Assessing effects of moral hazard -related behaviours on quality and satisfaction of public-private-partnership (PPP) construction projects: case study of Ghana

Abstract

Purpose

This study aims to investigate the effects of moral hazard on quality and satisfaction of public–private–partnership (PPP) construction projects in Ghana.

Design/methodology/approach

After undertaking a literature review, questionnaires were used to elicit responses from respondents. Population consisted of quantity surveyors, project managers, procurement officers, consultants, public agency officers involved in PPP projects, private partners and contractors. A total of 211 questionnaires were received from 250 distributed. Purposive and snowballing sampling techniques were adopted. Analytical tools were Cronbach’s alpha for testing reliability, regression, mean score ranking and relative importance index.

Findings

Reduced mutual trust and respect, poor clarity of project objectives; consequence on decision-making; less effective construction process; and increased construction risks were the significant effects of moral hazard on satisfaction of PPP construction projects. Value-based effects; manufacturer-based effects; product-based effects; user-based effects; and transcendent-based effects were the significant effects of moral hazard on quality of PPP construction projects.

Practical implications

Construction stakeholders involved in delivering PPP projects ought to take note of the findings and recommendations arising. Further studies should explore the effects on other project performance indicators apart from satisfaction and quality.

Originality/value

This paper extends knowledge in the area of exploring the effects of moral hazard on PPP project satisfaction and quality. The findings are beneficial to both academia and industry practitioners.

Citation

Owusu-Manu, D.-G., Ofori-Yeboah, E., Badu, E., Kukah, A.S.K. and Edwards, D.J. (2024), "Assessing effects of moral hazard -related behaviours on quality and satisfaction of public-private-partnership (PPP) construction projects: case study of Ghana", Journal of Facilities Management, Vol. 22 No. 5, pp. 758-775. https://doi.org/10.1108/JFM-06-2022-0057