Critical Issues Affecting Dispute Resolution Practice in Infrastructure Public–Private Partnerships
Publication: Journal of Construction Engineering and Management
Volume 149, Issue 3
Abstract
Infrastructure public–private partnership (PPP) projects across the world have suffered early termination, premature change of ownership, cost and time overruns, among others, often resulting from a number of issues some of which are related to poorly managed dispute. Despite this, literature revealed that no process-centric attempt had been made to highlight the critical issues affecting dispute resolution (DR) in infrastructure PPPs. Through event sequence analysis (ESA) of 158 data sources (including 63 journal articles), this study examined the critical issues affecting infrastructure PPP DR practice, with the motivation of unveiling areas of potential improvement to the DR practice. Among other findings, the multiple roles of the public partner in the DR process were found to result in ambiguity on who was responsible for overseeing their actions. Relatedly, the effectiveness of dispute boards was on some occasions undermined when they were assigned multiple functions. Besides this study adding to the theoretical body of knowledge through application of ESA in infrastructure PPP DR research, it clarified the critical issues affecting current infrastructure PPP DR practice, thereby enhancing infrastructure PPP practitioners’ understanding of potential barriers to successful infrastructure PPP DR. Although the researchers acknowledge the plausibility of an in-depth investigation into ways in which the critical issues in DR practice can be addressed, the main focus of this study was to provide clarity on the critical issues affecting DR in infrastructure PPPs. A separate study focusing on improvements to DR in infrastructure PPPs is recommended.
Get full access to this article
View all available purchase options and get full access to this article.
Data Availability Statement
Some or all data, models, or code that support the findings of this study are available from the corresponding author upon reasonable request.
Acknowledgments
This research was funded by the University of Adelaide (Australia) through the Adelaide Scholarships International. The authors are thankful to the anonymous reviewers for their insightful and extensive feedback that shaped the paper to its current state.
References
Adarkwa, O., O. Smadi, and A. Alhasan. 2017. “Lessons to be learned from bankruptcy filings in public-private partnership (PPP) projects in the United States.” MOJ Civ. Eng. 2 (2): 66–70. https://doi.org/10.15406/mojce.2017.02.00030.
Athanasakis, D. 2009. “Arbitration for supply chain and money supply cause disputes in PPP projects: Distilling comparative economic interests from the Greek legal system.” Int. J. Constr. Manage. 9 (1): 93–105. https://doi.org/10.1080/15623599.2009.10773124.
Australian Government. 2015. National public private partnership guidelines. Canberra, Australia: Commonwealth of Australia.
Boons, F., W. Spekkink, and W. Jiao. 2014. “A process perspective on industrial symbiosis: Theory, methodology and application.” J. Ind. Ecol. 18 (3): 341–355. https://doi.org/10.1111/jiec.12116.
Chan, A. P. C., P. Lam, Y. Wen, E. Ameyaw, S. Q. Wang, and Y. Ke. 2015. “Cross-sectional analysis of critical risk factors for PPP water projects in China.” J. Infrastruct. Syst. 21 (1): 04014031. https://doi.org/10.1061/(ASCE)IS.1943-555X.0000214.
Chan, A. P. C., P. T. Lam, D. W. Chan, E. Cheung, and Y. Ke. 2010. “Potential obstacles to successful implementation of public-private partnerships in Beijing and the Hong Kong special administrative region.” J. Manage. Eng. 26 (1): 30–40. https://doi.org/10.1061/(ASCE)0742-597X(2010)26:1(30).
Chapman, P. H. J. 2009. “Dispute boards on major infrastructure projects.” Proc. Inst. Civ. Eng. Manage. Procure. Law 162 (1): 7–16. https://doi.org/10.1680/mpal.2009.162.1.7.
Chen, G., C. Liu, and D. Tjosvold. 2005. “Conflict management for effective top management teams and innovation in China.” J. Manage. Stud. 42 (2): 277–300. https://doi.org/10.1111/j.1467-6486.2005.00497.x.
