P3 Performance Management

In order to obtain new public infrastructure and services Public Private Partnerships (PPPs) / Private Finance Initiatives (PFIs) come into picture. To give incentives to FM contractor in requisition of providing standard services or sustain final deductions PPPs use a payment mechanism.

Though being highly complex, payment mechanisms are extremely vital for facilities management. When public-private relationships are supported by contract management it is the value of PPP / PFI projects that is capitalized on. It basically gives a picture of the client requirements and thus providing the means to measure and monitor performance and organization under which the payment due to the private

White Papers have been published defining the effective management of performance through payments thus providing an aid to both client and providers in easily understanding the complexities of payments.

Such White Paper has brought forward some key points to be taken care while designing a payment mechanism. SWG provides P3 Performance Management which has been an effective measure as it has devised by gaining proficient from management.

Some question it takes care of , are as follows:
  1. How demanding should the contractual definitions of availability and service performance standards be?
  2. How quickly, in terms of response and rectification periods, do problems have to be solved?
  3. What scope should the private partner have to provide alternative services/ locations instead of having deductions applied, in order to give them greater flexibility to avoid deductions, or for allowing ‘unavailable’ facilities to be used?
  4. What are the appropriate levels of deductions for unavailability or poor performance?
  5. What are the appropriate mechanisms for repeated or widespread failures?
  6. At what level should performance deductions be capped?

PPP/PFI provides a long term value for its stake holders as the payment mechanism service delivery is measured and monitored effectively along with a successful rectification of payment mechanisms using integrated performance software. The idea is simple enough as it projects on building and strengthening operational partnership and providing measurable cost saving resulting in high improvements in productivity and time controls.

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  1. I think the point which where added in post are quite usefull. And also "Some question it takes care of " are quite keen point for ever person.
    great post



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