Research on the Participation Mode Selection of Construction Enterprises in PPP Projects

Construction enterprises, which is a major constituent of the private sector, have strong construction and financing capacities in PPP projects. However, the operation inefficiency of construction enterprises greatly hinders the successful implementation of PPP projects. A proper participation mode selection mechanism of construction enterprises in PPP projects which takes their operation abilities into consideration is quite necessary. Therefore, this study aims to: (1) investigate the three typical participation modes of construction enterprises in PPP projects; (2) develop the benefit distribution models for different participation modes using the Shapley value method and modified the models based on critical factors influencing the benefit distribution of PPP projects; (3) validate the developed models through a case study. In order to achieve the objectives, this study first deduced that the separated build and operate (B&O), B&O joint venture, and combined B&O were three typical participation modes. Moreover, this study developed and modified the benefit distribution models for different participation modes and by considering the critical factors influencing the benefit distribution such as the risk and investment. In addition, the case study validated that the developed models are effective. This study first contributes to the body of knowledge on the participation mode selection of construction enterprises in PPP projects and the corresponding benefit distribution under each mode. Finally, this study provided suggestions on the rational selection of the participation mode for construction enterprises in PPP projects. Meanwhile, the findings can help the construction enterprises make proper decisions on the participation mode in PPP projects in practice.