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Private Public Procurement Principles

Construction Risk Management


First of all we have to tell about private public procurement principles. Public procurement is the usage of services and goods which used under public authority or body. These type of transactions are public by nature and civil, community or internationally governed. In this process, provide public services and operation of services by acquiring services and goods.it work by using a legal framework with specific principles and public requirement.  Its basic purpose is to achieve cost effective and timely to qualified suppliers, contracts and service provider for support public services and government services with related principles and procedures develop in public procurement rules.

Its participants are play a very important role in whole process, so their responsibilities include the goal related to public procurement. These participants are linked with process directly or indirectly from assessment to close up of project.  Stake holders are those who belong to results of project and effect with process and especially actions belong to procurements. Actors and stake holders both are work as participants but stake holders are performing passive role and action are active role playing. Basic difference between public and private sector is only their main focus which is in private the profit and in public social benefits.(Blogspot.com, 2015 ).

Private Public Procurement Principles

All the beneficiaries related to public procurement system are in built with all available good and services by using transportation system, educational system, medical services and facilities and public utilities with many other services. Procurement sector private sectors are supportive with business objectives. Private sectors not related to social benefits directly because their direct purpose is to make profit.in public sector two main purpose s are going to consider one is providing public service and government operation support. Different type of funding happens in these two sectors.(Leanpub.com, 2010-2018)

Public private partnership is play a very important role in the development of country while itsimportant points are also concern regarding the decision making,control,rules and regulations, cost related items , technical capacity with skills and also effected by political mind set. Construction companies are playing very major role in the development of country. Different Construction Company is working with different strategies, their source of funding are different from each other, their owner ship may be private or public but with a passage of time, for the betterment of country private sectors are merge with public sectors and their performance is going to upward by following rules and regulations which are suitable for their condition and no political or national issue effect the company’s transaction.

Its purpose is both profit and social benefit. Government fully support such companies according to their requirement and applicable all the principles and procedures which are helpful in their working. But with this different risk factors are also belong to such contracts which increase the risk factors and chances of problem going to high when different risk involve in the construction projects.so construction projects are playing role in development of countries and face all the challenges and risk factors.


PPP is a corporative arrangement of more than two public or private sectors for the long term nature. Government uses such mixing for the benefit of countries. PPP infrastructure are used at five different levels: as a wider cultural phenomenon, particular project or activity, tool of government, form of project delivery, statement of government policy. PPPs normally share the risk and innovation development with long term relationship  with private and public sectors. Usage of the private sectors with government usage is purpose behind the PPP project which provide maximum benefits to economy and country and also enhance more credibility if construction industry with different rules and regulations by following different principles. Government more focus on public private partnership arrangement to provide services and work in develop and developing countries. Private sector helps to provide different public facilities with partnership to high light infrastructure issues without interference of financial commitment related to government.

With this method different sources are move for other sectors usage. But still the need of PPP is loess as compare to total public investment. Many critical success factors are concern with the achievement of PPP in the construction industry. These factors are identified with study of different projects. All identified factors related to private sector for the better implementations of PPP are appropriate risk allocation and sharing, strong private consortium, through and realistic cost assessment, available financial market, favorable legal framework, nature of agreement, deliver publically needed services, sound economy policy, and stable micro economic condition. Strong political support and alignment with government strategic objectives are also major key factors in the PPP projects. And open communication and commitment and responsibility of both sectors are very much common in the project implementation.

A solid consortium with expertise wealth, good reputation, considerable experience, high profile with most effective process approval that provide innovation in financing methods and stakeholders assistance in their timeframe. Some key factors are belong to customer’s requirement that are through understanding of client requirement, clear and precise documents, and feedback related to project. High reputation, experience and expertise are help successfully in transferring the project with PPP setup. PPP success factors include through and realistic cost benefit assessment, strong private consortium, responsibility of public or private sector, available financial market and appropriate risk allocation and risk sharing. Open communication, trust and collaboration and commitment and shared vision also include in success factor. Stable micro economic condition, multi benefit objectives, all are related to success factors.

In starting, proper questionnaire are used in to collect all relevant data from participants who play major role in PPP project implementation. This survey include al factors and elements belong to implementation of projects.so private public partnership are very much focus issue and help in development and better performance related to different projects. Basically many factors are effect the efficiency and effectiveness of project and its implementation which show better results in the future and provide maximum benefit to public and also work for earning profit in all areas.