Chou, J.-S., S.-C. Hsu, C.-W. Lin, and Y.-C. Chang. 2016. “Classifying influential information to discover rule sets for project disputes and possible resolutions.” Int. J. Project Manage. 34 (8): 1706–1716. https://doi.org/10.1016/j.ijproman.2016.10.001.
Costantino, C., and C. Merchant. 1996. Designing conflict management systems: A guide to creating productive and healthy organizations. Thousand Oaks, CA: Jossey-Bass.
Cruz, C. O., R. C. Marques, and P. Cardoso. 2015. “Empirical evidence for renegotiation of PPP contracts in the road sector.” J. Leg. Aff. Dispute Resolut. Eng. Constr. 7 (2): 05014003. https://doi.org/10.1061/(ASCE)LA.1943-4170.0000151.
Currie, D., and P. Teague. 2015. “Conflict management in public-private partnerships: The case of the London Underground.” Negotiation J. 31 (3): 237–266. https://doi.org/10.1111/nejo.12093.
De Dreu, C. K. W., A. Evers, B. Beersma, E. S. Kluwer, and A. Nauta. 2001. “A theory-based measure of conflict management strategies in the workplace.” J. Organizational Behav. 22 (6): 645–668. https://doi.org/10.1002/job.107.
Dorgan, C. S. 2005. “The ICC’s new dispute board rules.” Int. Constr. Law Rev. 22 (1–4): 142–150.
Forward, P. 2006. “Public private partnership or conflict: Is it time for a new approach?” Univ. New South Wales Law J. 29 (3): 263–269.
Gaillard, E. 2015. “Sociology of international arbitration.” Arbitration Int. 31 (1): 1–17. https://doi.org/10.1093/arbint/aiv021.
Geary, K. 2020. In the dark: Secrecy and the Myingyan public private partnership gas power plant in Myanmar. Amsterdam, Netherlands: Recourse and Non-government Organization Forum on Asian Development Bank.
Government of India. 2008. Criticality of legal issues & contracts for public private partnerships. New Delhi, India: Ministry of Finance, Government of India.
Groth, K. M., and A. Mosleh. 2012. “A data-informed PIF hierarchy for model-based human reliability analysis.” Reliab. Eng. Syst. Saf. 108 (Dec): 154–174. https://doi.org/10.1016/j.ress.2012.08.006.
Hannan, E. 2004. “Nightmare on Spencer Street.” The Age Melbourne, April 2, 2020.
Harisankar, K. S., and G. Sreeparvathy. 2013. “Rethinking dispute resolution in public-private partnerships for infrastructure development in India.” J. Infrastruct. Dev. 5 (1): 21–32. https://doi.org/10.1177/0974930613488292.
He, V. F., P. Puranam, Y. R. Shrestha, and G. von Krogh. 2020. “Resolving governance disputes in communities: A study of software license decisions.” Strategic Manage. J. 41 (10): 1837–1868. https://doi.org/10.1002/smj.3181.
Hinchey, J. 2012. “Dispute resolution in managing gigaprojects.” Chap. 12 in Managing gigaprojects: Advice from those who’ve been there, done that, edited by P. D. Galloway, K. Nielsen, and J. L. Dignum. Reston, VA: ASCE.
Hodge, G. 2005. “Public–private partnerships: The Australian experience with physical infrastructure.” In The challenge of public–private partnerships: Learning from international experience, edited by G. C. HodgeGreve and C. Greve, 305–331. Cheltenham, UK: Edward Elgar.
Huurman, M. C. 2017. Event sequence analysis: A process perspective on the interaction between environmental impact assessment and public debate for offshore wind projects, 1–12. Delft, Netherlands: Delft Univ. of Technology.
Innes, J. E., and D. E. Booher. 1999. “Consensus building and complex adaptive systems: A framework for evaluating collaborative planning.” J. Am. Plann. Assoc. 65 (4): 412–423. https://doi.org/10.1080/01944369908976071.
