Case Studies:

• Sydney Metro Northwest PPP (Australia) was Stage 1 of the Sydney Metro project that delivered Australia’s first fully automated metro railway via a new 36 km rail link to Sydney’s north-west corridor. The PPP consortium had a structured and deliberate operations and maintenance involvement in the design phase to ensure a whole of life approach was considered. As a result of this approach, it identified the use of shorter length trains as a way of increasing service frequency. This enabled fewer trains to be acquired reducing upfront capital expenditure and ongoing maintenance costs, while moving the same number of passengers.

Case Studies:

• Happy Valley Underwater Storage Scheme (Hong Kong SAR, China) project developed an underground stormwater storage tank to alleviate flooding in a low-lying part of the island. The project used a NEC3 ECC target cost contract (activity schedule) due to the project’s complexity. By using the NEC suite of contracts, Hong Kong has been able to cater to different types of project attributes while still maintaining core attributes such as collaboration and open communication, backed by a dispute avoidance approach.

Resources:

• NEC4 (and NEC3)  suite of contracts that uses standard modules for any type of functional organisation providing flexibility and catering to the complexity of a project, rather than a pre-cast contractual model. It is built on the foundation of collaboration, good communication, and strong project management.

Case Studies:

• The Metrolinx Transit Program (Canada) has re-visited procurement and packaging decisions following challenges on the first elements of the program. The re-visiting has seen consideration of several different contractual models such as alliances and use of early enabling works.

Resources:

• Compendium of large infrastructure projects (EU)
• Framework for Establishing Effective Project Procurement (Australia)

Resources:

• Cost Estimating Guidance (UK) has published a best practice approach to the development of cost estimates for infrastructure. It highlights that an estimate is not a single figure determined at the start of a project and fixed, but rather it evolves as the project matures and should be presented as a range that accounts for the risk and uncertainty inherent in the project.
• Timely Information on Infrastructure Projects (Australia) outlines what should be publicly released at each stage of a project’s development to keep the public informed and at the same time avoid unrealistic expectations around scope, timeframes and costs.

Examples:

• Melbourne Water (Australia) is a government-owned water network owner and operator in Victoria. They use Framework or Panel agreements incorporating engineering and / or construction panel members to provide input into the planning, feasibility, design, and requirements of infrastructure at an early stage, providing greater certainty around solutions proposed for projects and their estimated costs.

Examples:

• Reference Class Forecasting has been implemented in several countries / regions including the UK and Hong Kong SAR through comparing the project estimates against a reference class of similar project that share similar key characteristics. This provides an external view of a project estimate helping remove optimism bias that may be present, to allow a more accurate representation of a project’s final cost and completion time.
• Project Surveillance System (PSS) (Hong Kong SAR, China) uses data from over 600 projects to generate standard project cashflows. These allow issues to be detected at various stages of a project and to implement rectification plans, reducing the probability of substantial cost and time overruns.

Case Studies:

• Team 2100 (UK) is a long-term asset management program to manage the tidal flood risk in the Thames Estuary. It used a competitive dialogue process with potential tenders. The competitive dialogue process contributed to selecting the tenderers with the right solution, at the right price, and with a commitment to ongoing collaboration and innovation, a core Team 2100 value.
• Dalkia and SNCF (France) developed an innovative partnership resulting in the creation of the first large scale BIM OMM (Operations, Management and Maintenance) tool on a single platform that gathers data relating to the current state and subsequent changes at 122 of SNCF’s railway stations. The innovative partnership model, created by the EU Procurement directive allowed co-investment, co-development, and co-ownership of the project.
• Ohio State University’s PPP (USA) is a long-term lease and energy management concession to operate its power, heating, and cooling systems over 50 years. Its contract was outcome focused with respect to the energy efficiency of its campus buildings over a concession period, providing the consortium with the flexibility to propose and develop capital improvements as part of a rolling 5-year plan to deliver on these contractual requirements.
• Seoul – Jemulpo Tunnel (South Korea) is an unsolicited proposal that has precipitated transformation of the expressway it was replacing into an eco-friendly space for citizens (case study from the GI Hub Project Preparation Reference Tool).

