A rationale for alliancing within a public-private partnership

Walker, D and Jacobsson, M 2014, 'A rationale for alliancing within a public-private partnership', Engineering, Construction and Architectural Management, vol. 21, no. 6, pp. 648-673.

Document type: Journal Article
Collection: Journal Articles

Title A rationale for alliancing within a public-private partnership
Author(s) Walker, D
Jacobsson, M
Year 2014
Journal name Engineering, Construction and Architectural Management
Volume number 21
Issue number 6
Start page 648
End page 673
Total pages 26
Publisher Emerald Group Publishing Limited
Abstract Purpose This case study was chosen for its rare, if not unique, project procurement strategy. It is, to the authors’ knowledge, the only example of a project alliance (PA) being undertaken within a public-private partnership (PPP) project delivery approach. The purpose of this paper is to explore the case study from a strategic perspective to better understand if it is possible to combine a PA within a less collaborative procurement form, such as PPP or design and construct (D&C), and to determine if there were any specific prerequisite conditions needed for such an arrangement to be successfully adopted. Design/methodology/approach A single exploratory case study was undertaken through interviewing seven of the most senior project participant executives for approximately an hour that each had a separate and unique perspective to offer relating to the organisational role they represented in the PA. These interviewees were identified as the most knowledgeable key executives participating in the PA from whom both strategic and operational insights could be gained. Findings It is possible to design a PA approach within a PPP for large and complex infrastructure projects and this can provide a competitive advantage to do so, however, the reasons for doing so should be clear and compelling. Parties to such an arrangement should be prepared to fully engage through adopting full PA principles. In such a case as this, the PPP special purpose vehicle takes on the role of “project owner” that normally the public body part of the PPP would normally adopt. Research limitations/implications This research reports upon a single case study within a specific project delivery culture that has extensive experience of PAs. Demonstrated positive project outcomes would not be likely to be more generally repeatable across the engineering infrastructure sector unless parties engaged within such a PA had not already experienced and understood outcomes resulting from such a close collaboration. Practical implications This research has implications for project participants bidding for PPP projects as well as others using a D&C tending approach. It offers a potential competitive advantage because it demonstrates and explains how choices may be expanded beyond a simple single project procurement strategy approach. Social implications Many PPP and PA infrastructure projects are delivered to provide community benefit. This paper provides a way to improve the project delivery process and thus improving value to the community. Originality/value The paper makes three contributions. Primarily, it pioneers analysis of a PA within a PPP. Second, it provides important insights into the reasons and emergence of this phenomenon. Finally, it provides an understanding of this how this novel form of early contractor involvement with a PPP special purpose ownership vehicle that combines competition and collaboration may function operationally.
Subject Building Construction Management and Project Planning
Keyword(s) Project procurement
Risk management
Project alliances
DOI - identifier 10.1108/ECAM-09-2013-0087
Copyright notice © 2014 Emerald Group Publishing Limited
ISSN 0969-9988
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