Special Purpose Entities in Megaprojects: Empty Boxes or Real Companies?

Sainati, Tristano; Brookes, Naomi; Locatelli, Giorgio

doi:10.1177/875697281704800205

Cited by 52 publications

(34 citation statements)

References 63 publications

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“…In this situation, if the actual costs for performing the work increase compared to the budgeted ones, the owner is directly affected by the cost overruns as the prices rises. In other cases, stakeholders create a temporary organisation, called Special Purpose Vehicle (Sainati et al 2015), that further complicates the difference between price and cost.…”

Section: Eqmentioning

confidence: 99%

Cost overruns – helping to define what they really mean

Invernizzi

Locatelli

Brookes

2018

Proceedings of the Institution of Civil Engineers - Civil Engin

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Practitioners and academics often debate about cost overruns, a pivotal part of the iron-triangle that is traditionally used to assess the project management performance. Intuitively, the term "cost overruns" refers to the situation where the actual costs are higher than the original estimates. However, especially in the case of long and complex projects, with several different budgets, significantly affected by scope changes, inflations, etc., the assessment of "cost overruns" can still be subject of misunderstanding. This paper addresses this topic by proposing a way to define and assess cost overruns, particularly in the case of long and complex projects (also called megaprojects) and when publicly available information is scattered. This is exemplified using the case of Nuclear Decommissioning Projects and Programmes (NDPs) that are representative of the above-mentioned scenario. Lastly, this paper reflects on the importance of highlighting the existing constraints and the assumptions adopted during the appraisal of cost overruns.

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Section: Eqmentioning

confidence: 99%

Cost overruns – helping to define what they really mean

Invernizzi

Locatelli

Brookes

2018

Proceedings of the Institution of Civil Engineers - Civil Engin

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“…Compared to "regular projects," megaprojects have more ambiguous roles and boundaries, and more informal coordination activities between teams (Hanisch and Wald, 2014;Sainati et al, 2017;Van Marrewijk et al, 2008). As a form of innovative and spontaneous initiative that goes beyond the prescribed role requirements (Ekrot et al, 2016), OCBEs are essential to compensate for the limitations of formal management systems in megaprojects (He et al, 2015) and have far-reaching impacts on project success (Braun et al, 2013;Turner and Zolin, 2012).…”

Section: Ocbes In Megaprojectmentioning

confidence: 99%

Exploring the impact of megaproject environmental responsibility on organizational citizenship behaviors for the environment: A social identity perspective

Wang

Meng

et al. 2017

International Journal of Project Management

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The importance of organizational citizenship behaviors for the environment (OCBEs) has been clearly established in the environmental literature. However, the OCBEs construct has rarely been examined in the specific and increasingly important realm of megaproject environmental responsibility (MER). To fill this gap, this paper presents an individual-level analysis that explores the impact of project participants' perceptions of MER practices on their environmental commitment and OCBEs. The results show that project participants' perceptions of MER practices directed toward internal stakeholders (i.e., stakeholders linked by project contracts) are positively related to their OCBEs. This relationship is partially mediated by the environmental commitment of project participants. Conversely, project participants' perceptions of MER practices directed toward external stakeholders (i.e., the local community and general public) have only an insignificant impact on their OCBEs. These findings provide new insights for managing MER practices to stimulate the emergence of OCBEs and thereby improve environmental performance.

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“…The SPV design enables better alignment of stakeholder interests, as a function of the both its contractual schemes and stakeholder organization structures (Sainati et al, 2017). The primary reason driving this alignment of interests is the involvement of the major stakeholders, mainly the Design-Build (DB) contractor and Operations and Maintenance (O&M) contractor, in project financing.…”

Section: Alignment Of Stakeholder Goals and Interestsmentioning

confidence: 99%

“…In order to fulfil these functions, the SPV is structured as a consortium, combining under one umbrella a number of key stakeholders, mainly equity shareholders, designers, construction contractors, and operations and maintenance contractors. Significantly, the combination of stakeholders under one SPV calls for several unique features, namely: early stakeholder involvement, alignment of stakeholder goals and interests, stakeholder integration, collaborative working, innovation potential, and long-term commitment, among others (Fischbacher and Beaumont, 2003;Leiringer, 2006;Sainati et al, 2017).…”

Section: Introductionmentioning

confidence: 99%

“…However, the SPV's stakeholder management role is highly under investigated in the literature and there exists a gap regarding its internal stakeholder relationships and interactions. In fact, PPP researchers state that project management studies have never focused expressively on SPVs and the existing literature fails to efficiently address inherent relational matters, as there is a lack of knowledge concerning PPP stakeholders (McErlane et al, 2016;Sainati et al, 2017). Therefore, there is a need to investigate and evaluate the efficiency of the SPV's management role, in terms of stakeholder integration, seeing that it is both a driver and a prerequisite for PPP project success.…”

Section: Introductionmentioning

confidence: 99%

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A Lean Perspective of Stakeholder Integration in Public Private Partnerships

Malaeb¹,

Hamzeh²

2018

26th Annual Conference of the International Group for Lean Construction

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The Special Purpose Vehicle (SPV) is the party representing the private sector in a Public Private Partnership (PPP), and combines a number of stakeholders including equity shareholders, designers, contractors, and service providers under one umbrella. Consequently, the key to ensuring successful project delivery is achieving an efficient integration of the different SPV stakeholders involved, to deliver the project as a unified entity. However, the SPV's stakeholder management role is highly under-investigated in the literature, and no studies have attempted to explore SPV stakeholder integration. This highlights a significant need to do so, considering that the former is both a prerequisite and a driver of PPP project success. This research aims to address this need through generating a list of SPV characteristics that reflect stakeholder collaboration and developing Critical Success Factors (CSFs) to measure the level of SPV stakeholder integration, based on concepts projected from the Integrated Project Delivery (IPD) system. The aforementioned factors relate to the project's organization structures, commercial frameworks, and operating systems and processes. This research is the first of its kind that aims to investigate the SPV's integration level, from a holistic IPD perspective, as an enabler of successful relationship management.

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Special Purpose Entities in Megaprojects: Empty Boxes or Real Companies?

Abstract: This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving.

Cited by 52 publications

References 63 publications

Cost overruns – helping to define what they really mean

Cost overruns – helping to define what they really mean

Exploring the impact of megaproject environmental responsibility on organizational citizenship behaviors for the environment: A social identity perspective

A Lean Perspective of Stakeholder Integration in Public Private Partnerships

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