CAUSES OF CONFLICTS AND THEIR EFFECTS ON THE RELATIONSHIP QUALITY OF PUBLIC FINANCE INITIATIVES (PFIs): A CASE STUDY OF MALAYSIAN PUBLIC-PRIVATE PARTNERSHIPS (PPPs)

• Published in: Malaysian Construction Research Journal
• Main Author: Termizi E.S.A.; Hashim N.; Khaderi S.S.
• Format: Article
• Language: English
• Published: Construction Research Institute of Malaysia 2023
• Online Access: https://www.scopus.com/inward/record.uri?eid=2-s2.0-85194561062&partnerID=40&md5=841e29442ad68e261f6883f5b0f02f26

Public-private partnerships (PPPs) have been introduced in Malaysia with the aim of creating a dynamic, prosperous, robust, competitive, and resilient nation. This research focuses on the conflict that arises in public finance initiatives (PFIs) within the PPP framework. The study examines previous research and literature through a qualitative approach to develop a conceptual framework. Various databases were reviewed, leading to the identification of 17 causes of conflict in PFIs, which were categorised into three main causes: behaviour-related, contract agreement-related, and technical-related conflicts. The study highlights three types of conflict: opportunistic and adversarial behaviour and resource unavailability. Conflict management strategies and relationship quality attributes emerged as crucial aspects of PFIs. The long-term nature of PFI contracts, spanning 15 to 25 years, poses challenges in maintaining relationships between the private and public sectors. Post-construction stages become critical as operations and maintenance services are implemented, giving rise to conflicts. Addressing conflicts promptly is crucial to avoid wasting time and energy and ensuring that project goals are not compromised. Identifying the causes of conflict improves the long-term relationship between clients and concessionaire companies in PFIs, ultimately enhancing relationship quality. © 2023, Construction Research Institute of Malaysia. All rights reserved.