IQ Spring 2013 - (Page 15)

By using private financing or a hybrid of private and public financing on P3 projects, public agencies can leverage their infrastructure construction budgets over longer time periods and cover more projects. P3 and risk P3 projects manage responsibilit y and risk more efficiently. P3 project design is typically performance-based rather than prescriptive, giving the concessionaire the freedom to maximize efficiencies and take advantage of its expertise in design and construction. A P3 project typically places the traditional duties for construction of the project on the concessionaire, including greater responsibility and risk for items such as systems testing and inspection, obtaining government permits and approvals, testing and removal of hazardous materials, differing site conditions, indemnities, insurance and extended warranties. In payment responsibility and risk, P3 projects typically involve availability payment schemes. An availability payment concession keeps the payment responsibility with the public owner, but often seeks to delay substantial payments to the concessionaire until the construction is complete enough to be placed in use and provide revenue to the public owner. In either case, a substantial portion of the payment for construction is made to the concessionaire after the facility is substantially complete and begins generating revenue. This can allow public owners to leverage infrastructure construction budgets and spread financing over longer terms and multiple projects, but the concessionaire typically carries substantial risk and burden. P3 projects also often involve a form of performance guarantee with monetary incentives or penalties tied to asset availability and performance after completion. P3 and PubliC Works P3 projects are an appropriate choice for many kinds of public works infrastructure projects. Typical P3 projects include traditional infrastructure such as utilities, transportation and transit projects that generate toll revenues, and social infrastructure projects in healthcare, education and justice systems. The driving force behind its increasing consideration by public agencies? P3 can deliver better value for the money by focusing on the core competencies of private sector enterprise focusing asset development goals on long-term “life cycle” costs including extended operations and maintenance life, and allocating risk to the party best able to manage it. While the P3 delivery method includes greater and more extended risk for the concessionaire and contractor, if the contract terms and price reflect the risks fairly, P3 can offer them large projects, more control, fewer competitors and often a best-value, qualitative element to the bid selection process. With oFFiCes in CostA MesA AnD PALo ALto, rutAn & tuCKer (WWW.rutAn.CoM) is one oF CALiForniA’s LeADing LAW FirMs. WiLLiAM eLioPouLos hAs More thAn 25 yeArs oF exPerienCe Assisting CLients in ConstruCtion AnD reAL estAte LAW; he CAn Be reACheD At WeLioPouLos@rutAn.CoM. steven A. niChoLs hAs More thAn 30 yeArs oF exPerienCe A s A ConstruCtion AnD CoMMerCiAL L AW AnD LitigAtion sPeCiAList AnD is Co-ChAir oF rutAn’s ConstruCtion LAW grouP; he CAn Be reACheD At sniChoLs@rutAn.CoM. KAveh BADiei is An AssoCiAte Attorney Who rePresents oWners, DeveLoPers, generAL ContrACtors AnD suBContrACtors in LitigAtion, ArBitrAtion AnD MeDiAtion invoLving PuBLiC AnD PrivAte ConstruCtion ProjeCts; he CAn Be reACheD At KBADiei@rutAn.CoM. Advertising index Arcadis u.s., inc. ....................................................................... 23 Ch2M hiLL ................................................................................ 24 American institute of steel Construction .................................. 2 isi/MCs ...................................................................................... 17 dbia.org spring//2013 15 http://WWW.RUTAN.COM http://www.dbia.org

Table of Contents for the Digital Edition of IQ Spring 2013

IQ Spring 2013

IQ Spring 2013 - (Page Cover1)
IQ Spring 2013 - (Page Cover2)
IQ Spring 2013 - (Page 1)
IQ Spring 2013 - (Page 2)
IQ Spring 2013 - (Page 3)
IQ Spring 2013 - (Page 4)
IQ Spring 2013 - (Page 5)
IQ Spring 2013 - (Page 6)
IQ Spring 2013 - (Page 7)
IQ Spring 2013 - (Page 8)
IQ Spring 2013 - (Page 9)
IQ Spring 2013 - (Page 10)
IQ Spring 2013 - (Page 11)
IQ Spring 2013 - (Page 12)
IQ Spring 2013 - (Page 13)
IQ Spring 2013 - (Page 14)
IQ Spring 2013 - (Page 15)
IQ Spring 2013 - (Page 16)
IQ Spring 2013 - (Page 17)
IQ Spring 2013 - (Page 18)
IQ Spring 2013 - (Page 19)
IQ Spring 2013 - (Page 20)
IQ Spring 2013 - (Page Cover3)
IQ Spring 2013 - (Page Cover4)
http://staging.nxtbook.com/ygsreprints/DBIA/g32384_dbia_spring2013
http://staging.nxtbook.com/ygsreprints/DBIA/g30201_dbia_winter2012
http://staging.nxtbook.com/ygsreprints/DBIA/g27498_dbia_iq_fall2012
http://staging.nxtbook.com/ygsreprints/DBIA/g27263_dbia_iq_summer2012
http://staging.nxtbook.com/ygsreprints/DBIA/g27412dbia_iq_spr12
http://staging.nxtbook.com/ygsreprints/DBIA/g24065_dbiaiqwinter11
http://staging.nxtbook.com/ygsreprints/DBIA/g21862_dbia_fall_11
http://staging.nxtbook.com/ygsreprints/DBIA/dbianxtbook_summer_11
http://staging.nxtbook.com/ygsreprints/DBIA/g18240_dbia_spring2011a
http://www.nxtbookMEDIA.com