Critique of Public Private Partnerships

This report critiques public private partnerships (PPPs) in the engineering context, discussing their benefits, barriers, and recommendations for improvement. It highlights the importance of PPPs in infrastructure projects and suggests areas for further research to enhance their effectiveness.

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CRITIQUE OF ADVANCED TOPICS
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Critique of Advanced Topics 2
CRITIQUE OF PUBLIC PRIVATE PARTNERSHIPS
The main aim of this paper is to critique public private partnerships (PPPs) in an engineering
context. To achieve this, the paper presents the overview and context of PPPs, and also discusses
the opportunities, benefits and barriers of PPPs. To improve the implementation of PPPs, the
paper also suggests that areas that need further research. Last but not least, the paper arrives at
conclusions and makes some recommendations that can help improve the implementation and
effectiveness of PPPs.
Keywords: Public private partnerships
(PPPs), engineering industry, benefits,
opportunities, barriers
1. Introduction
1.1. Overview of PPPs
PPP is a specific type of long-term contract
where a government agency/entity (public
partner) collaborates with a private-sector
company (private partner) for the later to
design, finance, build, operate and maintain
a project over a specified period of time [1].
This type of contract is usually used where
one party cannot complete the intended
project alone without major challenges.
PPPs are generally sophisticated long-term
contracts that usually span 15-50 years. In
most cases, government agencies opt for
PPPs due to lack of adequate resources
(finance and technical resources) to
undertake mega projects. Under PPP, each
party’s rights and obligations are defined,
plus all other details including how to
resolve any unforeseen issue that may arise
during the contract term. Many government
agencies across the world have benefited
from PPPs, which enable them to complete
vital infrastructure projects faster than they
could have done by themselves. Through
PPPs, government entities are able to share
risks with their private partners. Therefore
PPPs play a very key role in engineering
industry, particularly the construction sector.
1.2. Context of PPPs
PPPs have become a very trendy method
that many governments are using to
implement public infrastructure projects,
such as airports, ports, highways, tunnels,
bridges, railroads, power, water and
wastewater facilities, and social
infrastructure such as schools and hospitals
[2]. There are numerous infrastructure
projects that have or are being implemented
through PPP in Australia. Some of these
include: Sydney metro project, Melbourne
metro project, Western Australia’s Roe 8
project, Brisbane Cross River Rail project,
Westgate Tunnel project, Metro Tunnel
project, Southern Cross Station, Wodonga
Wastewater Treatment Plant, and Victorian
Desalination project, among others. On the
other hand, there are several PPP projects
that failed in Australia, including: Cross
City Tunnel project, Lane Cove Tunnel
project, and Bonnyrigg Living Communities
project, all in Sydney. This is just a reminder
that PPPs can go sour and therefore requires
proper planning and management, which can
be achieved through further research. Figure
1 below shows PPP projects in Australia by
jurisdiction. This just shows that PPPs are
common in all parts of Australia, and the
world. Therefore government agencies and
private companies are collaborating to
capitalize on each other’s’ capabilities.
Private companies are taking advantage of
government incentives and using innovation
and state-of-the-art technologies to
maximize their benefits when using PPPs.

Critique of Advanced Topics 3
Figure 1: PPPs in Australia by jurisdiction
[3]
2. Types of PPPs
There are different types of PPPs, including
the following:
 Build-operate-transfer (BOT): this is
where the private partner builds the
facility, operates it for a specified
period of time (mostly until they get
back the money they invested in the
project plus profits and overheads)
and then transfers it to the
government entity. Also, the funds
needed for the project can be
provided by the government entity,
leaving the private partner to only
build and operate the facility before
transferring it to the government
entity.
 Build-own-operate (BOO): this is
where the private partner builds the
facility, owns it and operates it. In
this case, the facility is not
transferred to the government entity
but the private partner remits some
revenue collected from the facility to
the government.
 Build-own-operate-transfer (BOOT):
this is where the private partner
builds the facility, owns and operates
it during the contract period (mostly
until they recoup their money plus
agreed profits and overheads) and
then hands it back to the government
entity at the end of the contract
period.
 Design-build (DB): this is where the
government entity contracts the
private partner to only design and
build the facility, while the
government entity provides the
required funds for the project. Under
this arrangement, the private partner
is not involved in the operations of
the facility at any given time.
 Design-build-finance (DBF): this is
where the private partner designs the
facility, builds it and finances the
construction costs.
 Design-construct-maintain-finance
(DCMF): this is where the private
partner designs the facility,
constructs and maintains it during
the contract period and also provides
the required funds for all these
activities.
 Operate-maintain (OM): this is
where the private partner is
responsible for operating and
maintaining the facility, while the
government entity remains the owner
of the facility.
 Lease: this is where the government
entity leases a facility to the private
partner that is obligated to operate
and maintain the facility (including
additions and renovations) during the
contract period [4].
3. Opportunities
Governments are committed to provide
advanced infrastructure facilities that will
boost their economies and improve the lives
of people. Private companies are capitalizing

