Managing economic feasibility and social relationships: interventions to prevent dysfunctional conflict in public–private partnerships

Abstract

Large engineering projects such as urban development projects that are organised as public–private partnerships (PPPs) often encounter critical problems that directly affect the partnerships. Literature indicates that characteristics specific to PPPs contribute to these critical problems becoming dysfunctional conflicts. Consequently, objectives are no longer met and projects suffer. This study identified interventions that prevent these dysfunctional conflicts. In the literature, no interventions at an operational level that are suitable for use ‘at the negotiating table’ and are also applicable for urban development PPP projects were found. Hence, based on a review of literature on interventions, a perspective for action was developed on interventions that are likely to succeed. Subsequently, in a study of 10 cases of urban development PPP projects, these (and other) interventions were found. All interventions can be categorised under economic feasibility or social relationship. We conclude that dysfunctional conflicts in urban development PPP projects can be prevented by managing economic feasibility and social relationships. Under certain conditions, this also seems applicable to other PPPs.