trying to determine which project portfolio process (PPP) purpose as listed by Meredith, Mantel (2012), is best suited for a low project management maturity organization, and which is best suited for a high project management maturity organization. In reality, there is not an easy way to answer the question. All of the purposes are critical to a successful project management organization whether they are a low or high maturity level. See the list below for the twelve purposes.