• Body of Knowledge:
    Strategy Delivery and Commissioning
    11. Issue Management and Dispute Resolution during the Construction Phase
  • Body of Knowledge:
    Strategy Delivery and Commissioning
    11.1. Issue Management Procedures
    Issue management usually comes into effect when significant risks arise or materialize. The PPP contract management manual should include issue management procedures that deal with irregularities and mitigate the issues that lead to risk materialization. Conflict and issues typically occur within a...
  • Body of Knowledge:
    Strategy Delivery and Commissioning
    11.2. Dispute Resolution Procedures
    Dispute circumstances are intrinsic in any PPP construction projects and could influence the success and failure of projects, thereby generating additional costs for all parties[27] [28]. PPP construction project issues, concerns, and disputes occur as a result of numerous factors such as technical...
  • Body of Knowledge:
    Strategy Delivery and Commissioning
    12. Knowledge Management and Succession Planning
  • Body of Knowledge:
    Strategy Delivery and Commissioning
    12.1. Importance of Knowledge Management
    The importance of knowledge management is two-fold, firstly to ensure the continuity of knowledge throughout the life of the project, and secondly to assist the contract management team in meeting legislative and contractual requirements.[31] 12.1.1. Developing a Knowledge Management Strategy...
  • Body of Knowledge:
    Strategy Delivery and Commissioning
    12.2. Importance of Succession Management
    The life span of PPP projects is extensive and it is rare that the same staff and personnel will see the project through to the conclusion. Therefore, it is likely that the personnel involved in the management of the contract is going to change several times throughout the life cycle of the project...
  • Body of Knowledge:
    Strategy Delivery and Commissioning
    References
      Name of Document Authors/Editors and Year Description http link General Guidance on Contract Management and Construction Phase Management 4ps – A guide to Contract Management for PFI and PPP Projects 4ps in collaboration with Mott MacDonald, Public Private Partnerships...
  • Body of Knowledge:
    Project Identification and PPP Screening
    1. Objectives of the Project Identification and Screening Phase: Where We are in the Project Cycle
    The PPP process is composed of a number of phases: identifying the project and screening it as a PPP, appraising the project, structuring the procurement process and the contract, tender and award, and finally managing the contract. This process requires a significant amount of time and resources....
  • Body of Knowledge:
    Project Identification and PPP Screening
    2. Overview of the Project Identification and Screening Phase
    The starting point of this phase and of the full PPP process is the same starting point as for any procurement of public goods and services process: identification of the need. There are some steps in the Screening Phase which includes: project identification (entry routes), scope and preliminary...
  • Body of Knowledge:
    Project Identification and PPP Screening
    3. Identifying Needs: Entry Routes to the Pipeline (Up to Full Feasibility)
    The first stage of project identification is the identification of a public need[2]. Projects are not an end in themselves. They are enablers for the government to meet its service delivery obligations. Hence, the government needs to understand what the problem is that it is trying to solve before...
  • Body of Knowledge:
    Project Identification and PPP Screening
    4. Project Prioritization
    A government may face a situation in which there is no room in the budget (either the current budget or a future budget) to procure all potential projects/government-pays PPPs, regardless of whether all those projects respond to relevant needs of the society in an efficient way, creating public...
  • Body of Knowledge:
    Project Identification and PPP Screening
    5. Option Analysis and Selection Techniques
    There are multiple techniques for identifying the best technical solution for a project and hence which projects best meet public needs. This section will briefly introduce those techniques. The government should have a policy of using a particular technique so that all projects are compared in a...
  • Body of Knowledge:
    Project Identification and PPP Screening
    6. Technical Outline of the Selected Solution
    The next step after defining the technical solution is to clarify the technical scope, including a detailed description and set of requirements for the most important aspects of the project (that is, a technical outline of the project). This step includes a description of the project that covers...
  • Body of Knowledge:
    Project Identification and PPP Screening
    7. Information Requirements/Data Checklist
    Most projects have constraints and dependencies that must be clarified before beginning the full appraisal, such as land availability and environmental studies. The main purpose of these considerations is to identify potential difficulties or obstacles that will have to be considered during the...
  • Body of Knowledge:
    Project Identification and PPP Screening
    8. Economic Soundness. Introduction to Cost-Benefit Analysis
    This section introduces[16] the concepts of Cost-Benefit Analysis and economic analysis. FIGURE 3.3: Sequence of the CBA Analysis   Note: CBA= cost-benefit analysis; eIRR= economic Internal Rate of Return; eNPV= economic Net Present Value. The most refined form of economic analysis is the Cost-...
  • Body of Knowledge:
    Project Identification and PPP Screening
    8.1. Performance Indicators
    The main performance indicators in economic-analysis are the economic Net Present Value and the economic Internal Rate of Return (eNPV and eIRR, respectively). Mathematically speaking, the eNPV consists of the projected costs and benefits, duly discounted using a suitable discount rate, and the...
  • Body of Knowledge:
    Project Identification and PPP Screening
    8.2. Conversion of Financial Data (financial cash flows) into Economic Flows: Opportunity Costs, Shadow Prices and Tax Adjustments
    In general terms, cost and revenue cash flows need to be adjusted in order to reflect the real value or cost for society. The current market prices for many costs (but also revenues) usually reflect the real costs for the society as they appropriately provide opportunity costs. However, some cost...
  • Body of Knowledge:
    Project Identification and PPP Screening
    8.3. Incorporating Risk and Uncertainty into the Analysis
    The risks that are inherent to a project have to be considered and included in the appraisal. This must be done through proper adjustments and/or showing the ranges of values for certain sensitivities/future movements or the deviations on critical factors and variables. For this purpose, risks have...
  • Body of Knowledge:
    Project Identification and PPP Screening
    9. Scoping the PPP Project and its Challenges
    Scoping the PPP project means defining the work that must be done by the future private partner to deliver the project objectives. Potentially some portions of the project scope (technically speaking) may be refined and removed from the PPP project (for example, if the project selected is a bus...
  • Body of Knowledge:
    Project Identification and PPP Screening
    10. Testing PPP Suitability and Affordability
    To avoid the risk of sinking resources into the analysis and structuring of a non-feasible PPP project, the government must determine whether the project makes sense as a PPP, provided that it has been satisfactorily tested as economically sound or sensible (under the CBA as explained). This issue...