Impact of time-based delay on public-private partnership (PPP) construction project delivery: construction stakeholders’ perspective

Abstract

Purpose Many investors have less interest in tendering for public-private partnership (PPP) construction projects as a result of the uncertain risks associated with the project delivery. Moreover, PPP project stakeholders have inadequate information about the probable impacts of time-based delay imposed on PPP projects under the PPP arrangement. This study aims to identify and categorize construction stakeholders’ perceptions of the impact of time-based delays on PPP construction projects. Design/methodology/approach A purposive sampling technique was adopted where questionnaires were used as the primary instrument for gathering data from PPP experts. Cronbach’s alpha coefficient and Kendall’s concordance were used to measure the reliability of the scale and the respondent’s level of agreement, respectively. One sample t-test, mean score ranking and principal component analysis were used to analyse the identified time-based delay impacts. Findings The study revealed seven significant impacts of time-based delay on PPP construction project delivery as: “project schedule overrun”, “idling of project resources”, “project cost overrun”, “poor quality of completed works”, “delayed realization of project benefits”, “frequent arbitration/litigation in PPP projects” and “total abandonment of PPP projects”. The study further identified the top five significant impacts of time-based delay on PPP project stakeholders as: “reduction in motivation to attract investment”, “high interest on finance (loans)”, “contractor in financial crisis”, “loss of public confidence in government” and “reduction in parties’ reputation”. Practical implications The identified significant impacts of time-based delays will increase stakeholders’ awareness of the repercussions and effects that time-based delays may impose on PPP construction projects if not appropriately managed throughout the project implementation. This awareness will further guide stakeholders to implement targeted risk management strategies to minimize the negative consequences of delays on PPP project performance. Originality/value As a pioneering study that provides a better understanding of the impacts of time-based delays on PPP construction projects, this study enhances knowledge of PPP construction project implementation.