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on modern advanced technologies,
innovative tools and efficient construction
and operation methods to deliver high
quality facilities cost effectively and within
a shorter time. This presents lifetime
opportunities for government agencies and
private companies to partner through PPPs
in building and operating public
infrastructure. The PPPs also enable
governments to redirect their fund into other
essential projects. Therefore PPPs are useful
for both developing and developed countries
and if properly implemented, they can
significantly improve infrastructure
standards and allow governments to spend
their finances into other crucial projects. The
parties involved in PPPs should also find
ways on how to ensure that they benefit
from these contracts.
4. Benefits
Some of the benefits of PPPs include the
following:
1. They provide improved
infrastructure solutions than what
would have been provided if the
project had been done by an
individual party [5].
2. They minimize delays and enable
faster project completion because the
projects are done by specialized
companies and experts.
3. They allow private companies to use
innovative design, construction and
financing methods, which provide
greater return on investment (ROI).
4. Risk distribution: PPPs allow fair
distribution of risks between
government entities and private
partners. The two partners share both
losses and profits of the project [6].
5. The greater efficiency of PPPs
decreases government budgets
together with budget deficits.
6. They allow governments to redirect
their funds to other essential
socioeconomic projects.
7. PPPs provide high quality projects
that are delivered on time and can
last for longer periods.
8. They ensure proper utilization and
management of public resources.
5. Barriers
There are several barriers hindering
successful implementation of PPs. Some of
these include the following:
 They may increase government costs
through reasonable compensation of
private partners who accept to bear
high risks.
 There can be less cost-effective
partnering in cases where the number
of private partners with the
capability to complete the project is
limited.
 There is high variation in profits
between projects due to project
scope and complexity, level of
competition, and assumed risk.
 Procurement of PPP projects usually
takes longer and is costly than
conventional public procurement [7].
 PPP projects are usually complex
and inflexible. Once the contract has
been signed, it is very challenging to
make any changes [8].
 Trust: many PPP projects have failed
due to lack of trust between the
parties involved [9].
 The private partners bears the
highest risks when the project is not
completed as planned.
6. Further work
The following are some of the issues that
require further investigation and analysis so
as to improve successful implementation of
PPPs: effective models that can be used for
selecting the best private partner for PPPs

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[10], measurement of performance of
ongoing PPP projects, regulatory framework
that can improve adoption of PPPs, and use
of modern technology to improve
implementation and performance of PPPs.
7. Conclusion and recommendations
PPPs have been in use for several decades
now and are considered to be the future of
government infrastructure projects.
Governments are choosing PPPs so as to
redirect available resources into provision of
other essential services whereas private
companies are going for PPPs so as to
capitalize on innovation, modern
technologies and government incentives to
increase their profits. PPPs can provide
improved infrastructure solutions, enable
faster project completion, reduce
government budgets and deficits, ensure
proper utilization of public resources, and
encourage innovation and use of modern
technologies that have numerous economic,
social and environmental benefits. However,
successful implementation of PPPs is faced
with numerous barriers that need to be
solved through further research. There is
need to carry out more research that will
help identify or develop effective models for
selecting private partners, measure
performance of ongoing PPP projects so as
to find ways of improving them, available
technologies that can help improve
implementation of PPPs, and establish the
need for a regulatory framework that can
improve adoption of PPPs.
References
[1] N. Pongsiri, "Public-Private Partnerships and Urban Infrastructure Development in
Southeast Asia," International Public Management Review, vol. 12, no. 1, pp. 1-10,
2011.
[2] C. Cui, Y. Liu, A. Hope and J. Wang, "Review of studies on the public–private
partnerships (PPP) for infrastructure projects," International Journal of Project
Management, vol. 36, no. 5, pp. 773-794, 2018.
[3] Infrastructure Partnerships Australia, "Public Private Partnerships," (n.d.). [Online].
Available: https://infrastructure.org.au/chart-group/public-private-partnerships-by-
jurisdiction/. [Accessed 5 September 2019].
[4] J. Rodriguez, "Public-Private Partnership Models," 2018. [Online]. Available:
https://www.thebalancesmb.com/public-private-partnership-types-845098. [Accessed
5 September 2019].
[5] J. Leigland, "Public-Private Partnerships in Developing Countries: The Emerging
Evidence-based Critique," The World Bank Research Observer, vol. 33, no. 1, pp.
103-134, 2018.
[6] M. Jefferies and W. McGeorge, "Using public‐private partnerships (PPPs) to procure
social infrastructure in Australia," Engineering, Construction and Architectural
Management, vol. 16, no. 5, pp. 415-437, 2009.

