PPP as an alternative procurement method for corporates

Kevin Meyer, Andreas Pfnür and Maria Braunschweig

ERES from European Real Estate Society (ERES)

Abstract: Real estate, mainly being workspace, is an important resource for non-property companies and their core business processes, and ultimately influences productivity. Procurement of such real estate as well as servicing and maintaining it, incurs extensive capital and operating costs, which in turn have a significant impact on the company's performance. Meanwhile, real estate developments very often show massive overruns in time and budget as well as quality deficiencies. These inefficiencies pose an enormous risk for the success of a non-property company.In a pilot project for the first time was investigated to what extent the PPP-model can meet the complex requirements of a private property user. For this purpose, the development and the first operating phase of a new headquarter was scientifically monitored through a mix of qualitative and quantitative research methods. The results show that a significant reduction of costs and risks is possible through this innovative procurement method. But the economic optimization of the building can also lead to a reduction of user-specific qualities, which may negatively affect productivity and satisfaction of the property user.

JEL-codes: R3 (search for similar items in EconPapers)
Date: 2015-07-01
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Persistent link: https://EconPapers.repec.org/RePEc:arz:wpaper:eres2015_121

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