Assessment of the Critical Dispute Factors in Public-Private Partnership Infrastructure Projects

Abstract

Public-private partnership (PPP) projects would result in disagreements due to their intricate nature, extended duration, and the involvement of various parties. There is a gap in the literature on quantitively evaluating the most important indicators that contribute to a dispute in PPP projects. To comprehend the causes of disputes in PPP projects, a thorough review of the literature was carried out, leading to the classification of 41 factors leading to disputes into six categories. A survey was then conducted to gather data on how these factors are perceived as risks in PPP projects. This data was analyzed using two statistical methods, frequently adjusted importance index (FAII) and structural equation modeling (SEM), via confirmatory factor analysis (CFA) and exploratory structural equation modeling (ESEM). The results indicated that CFA is more reliable and valid than ESEM; consequently, only the CFA and FAII findings are considered. The study found that the most significant contributors to PPP project disputes are the construction-related factors group, followed closely by the design-related factors group. These findings can make critical contributions to avoiding time and cost overruns on PPP contracts, subsequently leading to better performance and higher efficiency. Furthermore, the models developed in this study may be useful in future research with similar objectives as they meet the criteria for goodness-of-fit.