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What is the difference between public sector and private sector projects?
Last Post 06 Aug 2013 02:44 PM by fsimoyama. 7 Replies.
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wliem New Member New Member Posts:90

10 May 2013 09:32 AM
    What is the difference between public sector and private sector projects?
    wliem New Member New Member Posts:90

    10 May 2013 09:36 AM

    Laura Herbst: Do you think government projects run into budget issues because they do not run as efficiently as private sector?
    Winnie Liem 2: not necessarily @Laura


    Winnie Liem 2: there are added stakeholders and processes (governance) layered on top of all projects in govt

    Ronald Brown: Laura, you find that in government projects, it is very difficult to get a locked requirements. You typically try to manage the scope as best as possible.

    Dipak Jani: Too much scope suffling

    Laura Herbst: Thanks Ronald but I think this happens in the private sector too. Still trying to understand the differences between private sector and govt projects

    Ahmed Zaki: good point

    Dennis Bolles: Governments are not concerned/dependent on profitatbility from projects

    Dipak Jani: Laura, Govt. projects are huge compare to pvt. usually lasts years to finish

    Winnie Liem 2: We in govt need to do better on PM...many govts are looking at Lean and agile

    João Pedro Vieira e Moreira: the objectiv main reason in public sector are the differences of aproaches that each leader does after the elections. That can kill the baseline, the scope and eaven the closing processes that where adopted in the running projects... That's trouble...

    Laura Herbst: Joao - Excellent point...

    Mounir KFAITI: all the gov project are behind schedule why ? many reasons

    Mounir KFAITI: organisationnal process missed all the time

    Mounir KFAITI: no technical expertise in project

    Laura Herbst: Question: How can PM in the government PM's control the project across elections where new leaders are selected

    Carlos Basulto: QUESTIONS: In order to start a PMO, is it a must that your already have a mature PM process? Could start a PMO could be at the same time an standard PM process is being implemented?

    John Onu: i think the contract type executed and duration of the project helps define the difference between private and govt project
    wliem New Member New Member Posts:90

    10 May 2013 09:41 AM
    Yogesh Chaudhari: Govt projects generally progress slow bcoz of multiple checks and balances in place to ensure that the public money is not mis utilised. Further as Ahed has stated most of those involved are not clear of the details of the project its specs and the precise deliverables decision making is further delayed
    augusto.chaves New Member New Member Posts:1

    10 May 2013 09:44 AM
    The public sector is full of challenges, legislation and regulation applicable local is a constraint in project management, as you can see:
    Fred New Member New Member Posts:8

    18 May 2013 01:40 PM
    I think the basic difference goes back to the actual way that each sector operates. The private sector is focused on making money because the private sector has to earn its money from the products or services it provides. On the other hand the public sector is focused on accomplishing a mission, is provided money from the government and for the most part does not have to make a profit. Many of the public sector missions involve providing things or services to the citizens of the government. This means they must satisfy the citizen’s needs rather than a profit.

    For this reason I think private sector projects are more interested in the cost of the project and the return on investment. They usually get more input from the stakeholders that have put up the money for the project who are counting on a pay back. There is also an interest in the cost of delivering of a product to the customer.

    The public sector projects don't seem to focus on the cost as much as they do the timeline and deliverables. The costs can increase as long as the deliverables are going to be what the political members of the government want for the citizens. There is little or no concern for return on investment or the final cost.
    Robin Uba New Member New Member Posts:1

    13 Jun 2013 01:39 PM
    Based on my experiences in both private and public sectors here's what's different
    - Private sector evaluates on a single bottom line measured in dollars
    - Public sector evaluates on the best interest of society which can be lives saved, improved environment, or impact on children. Try justifying a new fire station, redeveloping a neighbourhood park, or improving the quality of life for a veteran.
    - Private sector can purchase what they want from whoever they want
    - Public sector purchasing must be open and transparent. The process used must not only be fair but be able to stand up to rigorous scrutiny in the courts and in the press
    - Private sector can choose to accept or ignore comments from the general public
    - The entire general public is the client base in Public sector. Every voice must be heard and acknowledged. Solutions become balancing acts between competing views
    kfrench1960 New Member New Member Posts:2

    20 Jun 2013 08:36 AM
    Private sector projects are sponsored by a client with a specific goal and budget. While these may change over the project they are relatively static and can be "locked" by a well defined contract and scope control. Public sector projects are frequently mandated by a change in law or policy. The implementation of changes to support the law / policy are frequently at the discretion of the government departments directly impacted. So, there is political bureaucracy involved, tax funding and the potential for the law or policy to be modified / clarified at any point which induces risk. Additionally, it is not uncommon for a mandate to have a set due date but not have necessary requirements defined until well within the implementation.
    fsimoyama New Member New Member Posts:1

    06 Aug 2013 02:44 PM
    The difference basically consists of the results aimed by each sector.

    When you plan a project aiming citizens' satisfaction rather than income, you first need to listen to their needs, that are much more complicated than the needs of an investor or partner, for example.
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