Critique of Advanced Topics 6
[7] J. K. Roehrich, M. A. Lewis and G. George, "Are public–private partnerships a
healthy option? A systematic literature review," Social Science & Medicine, vol. 113,
no. 1, pp. 110-119, 2014.
[8] M. Trebilock and M. Rosenstock, "Infrastructure Public–Private Partnerships in the
Developing World: Lessons from Recent Experience," The Journal of Development
Studies, vol. 51, no. 4, pp. 335-354, 2015.
[9] R. Warsen, J. Nederhand, E. H. Klijn, S. Grotenbreg and J. Koppenjan, "What makes
public-private partnerships work? Survey research into the outcomes and the quality
of cooperation in PPPs," Public Management Review, vol. 20, no. 8, pp. 1165-1185,
2018.
[10] J. Gan, Y. Zhang, Y. Hu and S. Liu, "The Cooperation Partner Selection of Private
Sector under Public-Private-Partnership Projects: An Improved Approach under
Group Decision-Making Based on FRS, SAW, and Integrated Objective/Subjective
Attributes," Discrete Dynamics in Nature and Society, vol. 2018, no. 1, pp. 1-8, 2018.

Critique of Advanced Topics 7
CRITIQUE OF VIRTUAL PROJECT TEAMS
The purpose of this paper is to present a critique on virtual project teams from an engineering
perspective. The paper presents an overview of virtual project teams and examines the benefits,
opportunities and challenges associated with application of virtual project teams in the
engineering industry. The paper also suggests areas that need further research so as to improve
the application and effectiveness of virtual project teams. Finally, it draws conclusions and
makes some recommendations from the critique.
Keywords: virtual project teams, engineering industry, benefits, opportunities, challenges
1. Introduction
1.1. Overview of virtual project
teams
A virtual project team basically means a
group of people who are working on the
same project but some of the members are
working from different geographic (remote)
locations [1]. The virtual project team’s
consultation, collaboration and overall
performance is largely facilitated by
communication technology such as voice
and video conferencing, email, phone calls,
FAX and social media platforms, among
others [2]. Use of virtual teams has enabled
companies in different industries to pool the
talents of individuals from all parts of the
world and use them to complete projects
successfully [3]. There are numerous
Australian companies (mostly tech
companies) that use virtual teams, including:
Red Guava, X-Team, Appen, Campaign
Monitor, Canva, Fifty Acres, and Jobvibe.
1.2. Context of virtual project teams
Use of virtual project teams is on the rise in
almost all industries, including engineering
industry, due to a combination of
outsourcing, globalization and technological
advancement [4]. There are several
engineering, procurement and construction
companies that have successfully used
virtual project teams in their operations.
Some of them include California-based
Bechtel Corporation, Chicago-based Boeing,
Rhode Island-based GTECH Corporation,
Leiden-based Airbus, and London-based
PricewaterhouseCoopers. The successful
completion of Mumbai International Airport
project was also attributed to virtual project
team [5]. Based on the performance and
outcomes from these companies and
projects, proper utilization of virtual teams
has the potential of facilitating successful
project completion.
2. Principles and success factors
According to [6] [7] [8] [9] [10], there are a
wide range of principles and factors that
influence the success of virtual project
teams, including: human resource policies,
leadership practices and support,
organizational culture, availability of
communication and collaboration
technologies and tools [6], effective
communication, attentiveness, trust, team
members’ competencies, autonomy, dispute
resolution and motivation.
3. Opportunities of Virtual Project
Teams
Virtual project teams are gradually
transforming the engineering industry as
clients, engineers, designers, contractors,
subcontractors and suppliers are now
preferring them over face-to-face teams.
Virtual teaming is giving every professional
to work on any project in the world from
wherever they are – physical distance is no

