Payment and audit mechanisms for non private-funded PPP-based infrastructure maintenance projects

S. Thomas Ng and Yoki Wong

Construction Management and Economics, 2007, vol. 25, issue 9, 915-923

Abstract: The introduction of a non private-funded public-private partnerships (PPP) approach to the maintenance and operation of infrastructure facilities necessitates an equitable performance standard, a sensible penalty mechanism and a credible auditing system. Yet, with limited research on this type of scheme, it is not clear whether the payment and audit mechanisms can adequately gauge the performance of private partners and truly reflect the quality of service provided in their payment. The question is whether the reliability of the payment reduction and auditing mechanisms pertinent to the non-private funded PPP infrastructure maintenance can be systematically verified. With reference to a case study in Hong Kong, field data have been collected and tested according to the sensitivity analysis and level of confidence. The results indicate that the level of payment reduction due to poor performance is fair and the audit frequency is adequate to reflect the overall performance of the service provider. The approaches adopted in this research should provide an objective basis for public and private partners to formulate a mutually acceptable and effective mechanism for non private-funded PPP infrastructure maintenance contracts.

Keywords: Public-private partnerships; infrastructure facilities; maintenance; performance-based payment; auditing (search for similar items in EconPapers)
Date: 2007
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.tandfonline.com/doi/abs/10.1080/01446190701544396 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:conmgt:v:25:y:2007:i:9:p:915-923

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RCME20

DOI: 10.1080/01446190701544396

Access Statistics for this article

Construction Management and Economics is currently edited by Will Hughes

More articles in Construction Management and Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().