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Questions:
- How can an ERP system assist projects that are executed as Public-Private-Partnerships?
- Why does a centralized system is required to control and manage works in PPP projects, more than any other contract type?
The so-called Return-On-Investment (ROI) is the main motive in a PPP. Here, a (land) Owner (usually the GOV), a Concessionaire, a J/V of Contractors and the Banks ‘join’ forces to develop an infrastructure. The public then uses this infrastructure, and it generates social benefits and wealth.
Feasibility Study
Composing a Sustainable Business plan -Feasibility Study- is the first and most essential part of any PPP Project’s funding. For this reason, Contractors (or rather Concessionaires) must justify to project-agnostic Financial Institutions and Insurances their investment purpose of constructing an infrastructure project. In particular, they must prove that the revenue will cover the loans and interest rates and will generate profit.
Stakeholders Agreement
Knowing the cost of the project is not only the most important parameter of the Feasibility Study but also an integral part of sharing the stakes between all stakeholders. However, considering the expertise, locale, technical capability and financial ‘muscle’ of some of them, type of construction can be equally important to cost. In some cases, construction companies may even select a specific type of works over cost.
Therefore, more than in any other type of Project, cost estimation along with analysis of resources’ allocation and activities schedule is a crucial combination. First, it defines a fair contribution of works from different entities. Second, it justifies the Cost/Income ratio for the Feasibility Study.
ProjectVIEW ERP is the only ERP that can assist in generating a Table of Works where costs can be justified and analyzed based on Cost Codes/BoQs and WBS.
In this table, engineering practice, cost economics, project finance and contractual specifications come together. They link to the stakeholders who undertake works as Contractors and to their benefits/obligations as Concessionaires.
Construction
PPP Projects execution -similarly to all projects- is all about cashflow. In short, the challenge is aligning money disbursements with construction deliverables.
ProjectVIEW ERP is the only ERP that can control all construction activities and resources expended on site, along with engineering and administrative processes in the office providing Actual vs Budgeted Cost and assisting in the justification of RFIs and submitals to the Banks, hence money disbursements.
Operations and Maintenance
Consequently, a centralized system throughout the Project that assures qualitative and quantitative compliance and secure knowledge distribution to all stakeholders is an asset! Maybe an Asset as most important as the Project itself!
Finally, maintenance plans/costs, project serviceability and project operationality are all about safeguarding revenue and assuring longterm sustainability. In turn, they generate new opportunities for more successful jobs.
