The process of engaging private sector in the provision of public infrastructure can improve economic value in service delivery and enable the government to utilize the capabilities and expertise held by private sector. This has a positive impact on the public in terms of improving their well-being. This literature review attempts to compare the challenges encountered in implementation of PPP projects across the world, with a view to determining cross cutting challenges and recommendations for developing countries. A literature review was conducted for empirical studies focusing on construction projects. The studies are reviewed by analyzing the methodology used and conclusions made to identify the geographical study area, Public Private Partnership project financing model, emerging challenges and recommendation for future project management. The literature search was based on four keywords: construction projects, completion of construction projects, public private partnership, challenges in construction projects. Thus, a total of 11 empirical studies were identified for review in Europe, Asia and Africa. The review revealed that most risk factors affecting project completion can be categorized as human and organizational factors and unknown geotechnical conditions that were not known beforehand. Specifically, project owners’ interference was also attributable to delays with the delays having significant implications for project execution. Risks have great impact on the performance of construction projects because they affect their quality, time and cost. The general remedy to such potential risk factors is adoption of reliable prediction mechanisms which would estimate those factors using a probabilistic model that does not rely on expert judgments as they tend to be unreliable.
Adoption of Public Private Partnership models in the delivery of public projects was seen as ideal for effective economic development in developing economies during 1990s [
PPP refers to partnership involving government institutions to enter into with private investors in service delivery [
As projects’ sizes increase so do their complexity. Accordingly, the ability to manage risks depends on the measures taken beforehand to prevent unwanted outcomes. Panthi, Ahmed and Ogunlana [
Recently, there have been intense discussions at various platforms relating to the way governments can partner with private sector to provide services and infrastructures like railways, roads, water, sanitation, Housing, Harbor, and Airport [
This literature review attempts to compare the challenges encountered in implementation of PPP projects across the world, with a view to determining cross cutting challenges and recommendations for developing countries.
For unknown risks, there is low understanding on probability of occurrence and ultimate impact [
Researchers have shown that contractors fail to make use of risk analysis techniques and instead depend on own judgments as they estimate cost and time. A study by [
Risks can increase losses by increasing costs, undermining the quality of projects, and even delaying delivery of designed works. Tipili and Ilyasu [
In this paper, a literature review was conducted for empirical studies focusing on construction projects. The aim is to establish and categorize challenges faced in the implementation of construction projects through PPP model with emphasis on the developing countries. Thus, the studies are reviewed to show the geographical study area, project financing model, emerging challenges and recommendation for future project management. The literature search was based on four keywords: construction projects, completion of construction projects, public private partnership, challenges in construction projects. Thus, a total of 11 empirical studies were identified for review in Europe, Asia and Africa based on the keywords and for the period covering the year 2000 to present. Thus challenges were identified based on prevalence and their effect. The findings of the review were presented in literature discussions.
Based on the four keywords, 11 studies were identified for completed PPP projects for the period from the year 2000 to 2019 which was the time of the present study. The duration 2000 to 2019 was chosen due to being the post PPP period hence covering implementation of such projects. The identified literature, and review findings are presented in
A study by [
Study | Title | Methodology | Findings | Conclusions | Challenges/Risks |
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Špačková (2012) | Risk management of tunnel construction projects | ● Descriptive research design ● Questionnaires and interview schedule ● Tunnel construction projects in Czech Republic | Uncertainties arise from human & organizational factors and unknown geotechnical conditions not identified beforehand | Adopt reliable prediction system which estimate risk factors using a probabilistic model | ● Human factors ● Organizational factors ● Geotechnical conditions |
Osipova (2008) | Risk management in construction projects: a comparative study of the different procurement options in Sweden | ● Nine construction companies ● Surveys and interviews ● consultants, contractors and project owners | ● No iterative method for risk management ● Risks were high during the program phase | Parties involved in executing projects could cooperate to work together to minimize risks | ● Time ● Quality and ● Cost related risks |
Odeh & Battaineh (2002) | Causes of construction delay: traditional contracts. | ● Construction project in Jordan ● Survey method | ● Labour efficiency ● Inadequate experience among contractors and consultants ● Owner interference are the leading causes of delay | Project management and interaction between stakeholders result in project delays | ● Labour efficiency ● Incompetent consultants ● External interference |
Aibinu & Jagboro (2002) | The effects of construction delays on project delivery in Nigerian construction industry | ● 61 construction projects in Nigeria ● Risk assessment and evaluation form | ● Delays had significant implications for project execution in the country | Failing to complete task in time as scheduled occur frequently among contractors | ● Time related risks |
