Governance of Public-Private Partnership Projects through Integrated Incentive and Supervision Functions
Xueqing Zhang (—);
Guanqun Shi (—).
|Issue:||Vol 10, No 2 (2021)|
|Citation:||Xueqing Zhang and Guanqun Shi (2021). "Governance of Public-Private Partnership Projects through Integrated Incentive and Supervision Functions." International Journal of Architecture, Engineering and Construction, 10(2), 1-10.|
|Publisher:||International Association for Sustainable Development and Management (IASDM)|
|Abstract:||In public-private partnership (PPP), the relationship between the public and private parties is contract-based. The conflicting interests and information asymmetry between the two parties often lead to opportunistic behavior. This paper introduces a PPP project governance model that allows the determination of balanced incentive and supervision to motivate the private party to act in the interest of the public while maximizing its own benefit. Numerical examples are used to discuss the results of the model for better understanding of the relationships between incentive, supervision, effort, and opportunism. Useful recommendations are provided for effective governance of PPP projects.|
|Keywords:||Project management, opportunistic behavior, incentive, supervision, public-private partnership|