Performance objective-based dynamic adjustment model to balance the stakeholders’ satisfaction in PPP projects

Abstract

Aiming to balance the interests of the principal stakeholders (the private sector, the government and the general public) in Public–Private Partnerships (PPP) projects, the satisfaction of stakeholders were researched thoroughly in this paper. A satisfaction evaluation model was structured based on authors’ prior questionnaire survey focusing on the performance objective indicators (POIs) of different stakeholders. The parties’ preferred POIs were identified as follows: all three parties emphasize the objectives of construction quality, service quality, cost, time, and lifecycle cost very much. Individually, the private sector prefer the objectives of profit making and government support, the government prefer the objectives of budget saving and risk transfer, and the general public prefer the objectives of toll rate and the facilities’ quantities. Furthermore, a satisfaction adjustment model was proposed based on the interrelationships of the adjusting POIs and their impact on the stakeholders’ satisfaction by using the feedback loops of System Dynamics (SD). An illustrative case was also introduced, the results of which indicated that the satisfaction evaluation and adjustment model could be well applied to balance the interests of stakeholders and also improve the general performance of the project.

Keywords:

• public–private partnerships
• stakeholder
• satisfaction
• performance objectives

Additional information

Notes on contributors

Wei Xiong

Wei XIONG. PhD candidate in the Department of Civil and Environmental Engineering, The Hong Kong University of Science and Technology, Hong Kong, China. His research interests are in Public Private Partnership and risk management.

Jing-Feng Yuan

Jing-Feng YUAN. PhD, Associate Professor. Member of Research Faculty in the Institute of Construction Management and Real Estate, Department of Construction and Real Estate, School of Civil Engineering, Southeast University, Nanjing, China. He was a visiting researcher at the University of Maryland, College Park, USA and the Hong Kong Polytechnic University. His research interests are in Public Private Partnership, risk management, construction safety, and sustainable management.

Qiming Li

Qiming LI. PhD, Professor, Department of Construction Management and Real Estate, School of Civil Engineering, Southeast University, Nanjing, China. His research interests are in public–private partnership, risk management, construction safety, and real estate.

Mirosław J. Skibniewski

Mirosław J. SKIBNIEWSKI. The A. James Clark Endowed Chair Professor of Construction Engineering and Project Management at the Department of Civil and Environmental Engineering at the University of Maryland in College Park, USA. Member of American Society of Civil Engineers (ASCE); a founding Member, Co-director and past President of International Association for Automation Robotics in Construction (IAARC); and an Affiliate of International Council for Building Research Studies and Documentation (CIB). His research interests include information technology in construction applications, e-commerce technologies, construction automation and robotics, and wireless technology in construction.