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Understanding Public Private Partnerships in Canada John Gamble, CET, P.Eng. OSPE Policy Series June 1, 2011.

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Presentation on theme: "Understanding Public Private Partnerships in Canada John Gamble, CET, P.Eng. OSPE Policy Series June 1, 2011."— Presentation transcript:

1 Understanding Public Private Partnerships in Canada John Gamble, CET, P.Eng. OSPE Policy Series June 1, 2011

2 ACEC Canada Association of Consulting Engineering Companies Leading voice for the business of consulting engineering in Canada Represents 500 firms across Canada 12 provincial and territorial associations Unapologetic advocate for members No regulatory mandate

3 ACEC P3 task force ACEC recognizes P3s are here to stay Need to educate ACEC members and their clients Much information available from different sources Opportunity to document “state of P3s” in Canada and members’ experience with P3 projects Engaged Strategies 4 Impact! Inc. to assist with study

4 Objectives of report Identify opportunities and challenges, benefits and risks of P3s Identify best practices based upon Canadian experience with P3s Assist owners to determine when P3 or other delivery models will result in the most successful project outcomes Provide guidance to owners and to consulting engineering companies considering involvement in P3s

5 Key findings P3 is a valid form of project delivery when used in the appropriate circumstances But P3s are not a panacea Owners must assess each project to determine if a P3 will deliver greatest value for money Other models can deliver similar benefits (e.g. Qualifications-Based Selection) Advice from designers at project outset is an investment in project success

6 Key findings (cont’d) Greatest benefit of P3s generally occurs when private sector maintains and operates the asset for 25 or more years Best results are achieved through fair sharing of risk and reward Success is highly dependent upon having the right team Owners must be diligent in assessing qualifications of the team… they are making a 'leap of faith'

7 Advice for owners: P3 or not? Assemble qualified team knowledgeable about P3, including owner's engineer Educate decision-makers within owner's organization on P3 Develop a comprehensive business case Compare benefits/risks of P3 to other delivery models Perform value for money analysis If the analysis supports P3, determine most appropriate model

8 Advice for owners on P3s Compensate pursuit costs to encourage participation (Proposals are expensive) Ensure project agreement is comprehensive: clear definition of roles, responsibilities, scope and deliverables Conduct a post-construction evaluation of project outcome Where maintenance and/or operations are part of the P3, ensure performance criteria meet owner's needs Monitor and audit compliance

9 Advice for consultants Develop a comprehensive business case before engaging in P3s Carefully assess risk and reward Investigate insurance needs and availability of coverage Carefully assess team members including the consortium and owner Assess necessary resources, knowledge and experience to manage fast pace of P3s Consider pursuit costs and compensation Protect your intellectual property rights

10 Advice for consultants Negotiate terms and compensation appropriate to the scope of services and risk Ensure project management processes are in place and adhered to Ensure that quality management processes are in place adhered to Exercise and stand by professional judgement if questioned or challenged Remember who is your client and what is your role

11 Closing thoughts ACEC is neither for or against P3s – but recognizes P3s are a fact of life Do not assume that P3 is THE solution P3s do NOT create “free” infrastructure There are many variations of P3s Assess all applicable delivery models, including conventional delivery Remember, design consultant is not owner’s agent in a P3 Don’t give away services or IP for free NEVER forget the end user!

12 Acknowledgements François Plourde, CIMA+ (Task Force Chair) Walter Orr, FSC Architects & Engineers Roland LeBlanc, Acadia Consultants & Inspectors Limited John Collings, Collings Johnston Inc. John Fussell, Associated Engineering Andy Robinson, ACEC Chair (2009-2010) John Gamble, ACEC President Brian Watkinson, Strategies 4 Impact! Inc.

13 The report Understanding Public Private Partnerships in Canada Why P3s? P3 models in Canada Opportunities/benefits Risks/challenges The P3 process Roles for owners/consultants Additional resourcess

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