Performance Reliability of Public-Private Partnerships and their Application Potential in Housing Sector

Building construction is often triggered with chaos and complexity, amidst enforced challenging conditions and holds a great responsibility for establishing reliable schedules and targets. Projects are problem oriented, dynamic and will usually require inter-disciplinary effort. The use of integrated processes can facilitate the multiple functions into one thread, and can bring a revolutionary change if integrated well with other systems of the project. These integrated processes spread over the timeline of project, affect their performance and efficiency. There is a need to optimize the planning and construction processes and attempt to reduce the risks and uncertainties affecting a project.

‘Cost of risks involved is a factor that needs our thorough attention.' The amount of risks and uncertainties involved in our projects needs greater consideration. Public-Private Partnerships are one such propagated arrangements that are built-up with varied risk sharing models. But, are PPPs reliable for their performance? And with many propagated benefits, Public-Private Partnerships are widely utilized in institutional, infrastructure or commercial sectors, but raises a question on its rare utilization in the housing sector.

‘Why not PPP in Housing?’

This research thereby gains high motivation from this question itself and inspires us to analyze and assess its feasibility of application in the housing sector. The underlying objective is to understand the performance parameters across the sectors and assess their flexibility and possibility of utilization in housing.

This research, therefore, focuses on the key question that does PPP deliver economic benefits in planning, building and housing sector. It would attempt the development of a business case for PPP in Housing. The process would be a parametric study identifying the performance parameters of Public-Private Partnerships and possible innovations in the PPP approach for improving economic success and their feasible application in housing sector. This would also encompass studying various forms of PPP, their sensitivity to the project parameters and the existing uncertainties and risks affecting their performance. The study shall be conducted through structured interviews, surveys and market case studies and assess and analyze the trends through sensitivity analysis and Monte-Carlo simulation to develop a toolkit for application of PPP in Housing.