June 2024

What factors cause PPP Projects to fail?

What factors cause PPP Projects to fail?

After the credit crisis of 2008, the cost of providing public sector services has become a major focus worldwide and Public Private Partnerships (PPPs) are seen as one of the solutions to manage these costs more effectively and efficiently.

However, not all PPP projects go according to plan and in the current recessionary climate taxpayers are now more wary of projects that go over budget or don’t deliver the services that were promised – especially when the private firms involved attempt to recoup their costs by increasing prices to the consumers (taxpayers).

PPP projects often involve substantial agency costs used partly in reconciling the different goals, organisational philosophies and cultures between the public and private sectors. Learning how to manage the differences prior to entering into a PPP project will help to reduce this burden and allow more time to be spent on important areas that often lead to project failure. Areas such as assessing the market properly and allocating the risk and rewards of the project.

How can you plan your project and manage your team so as to prevent a PPP disaster and instead build a sustainable project that leaves a positive legacy?

If you are involved in a PPP project and feel you could benefit from learning some implementable techniques, we run courses on PPP.

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