Full-text resources of CEJSH and other databases are now available in the new Library of Science.
Visit https://bibliotekanauki.pl


2008 | 12 | 1 | 1-17

Article title

End-User Oriented Public-Private Partnerships in Real Estate Industry


Title variants

Į Galutinį Vartotoją Orientuotos Viešosios IR Privačiosios Partnerystės Nekilnojamojo Turto Sektoriuje

Languages of publication


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.
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 tuko 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.









Physical description


  • Project Management, YIT Construction Ltd., P.O Box 36, FIN 00621 Helsinki
  • Faculty of Construction Economics and Management, The Helsinki University of Technology, Finland
  • Faculty of Architecture, Building and Planning, The University of Melbourne, 29 Canterbury Road, Middle Park, 3206 VIC, Australia
  • Faculty of Construction Economics and Management, The Helsinki University of Technology, Finland


  • Abednego, M.P. and Ogunlana, S.O. (2006) Good project governance for proper risk allocation in public-private partnerships in Indonesia,International Journal of Project Management, 24(7), pp. 622-634.
  • Abell, P. (1996) Sociological theory and rational choice theory. In Turner, B. (ed.)The Blackwell Companion to Social Theory, Oxford: Blackwell Publishers.
  • Ahmed, S. and Ali, S. (2006) People as partners: Facilitating people's participation in public-private partnerships for solid waste management,Habitat International, 30(4), pp. 781-796.
  • Akintoye, A., Hardcastle, C., Beck, M., Chinyio, E. and Asenova, D. (2003) Achieving best value in private finance initiave project procurement,Construction Management and Economics, 21(5), pp. 461-470.
  • Aronen, K. (2003) Hyvinvointikunta muutoksessa [Welfare community in transitions]. In Lundström, I. (ed.)Parasta palvelua - selvitys kuntapalveluiden järjestämisen vaihtoehdoista[Best service - Report of alternatives in municipality services], PRAKSIS-tiedosta toimeen, No. 9, Suomen Kuntaliitto, Helsinki. (In Finnish)
  • Barr, D. (2007) Ethics in public health research: A research protocol to evaluate the effectiveness of public-private partnerships as a means to improve health and welfare systems worldwide,American Journal of Public Health, 97(1), pp. 19-25.
  • Bauman, Z. (2001) Consuming life,Journal of Consumer Culture, 1(1), pp. 9-29.
  • Bauman, Z. (2002)Liquid modernity.Cambridge: Polity Press.
  • Bauman, Z. (2007) Collateral casualties of consumerism,Journal of Consumer Culture, 7(1), pp. 25-56.
  • Bode, I. (2006) Disorganized welfare mixes: voluntary agencies and new governance regimes in Western Europe,Journal of European Social Policy, 16(4), pp. 346-359.
  • Brunila, A., Jokinen, H., Kerola, H., Mäkitalo, R. and Putkonen, C. (2003) Hyvinvointipalvelujen turvaaminen [Saving the welfare services],Valtiovarainministeriön julkaisuja, Vol. 4. Edita Prima Oy, Helsinki. (In Finnish)
  • CIC (2000)The Role of cost savings and innovations in PFI.London: Tomas Telford.
  • Demirag, I., Dubnick, M. and Khadaroo, M.I. (2004) A framework for examining accountability and value for money in the UK's private finance initiative,Journal of Corporate Citizenship, 15, pp. 63-76.
  • Dixon, T. and Pottinger, G. (2006) Lessons from real estate partnerships in the UK: drivers, barriers and critical success factors,Property Management, 24(5), pp. 479-496.
  • Earl, G. and Regan, M. (2003) From the three P's to the three W's: Public Private Partnerships and Beyong,The Australian Property Journal, 37, pp. 527-533.
