3.4 The PPP projects deliver service outcome to expectations

Finding 4

All service providers agreed that the PPP model provides similar flexibility provisions to traditional procurement models.

Service providers stated that the PPP model was not usually inflexible when seeking change. Service providers were generally of the view that overall PPPs are "flexible", being in this regard no better and no worse compared to non-PPPs. As a service provider stated, "we get changes done in PPPs and there is a process to follow," noting that in the traditional setting there were other processes and other types of obstacles to overcome.

However, a few service providers reported that some details in the PPP contract were applied in a way that restricted their flexibility unduly. One such example was the restriction in painting a mural on an external wall (see Section 4.5). Another example was the ability of schools to refresh furniture and equipment through the sale of old stock to partially fund new stock.

Flexibility can be improved through "no-fault, no-blame" changes to KPIs and minimising the administrative cost or effort of changing KPIs (especially where contracts have approximately 100 KPIs). The view from service providers and contract managers was that the PPP arrangements should be outcome-focused and less prescriptive, so that the "small stuff" can be resolved on-site and not take a long time.

A contract manager, whose comments were confirmed by others present in the workshop, stated that the 'service' was better at the PPP facility compared to an non-PPP, and although over time management usually make various changes to the PPP facility (as indeed happens in the non-PPP), this does not change the level of satisfaction experienced by the service providers.