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Bundling Projects – The Alberta Schools Experience Kees Cusveller Saskatchewan P3 Summit 2014 September 9, 2014.

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Presentation on theme: "Bundling Projects – The Alberta Schools Experience Kees Cusveller Saskatchewan P3 Summit 2014 September 9, 2014."— Presentation transcript:

1 Bundling Projects – The Alberta Schools Experience Kees Cusveller Saskatchewan P3 Summit 2014 September 9, 2014

2 Typical P3 Arrangement Concession Agreement Subcontractors Gov’t Agency Private Contractor (SPV) Operate Maintain Lenders (Debt) Private Finance Sponsors (Equity) Investment Operating Availability Payments Capital Contribution Design Build Direct Lender Agreement

3 History Bird/GrahamASAP 118 schools Opened Sept 2010 Bird/GrahamASAP 210 schoolsOpened Sept 2012 Clark/TurnerASAP 312 schoolsOpened Sept 2014

4 Bird/Graham Joint Venture 50/50 integrated design build JV Joint and several JV banking, subcontracts, project office

5 Facts and Figures ASAP 1 18 schools 4 school boards 2 cities 3 core designs ASAP 2 10 schools 6 school boards Several municipalities Several designs

6 Facts and Figures (cont’d) ASAP modulars 12,000 students 900,000 total square feet 21 month design and construction schedule ASAP modulars 8,000 students 600,000 total square feet 24 month design and construction schedule

7 Bundling Advantages Economies of scale Prototype reduces errors Better planning Efficient work flows/approvals Strong teams

8 Bundling Disadvantages All or nothing procurement Subtrade risk management Can have 1 error repeated numerous times Reduces innovation Binary performance requirements

9 Bundling Opportunities Cost effective projects Life cycle inclusion is critical Improved commissioning process Cost/scope/time certainty

10 Bundling Challenges Managing multiple owners and user groups Ineffective risk transfer 4 th ‘P’ is politics Steep learning curve Single supplier constraints Outside parties need to be on side

11 Lessons Learned Need the right partners Political will to proceed Economies of scale versus risk management Importance of life cycle costing

12 Bundling Projects – The Alberta Schools Experience Questions??


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