Risk management framework for the delivery of public-private partnership (ppp) housing construction project : case study of malaysia housing programme (pr1ma)

In many developing countries, Public-Private Partnership (PPP) has shown an increased reliance not only for infrastructure development but it has expanded in other sectors that including social housing (affordable houses). However, there are evident in previous literature on the accounts of lacking success reporting on the PPP housing approach, plus inadequacy of proper evaluation for PPP performance projects. This study aims to develop a risk management framework based upon the derived risk index determined by the analysis of quantitative Analytical Hierarchy Process (AHP), used as an indicator for the project performance score. This study is designed in three (3) phases by employing a mixed-method approach (qualitative and quantitative). Results demonstrated that a total 9 risk elements and 33 sub-elements obtained from the literature review and was validated during pilot study, by employing semi-structured interview, with eight (8) PPP housing construction experts. The data set for the study comprised thirty-three (33) construction experts involved in the PPP housing construction project. Results showed that natural hazard risk (geologic hazard risk) and economic and financial risk (inflation and interest rate) risk prevails as extreme external risks that influenced PPP housing project performance more than the market and social-politics risk. On the contrary, unreliable value for money and fluctuation in the currency exchange rate of economic and financial risks discovered as moderately influenced PPP housing project performance. Similarly, project-related risk (internal) in procurement and contractual risks that including (absence of transparency and accountability during the procurement process, and absence of a robust and clear agreement) discovered will moderately affect the delivery of PPP housing project performance risks. Akin in moderating the effect in technical faulty risks are (unforeseen ground condition and shortage of technical expertise). Eventually, it was found that internal risks monopolized the low risks occupied within the risk index of (0.000 < RI ≤ 0.050) including insufficient capacity in procurement and negotiation, frequent design change, design over-specification, poor quality workmanship, absence of specific PPP framework and inadequate PPP skills and knowledge leading to poor planning. While captured from external risks are financial incapacity of private partners, weak state intervention, and persistent land acquisition. Risk response strategy for the extreme risks categorized within (0.100 < RI ≤ 0.150) is by avoiding the risk and best to assign the risks to the private sector. On the contrary, risk response approaches suggested considering the medium risks categorized at interval (0.050 < RI ≤ 0.100), is to transfer the risks and shared within both parties, i.e. public and private. While for low risks lies between (0.000 < RI ≤ 0.050), all the risks best to accept and retained within the public sectors. Taken together, the development of risk response and risk mitigation plan that emerged from the risk index offered significant contribution which has gain a new understanding that risks with severe or low exposure can be reduced or avoided taking into account its strategic and effective response and mitigation approaches. The developed risk management framework is expected to assist the successful implementation of risk management for the PPP housing project and the success of the PPP housing project

Data exchange requirement analysis for value for money assessment in public-private partnerships

Value for money (VfM) as the lifecycle assessment approach in publicprivate partnerships (PPP) essentially covers the overall project performance in both qualitative and quantitative ways. However, the performance measurement in VfM is still lacking supporting data in the project lifecycle. Based on the performance structure of the VfM quantitative assessment, this article developed a data extraction scheme integrated with building information modelling (BIM). The domain of modules mainly covers buildings, civil engineering and highways according to a related measurement standard. By extracting the data types from the original BIM model, the filtered information can facilitate a quantitative assessment by obtaining the required data automatically

Knowledge management in PPP decision making concerning value for money assessment

Public-private partnership (PPP) is the current procurement model used for largescale public engineering and municipal facilities procurement and is now advocated by governments around the world. Value for money (VfM) assessment is a critical process used to evaluate whether the PPP procurement model applies to a project throughout its lifecycle. VfM assessment aligns with financial capacity assessment and feasibility assessment, providing an essential decision-making reference for project managers and associated with performance measurement (PM) in the ex-post stages, which are linked to the payment model. Therefore, the evaluation of the project through VfM determines the success of the PPP model to a great extent. Through a comprehensive literature review, the dissertation identifies the practical deficiencies for the current VfM assessment process and presents a detailed view of the content of the VfM assessment. Based on that, the dissertation determines the research motivation and formulates detailed research questions and hypotheses to establish a thorough understanding of a knowledge-based management platform to achieve automated processes that support human decision making. By using the deductive approach, this research leverages knowledge engineering principles and developed a core VfM knowledge base to help manage knowledge in the PPP decision-making process concerning VfM assessment. The system development is based on the design science methodology. In order to integrate information about the engineering project management and VfM assessment, the standardized information exchange processes are first used to develop robust information with project versatility. The Building Information Modelling (BIM) application platform, which uses Industry Foundation Classes (IFC) as the engineering project data source, is connected with the developed information schema, thus establishing the basis for implementing automated information exchange. Second, ontology modeling is used to establish a VfM knowledge base. The various factors associated with the PPP project can be stored in a semantic environment for better identification by engineers. Furthermore, automated project assessment is achieved by developing different rules-based functions in the ontology and combining them with the data platform represented by BIM. By using case studies and action research strategies, this research demonstrates the feasibility of the constructed knowledge base. Abstract iv The main outcomes of the research lie on the definition and screening of information for VfM assessment, as well as the establishment and application of a smart knowledge base. The developed components and software tools have been thoroughly tested, validated and calibrated by leveraging knowledge from experienced domain experts, software companies and other industry partners. Due to the generic development principles adopted in the research, the method, tools and framework can be further extended for other related areas where smart decision making is require