Case Studies:

• Belo Horizonte Schools PPP (Brazil) project used bundling for the quick delivery of educational facilities in the first education sector PPP in Brazil.
• Queensland Schools PPP (Australia) delivered a package of ten schools over a five-year construction period and demonstrated how bundling schools into a PPP can generate savings for government through the development of a model school that provided a benchmark standard for each site, which enabled cost efficiencies in construction and maintenance.
• Pennsylvania Rapid Bridge Replacement P3 (USA) bundled together into a single package the replacement and maintenances of 558 bridges. The bridges selected were of similar size and design, enabling standardisation in the approach. This is expected to result in a total cost saving of 20% and construction time saving of 4-8 years (case study from the GI Hub Innovative Funding and Financing Tool).

Case Studies:

• The Sao Paulo Lines 8 and 9 Concession (Brazil) used reference guidelines for mandatory investments, which gives the concessionaire freedom to implement more efficient and creative solutions.
• Agadir Mutualized Desalination Plant (Morocco) adopted output specifications that enable the asset to respond to changes in resource availability, populations levels, demographics and disruptive technology. Further, the concession agreement for this project allows the private partner to propose new technologies throughout the project term (case study from the GI Hub Reference Guide on Output Specifications for Quality Infrastructure).
• Pan American Games Athletes Village (Canada) installed fibre optic cabling and wireless networking throughout the complex. The Village incorporated telecommunications rooms, telecommunications pathways, and outside plant pathways to make the project adaptable and responsive to technological advancements after it was converted to affordable housing at the conclusion of the Games (case study from the GI Hub Reference Guide on Output Specifications for Quality Infrastructure).
• Mersin Integrated Health Campus (Turkey) created capacity for 1,259 beds in the campus, to allow for future population growth. To account for higher vacancy levels in early years, the project used an initial payment mechanism that guaranteed minimum capacity of 70%, with occupancy above that level managed through a monthly adjustment (case study from the GI Hub Reference Guide on Output Specifications for Quality Infrastructure).

Examples:

• The New South Wales Government Bid Cost Contribution Policy (Australia) outlines the conditions on which a reimbursement of up to 50% of unsuccessful bidder costs on projects over AUD100 million may apply in the State. The policy has been designed to attract sufficient contractor competition into the NSW construction market as well as attract new entrants, and to offset the high bid costs associated particularly for mega projects.

Examples:

• Suburban Rail Loop (Australia) saw authorities undertake relevant design and investigation activities as part of Stage 1 of the project and provide them to bidders.

Examples:

• The Canadian Council for Public-Private Partnerships white paper (Canada) on lessons learnt by Canada included the impact that efficient procurement has had on its bid costs being lower compared to countries such as the UK and Australia. These included aspects such as strict adherence to procurement timetables, reducing information requirements, avoiding scope creep in the preferred bidder phase, and contract standardisation from one project to the next.

Case Studies:

• Digital Built Britain (UK) is a government led program to incorporate the use of new technologies in planning, building, and maintaining infrastructure more effectively. The program has a focus on the use of BIM to allow improved collaboration, design consistency and speed during the delivery of a project. In addition, the data collected prior to and during the project can be used to improve the asset operations.
• Dalkia and SNCF (France) developed an innovative partnership resulting in the creation of the first large scale BIM OMM (Operations, Management and Maintenance) tool on a single platform that gathers data relating to the current state and subsequent changes at 122 of SNCF’s railway stations. The innovative partnership model, created by the EU Procurement directive allowed co-investment, co-development, and co-ownership of the project.

Examples:

• Digital Works Supervision System (DWSS) (Hong Kong SAR, China) has been in use since April 2020, for all new public works contracts with a value of over HKD300 million. DWSS is a web-based centralised portal of collecting construction works information and managing the workflows of site activities to enhance works efficiency, safety, and quality.

Case Studies:

• Ahmedabad Town Planning Scheme (India) is a land pooling and readjustment mechanism that has allowed the planning authority in Ahmedabad to appropriate land from private landowners in a negotiated and non-coercive way. The private landowners provide a portion of their land for public development (e.g. parks, roads, or low-income housing), and receive compensation for the appropriated land less betterment charges (based on costs of the infrastructure investment) and a higher land value despite the smaller land holding.