Understanding the Decisive Causes of PPP Project Disputes in China

Zheng, Xiaoxiao; Liu, Yi‐Sheng; Sun, Ruijiao; Tian, Jinzhao; Yu, Qi

doi:10.3390/buildings11120646

Cited by 10 publications

(9 citation statements)

References 56 publications

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“…In anticipation of operational intervention, understanding the root cause of the contractual dispute is crucial. 19,20 Based on the Pareto principle, 21 the author discovered that 20% of the factors instigating disputes in PPP contracts in public universities are significant while 80% of the causes are negligible. The result in Table 1 was elucidated based on the responses of the participants to five-point Likert scale questions, and the analysis done to determine the mean values of the variables.…”

Section: • Identification Of Causes Of Disputementioning

confidence: 99%

Developing dispute resolution policy for conflicts settlement in public-private partnership (PPP) projects in educational institutions

Oyeyoade

2022

F1000Res

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Background: United Nations Educational, Scientific and Cultural Organization (UNESCO) advocates a 15-20% allocation of the developing nations’ annual budget to educational development, but the available resources are not adequate to support the sector in the global south. Thus, University Hostel Development and Management (UHDM) policy was selected to attract private investors for the provision of educational facilities in Nigerian public universities. The policy considered a public-private partnership (PPP) model to ameliorate the menace of dilapidated infrastructures. Initially, there was massive investors’ participation until contractual disputes started to undermine the success recorded. Therefore, incessant disputes without resourceful resolutions motivate the need to examine this policy and spot the gaps for necessary improvement. Policy: The National Universities Commission (NUC) augments the provision of infrastructure in Nigerian public universities through the UHDM initiative in 2004. Conflicts owing to the multiplicity of stakeholders’ contrasting interests overwhelmed the initiative. Many value-added projects were terminated. The poor condition of facilities lingers to serve as a basic factor for half-baked graduates, low employee productivity and declined socio-economic values of the nation. This brief focuses on the role of formal dispute resolution mechanisms (DRMs) for conflict management in PPP arrangements. By observation, stakeholders rarely envisage potential conflicts, thus, no contemplation of specific DRMs adoption despite the inevitability of contractual disputes. Recommendations: This brief recommends the inclusion of the dispute resolution policy in the PPP Memorandum of Understanding (MoU). Recommendations are hereby generated from the analysis of the stakeholders’ opinions on the causes of the dispute, conflict prevention strategies, and the relevant dispute resolution mechanisms peculiar to the PPP contracts in educational institutions. Also, ambiguities in the policy that bordered on an inexplicit institutional framework, lack of PPP experts’ involvement, imperfect contract agreement, and deficiency of feasibility study, are resolved by the recommendations.

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Section: • Identification Of Causes Of Disputementioning

confidence: 99%

Developing dispute resolution policy for conflicts settlement in public-private partnership (PPP) projects in educational institutions

Oyeyoade

2022

F1000Res

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“…Chou and Lin (2013) investigated the implication of dispute avoidance before bidding and starting PPP projects with classification and ensemble models, and identified a tendency to dispute with high prediction power of about 84%. Zheng et al (2021b) suggested strategies or implications of PPPs' contracting parties contribute to public (e.g. the establishment of a lifelong liability mechanism), private 16), stakeholder management action plan (8) and stakeholder monitoring (9).…”

Section: Dispute Root Causes In Pppsmentioning

confidence: 99%

“…Zheng et al. (2021b) also placed fifteen causes of disputes in PPP projects into the reason and result categories.…”

Section: Avoiding Disputes: Leading Ppp To Desirable Performancementioning

confidence: 99%

“…During recent decades, very few studies have investigated the root causes and prevention of disputes associated with the PPP procurement path. Zheng et al. (2021b) identified a small number of dispute causes and corresponding avoidance strategies in China.…”

Section: Introductionmentioning

confidence: 99%

“…During recent decades, very few studies have investigated the root causes and prevention of disputes associated with the PPP procurement path. Zheng et al (2021b) identified a small number of dispute causes and corresponding avoidance strategies in China. Notably, Currie (2015) highlights that not all PPP problems may be managed, due to the inter-organizational nature of partnership problems.…”

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confidence: 99%

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Dispute root causes and prevention in Iranian public-private partnership projects: a causal-predictive model

Mirzaee

Pourrostam²,

Sardroud³

et al. 2022

ECAM

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PurposePublic–private partnerships (PPPs) are notoriously prone to disputes among stakeholders, some of which may unduly jeopardize contract performance. Contract disputes arising in Iran are often due to inefficiency of PPP concession agreements and practice. This study presents a causal-predictive model of the root causes and preventive measures for inter-organization disputes to enhance the likelihood of achieving desirable performance in PPP projects.Design/methodology/approachA theoretical “causal-predictive” model was developed with fourteen hypotheses based on extant literature and contractual agency theory, which resulted in the creation of a pool of 110 published items. Data were obtained from a questionnaire survey with 75 valid responses, completed by 4 stratified groups of Iranian PPP experts. Partial least square structural equation modeling (PLS-SEM) was used for validating the proposed model via a case study.FindingsResults reveal that the main three factors of PPP desirable performance are as follows: on-time project completion, high quality of activities/products and services for public satisfaction. Further, the most influential factors of the lifecycle problems, construction stage, and preferred risk allocation included risk misallocation, improper payment mechanism and failure to facilitate a timely approval process.Originality/valueFor researchers, the findings contribute to the theory of contractual agency; specifically, how different influences among the model's elements lead to better PPP performance. In practical terms, proposed outcome-based strategies will inform PPP stakeholders to avoid dispute occurrence and thus improve the time, quality and services of projects.

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Application of the DEMATEL approach to analyse the root causes of building defects

Shooshtarian,

Gurmu,

Mahmood

2024

Qual Quant

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Building defects are a common phenomenon in the construction industry. The negative consequences of building defects are not limited to waste generation or low resource efficiency. This challenge can have several direct and indirect implications such as cost overruns, unforeseen delays in project completion time, building occupants’ dissatisfaction and health and safety risks. Despite the increase in the number of studies investigating building defects in recent years, little is known about the prioritisation of their causes by considering the interaction among the causes of defects. Therefore, this study employed the decision-making trial and evaluation laboratory (DEMATEL) method to bridge this gap. Experts' opinion was sought using a questionnaire developed in the form of a matrix and semi-structured interview questions. Thereafter, the interactions among the causes of building defects were analysed and the most prominent causes are identified. The study showed that materials, workmanship and design are the major causes of building defects. Despite being specific context, the findings can be the basis for further research in this area with a focus on a range of different building typologies. Furthermore, the recommendations provided will act as a facilitator to minimise the occurrence of building defects. Lastly, the research findings can be considered in the planning stage of any construction project, to ensure the construction quality, reduce potential waste and enhance the circular economy and resource efficiency in the built environment sector.

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Understanding the Decisive Causes of PPP Project Disputes in China

Cited by 10 publications

References 56 publications

Developing dispute resolution policy for conflicts settlement in public-private partnership (PPP) projects in educational institutions

Developing dispute resolution policy for conflicts settlement in public-private partnership (PPP) projects in educational institutions

Dispute root causes and prevention in Iranian public-private partnership projects: a causal-predictive model

Application of the DEMATEL approach to analyse the root causes of building defects

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