- 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 where a (land) Owner (usually the GOV), a Concessionaire, a J/V of Contractors and the Banks will ‘join’ forces to develop an infrastructure that will be utilized by the public and will generate social benefits and wealth.
Composing a Sustainable Business plan -Feasilibilty Study- is the first and most essential part of any PPP Project’s funding. Contractors (or rather Concessionaires) are required to justify to project-agnostic Financial Institutions and Insurances their investment purpose of constructing an infrastructure project, proving that the revenue generated will cover the loans and interest rates and will generate profit.
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. Considering the expertise, locale, technical capability and financial ‘muscle’ for some of them; type of construction can be equally important to cost and in some cases, construction companies may select a specific type of works over cost.
Based on the above, it is easily understood that more than any other type of Project, cost estimation along with analysis of resources’ allocation and activities schedule is a crucial combination for defining a fair contribution of works from different entities and justifying 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.
Where engineering practice, cost economics, project finance and contractual specifications are integrated and associated with stakeholders for undertaking works as Contractors and their benefits/obligations as Concessionaires.
PPP Projects execution -similarly to all projects- is all about cashflow. The challenge of 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
Having 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!
Maintenance plans/costs, project serviceability, project operationality is all about safeguarding revenue and assuring longterm sustainability, generating new opportunities for more successful jobs.