  • Edwards, P. and Shaoul, J. (2003) Partnerships: for better, for worse?Accounting, Auditing & Accountability Journal, 16(3), pp. 379-421.
  • EIC (2003)EIC White Book on BOT/PPP.European International Contractors.
  • Esping-Andersen, G. (1990)The Three Worlds of Welfare Capitalism.Cambridge: Polity Press.
  • El-Gohary, N.M., Osman, H. and El-Diraby, T.E. (2006) Stakeholder management for public private partnerships,International Journal of Project Management, 24(7), pp. 595-604.
  • European Commission (2003a)Internal market Strategy, Priorities 2003-2006.[Online] Brussels, European Commission, 7.5.2003 COM (2003) 238 final. Available at:http://eurlex.europa.eu/LexUriServ/site/en/com/2003/com2003_0238en01.doc
  • European Commission (2003b)Guideline for successful public-private-partnerships (March 2003).[Online] Brussels, European Commission. Available at:http://europa.eu.int/comm/regional_policy/sources/docgener/guides/ppp_en.pdf
  • EuropeanCommission (2004a) Green Paper - On Public-Private-Partnerships and Community Law on Public Contracts and Concessions.[Online] Brussels, European Commission, 30.4.2004 COM (2004) 327 final. Available at:http://eur-lex.europa.eu/LexUriServ/site/en/com/2004/com2004_0327en01.pdf
  • European Commission (2004b)A report on the functioning of public procurement markets in the EU: benefits from the application of EU directives and challenges for the future 03/02/2004.[Online] Brussels, European Commission. Available at:http://ec.europa.eu/internal_market/publicprocurement/docs/public-proc-market-final-report_en.pdf
  • Gaffney, D. and Pollock, A.M. (1999) Pump priming the PFI: why are privately financed hospital schemes being subsidised?Public Money & Management, 17(3), pp. 11-16.
  • Grimsey, D. and Lewis, M. (2002) Evaluating the risks of public private partnerships for infrastructure projects,International Journal of Project Management, 20(2), pp. 107-118.
  • Heap, S., Lyons, B., Hollins, M., Sugden, R. and Weale, A. (1992)The Theory of Choice: A Critical Guide.Cambridge: Wiley-Blackwell.
  • HM Treasury (2003)PFI: meeting the investment challenge.[Online] July 2003. Available at:http://www.hm-treasury.gov.uk/media//648B2/PFI_604.pdf
  • HM Treasury (2004)Standardisation of PFI Contracts (SoPC).[Online] Version 3, April 2004. Available at:http://www.hm-treasury.gov.uk/media/B42/D9/pfi_sopc_ver3_complete_apr04.pdf
  • IPPR (2001)Building Better Partnerships.London: Institute of Public Policy Research.
  • Kaya, S. (2004) Relating building attributes to end user's needs: "the owners-designers-end users" equation,Facilities, 22(9/10), pp. 247-252.
  • Kuntaliitto (2003) Best service - Report of alternatives in Municipality services. In: Lundström, I. (ed.)Parasta palvelua - selvitys kuntapalveluiden järjestämisen vaihtoehdoista, Suomen Kuntaliitto, Helsinki. (In Finnish)
  • Laine, V. (2006)Julkisten kumppanuushankkeiden kilpailuttamisesta[Procurement processes in public purchasers]. Helsingin yliopisto, Oikeustieteellinen tiedekunta, Helsinki. (In Finnish)
  • Laine, V. and Junnonen, J.-M. (2006)Julkisen elinkaarihankkeen hankintaopas[Guide to purchase a life cycle approach project]. The Confederation of Finnish Construction Industries, Helsinki. (In Finnish)
  • Majamaa, W. (2004) Julkis-yksityinen yhteistyo rationaalisen kuluttajayhteison nakokulmasta [Public private partnerships from the perspective of a group of rational consumers],Kunnallistieteellinen aikakauskirja, Vol. 2, pp. 150-166. (In Finnish)