Jang, W., G. Yu, W. Jung, D. Kim, and S. H. Han. 2018. “Financial conflict resolution for public-private partnership projects using a three-phase game framework.” J. Constr. Eng. Manage. 144 (3): 05017022. https://doi.org/10.1061/(ASCE)CO.1943-7862.0001442.
Kelly, J. E., and N. Nicholson. 1980. “The causation of strikes: A review of theoretical approaches and the potential contribution of social psychology.” Hum. Relations 33 (12): 853–883. https://doi.org/10.1177/001872678003301201.
Kim, K. S., G. C. Kim, and S.-H. Song. 2014. Conflict management and governance in the transport sector in Korea. Sejong, Republic of Korea: Korea Transport Institute.
Klandermans, B. 1984. “Mobilization and participation: Social-psychological expansions of resource mobilization theory.” Am. Sociological Rev. 49 (5): 583–600. https://doi.org/10.2307/2095417.
Kwak, Y. H., Y. Chih, and W. C. Ibbs. 2009. “Towards a comprehensive understanding of public private partnerships for infrastructure development.” Calif. Manage. Rev. 51 (2): 51–78. https://doi.org/10.2307/41166480.
Lai, H., and W. F. Lee. 2013. “Dimensional analysis model of conflict resolution in everyday setting.” In Proc., Group Decision and Negotiation—GDN 2013, 91–95. Stockholm, Sweden: Univ. of Stockholm.
Landis, J. R., and G. G. Koch. 1977. “The measurement of observer agreement for categorical data.” Biometrics 33 (1): 159–174. https://doi.org/10.2307/2529310.
Li, B., A. Akintoye, P. J. Edwards, and C. Hardcastle. 2005. “Perceptions of positive and negative factors drivers influencing the attractiveness of PPP/PFI procurement for construction projects in the U.K.” Eng. Constr. Archit. Manage. 12 (2): 125–148. https://doi.org/10.1108/09699980510584485.
Liu, M. 2013. “A phasic analysis of strategy sequences and their mediating effects on interaction goals and negotiation outcomes.” Commun. Res. 40 (3): 337–359. https://doi.org/10.1177/0093650211408595.
Liu, T., Y. Wang, and S. Wilkinson. 2016. “Identifying critical factors affecting the effectiveness and efficiency of tendering processes in public-private partnerships (PPPs): A comparative analysis of Australia and China.” Int. J. Project Manage. 34 (4): 701–716. https://doi.org/10.1016/j.ijproman.2016.01.004.
Marques, R. C. 2018. “Is arbitration the right way to settle conflicts in PPP arrangements?” J. Manage. Eng. 34 (1): 05017007. https://doi.org/10.1061/(ASCE)ME.1943-5479.0000564.
McCann, S., G. Aranda-Mena, and P. J. Edwards. 2016. “Public private partnership projects in the operating phase: Three Australian case studies.” J. Strategic Contracting Negotiation 1 (4): 268–287. https://doi.org/10.1177/2055563616634110.
Montoya-Weiss, M. M., A. P. Massey, and M. Song. 2001. “Getting it together: Temporal coordination and conflict management in global virtual teams.” Acad. Manage. J. 44 (6): 1251–1262. https://doi.org/10.2307/3069399.
Moseley, M. 2020. Restoring confidence in public-private partnerships: Reforming risk allocation and creating more collaborative PPPs. Mandaluyong City, Philippines: Asian Development Bank.
Musenero, L., B. Baroudi, and I. Gunawan. 2021. “Application of dual concern theory in elucidating conflict behavior in infrastructure public-private partnership projects.” J. Constr. Eng. Manage. 147 (7): 04021061. https://doi.org/10.1061/(ASCE)CO.1943-7862.0002099.
Ng, S. T., Y. M. Wong, and J. M. Wong. 2012. “Factors influencing the success of PPP at feasibility stage—A tripartite comparison study in Hong Kong.” Habitat Int. 36 (4): 423–432. https://doi.org/10.1016/j.habitatint.2012.02.002.