Critique of Advanced Topics 8
longer a hindrance. Most importantly is that
virtual project teams are beneficial to all
stakeholders involved in the project.
Therefore as information communication
technology (ICT) and internet services
advances, more stakeholders in the
engineering industry will continue using
virtual project teams, which are expected to
become mainstream in the near future.
4. Benefits of virtual project teams
Use of virtual project teams has numerous
benefits, including the following:
1. Increases overall productivity of the
organization by recruiting the most
knowledgeable, experienced,
specialized and talented employees.
2. Reduces business expenses by
eliminating or minimizing office
space and rental expenses, travelling
and lodging expenses, parking costs,
etc.
3. Saves time by enabling faster project
completion.
4. Helps organizations to save labour
costs by selecting the team that has
low labour rates [11].
5. It reduces air pollution due to
decreased traveling of workers.
6. Enhances organizations’ global
presence, which helps them to access
global markets easily.
7. It improves workforce flexibility
because the organization can easily
scale down or up the team.
5. Challenges hindering adoption of
virtual project teams
Some of the challenges hindering successful
adoption of virtual project teams are:
 Communication and cultural
challenges: most virtual team
members come from different
geographic locations hence language
barrier, communication style and
cultural differences are major issues
that affect how they communicate
and interact with each other in a
virtual environment.
 Time zone differences: the
differences in time zones of the
virtual project teams makes it quite
difficult to schedule for meetings or
get timely response, which can affect
project delivery.
 Trust: lack of trust among virtual
project team members is a major
issue because in most cases, these
members have never met physically
hence building trust becomes a
challenge.
 Compatibility: some members may
be using computers, software or tools
that are not compatible and this
makes it difficult to share the
necessary documents or files.
 Management issues: managing is a
virtual team is very challenging due
to lack of structure and office
culture. Some members may be
reluctant to complete their tasks on
time knowing that they will be
assisted when need arises.
6. Further Work for Virtual Project
Teams
The need to use virtual project teams in
engineering projects is inevitable and the
challenges hindering the success of these
teams can be solved through proper planning
and management. Therefore for virtual
project teams to be more successful, there is
need to carry out more research on a number
of issues, including the following: cultural
understanding, communication styles,
organizational structures, trust building,
emerging virtual team practices, state-of-
the-art tools that can help improve
performance of virtual project teams, and
key performance indicators (KPIs) of virtual
project teams. There is also need to conduct
more research on how to develop models
that can help determine the influence of

Critique of Advanced Topics 9
various factors on the success of virtual
project teams.
7. Conclusion and recommendations
It is evident that virtual project teams have
the potential of transforming the engineering
industry and many organizations now prefer
them over the conventional face-to-face
teams. The virtual project teams have
numerous economic, social and
environmental benefits. Considering factors
such as knowledge, expertise, cost and
specialization of employees in different
parts of the country or world, companies in
the engineering industry can capitalize on
virtual teams and complete their projects to
the required quality standards, faster and at a
lower cost. Organizations are already using
virtual project teams to hire the best talents
from all over the world at a reasonable cost.
These teams have been proven to increase
productivity, enhance flexibility, reduce
operating and overall project costs, enhance
global market access, and increase project
delivery. However, successful use of virtual
project tams also has some challenges,
which can be solved through further
research. The research should focus on
systems, tools, technologies and
methodologies that can improve the success
of virtual project teams.
References
[1] J. Szewc, "Selected success factors of virtual teams: literature review and suggestions
for future research," International Journal of Management and Economics, vol. 38,
no. 1, pp. 67-83, 2013.
[2] D. R. Carter, P. W. Seely, D. Joe, L. A. DeChurch and S. J. Zaccaro, "Leadership for
Global Virtual Teams: Facilitating Teamwork Processes," in Leading Global Teams,
New York, Springer, 2014, pp. 225-252.
[3] C. B. Gibson, L. Huang, B. L. Kirkman and D. L. Shapiro, "Where Global and Virtual
Meet: The Value of Examining the Intersection of These Elements in Twenty-First-
Century Teams," Annual Review of Organizational Psychology and Organizational
Behavior, vol. 1, no. 1, pp. 217-244, 2014.
[4] O. Saafein and G. A. Shaykhian, "Factors affecting virtual team performance in
telecommunication support environment," Journal of Telematics and Informatics, vol.
31, no. 3, pp. 459-462, 2014.
[5] I. Shaikh, Virtual team management in construction projects and the role of BIM,
Stockholm: Royal Institute of Technology, 2018.
[6] G. Vaidyanathan and C. Debrot, "Critical Success Factors in Managing Virtual
Teams," in Information Systems, Technology and Management. ICISTM 2010, Berlin,
Heidelberg, Springer, 2010, pp. 275-281.
[7] B. Grober and U. Baumol, "Why virtual teams work – State of the art," Procedia
Computer Science, vol. 121, no. 1, pp. 297-305, 2017.

Critique of Advanced Topics 10
[8] S. K. Bhat, N. Pande and V. Ahuja, "Virtual Team Effectiveness: An Empirical Study
Using SEM," Procedia Computer Science, vol. 122, no. 1, pp. 33-41, 2017.
[9] A. Hanebuth, "Success factors of virtual research teams – Does distance still matter?,"
JSTOR, vol. 26, no. 2, pp. 161-179, 2015.
[10] I. D. Baldau and O. Dumitrascu, "Research on the behavior of factors that influence
the international virtual project team performance, using data modeling techniques,"
Sustainability, vol. 11, no. 607, pp. 1-21, 2019.
[11] M. Y. El-Sheikh, A. M. Tahwia, A. A. Al-Halwany and E. Shiha, "The application
and impact of using virtual team in Middle East (case study)," European Journal of
Business and Management, vol. 6, no. 3, pp. 164-168, 2014.