Pre-contract assumptions in practice

A qualitative study on the flexibility to changes in DBFM contracts - Blankenburgverbinding project case study

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Abstract

PPPs (Public Private Partnerships) are a range of possible relationships between public and private parties. They are realized mostly in contexts of great uncertainty. A challenge in PPPs such as DBFM (O) (Design, Build, Finance, Maintain, Operate) contracts or projects is how to keep the contract progression efficient when there is a high degree of uncertainty. The purpose of this paper is to discuss the potential of changes and requirement of flexibility in a DBFM contract through a case study and to present recommendations for future DBFM contracts. An extensive literature review on the subject of changes and flexibility is provided. Furthermore, this paper describes the results (analysis) of 32 interviews conducted in relation to the case study, the Blankenburgverbinding project. The main findings show that change recognition and flexibility perspectives in pre-contract phase provides the client and stakeholders a better understanding of the challenges facing the organization in realizing its aims and delivering a DBFM project in its complex environment.