Transcript Presentation Title Goes Here - ACEC

Understanding
Public Private
Partnerships in
Canada
John Gamble, CET, P.Eng.
OSPE Policy Series
June 1, 2011
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
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
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
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
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'
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
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
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
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
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!
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.
The report
Understanding Public Private Partnerships
in Canada
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www.acec.ca
Why P3s?
P3 models in Canada
Opportunities/benefits
Risks/challenges
The P3 process
Roles for owners/consultants
Additional resourcess
www.strategies4impact.com