Public–private partnerships (PPPs) have been applied widely in the global construction market. During the life cycle of PPP projects, their performance could be affected by a number of factors and their interactions, which might cause the inefficiency and ineffectiveness of the projects. Previous researches on PPPs mainly concentrated on the procurement, success measurement and risk management of PPPs, but paid little attention to the process factors that can strongly influence the performance of PPPs. In order to improve process and performance management in PPPs, the performance objectives and key performance indicators (KPIs) are identified to improve the partnership outcomes. Based on the goal‐setting theory, 15 performance objectives are selected. The relative significance and difference of performance objectives for different stakeholders are presented based on a structured questionnaire survey. The survey results show that all identified objectives are important. In spite of stakeholders' common opinions on the objectives of quality, costs, time and the services provided by PPPs, there are evident differences in the objectives of budget constraints of the public sector, risks, revenue and guarantees. According to the survey results, a conceptual KPIs framework is established. Furthermore, the KPIs are identified to assess PPP projects' performance. The performance objectives and the KPIs, which can be used to identify the strengths and weaknesses of PPP projects, are useful tools for effective project performance management in PPPs.

Public-private partnerships (PPPs) are increasing in popularity. Major challenges in the development of PPPs have resulted from the global financial crisis. However, with respect to their monetary value, PPPs are still an attractive option for public sector projects. Performance management and measurement, in which Key Performance Indicators (KPIs) are the core elements, viewed as effective methods to help PPPs deliver value for money. This article describes in greater detail a KPI conceptual model composed of 5 performance packages and 48 indicators developed by the authors in previous studies. A structured questionnaire survey explored PPP stakeholders perceptions of 48 project performance indicators (PIs) to identify actual KPIs for performance management and measurement in PPPs. Although the survey results show that all PIs are important, performance packages contribute differently to the overall project performance. A confirmatory factor analysis (CFA) was used to test whether the proposed co...

Over the years, public-private partnership (PPP) has been acknowledged by many as an innovative approach to the procurement of public projects. The desire for more efficient and effective PPP projects renders the performance management to be increasingly important, in which the influence of the stakeholders must be considered. To implement complete and effective performance management in PPP projects, 15 performance objective attributes are proposed based on the perspectives of different stakeholders. A structured questionnaire survey was conducted to investigate the relative significance of each attribute in four stakeholder groups. According to the survey results, the objective attributes are all important. Integrating all stakeholders’ benefits and selecting the appropriate qualitative level of performance objective in the process of decision making are two particularly important problems because of stakeholders’ different preferences. To resolve these problems, a fuzzy entropy method and a fuzzy TOPSIS method based on projection distance have been developed to calculate the final decision weights in all stakeholder groups and select appropriate performance objective levels for PPP projects, respectively. The final decision weights are obtained using fuzzy entropy to integrate the experiences and knowledge of all stakeholders. An illustrative case study on the Beijing National Stadium project for the 2008 Olympic Games is used to demonstrate the feasibility and practicability of the proposed model.