Understanding impacts of time and cost related construction risks on operational performance of PPP projects

The risk attributes in construction project is one of the widely published topics, yet there is no or little investigation whether or not risks associated with construction phase propagate over operational phase. As operation phase of the PPP projects is significantly long compared to the construction phase, understanding the impact of time and cost related construction risks over operation phase is quite important. In this research, risk attributes associated with the PPP procurement method have been identified across three dimensions, time, cost and operational performance. A questionnaire survey was used for collecting data in seven major PPP projects in Australia. Based on standard statistical methods and factor analysis, a number of key risk factors influencing time, cost and operational performance have been extracted. The research revealed that site conditions and design complexity is one of the most critical risk attribute influencing time performance in projects. Similarly, market dynamics is the most critical attribute influencing both construction cost and operational performance in PPP projects. Based on regression modeling, partner's dispute was found to be a good determinant of time and cost performance. Technical obsolescence has significant impacts on the operational performance of PPP projects. It was revealed that the design complexity, financial structure and government policy are the three main common factors affecting risks across time, cost and operational performance in PPP projects. It is anticipated that the findings will impact the construction firms for improving the front-end risk management capability for efficient positioning within the competitive business environment

Transport Infrastructure Interdependencies with Energy, Water, Waste and Communication Infrastructure in the United Kingdom

The role of infrastructure interdependencies is challenging due to the complexity and dynamic environment of all infrastructures and vital for critical infrastructure systems. There is an ongoing debate about the value of the benefits of the five national infrastructure sectors (energy, water, transport, waste and communication) in the UK and how they interact in terms of social, economic and environmental wellbeing (Hall et al., 2016, p.10; iBUILD, 2015; Liveable Cities, 2015; National Infrastructure Plan, 2013). This study focuses only on one of the three aforementioned values, the economic value. The hypothesis tested is whether the transport sector is economically complemented by the energy, water and waste sectors and economically substituted by the communication sector. The authors use the process analysis “networks and cohorts”, an analysis that uses tables, diagrams, models and networks of interactions along with organizational linkages (Hill, 1993). Of interest for this study in particular is the grand total of all revenues (capital value) which create incomes into other sectors and creates dependencies. This, by definition, is the Gross Value Added. The last five symmetric (product by product) Input-Output tables of gross value added are used: 2010, 2005, 1995, 1990 and 1984 (Office for National Statistics, 2015). The theory underpinning the hypothesis was verified and one mathematical equation was developed based on the historical data of the gross value added by the value created in millions of pounds (£m) from the other critical sectors to transport

Next Generation Infrastructure Interdependencies: An economic deterministic model of transport interdependencies in the United Kingdom

The role of infrastructure interdependencies is challenging due to the complexity and dynamic environment of all infrastructures and vital for critical infrastructure systems. There is an ongoing debate about the value of the benefits of the five national infrastructure sectors (energy, water, transport, waste and communication) in the UK and how they interact in terms of social, economic and environmental wellbeing , . This study focuses only on one of the three aforementioned values, the economic value. The hypothesis tested is whether the transport sector is economically complemented by the energy, water and waste sectors and economically substituted by the communication sector1. The authors use the process analysis “networks and cohorts”, an analysis that uses tables, diagrams, models and networks of interactions along with organizational linkages . Of interest for this study in particular is the grand total of all revenues (capital value) which create incomes into other sectors and creates dependencies. This, by definition, is the Gross Value Added. The last five symmetric (product by product) Input-Output tables of gross value added are used: 2010, 2005, 1995, 1990 and 1984 . The theory underpinning the hypothesis was verified and one mathematical equation was developed based on the historical data of the gross value added by the value created in millions of pounds (£m) from the other critical sectors to transport

