Abstract

The European Union (EU) is reforming its public services and suggesting Public‐Private Partnerships (PPPs) as a solution for producing high quality and cost effective real estate service delivery. However, the use of PPP approach in real estate industries has been found to have significant constraints related to the end‐users’ (general public's) perspective. The purpose of the paper is to show how PPP projects have failed to produce desirable characteristics expressed in purchasing processes and fulfilment of the end‐user expectations. While the customer‐oriented development of public services and the needs of the end‐users were noted to be crucial points in all five major Finnish PPP projects studied, the case studies pointed out a fundamental lack of understanding and maintaining the end‐user perspective through the tendering and evaluation processes. Especially, in the final stage of evaluation, and evaluation criteria used to decision making, the disappearance of the end‐users’ perspective was evident. The findings are further used to develop a new suggested Public‐Private‐People Partnership (4P) model. The results can be useful to the public sector's purchasers and to the private sector's providers to understand the limitations of current PPP practices and to further develop their practices towards more customer‐oriented service production. Santrauka Europos Sąjunga (ES) vykdo viešųjų paslaugų reformą ir viešąsias bei privačiąsias partnerystes (VPP) siūlo kaip sprendimą teikti pigias ir kokybiškas nekilnojamojo turto paslaugas. Tačiau pastebėta, kad nekilnojamojo turto sektoriuose VPP požiūris susiduria su reikšmingais suvaržymais, kurie yra susiję su galutinių vartotojų (plačiosios visuomenės) perspektyva. Šiame darbe siekiama pademonstruoti, kaip VPP projektams nepavyko pasiekti pirkimo procesuose numatytų pageidaujamų charakteristikų ir patenkinti galutinio vartotojo lūkesčius. Nors visi penki pagrindiniai Suomijos VPP projektai, kurie yra nagrinėjami darbe, į klientą orientuotą viešųjų paslaugų plėtrą ir galutinių vartotojų poreikius nurodo kaip svarbiausius punktus, atvejo tyrimai parodė, kad gebėjimo suprasti bei išlaikyti galutinio vartotojo perspektyvą iš esmės trūko ir organizuojant konkursus, ir vertinant. Galutinio vartotojo perspektyvos išnykimas ypač akivaizdžiai išreiškia galutinis vertinimo etapas ir vertinimo kriterijai, kuriais grindžiami sprendimai. Išvados pritaikytos plėtojant naują siūlomą viešosios bei privačiosios žmonių partnerystės (VPŽP) modelį. Rezultatai naudos gali duoti viešojo sektoriaus pirkėjams ir privačiojo sektoriaus tiekėjams, siekiant suprasti esamų VPP praktikų ribotumą ir toliau plėtojant savo praktikas, kad teikiamos paslaugos būtų labiau orientuotos į klientą.

Highlights

  • The member states of the European Union (EU) are reforming their public services and discussing alternatives for producing future public services for their citizens (Bode, 2006; European Commission, 2004a)

  • This paper aims to provide insight on what an innovative evaluation process and customer-oriented evaluation criteria in PublicPrivate Partnerships (PPPs) could be in practice

  • An evaluation framework is developed based on end-users’ advantage and public material related to bidding processes, and several real estate projects using a PPP approach have been analysed from the perspective of the end-user

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Summary

Introduction

The member states of the European Union (EU) are reforming their public services and discussing alternatives for producing future public services for their citizens (Bode, 2006; European Commission, 2004a). Partnership (PPP) is considered as one solution for producing quality, cost effective public services related to the real estate industry, and PPPs have an important role in the EU’s Internal Market Strategy (European Commission, 2003a and 2004b). Discussion of PPP benefits has moved from “Value-for-Money” (VFM) and cost-effectiveness to more innovative development of public service structures in partnership with the private sector (Yliherva, 2006; Demirag et al, 2004; Brunila et al, 2003; CIC, 2000). Since Brunila et al (2003) noted customer-orientation and innovativeness as the key-elements in the development process of public service structures in Finland, the Finnish Innovation Fund (Sitra) conducted several studies into issue and has setup a special program to increase profitability, effectiveness, and co-operation between the public and private sectors. The public sector in Finland is seeing at alternative ways to fulfil its legal service delivery requirements in the future (Barr, 2007; Yliherva, 2006; Brunila et al, 2003)

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