Ke, Wang & Chan (2012) | Risk management practice in China’s Public-Private Partnership projects | ● Structured interviews with 20 managers in the sector in China ● Comparison using Lyons & Skitmore (2004) questionnaire | ● Inadequate risk management ● High preference for qualitative risk assessment ● Lack of risk management tools | Lack of risk management culture responsible for lack of implementation of risk assessment | Inadequate training and tools for risk assessment and management |
Xie & Yang (2010) | A Study on Management Risk Evaluation System of Large-Scale Complex Construction Projects | ● Grey Systems Risk Evaluation technique ● Case study of Nanning International Convention and Exhibition Center in China ● Questionnaires and Interviews ● Descriptive and inferential statistics | Method was capable of reflecting greyness, fuzziness and randomicity of data in the organization of sophisticated projects | There is need for reasonable and scientific method of evaluating risks | Lack of risk management tool |
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Adhikari (2011) | Sustainability Analysis of Hydropower in Nepal | ● Quantitative methods ● Literature review ● Involved the Government, NGOs and sector stakeholders | Sustainability of those projects was above acceptable levels | Need to develop more sustainability measures to reach the international standards | Stakeholder involvement |
Shebob, Dawood & Xu (2011) | Analyzing construction delay factors: A study of building construction project in Libya | ● Randomly selected construction companies in Libya ● Semi structured interviews | Change in projects’ scopes; delays in material supplies, changing prices, and inadequate skills among workers cause delay in construction works nationally | Inadequate labour management and failure by different stakeholders to meet the set timelines lead to delays | ● Inadequate labour skills ● Stakeholder conflict |
Mohamed (2015) | A Study of Project Delay in Sudan Construction Industry | ● Quantitative design ● Questionnaire for beneficiaries, consultants and contractors | Fluctuation in prices for construction materials, inaccurate time and cost estimates, negative social impacts, materials shortage, and litigation cause delays | Risk mitigation measures are quality cycles, joint risk management, and information sharing. | ● Poor time, labour and cost estimates ● Stakeholder interference |
Tipili & IIyasu (2014) | Evaluating the impact of risk factors on construction projects cost in Nigeria. | ● Self-administered questionnaires ● Professionals in the construction industry in Nigeria ● Probability score ● ANOVA was utilized to evaluate likelihood | ● Time and cost related risks are likely to occur with more impact on project completion ● Environmental factors are less likely to occur with least impact on projects | Risks vary in severity and occurrence among projects | ● Time and cost related risks ● Environmental factors |
Mweresa (2013) | Impact of Increasing Building Construction Costs on Effective Implementation of Public Projects: A Case Study of the Projects Initiated by the Ministry of Public Works within Nairobi County – Kenya | ● Quantitative analysis method by descriptive statistics ● Purposive sampling used to select 40 respondents ● Questionnaires and document analysis | ● Work definition, bureaucracy in government, risk allocation; timeliness; requirements’, resource planning, inefficient preparation and contractors’ inabilities have notable impacts on completion | Risks in construction projects result from inadequate managerial practices. | ● Cost estimates, Time related risks ● Labour related risks ● Managerial practices |
some of the uncertainties emanated from human and organizational factors and unknown geotechnical conditions that were not known beforehand. Spackova [
In Sweden, [
Odeh and Battaineh [
Xie and Yang [
Adhikari [
According to consultants, setbacks in decision making; poor planning and supervision; poor communication; lack of skills among consultants; a lot of time wasted as contractors wait for sample materials and drawings to be approved are some of the factors that delay projects. Shebob, Dawood and Xu [
Mohamed [
Tipili and Ilyasu [
Mweresa [
From the review, the risk factors are mainly as a result of human and organizational factors and unknown geotechnical conditions that were not known beforehand. The risks were high during the program phase, and it was likely to impact project completion negatively. Specifically, project owners’ interference was also attributable to delays with the delays having significant implications for project execution. Similarly, organizational and coordination, exclusive right and change in law are also the most prominent types of risks in those projects. In this case, a lot of time wasted as contractors wait for sample materials and drawings to be approved are some of the factors that delay projects. Other factors include lack of skills among workers; site transfer delay from the owners to the contractor, site modification (office, workshop and lab setup); changes in the material specification. Risks have great impact on the performance of construction projects because they affect their quality, time and cost. In this case, contractors see labour efficiency as leading determinant of delays, followed closely by inadequate experience among contractors and consultants. The general remedy to such potential risk factors is adoption of reliable prediction mechanisms which would estimate those factors using a probabilistic model that does not rely on expert judgments as they tend to be unreliable. Thus, parties involved in executing projects could cooperate to work together to minimize risks.
We acknowledge the special service and assistance from the University of Nairobi Library for support during this review.
There are no conflicting interests to declare with reference to this review.
Oyieyo, P.A. (2020) Emerging Challenges in the Completion of Construction Projects through Public Private Partnerships: Empirical Literature Review. Journal of Building Construction and Planning Research, 8, 263-272. https://doi.org/10.4236/jbcpr.2020.84017