Relationship management in the management of PFI/PPP projects in the UK

Private Public Partnerships and the Public Finance Initiative engage private organisations in providing public services through long-term concessions. The paper examines management of these projects concerning the relationships between the primary parties: Special Purpose Vehicle (SPV) and constituent members, and the relationship of the SPV with the client. The objectives are to establish how relationships are managed between private sector organisations within the concession, and between the private organisations and public sector client. The management of relationships is explored through concepts of relational contracting and relationship management. How relationship management links to project management is also explored. Trust and confidence are used as measures of relationship conditions, which are mapped against thirty relationship management dimensions. An evaluation is provided concerning relationship management for PFI/PPP projects, the primary conclusion being that greater strategic and tactical consideration is given to the proactive management of relationships. Adoption will foster collaborative working that goes beyond reactive behavioural adjustment to new procurement conditions, conceptually a shift from relational contracting to proactive relationship management principles.