A lack of capability or expertise can lead to tensions between public and private partners and, if not remedied, could lead to service delivery under-performance. Service delivery and the quality of public partner contract management skills including monitoring performance targets ought to be effective if governments are to achieve VfM outcomes (Edwards et al 2004: p.63). It is claimed that there are cases of insufficient corporate experience among public partner employees and a lack of understanding of commercial principles (Organisation for Economic Co-operation and Development 2007: p.20). Furthermore, poor co-ordination skills have the potential to impact on the public partner's ability to successfully manage PPP outcomes (Yuan et al 2009). See Table 6.6 for identified sub-issues and case study examples.
Table 6.6 Sub-issues Arising From Employee Capability and Expertise.
Sub-issues | Generic case study findings |
- Roles and responsibilities - Subject matter knowledge and applicability | - The structure of government statutory authorities may impinge upon its ability to effectively manage its contractual responsibilities, fulfil its ministerial reporting obligations, and may, in some instances, put public safety at risk - A lack of resourcing can make it difficult for public partner contract managers to monitor the effectiveness of service provider performance - Skill limitations may impact on the public partner's ability to effectively manage service contracts which could hinder the achievement of genuine VfM outcomes and compromise public safety. Losing key employees could lead to corporate memory loss |