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Body of Knowledge:
Strategy Delivery and Commissioning
When dealing with under-performance and non-compliance in the Construction Phase, the issue is not the standard of services provided but rather the time taken to complete the asset and the quality of the asset on completion. In general terms, the private partner is incentivized to bring the asset...
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Body of Knowledge:
Strategy Delivery and Commissioning
In PPPs, liquidated damages are the preferred remedy for late service commencement. Liquidated damages are a payment representing a genuine pre-estimate of the actual losses or damages suffered if the private partner fails to achieve service commencement on time. The events giving rise to...
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Body of Knowledge:
Strategy Delivery and Commissioning
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Body of Knowledge:
Strategy Delivery and Commissioning
Issue management usually comes into effect when significant risks arise or materialize. The PPP contract management manual should include issue management procedures that deal with irregularities and mitigate the issues that lead to risk materialization.
Conflict and issues typically occur within a...
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Body of Knowledge:
Strategy Delivery and Commissioning
Dispute circumstances are intrinsic in any PPP construction projects and could influence the success and failure of projects, thereby generating additional costs for all parties[27] [28]. PPP construction project issues, concerns, and disputes occur as a result of numerous factors such as technical...
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Body of Knowledge:
Strategy Delivery and Commissioning
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Body of Knowledge:
Strategy Delivery and Commissioning
The importance of knowledge management is two-fold, firstly to ensure the continuity of knowledge throughout the life of the project, and secondly to assist the contract management team in meeting legislative and contractual requirements.[31]
12.1.1. Developing a Knowledge Management Strategy...
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Body of Knowledge:
Strategy Delivery and Commissioning
The life span of PPP projects is extensive and it is rare that the same staff and personnel will see the project through to the conclusion. Therefore, it is likely that the personnel involved in the management of the contract is going to change several times throughout the life cycle of the project...
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Body of Knowledge:
Strategy Delivery and Commissioning
Name of Document
Authors/Editors and Year
Description
http link
General Guidance on Contract Management and Construction Phase Management
4ps – A guide to Contract Management for PFI and PPP Projects
4ps in collaboration with Mott MacDonald, Public Private Partnerships...
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Body of Knowledge:
Project Identification and PPP Screening
The PPP process is composed of a number of phases: identifying the project and screening it as a PPP, appraising the project, structuring the procurement process and the contract, tender and award, and finally managing the contract.
This process requires a significant amount of time and resources....
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Body of Knowledge:
Project Identification and PPP Screening
The starting point of this phase and of the full PPP process is the same starting point as for any procurement of public goods and services process: identification of the need.
There are some steps in the Screening Phase which includes: project identification (entry routes), scope and preliminary...
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Body of Knowledge:
Project Identification and PPP Screening
The first stage of project identification is the identification of a public need[2]. Projects are not an end in themselves. They are enablers for the government to meet its service delivery obligations. Hence, the government needs to understand what the problem is that it is trying to solve before...
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Body of Knowledge:
Project Identification and PPP Screening
A government may face a situation in which there is no room in the budget (either the current budget or a future budget) to procure all potential projects/government-pays PPPs, regardless of whether all those projects respond to relevant needs of the society in an efficient way, creating public...
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Body of Knowledge:
Project Identification and PPP Screening
There are multiple techniques for identifying the best technical solution for a project and hence which projects best meet public needs. This section will briefly introduce those techniques.
The government should have a policy of using a particular technique so that all projects are compared in a...
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Body of Knowledge:
Project Identification and PPP Screening
The next step after defining the technical solution is to clarify the technical scope, including a detailed description and set of requirements for the most important aspects of the project (that is, a technical outline of the project).
This step includes a description of the project that covers...
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Body of Knowledge:
Project Identification and PPP Screening
Most projects have constraints and dependencies that must be clarified before beginning the full appraisal, such as land availability and environmental studies. The main purpose of these considerations is to identify potential difficulties or obstacles that will have to be considered during the...
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Body of Knowledge:
Project Identification and PPP Screening
This section introduces[16] the concepts of Cost-Benefit Analysis and economic analysis.
FIGURE 3.3: Sequence of the CBA Analysis
Note: CBA= cost-benefit analysis; eIRR= economic Internal Rate of Return; eNPV= economic Net Present Value.
The most refined form of economic analysis is the Cost-...
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Body of Knowledge:
Project Identification and PPP Screening
The main performance indicators in economic-analysis are the economic Net Present Value and the economic Internal Rate of Return (eNPV and eIRR, respectively). Mathematically speaking, the eNPV consists of the projected costs and benefits, duly discounted using a suitable discount rate, and the...
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Body of Knowledge:
Project Identification and PPP Screening
In general terms, cost and revenue cash flows need to be adjusted in order to reflect the real value or cost for society. The current market prices for many costs (but also revenues) usually reflect the real costs for the society as they appropriately provide opportunity costs. However, some cost...
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Body of Knowledge:
Project Identification and PPP Screening
The risks that are inherent to a project have to be considered and included in the appraisal. This must be done through proper adjustments and/or showing the ranges of values for certain sensitivities/future movements or the deviations on critical factors and variables. For this purpose, risks have...
