Selection of Performance Objectives and Key Performance Indicators in PPP Projects: A Review

Seema K NayarSanthosh Sathyapal

Abstract

Public-Private Partnerships (PPP), now applied widely in the global construction market, are more complex than conventional public procurements in economic, social, political, legal, and administrative aspects. Therefore, in order to ensure good performance and subsequent success of project, PPPs require a well-formulated performance management system that takes into consideration the perspectives of all stakeholders involved. A general agreement on how to measure success is necessary, which may be achieved by the definition of Performance Objectives (POs) of the project. Further statistical evidence, often labelled Key Performance Indicators (KPIs), may be employed to ensure that the actual progress is at par with the targeted. Determination of appropriate POs and KPIs is important for successful performance management. Numerous studies have been conducted worldwide to identify a desirable set of POs and KPIs in PPPs.

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