3.7 Providing service providers a "handle" on their PPP project

Finding 7

Service providers are poorly informed about the difference between PPP and traditionally procured facilities, restricting their effectiveness in the PPP facility.

During the workshops, it sometimes appeared to the authors that while service providers were experts within their respective professional fields, it was less evident that most understood the principles and details of the PPP procurement model. All displayed an appetite to learn more of the commercial and service delivery principles of the PPP model. Many service providers reported a low or poor knowledge or understanding of the PPP contract applying to their project, stating that they did not have access to a copy. Some also felt that they didn't need to be knowledgeable of the contract,26 they just needed to press and ensure they obtained the FM services and works they required to effectively and efficiently deliver to their client community's needs.

A few contract managers made a point of stating in workshops that part of their job was to remind service providers where the boundaries of responsibilities and accountabilities were in the PPP contract. They pointed to a shift in attitudes from a non-PPP facility where if they wanted a FM matter attended to, they took the responsibility to find the resources to manage it, to a PPP facility where they just put in an order without the same sense of responsibility.

Great interest was expressed by service providers during workshops in understanding the PPP model and how they can engage to continuously improve the services they obtain from the PPP contract. It appears there is currently a shortfall in the breadth and rigour with which service providers in management positions are orientated and informed to work effectively and efficiently in a PPP project. To paraphrase one service provider, "you learn on the job, you don't arrive [at the PPP project] with a good handle on how to maximise your part of the relationship".

Several service providers reported some mistrust of the FM operator's costings of new work or variations initiated by them. This mistrust was particularly strong in the few instances where the relationship with the on-site FM operator was poor (see also Section 4.1). In this latter case, the service providers also felt that the on-site FM operator was gaming the reporting and recording of FM issues, and employed an inflexible interpretation of the contract to avoid solving issues. These service providers expressed a strong appetite to consult on the strategies used by other service providers, and would welcome an understanding of how they could provide a regular performance review of their on-site FM operator and be part of an escalation process for issues that involved them directly.

The discussions in workshops highlighted that participants had a strong desire for forums, across different sectors, that would provide a platform for on-going sharing of lessons learnt. Service providers stated they would welcome the introduction of such forums, and some contract managers highlighted the importance of existing whole-of-jurisdiction forums and the current national forum.