Good Management and Good Governance Principles in PPP Projects, Similarities with the "Integrated Design and Build" and "Integrated Project Delivery" models, Current Status of the Construction Industry, Traditional Project Delivery Model, Radical Changes in Construction Industry, New Trends in Construction Industry, Typical Characteristics of PPP Projects, System of Management in PPP Projects,

1. International Engineering Forum
Good Management
in PPP Projects
28 - 29 November, 2014 / Istanbul
Haluk DO)ANÇAY

2. Construction industry since 2000 years..

3. Survival of the Construction Industry..
Productivity of construction industry decreased constantly, in the last 50 years..
Strong need for a revolutionary development has emerged in the 90’s..
The major problem area was «disconnected nature of designing & building processes»

4. First radical change introduced in 90’s..
2 Processes Combined…:
DESIGNING and BUILDING..
Planning Design Construction Operation
Planning Design Construction
Time Saving..
Operation
Defects are always at junction points…
3 Processes Combined…:
DESIGNING, BUILDING and
OPERATING..

5. Project Stakeholders vs Delivery Models
Developer
Investor
Designer
Builder
Operator
D
&B
D
&B
O
D
&BF
Financier
Public Authority
O PPP
From Traditional
Disconnected/Partial
Different Targets
Profit Maximization
Partial Sharing of R&R
Win-Loose Relationship
Reactive Behavior
To Contemporary
Multidisciplinary/Holistic
Flexible
Value Maximization
Sharing of R&R
Win-Win Relationship
Proactive Behavior

6. Product
Delivery
I
nv
est
ment
De
Life Cycle Targets
Planning Design Construction Operation
ci
si
on
Pr
oduct
Del
i
v
er
y
F i n a n c i n g
M a r k e t i n g
Accumulated Changes
MARKET DYNAMICS TECHNOLOGICAL CHANGES
Conventional Team Play
Disconnected, Partial
Different Targets of Each Player
Profit Maximization
Partial Sharing of Risk&Reward
Win-Loose Relationship
Reactive Behavior
Stagnant Concept &
Scope Management

7. I
nvest
me
ntDeci
si
Life Cycle Targets
Strategic Planning Design Construction Operation
o
n
F i n a n c i n g
M a r k e t i n g
BOx, IDB, IPD, PFI, PPP, LEAN, BIM,
MARKET DYNAMICS TECHNOLOGICAL CHANGES
New Rules of Team Play
Multidisciplinary/Holistic
Flexible
VALUE Maximization
Sharing of Risk & Reward
Win-Win Relationship
Proactive Behavior
Dynamic Concept & Scope Management
Strategic Targets
Financial
Technical
Social
Economical
C o n t i n u o u s a n d H i g h e r C h a n g e V e l o c i t y

8. New Trends in Construction Industry
• Integrated Design and Build and Delivery Models / D&B, IDB, IPD…
• Building Information Modelling / BIM
• Lifecycle Costing / LCC and Sustainability
• LEAN Construction Principles / LC
• Best Value Procurement / BVP
• Multidisciplinary Team work and Collaboration
• Improved Communication Techniques
• Innovation and Creativity
• Flexibility
• Openness and Transparency
• Mutual Trust
• Win-Win Contractual Relationship
• Moving from Engineering to Entrepreneurial

9. Typical Characteristics of PPP Projects
• Integrated Project Delivery / IDB
• Lifecycle Costing / LCC and Sustainability
• LEAN Construction
• Best Value Procurement / BVP
• Collaborative Working
• Improved Communication
• Innovation and Creativity
• Flexibility
• Openness and Transparency
• Mutual Trust
• Fair Sharing of Risk & Reward
• Entrepreneurial Approach
Same DNA in IPD and PPP
From the molecules of life
to the molecules of business success…

10. Designer is the sub-contractor of the general contractor..

11. Designer is in partnership with the general contractor…

12. Designer - Owner - General Contractor
are in partnership…

13. System of Management in PPP Projects
Business Model
Choices a PPP Organization
make about:
- Sources of revenue
- Cost structure
- What to make / buy
- How to make a profit
Management Model Choices PPP Organizations
make about:
- Coordinating activities
- Making decisions
- Motivating the team
- Defining objectives
Ref: Prof. J.Birkinshaw, London Business School

14. Framework for Management Principles
TRADITIONAL >>> ALTERNATIVE
Coordinating Activities
Bureaucracy Emergence
Making Decisions
Hierarchy Collective Wisdom
Motivating Team
Extrinsic Intrinsic
Defining Objectives
Alignment Obliquity
Ref: Prof. J.Birkinshaw, London Business School
P
UBLIC
P
RIV
AT
E

15. Good Management vs Good Governance
Participation
Degree of involvement
Decency
Respect to the rules
Transparency
Clarity and openness of the decisions
Accountability
Responsibility to the society
Fairness
Equally applied rules to everyone
Efficiency
Sustainability
Vivid
Vision
Best
People
Robust
Communi
-cation
Sense
of
Urgency
Extreme
Customer
Focus
Disciplined
Execution

16. h.dogancay@projeyonetim.com