Okudan, O., and M. Çevikbaş. 2022. “Alternative dispute resolution selection framework to settle disputes in public-private partnership projects.” J. Constr. Eng. Manage. 148 (9): 04022086. https://doi.org/10.1061/(ASCE)CO.1943-7862.0002351.
Opawole, A., and G. O. Jagboro. 2018. “Compensation mechanisms for minimizing private party risks in concession-based public-private partnership contracts.” Int. J. Build. Pathol. Adapt. 36 (1): 93–120. https://doi.org/10.1108/IJBPA-09-2017-0041.
Osei-Kyei, R., A. P. C. Chan, Y. Yu, C. Chen, and A. Dansoh. 2019. “Root causes of conflict and conflict resolution mechanisms in public-private partnerships: Comparative study between Ghana and China.” Cities 87 (Apr): 185–195. https://doi.org/10.1016/j.cities.2018.10.001.
Phibbs, P. 2008. “Driving alone: Sydney’s cross city tunnel.” Built Environ. 34 (3): 364–374. https://doi.org/10.2148/benv.34.3.364.
Poole, M. S., and J. Roth. 1989. “Decision development in small groups V: Test of a contingency model.” Hum. Commun. Res. 15 (4): 549–589. https://doi.org/10.1111/j.1468-2958.1989.tb00199.x.
Poole, M. S., A. H. Van De Ven, K. J. Dooley, and M. E. Holmes. 2000. Organizational change and innovation processes: Theory and methods for research. New York: Oxford University Press.
Pryse, M. 2016. “Australia–liability for the Lane Cove tunnel collapse.” Conventus Law, December 7, 2020.
Purba, L. A. H. 2020. “Creating a successful legal framework for public-private partnerships in Indonesia: Case study of Bantar Gebang landfill.” J. Adv. Res. Dyn. Control Syst. 12 (6): 547–553.
PwC (PricewaterhouseCoopers). 2017. Reimagining public private partnerships. Canberra, Australia: PwC.
Ruuska, I., and R. Teigland. 2009. “Ensuring project success through collective competence and creative conflict in public–private partnerships—A case study of Bygga Villa, a Swedish triple helix e-government initiative.” Int. J. Project Manage. 27 (4): 323–334. https://doi.org/10.1016/j.ijproman.2008.02.007.
Scott, W. A. 1955. “Reliability of content analysis: The case of nominal scale coding.” Public Opin. Q. 19 (Oct): 321–325. https://doi.org/10.1086/266577.
Sharafi, A., M. S. Amalnick, and A. A. Taleizadeh. 2021. “Outcome of financial conflicts in the operation phase of public–private partnership contracts.” J. Constr. Eng. Manage. 147 (6): 04021047. https://doi.org/10.1061/(ASCE)CO.1943-7862.0002011.
Sheridan, P. 2009. “PFI/PPP disputes (part 1).” Eur. Public Private Partnership Law Rev. 4 (2): 92–103.
Sinha, A. K., and K. N. Jha. 2019. “Impact of judicial overreach on PPP construction projects.” J. Leg. Aff. Dispute Resolut. Eng. Constr. 11 (4): 05019006. https://doi.org/10.1061/(ASCE)LA.1943-4170.0000330.
Sinha, A. K., and K. N. Jha. 2020. “Dispute resolution and litigation in PPP road projects: Evidence from select cases.” J. Leg. Aff. Dispute Resolut. Eng. Constr. 12 (1): 05019007. https://doi.org/10.1061/(ASCE)LA.1943-4170.0000336.
Soomro, M. A., and X. Zhang. 2015. “Roles of private-sector partners in transportation public-private partnership failures.” J. Manage. Eng. 31 (4): 04014056. https://doi.org/10.1061/(ASCE)ME.1943-5479.0000263.