  • Majamaa W. (2005) Evaluation of proposals for PPP projects from the perspective of a group of rational consumers. In: Kähkönen, K. and Sexton, M. (ed.)Combining Forces - Advancing Facilities Management & Construction through Innovation Series, 11th Joint CIB International Symposium, June 13-16, 2005, Helsinki, Finland. Vol. IV, Section II, pp. 200-213.
  • Mattar, M.H. and Cheah, C.Y.J. (2006) Valuing large engineering projects under uncertainty: private risk effects and real options,Construction Management and Economics, 24(8), pp. 847-860.
  • Miljkovic, D. (2005) Rational choice and irrational individuals or simply an irrational theory: A critical review of the hypothesis of perfect rationality,Journal of Socio-Economics, 34(5), pp. 621-634.
  • Nisar, T. (2007) Risk management in public-private partnership contracts,Public Organization Review, 7(1), pp. 1-19.
  • Piekkola, L. (2003) Omasta palvelutuotannosta vaihtoehtojen maailmaan [From public production to world of alternatives]. In: Lundström, I. (ed.)Parasta palvelua - selvitys kuntapalveluiden järjestämisen vaihtoehdoista, Suomen Kuntaliitto, Helsinki. (In Finnish)
  • Pohjonen, M. (2006)Julkisen elinkaarihankkeen kilpailuttamisopas[Guide to make public procurement]. Helsinki. (In Finnish)
  • Public Procurement Act (1505/1992) [Online] Available at:http://www.finlex.fi/en/laki/kaannokset/1992/en19921505.pdf
  • Rohlf, W. (1996)Introduction to Economic Reasoning.3rd edition. Addison-Wesley Publishing Company, Inc, USA.
  • Shaoul, J. (2005) A critical financial analysis of the Private Finance Initiative: selecting a financing method or allocating economic wealth?Critical Perspectives on Accounting, 16(4), pp. 441-471.
  • Shen, L.-Y., Platten, A. and Deng, X.P. (2006) Role of public private partnerships to manage risks in public sector projects in Hong Kong,International Journal of Project Management, 24(7), pp. 587-594.
  • Thobani, M. (1999) Private infrastructure, public risk,Finance and Development, 36(1), pp. 50-53.
  • Tiong, R.L.K. and Alum, J. (1997) Evaluation of proposals for BOT projects,International Journal of Project Management, 15(2), pp. 67-72.
  • Treasury Taskforce (1997a)Partnerships for prosperity: The Private Finance Initiative.London HM: Treasury.
  • Treasury Taskforce (1997b)Public sector Comparators and value for money, draft policy statement.London: HM Treasury.
  • Trentmann, F. (2007) Citizenship and consumption,Journal of Consumer Culture, 7(2), pp. 147-158.
  • TTF (2000)Value for Money Drivers in the Private Finance Initiative.London: Arthur Andersen and Enterprise LSE & HM Treasury.
  • Varian, H. (1996)Intermediate Microeconomics- A Modern Approach. 4th edition. New York: W.W. Norton & Company, Inc.
  • World Bank (2007)Expected benefits from PPP.[Online] Available at:http://rru.worldbank.org/Documents/Toolkits/Highways/1_OVERDIAG/11/112.htm
  • Yliherva, J. (2006) Tuottavuus, innovaatiokyky ja innovatiiviset hankinnat [Productivity, innovations and innovativeness in purchasing process],Sitran raportteja, No. 64, Sitra, Helsinki. (In Finnish)
  • Zafirovski, M. (1999) What is really rational choice? Beyond the utilitarian concept of rationality,Current Sociology, 47(1), pp. 47-113.
  • Zhang, X. (2006) Factor analysis of public clients' best-value objective in public-privately partnered infrastructure projects,Journal of Construction Engineering and Management-ASCE, 132(9), pp. 956-965.

Document Type

Publication order reference

YADDA identifier

JavaScript is turned off in your web browser. Turn it on to take full advantage of this site, then refresh the page.