How will the Public-Private Partnership (PPP) procurement method impact the local construction industry?
The main difference between a PPP and a conventional project is that the private sector will raise financing and lead in the turn-key project. The private sector will take on a bigger role from the onset and exert more decisive influence during the process which will result in more innovations in design, specification, financing, construction method and management.
Because a variety of capabilities is involved beyond just construction, PPP projects overseas are often handled by consortiums, where there is room for various parties, including construction firms. These companies can be brought together to perform a useful role.
PPP will create new business opportunities for interested firms to develop multi-disciplinary skills and form partnerships and consortiums. We can also expect new expertise to develop (eg. life-cycle costing & designs, integrated design and construction methods to suit future needs in relation to service delivery, operation and maintenance of the facilities, and better risk management). Such new skills and expertise will also be useful when firms venture overseas.
Can’t find what you’re looking for?