Identification of Critical Success and Risk Factors for Public–Private Partnership Highway Projects
Publication: Journal of Legal Affairs and Dispute Resolution in Engineering and Construction
Volume 15, Issue 1
Abstract
A recent growing delivery method used in highway projects is public–private partnerships (PPPs). PPPs are when public agencies collaborate with private parties for private financing at risk or operating services, which makes PPPs significantly different from other delivery methods used by public agencies—for example, design-bid-build, construction management at risk, and design-build. Despite the efforts of previous studies, questions remain unanswered: What are the contributing critical success factors that fit PPP highway projects? What are the risk factors that play key roles in PPP highway projects? This study aimed to address these questions through a Delphi study approach with the help of experienced professionals at state departments of transportation. Participants participated in interviews in the first round and completed a survey questionnaire in the second round of a Delphi study. After achieving an acceptable level of consensus from the first round of responses, the study identified and ranked the top critical success and risk factors for PPP highway projects. The study found that the top three critical success factors were (1) proper risk assessment and allocation to private parties; (2) realistic assessment of project estimates, risks, and revenues; and (3) avoidance of ambiguous language in contracts. In addition, the top risk factors identified were (1) revenue stream projections; (2) construction risks; and (3) design risks. The primary contribution of this research to the body of knowledge is to draw the attention of professionals in both industry and academia to the PPP highway industry, critical factors for PPP success and risks, and the successful completion of future PPP projects.
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Data Availability Statement
All data, models, and code generated or used during the study appear in the published article.
Acknowledgments
This research could not have been conducted without the help of the state DOT personnel; this applies particularly to the Delphi study’s long phone interviews and surveys. The authors would like to particularly thank the Texas, Florida, Colorado, and California DOTs, who spent a considerable amount of time on interviews and further discussions, as great contributors.
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Journal of Legal Affairs and Dispute Resolution in Engineering and Construction
Volume 15 • Issue 1 • February 2023
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© 2022 American Society of Civil Engineers.
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Received: May 9, 2022
Accepted: Aug 13, 2022
Published online: Nov 14, 2022
Published in print: Feb 1, 2023
Discussion open until: Apr 14, 2023
ASCE Technical Topics:
- Business management
- Construction engineering
- Construction industry
- Construction management
- Construction methods
- Disaster risk management
- Highway and road management
- Highway transportation
- Highways and roads
- Infrastructure
- Management methods
- Practice and Profession
- Private sector
- Project management
- Public administration
- Public health and safety
- Public private partnership
- Risk management
- Transportation engineering
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