ABSTRACT

Reasons for the introduction of PPP 30.4 For many years there had been dissatisfaction with the process for procuring large capital projects by the Government. Cynics had long taken the view that the most profitable way of conducting public sector work was to bid aggressively with a tightly defined specification. The contractor trusted that the client’s eventual requirements would differ significantly from those set out in the tender documents and that change orders (issued post-contract, with a lack of competitive pressure) would make the job profitable. As a result, many public sector contracts were fraught with difficulty and overran both financial and time estimates. The need to improve the way in which the public sector worked with private sector contractors was one of the main drivers behind the creation of PPP.