Steijn, B., E. Klijn, and J. Edelenbos. 2011. “Public private partnerships: Added value by organizational form or management.” Public Administration 89 (4): 1235–1252. https://doi.org/10.1111/j.1467-9299.2010.01877.x.
Toor, S. U. R., and S. O. Ogunlana. 2008. “Problems causing delays in major construction projects in Thailand.” Construct. Manage. Econ. 26 (4): 395–408. https://doi.org/10.1080/01446190801905406.
UNESCAP (United Nations Economic and Social Commission for Asia and the Pacific). 2011. A guidebook on public-private partnership in infrastructure. Bangkok, Thailand: UNESCAP.
Uwaegbulam, C. 2016. “Government, Bi-Courtney open talks on Lagos-Ibadan expressway project.” The GuardianOnline, April 10, 2021.
Uygun, B. 2015. Dispute resolution in the health sector PPPs: The Turkish experience. Istanbul, Turkey: Balcıoğlu Selçuk Akman Keki.
Vaara, E., R. Sarala, G. K. Stahl, and I. Björkman. 2012. “The impact of organizational and national cultural differences on social conflict and knowledge transfer in international acquisitions.” J. Manage. Stud. 49 (1): 1–27. https://doi.org/10.1111/j.1467-6486.2010.00975.x.
Waddington, D. 1992. “Towards a model of strike organization: Meanings and their management.” In Organizational change and innovation: Psychological perspectives and practices in Europe, edited by D. M. Hosking and N. Anderson. London: Routledge.
Walker, D. M., T. Walker, and J. Schmitz. 2003. Doing business internationally—The guide to cross-cultural success. New York: McGraw-Hill.
Wenguang, Y. U. 2019. “Dispute resolution mechanisms of PPP agreements in China: A research based on judicial decisions.” Front. Law China 14 (3): 360–386.
Wombacher, K. 2017. “Intercoder reliability techniques: Scott’s pi.” In The Sage encyclopedia of communication research methods, 753–755. Thousand Oaks, CA: SAGE.
World Bank Group. 2021. “Private participation in infrastructure (PPI).” Accessed April 3, 2021. https://ppi.worldbank.org/en/ppidata.
Zhang, L., and X. Huo. 2015. “The impact of interpersonal conflict on construction project performance: A moderated mediation study from China.” Int. J. Conflict Manage. 26 (4): 479–498. https://doi.org/10.1108/IJCMA-09-2014-0072.
Zheng, X., Y. Liu, J. Jiang, L. M. Thomas, and N. Su. 2021. “Predicting the litigation outcome of PPP project disputes between public authority and private partner using an ensemble model.” J. Bus. Econ. Manage. 22 (2): 320–345. https://doi.org/10.3846/jbem.2021.13219.
Information & Authors
Information
Published In
Journal of Construction Engineering and Management
Volume 149 • Issue 3 • March 2023
Copyright
© 2023 American Society of Civil Engineers.
History
Received: Jul 6, 2022
Accepted: Oct 27, 2022
Published online: Jan 2, 2023
Published in print: Mar 1, 2023
Discussion open until: Jun 2, 2023
ASCE Technical Topics:
- Bibliographies
- Business management
- Construction costs
- Construction engineering
- Construction management
- Data analysis
- Dispute resolution
- Engineering fundamentals
- Information management
- Infrastructure
- Legal affairs
- Lifeline systems
- Methodology (by type)
- Practice and Profession
- Project management
- Public private partnership
- Research methods (by type)
Authors
Metrics & Citations
Metrics
Citations
Download citation
If you have the appropriate software installed, you can download article citation data to the citation manager of your choice. Simply select your manager software from the list below and click Download.
Cited by
- Gabriel Castelblanco, Jose Guevara, Stakeholder Dynamics: Rethinking Roles and Responsibilities in User-Pay Transport PPP Projects, Journal of Construction Engineering and Management, 10.1061/JCEMD4.COENG-14477, 150, 8, (2024).