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Title: Governance in the Maintain & Operate phase of Integrated Contracts.
Authors: Goedgebuur, J
Keywords: DBFMO
Cooperation and Coordination-model (3C or CCC-model)
Maintain and Operate
Issue Date: 1-Jun-2016
Publisher: Open Universiteit Nederland
Abstract: DBFMO The past decade the Dutch government has increasingly employed DBFM(O)- contracts (Design-Build-Finance-Maintain-Operate) for the realization of major public works and buildings. In a DBFM(O)-contract the government specifies the output and service level for the service or the construction, puts the project from design to operation up for tender by private parties and pays a fee during the contractual period of up to 30 years for availability of the service to the winning consortium (Ministerie van Financiën (MoF), 2014). A DBFM(O) essentially delivers a service and seeks to provide better public service against lower life cycle costs. The 3-C Governance model The tender phase of a DBFMO contract is dominated by a so-called Competitive Dialogue. In this Competitive Dialogue shortlisted tenderers compete with each other to design a construction that best suits the output specifications of the client. A model proposed for understanding the mechanisms in the Competitive Dialogue phase of the DBFM(O) contracting process, is the Competition, Cooperation and Coordination-model (3C or CCC-model) (Lenferink et al, 2013). Lenferink relates three governance strategies to this model: competition to the market model, cooperation to the network model, and coordination to the hierarchical model (Lenferink, 2013). The CCC-model is attractive, because a governance mix of cooperation, competition and coordination seems to adequately suit all phases of a DBFM(O) and holds the promise to leave room for adapting the mix according to the characteristics of the separate DBFM(O) stages. The aim of this study is to research whether the CCC-governance model can be employed in a wider context than the DBFM(O) Design phase, viz, in the Maintain & Operate-phase (M&O) of both Building and Infrastructural projects. The research question then is: What is governance with the CCC-model in the (DBF-)M&O phase? Methodology Lenferink uses a constructivist approach for his research and formulates the results ex post. In this research the question is whether the findings can be corroborated in other phases and contexts and has a more positivist approach. On basis of literature, propositions will be formulated, which will be tested in a case study of Dutch DBFMO contracts. The empirical research will have an explorative nature and a qualitative methodological framework, in which the Dutch DBFM(O) contracts are the research domain, the individual actor at client or constructor’s side is the unit of analysis and data will be collected in semi-structured face-to-face interviews. Governance with the 3-C model Lenferink uses four groups of complexities for describing the CD-phase, viz Organizational Issues; Technical complexity; Financial complexity. Combining the four complexities with the 3-C governance framework results in hypotheses over the governance structure in the Maintain and Operate phase. Results In general Cooperation appears by far the preferred governance strategy in the M&O phase. The 3-C model describes and explains mechanisms for both CD and M&O, but at the same time is too broad in scope for application in the M&O only. Additional complexity factors suggested by the interviewed (project context; operational availability; Innovation) appear on scrutiny to be covered in the existing four groups already. Learning however is an aspect that is present everywhere and should have been included in the research. It is suggested that future studies might look into learning, the relation between governance and complexity and the mechanisms of cooperation.
Appears in Collections:MSc Management Science

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