Finding 3 Service providers (82 per cent) expressed a strong appreciation of the quality of services provided by the Facility Management (FM) operator in a PPP facility. Satisfaction level with service quality is strongly influenced by the experience level and relationship between service providers, contract managers and FM operators. |
The quality level of services being provided in PPP facilities was assessed via contract documentation, and survey and workshop participation. From a contractual perspective, PPPs unequivocally deliver a high standard of service due to contractual obligations. The perceptions of service providers and contract managers also confirmed a high level (82 per cent) of service being provided during the operation stages of the PPP facility. It was found that perception levels were highly influenced by the quality of the relationship between FM operators, service providers and contract managers, as well as the relative experience level of the various parties.
Service providers and contract managers reported, and this was confirmed in review of contract documentation made available by jurisdictions, that the PPP projects were overwhelming delivering satisfactorily on their contracted services.
As expressed by one contract manager, in PPP projects there is more pressure on getting the service right, with greater accountability than in a non-PPP project. This resulting in a heightened focus on the FM operator performing to the requirements of the Contract. This contract manager thought that while this may also make for a risk-averse approach, the PPP model does allow for innovation and to react quickly with focus on providing the contracted and even improved services to the service provider.
Given the long-term nature of the multitude of contracts investigated, it was reasonable to expect cases of KPIs not being met or of other contract breaches resulting in abatements to payments. When contract managers were asked to comment on such cases in their projects, it was found that the application of contractual abatements range from "regularly" to "never," for fear of relationship damage. However, the fear appeared unfounded as those contract managers that did abate reported changes leading to better, mature and positive relationships. These contract managers reported that abatements were managed through contractual processes and the services were quickly brought back on track.
Most contract managers indicated that constant attention is needed by both themselves and the FM operator to ensure optimum service delivery to the service providers. This was a view shared by service providers. It was also observed that as the contract managers and the FM operators gain experience and expertise, and new generations of PPP contracts are entered into, operations and ease of contract management improve.
Some service providers reflected that the performance of the PPP project was enhanced by the maturity of personnel (both public and private sector) to deal with the reality of operations, and manage the relationship clauses in the PPP contract. They felt that mature discussions lead to speedy resolution of issues. One contract manager observed that 70 to 80 per cent of issues and their solution in the PPP facility and service contract are similar to those faced in a non-PPP facility.
Service providers and contract managers both felt it was important not to allow performance and attention to service quality to drift over time. Some expressed the view that the drift can be towards "what the contract says" rather than working the relationships to optimise mutual benefit. All were of the view that contract management was not "set and forget".
Contract managers also observed that in social infrastructure PPPs they needed to develop strong service provider relationships, more so than compared to managing economic infrastructure PPPs. Some suggested that management of social infrastructure PPPs projects required more processes and structure, including the escalation of issues, to ensure that the multitude of KPIs, stakeholder action items, outstanding FM matters and other issues were addressed in a timely manner.
When pressed for details, school-based service providers were generally of the view that they were best serviced when the on-site FM operator:
• was responsive and engaged with their activities and the educational objectives of the school
• approached the role with good-will and a "can do" attitude rather than seeking to hide behind the contract24
• acted in a manner responsive to maintaining and advancing the school environment that mirrored a diligent caretaker in a non-PPP school, and
• had a natural aptitude for service.
The service providers were also of the view that such desirable characteristics of the on-site FM operator need to be enabled by the head FM operator. The FM operator needing to be engaged in enabling a strategic, rather than transactional, service. A service should be responsive and tailored to their specific needs and their way of operating. Some service providers, for example, stated the process of logging jobs can get in the way of them servicing their client community in a timely manner.
Another clear theme emerged that superior outcomes with PPP facilities and services are linked to not only a strong on-site facility management team but also open lines of communication with the PPP Project Co. This is discussed further in Section 4.1.
It is worth noting that, while service providers were not shy in highlighting areas of improvement for FM provision (such as maintenance, upgrades and new works) and the service provided by their on-site FM operator, most also quickly acknowledged when prompted that their on-site FM operator had a service-friendly orientation ("they are here to help and they do help").