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Use of Performance Requirements for Design and Construction in Public-Private Partnership Concessions

December 2016
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7 Future Research Needs

Additional research is necessary to facilitate the implementation of performance requirements in the design and construction of P3 projects. The authors' suggestions are summarized below:

  • Performance Requirements: A significant level of preparatory work is likely during the initial stages of implementing performance requirements. An agency will be required to develop the linkages between user requirements, design and construction criteria, and performance for at least major scope elements, such as pavements, bridges, geotechnical and geometric design, and articulate them effectively through the technical requirements of the RFP. The SHRP2 R07 project developed similar templates for performance specifications for use in construction by technical area. The development of templates to assist in writing performance requirements for major scope elements would facilitate these early steps. Real-world examples of performance requirement applications as well as costs, benefits and risks associated with their use could help assess the business case for using performance requirements.
  • ATCs: The post-construction benefits of ATCs are seldom quantified. For ATCs that were accepted, there is a lack of empirical data to evaluate whether risk was truly transferred. It would be beneficial to quantify the value of transferred risk in terms of cost savings, shortened schedule, improved quality or less disruption to the public.
  • Risk Management: Identification of contractual risks and their allocation between the agency and P3 private partner occur in the initial stages of procurement. However, risk profiles are likely to change over time due to contractual negotiations, such as ATCs, change orders, etc. There is a need to investigate using case studies how the original risk structuring design, as conceived by the agency at the beginning of the procurement process, changes over time at various milestones, and what the actual risk outcomes were.

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