open day, 22 march 2012 ppp in transport: trends & theory intended and realized public...

Open Day, 22 March 2012 PPP in Transport: Trends & Theory

Intended and realized public objectives in transport

infrastructure projects through the competitive dialogue

Mieke Hoezen, Hans Voordijk and Geert Dewulf


Public objectives of the competitive dialogue

• Procurement method for complex projects• Several discussion rounds between procuring agency and

contractors• Introduced by the European Commission (EC) in 2004• Direct EC-objectives of the competitive dialogue (CD)

Stimulate more dialogue Stronger competitionMore innovative solutionsMore mutual trust


Public objectives of the competitive dialogue

• Indirect EC-objectives of the CDReduction of the project complexityProper allocation of tasks and risks between procuring

agency and contractor Increase project qualityDecrease in time overrunDecrease in cost overrun


Practitioners’ evaluations• Actual design of the CD could work against its public

objectives• Which mechanisms determine to what extent public

objectives of the CD procedure are realized?• Ex ante evaluation

Experts’ opinion on expected effected of the CD procedure

• Ex post evaluationPerceived effects of the CD procedure in practice


Ex ante evaluation• Expert’ expectations of the effects of the CD procedure• Interviews with 33 experts: academics, legal experts,

procuring agents, contractors and advisors• Semi-structured interviews – three parts

general opinion on the CD procedurepositive and negative elements of the CD procedureeffects CD procedure in terms of

project controlEC-objectives


Ex post evaluation• Twelve transport infrastructure construction projects

procured through the CD procedure• For each project: questionnaires sent to contractors and

procuring authorities• Questions on

respondent and project characteristicsexperiences with the CD procedure in the project


Mechanisms effecting the EC’s objectives of the CD

• Formal mechanisms Contract Formal proceduresMonitoring policies

• Informal mechanisms NormsValuesRoutines


Mechanisms effecting the EC’s objectives of the CD


Informal mechanisms effecting the EC’s objectives

European Commission’s objectives

Mechanisms within the CD procedure

Direct objectives

Indirect objectives

Dia

logu

e

Com

petiti

on

Inno

vatio

n

Trus

t

Redu

cing

co

mpl

exity

Prop

er ta

sk a

nd

risk

allo

catio

n

Proj

ect q

ualit

y

Dec

reas

e in

tim

e ov

erru

n

Dec

reas

e in

co

st o

verr

un

Info

rmal

m

echa

nism

s

Conversation + + + + + + + +

Focus on content + + + - -

Risk aversion - - - - - -

Opportunistic behaviour - - - -

Little information exchange - - - - -


Formal mechanisms effecting the EC’s objectives

European Commission’s objectives

Mechanisms within the CD procedure

Direct objectives

Indirect objectives

Dia

logu

e

Com

petiti

on

Inno

vatio

n

Trus

t

Redu

cing

co

mpl

exity

Prop

er ta

sk a

nd

risk

allo

catio

n

Proj

ect q

ualit

y

Dec

reas

e in

tim

e ov

erru

n

Dec

reas

e in

co

st o

verr

un

Form

al

Mec

hani

sms

Protecting contractors’ interests + + - + Flexibility in demand specifications + + + + + At least three candidates making a final bid + - Design fee + Level playing field + + - - - Transaction costs - - - - Lack of clarity over when to use - -


Reaching the direct EC’s objectives

European Commission’s objectives Mechanisms within the CD procedure

Direct objectives

Dia

logu

e

Com

petiti

on

Inno

vatio

n

Trus

t

Info

rmal

m

echa

nism

s

Conversation + + +

Focus on content + +

Risk aversion - - - -

Opportunistic behaviour - -

Little information exchange (lack of openness) - - -

Form

al

Mec

hani

sms

Protecting contractors’ interests + + - + Flexibility in demand specifications + + At least three candidates making a final bid + - Design fee + Level playing field + + Transaction costs - - Lack of clarity over when to use -


Reaching the indirect EC’s objectives

European Commission’s objectives Mechanisms within the CD procedure

Indirect objectives

Redu

cing

co

mpl

exity

Prop

er ta

sk a

nd

risk

allo

catio

n

Proj

ect q

ualit

y

Decr

ease

in

time

over

run

Decr

ease

in

cost

ove

rrun

Info

rmal

m

echa

nism

s

Conversation + + + + +

Focus on content + - -

Risk aversion - -

Opportunistic behaviour - -

Little information exchange (lack of openness) - -

Form

al

Mec

hani

sms

Protecting contractors’ interests Flexibility in demand specifications + + + At least three candidates making a final bid Design fee Level playing field - - - Transaction costs - - Lack of clarity over when to use -


To what extent are public objectives of the CD realized?

• Direct objectives Less dialogue than intendedMore competition than intended Less trust than intended Innovation stimulated as expected

• Indirect objectivesPrice-quality ratio positively assessedNo reduction of the project complexity

open day, 22 march 2012 ppp in transport: trends & theory intended and realized public...

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