Construction companies are too much concern with the procurement sector because its all working are depend on procurement and its major dealing also done with procurement companies in the countries. All procurement projects have to consider all the rules and policies which follow by PPP projects for the benefit of general public. Much different type of risks also attaches with the procurement projects who work as hurdle in the high performance and result of all projects with the capability and efficiency. (Sanni, 2016)

Risk management is important part of construction projects. This process consist of risk assessment, risk control and problem identification. Quantitative and qualitative methods are used in assess risk. It’s a systematic process which used in analyzing, identifying, respond to project risk, enhancing the profitability and consequence of attributes positively and probability minimizing and all attributes which are adverse with objective of project. Project risk may positive or negative impact on the objectives of projects. Many uncertainty sources occur in project construction like performance of construction parties, environmental condition, contractual relation, resource availability and involvement of parties. Construction project in the result face many issues which cause delay in the project. Indicators of success related to construction management system have completion of project with time and cost, with the required quality, safety, planned budget and duration, and environmental limits.

An actual cost estimation and proper schedule is required in this regard for completing budget and meet the deadline in a project. Time contingency is help in completion task on time related to activity or any project. Cost overruns and time delay are most common issue in construction industry. Different planners manage time contingency to complete on time activity .best solution to overcome this problem is to extend the time and select that time period which is comfortable in completion the task. Contingency include no any unique definition for contractors, owners and estimators, it is most misunderstood, misinterpreted and misapplied issue in execution of project.

Cost assessment also become problem while construction because right amount must be consider to measure and estimate the costs according to usage of all material and many other items. Because budget always prepare before starting any project and accurate estimation is compulsory in selection of prices and their estimation according to their usage. (Abd, 2018)

Many factors are involved in risk managements to minimize the included risk in the projects and performance of project going to improve by eliminating risks. Like contingency risk, different programs and planning are prepare before time to face all the contingency risks included in the construction project like design .its design may not be clearly explain in any project which badly affect the performance of project. Its cost effectiveness mat effect due to poor management or cost management, so company carefully observe all the cost related items with full care and attention and consider all major and important cost factors which enhance the credibility and effectiveness of project and also give profit to the constructors.

Time factor is most important factor in the project related to construction. Timely finishing of project is very much concern with the project developer and clients also demand their projects on time so management of project should budget all the required time in which all project must be complete and ready for use for customers. Road construction or building constructions both are belong with these threats and proper risk management require in construction of any project. Proper documentation is required and proper billing is going to be preparing in any case. A complete team of engineers and developers are preparing to start project and verify the working on timely basis. So all risks related to construction sectors are carefully managed which are belong to all construction projects. These risks minimized and provide all the expected results according to requirement of clients and give more proper and accurate results for long term usage. (Macomber, 1989)

Risk management is related to all budgeted factors and construction factors with project who improve the credibility of project and performance of project with high efficiency. Risk management is basic requirement of any project specially related to construction department. In construction project, proper designing, proper map of working, all procurement list which include all necessary and important items are prepared. Any construction project under private public partnership has to be very much concern about the political conditions, economic conditions, and environmental conditions which effect the performance of project in negative or positive manner according to need of client.  All the necessary items belong to construction projects are very important to study. And these projects are providing long lasting benefits to people and also become profitable for companies or industries. Private public partnership projects are highly effect on economy of country with lot of benefits.


After all the above discussion, we can conclude that private public partnership is most beneficiaries in all construction projects. Private public partnership is very supportive with the help of government which give proper results for development of countries. Proper rules and regulations with principles and procedures are applicable in the private public partnership project. Private public procurement system also helps in developing constructions because proper supply of all procurement items related to construction sector. Different type of risks are related to construction sectors which include time ,contingency, budgetary issue and many other which effect the cost and efficiency of project. Different construction project face different problems according to environment, condition and requirement. So a proper risk management is required in all sectors to minimize all these risks which help in improving the performance and efficiency of project.

Also Study;

Construction Risk Management

  • Abd, M. S. (2018). Identification and assessment of risk factors affecting construction projects. Retrieved from https://www.sciencedirect.com/science/article/pii/S168740481500036X
  • com. ( 2015 ). Basic Principles of Public Procurement. Retrieved from https://ppssomalia.blogspot.com/2015/07/basic-principles-of-public-procurement.html
  • com. (2010-2018). Public Procurement: Principles, Categories and Methods. Retrieved from https://leanpub.com/procurement-principles-categories-and-methods/read
  • Macomber, J. D. (1989). You Can Manage Construction Risks. Retrieved from https://hbr.org/1989/03/you-can-manage-construction-risks
  • Sanni, A. O. (2016). Factors determining the success of public private partnership projects . Retrieved from https://epress.lib.uts.edu.au/journals/index.php/AJCEB/article/view/4828/5457

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