Value for money drivers in public private partnership schemes

Purpose – The purpose of this paper is to investigate value for money drivers in public private partnership (PPP) schemes. Design/methodology/approach – Three case studies of PPP construction projects in the UK were undertaken. Findings – PPP contracts commonly require the private agent to take responsibilities for the performance of the asset over a long term, at least for a significant part of its useful life, so that efficiencies arising from long term asset management can be obtained. The evidence is finely balanced on the usefulness of such initiatives in realizing efficiency gains, although there is clear benefit of risk transfer. Practical implications – The findings highlight the challenge of designing and implementing innovative partnership plans to manage public services more effectively. More emphasis needs to be placed on strategies for the transfer of risk, value for money drivers and project expertise for the successful conclusions of PPP contracts. Originality/value – The paper contributes to the new research area of public private partnership