As the Public Private Partnership (PPP) model is increasingly adopted to deliver new infrastructure, PPP projects have become a matter of considerable public interest and the pressure for more effective scrutiny of performance is becoming more vociferous. Yet the continued use of spreadsheets as a tool to manage service delivery and monitor performance is limiting the achievement of value for both service providers and the public sector. That is the message from the latest white paper from Service Works Group (SWG), the leading PPP operational performance management and integrated payment mechanism software provider.
The white paper, ‘Delivering Better Value for Money Through PPP Payment Mechanisms’, highlights the risk of using spreadsheets to manage the service delivery of PPPs for both the service provider and the public sector stakeholders; it examines the challenges of delivering consistent, auditable and transparent performance management data for the public sector client; and describes how a bespoke integrated software solution safeguards the interests of public authorities and service providers in new and operational projects.
Data integrity and transparency of performance is vital for building strong government and business partnerships and public trust in the ability of PPPs to deliver high quality, added value public services. An integrated payment mechanism solution, which delivers a far superior flow of information than is feasible with spreadsheets, has the potential to transform the long-term performance of PPP contracts by:
- calculating the service fee quickly and accurately, ensuring time-sensitive reports are produced on demand
- allowing testing of operational scenarios during the development phase, improving the predictability of outcomes
- ensuring accurate financial modelling for the project company
- enabling early identification of potentially costly service failures, so that remedial action can be taken before failure occurs
- helping to strengthen relationships, giving audit trail compliance and transparency while helping to manage risks by providing auditable cost savings, improving time control and productivity.
“There is enormous value in having an integrated system in place that can deliver consistent, secure and management of data, ensuring that issues are resolved quickly and that the effectiveness of the contract management process can be demonstrated to the client, auditors, and to the wider public. Embracing the benefits of an integrated payment mechanism is an option that exists for PPPs at all stages of development – from the bidding stage to a mature phase of operation,” says Gary Watkins, CEO for Service Works Group.
To receive your complimentary copy of the new white paper, please click here.