End‐user oriented public‐private partnerships in real estate industry

The European Union (EU) is reforming its public services and suggesting Public‐Private Partnerships (PPPs) as a solution for producing high quality and cost effective real estate service delivery. However, the use of PPP approach in real estate industries has been found to have significant constraints related to the end‐users’ (general public's) perspective. The purpose of the paper is to show how PPP projects have failed to produce desirable characteristics expressed in purchasing processes and fulfilment of the end‐user expectations. While the customer‐oriented development of public services and the needs of the end‐users were noted to be crucial points in all five major Finnish PPP projects studied, the case studies pointed out a fundamental lack of understanding and maintaining the end‐user perspective through the tendering and evaluation processes. Especially, in the final stage of evaluation, and evaluation criteria used to decision making, the disappearance of the end‐users’ perspective was evident. The findings are further used to develop a new suggested Public‐Private‐People Partnership (4P) model. The results can be useful to the public sector's purchasers and to the private sector's providers to understand the limitations of current PPP practices and to further develop their practices towards more customer‐oriented service production. Santrauka Europos Sąjunga (ES) vykdo viešųjų paslaugų reformą ir viešąsias bei privačiąsias partnerystes (VPP) siūlo kaip sprendimą teikti pigias ir kokybiškas nekilnojamojo turto paslaugas. Tačiau pastebėta, kad nekilnojamojo turto sektoriuose VPP požiūris susiduria su reikšmingais suvaržymais, kurie yra susiję su galutinių vartotojų (plačiosios visuomenės) perspektyva. Šiame darbe siekiama pademonstruoti, kaip VPP projektams nepavyko pasiekti pirkimo procesuose numatytų pageidaujamų charakteristikų ir patenkinti galutinio vartotojo lūkesčius. Nors visi penki pagrindiniai Suomijos VPP projektai, kurie yra nagrinėjami darbe, į klientą orientuotą viešųjų paslaugų plėtrą ir galutinių vartotojų poreikius nurodo kaip svarbiausius punktus, atvejo tyrimai parodė, kad gebėjimo suprasti bei išlaikyti galutinio vartotojo perspektyvą iš esmės trūko ir organizuojant konkursus, ir vertinant. Galutinio vartotojo perspektyvos išnykimas ypač akivaizdžiai išreiškia galutinis vertinimo etapas ir vertinimo kriterijai, kuriais grindžiami sprendimai. Išvados pritaikytos plėtojant naują siūlomą viešosios bei privačiosios žmonių partnerystės (VPŽP) modelį. Rezultatai naudos gali duoti viešojo sektoriaus pirkėjams ir privačiojo sektoriaus tiekėjams, siekiant suprasti esamų VPP praktikų ribotumą ir toliau plėtojant savo praktikas, kad teikiamos paslaugos būtų labiau orientuotos į klientą. First published online: 18 Oct 201

The individual as the key-stakeholder of Next Generation Infrastructure: Defining the social value of transport infrastructure in the United Kingdom

The idea of social value has arisen from the psychological approach, and more specifically it is based on the principle of “independence of irrelevant alternatives” from the game theory introduced by Luce and Raiffa1. According to this, each alternative situation has an utility/value for the individual, which is a function of the features of the alternative situation and of the features of the individual who makes the choice. Beyond that, it assumed that the individual, who makes the choice, has a clear and measurable knowledge of the value, which each choice provides. Although even after the evaluation of each choice, it is a tentative situation regarding the choice of the individual. In other words, there is an element of possibility. Under the same principle of Luce and Raiffa, the possibility of a choice is in direct ratio to its value. The above mentioned assumptions constitute the “strict utility choice mode”. The exponential form of the value function is achieved by simple transformations of the “strict utility choice mode”,where X and S have a linear correlation. The exponential functions of the total value have a sigmoid form relative to the linear function of the value of the possible choice. This means that the exponential function may have a sigmoid form relative to the X-axis or Y-axis, based on the defined axes and values. The key challenge addressed is a quantitative sense of value, when the perceptions of value are qualitative. To measure social value quantitatively is challenging, since it is observed that pricing systems are “not based primarily on the users’ identity or activity”, but on the ability and willingness of the final user to pay. The social value gained by the individual is difficult to calculate, since it is defined by human behaviour and human needs. According to Maslow's Hierarchy of Needs, these needs belong to specific groups with specific hierarchy. Maslow developed value (utility) curves of each category of need relative to the age of the individual. The sum of the curves gives an almost sigmoid curve. Winters et al. created a Transportation Hierarchy of Needs and they found the following transport hierarchy of needs: [1] safety and security, [2] time, [3] societal acceptance, [4] cost and [5] comfort and convenience. This research studied value as something holistically affected by all the above factors (time, cost, comfort and convenience, safety and security), without considering their ranking, by asking individuals representative of the UK’s demography to evaluate the social value of eight transport modes (walking, cycling, rail, bus, car, taxi, water and air) and each factor for each mode with a questionnaire survey. The hypothesis tested is that the value to the individual, collectively, from the aforementioned factors should have an almost sigmoid curve, which was verified

