For a Public-Private Partnership (PPP) project to be executed smoothly, Concessionaire’s performance needs to be monitored regularly. The Concessionaire’s performance needs to be tracked to identify defects and deficiencies in building or creating the capital assets that are part of the PPP project as well as the performance of the services that need to be delivered during the maintenance and operation phase of the PPP project. A key component for successful services performance monitoring is to have a well-defined set of Performance Indicators, also known as Key Performance Indicators (KPIs) against which the Concessionaire needs to be evaluated for ensuring that all project deliverables are meeting the required timelines and quality compliant.
The document developed by the PPP Cell, Infrastructure Division, Department of Economic Affairs, Ministry of Finance, Government of India was used to provide an example to show how the performance of the services for the school sector is reported on. The overall performance of the Concessionaire was evaluated throughout the project lifecycle against the Academic Key Performance Indicators and Service facility Indicators. The Academic Performance KPIs are sets of KPIs to specifically measure the method and mode of academic delivery and performance of students during a given academic year, while the Facility Management KPIs are sets of KPIs to measure whether the School Facility is well-maintained with all services being provided as per the Concession Agreement and the benchmark standards.
Using a Project Management Information System (PMIS) like PMWeb will enable government entities as well as the concessionaire to manage, monitor, evaluate and report on the performance of all project management processes need for PPP projects delivery including scheduling, financial, scheduling, communications, risk, issues, quality, safety among other aspects of the PPP project. In addition, PMWeb will be used to monitor, evaluate and report the services delivery Key Performance Indicators to ensure that the Concessionaire operates each School in a manner and that the minimum key performance indicators as specified in the Concession Agreement are achieved.
PMWeb custom form builder will be used to create a form to enable the project team to capture the reported score against each KPI of the two service delivery categories. The first table will be for the Indicative Academic Performance fourteen (14) KPIs which is also titled Expected Level of Service Delivery (ELSD). For each KPI, the table will detail the KPI title, description, assessment criteria, assessment frequency, indicator, weight percentage out of 100%, and score obtained which could be either “1” or “0”. The “1” will be for acceptable performance while the “0” will be for non-acceptable performance.
The form will also include a second table for the Indicative Facility Management ten (10) KPIs which is also titled Expected Level of Academic Achievement (ELA). For each KPI, the table will detail the performance standard, assessment frequency, response time to rectify the reported performance in case of default, indicator, weight percentage out of 100%, and score obtained which could be a value from zero “0” to one “1” where the “0” will be for non-acceptable performance while the “1” will be for acceptable performance. It should be noted that it is also possible to have a separate form created in PMWeb to report on the performance of the Indicative Facility Management ten (10) KPIs if it is not to be reported on along with the performance of the Indicative Academic Performance fourteen (14) KPIs.
The payment to the Concessionaire by the Authority will be linked to the performance of the Concessionaire on all of these KPIs. In case the score of the Concessionaire is below a threshold level, adequate deductions should be made from the payments made to the Concessionaire. The PMWeb report writer will be used to calculate the consolidated performance scope. To arrive at the consolidated score, it will be assumed that equal weightage, that is 50%, will be assigned to both the ELA and ELSD scores of the Concessionaire. So, assuming that the weighted scope achieved for the Expected Level of Service Delivery (ELSD) was 0.48 and the weighted scope achieved for the Expected Level of Academic Achievement (ELA) was 0.58, the Consolidated score will be 0.515.
The percentage of the payment economically will be linked to the ELA and ELSD consolidated score of the Concessionaire. For example, if the consolidated score was less than 0.75, 75% of the payment would be released, If the consolidated score was more than 0.75 but less than 1.00, then 100% of the payment would be released, and If the consolidated score is equal to 1.00, 110% of the payment will be released.
The scoring for the Indicative Academic Performance fourteen (14) KPIs and the Indicative Facility Management ten (10) KPIs could be done by different project team members with different roles and responsibilities. Accordingly, the two tables that are part of the PPP KPI performance report will be assigned to their relevant project team member to complete. This is achievable in PMWeb custom form builder which allows assigning who can view, edit or view and edit the data included in those tables as well as other fields included in the PPP KPI performance report.
If there is a need to have a predefined sequence for completing the PPP KPI performance report including the final review and approval of what has been reported, PMWeb workflow will be used to map those steps, the duration allotted to each step, and the project team member who has been assigned the step. This will provide an auditable trustworthy track record of reported KPI performance during the operation and maintenance phase.
Bassam Samman, PMP, PSP, EVP, GPM is a Senior Project Management Consultant with more than 35-year service record providing project management and controls services to over 100 projects with a total value of over US $5 Billion. Those projects included Commercial, Residential, Education, and Healthcare Buildings and Infrastructure, Entertainment and Shopping Malls, Oil and Gas Plants and Refineries, Telecommunication, and Information Technology projects. He is thoroughly experienced in complete project management including project management control systems, computerized project control software, claims analysis/prevention, risk analysis/management (contingency planning), design, supervision, training, and business development.
Bassam is a frequent speaker on topics relating to Project Management, Strategic Project Management, and Project Management Personal Skills. Over the past 35 years, he has lectured at more than 350 events and courses at different locations in the Middle East, North Africa, Europe, and South America. He has written more than 250 articles on project management and project management information systems that were featured in international and regional magazines and newspapers. He is a co-founder of the Project Management Institute- Arabian Gulf Chapter (PMI-AGC) and has served on its board of directors for more than 6 years. He is a certified Project Management Professional (PMP) from the Project Management Institute (PMI), a certified Planning and Scheduling Professional (PSP), an Earned Value Professional (EVP) from the American Association of Cost Engineers (AACE), and a Green Project Management (GPM).
Bassam holds a Master’s in Engineering Administration (Construction Management) with Faculty Commendation, from George Washington University, Washington, D.C., USA, Bachelor in Civil Engineering – from Kuwait University, Kuwait, and has attended many executive management programs at Harvard Business School, Boston, USA, and London Business School, London, UK.