Public agencies in construction increasingly involve the private sector in the provision of various public goods and services. With the extension of private sector involvement, public agencies are confronted with the need to acquire new capabilities. The results of two comparative case studies from the UK and the Netherlands show that the level and focus of capability learning change over time. Public agencies follow different learning trajectories and need to address the dynamic character of the learning in order to successfully employ (a) contractual and (b) relational capabilities in their exchange relationships.
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