Infrastructure Management: Development of a Business Model for Transport Infrastructure Interdependencies Management

There is ongoing debate about the value of the benefits of infrastructure systems (specifically those of energy, water & wastewater, transport, waste, and communications) and how to prioritize infrastructure investments to encompass considerations of social, economic and environmental wellbeing. The use of the term ‘infrastructure system’ is related to interdependencies. Infrastructure systems operating in different countries and cities are interrelated in different ways, but all have a strong relationship to ‘transport’ – there is a cost and a utility associated with movement. Infrastructure systems are ultimately created to serve individuals, who place a value on them. In order to explore all forms of value realisation – what is commonly termed a business model – the relationship between an individual and the transport system needs to be established. The hypothesis being tested in this paper is that it is possible to identify both the full range of value interdependencies required, and hence to establish a robust business model, for transport infrastructure interdependencies management in terms of social, economic and environmental wellbeing with the other four national infrastructure sectors in the UK (see above). Different research methods were used for each type of value: economic and environmental value were analysed through Pearson correlation coefficient of secondary data, social value was analysed through statistical analysis (mean, median, mode) of primary data. The new business model challenges the monodirectional value creation of more traditional business models by considering the interdependent bidirectional value creation

The Environmental Value of Sustainable Transport Infrastructure

The climate change threat to humanity challenges the creation of sustainable transport infrastructure based on the triptych of balancing and maximising environmental, economic and social value. A piece of infrastructure may be created in a sustainable manner, but may be then subsequently used unsustainably, that would not be sustainable. In other words, sustainable transport infrastructure is linked with the use of the most sustainable transport choices. Environmental value may be defined by the natural and anthropogenic factors and elements which interact with and influence the natural ecosystem, quality of life, and human health and well-being. Emissions are a widely accepted way by the Food and Agriculture Organization of the United Nations to “calculate” environmental damaging actions. Emissions address the production of pollutants and the placement of waste into the environment. The target is to reduce the use of transport modes with high environmental impact (e.g. cars) and replace them with transport modes with low or no environmental impact (e.g. public transport, walking, cycling). The hypothesis tested is that each individual should be able to understand which transport mode is the most sustainable and investigate whether each individual will accept the use of alternative options that consume less energy and generate fewer emissions. The methodology used was statistical inference. The hypothesis regarding the individuals’ understanding was verified with some deviations and a table with the environmental infrastructure interdependencies was developed based on EXIOBASE 3 database using the emissions generated from each transport sector for comparison purposes

Analysing the novated design and construct contract from the client's, design team's and contractor's perspectives

The novated design and construct (ND&C) contract is one of the increasingly preferred options among developers of large commercial and residential projects across Australia. As a consequence of novation, the design team's obligation to the client gets transferred to the contractor who becomes responsible for carrying out the detailed design work at a later stage of project life cycle. Subsequently, there are some inherent factors that can depict the effectiveness of how all parties in the process interact leading to a successful delivery of project through ND&C contracts. A common set of 31 influencing attributes have been identified through a systematic research approach and their relative significance and impacts have been determined based on a structured questionnaire survey in selected construction projects. By performing the factor analysis, a total of eight factors significant to ND&C contracts were extracted, namely (1) impact of initial design; (2) client's involvements in post novation design; (3) selection of design team; (4) contractor's obligation; (5) morale in post novation; (6) experience of design team; (7) relationship between contractor and design team; and (8) expertise of DT in ND&C projects. With a clear understanding of the roles of clients, design team and the contractors, these findings could potentially contribute to develop a company's procedures or enhance existing knowledge in relation to the ND&C procurement approach.Design novation, procurement practice, factor analysis,