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

P3s concessions are an integrated service delivery approach where a public transportation agency enters a contractual agreement with a private sector entity to deliver a service and/or facility for a specific period. Under the P3 approach, the private sector entity is singly responsible for the design, construction, finance, operations, maintenance, operation and renewal (if needed) of facilities for a specified concession period. P3s provide a plethora of opportunities to innovate and generate value through integrated delivery, effective transfer of construction and operations risks that the private sector can best manage and a whole life perspective in the initial construction investment. Public agencies can maximize the opportunities for innovation when they allow the private sector reasonable flexibility to create efficient solutions while at the same time managing the associated risks. The public agency can provide this flexibility to stimulate innovations by specifying outcomes that align with the objectives of the stakeholders rather than mandating means and methods in their request for bid proposals. This paper discusses how the agency can stimulate innovations to generate value with the use of performance requirements for design and construction of P3 projects.


  • English

Media Info

  • Media Type: Digital/other
  • Features: Figures; Glossary; References; Tables;
  • Pagination: 68p

Subject/Index Terms

Filing Info

  • Accession Number: 01703221
  • Record Type: Publication
  • Report/Paper Numbers: FHWA-HIN-17-004
  • Contract Numbers: DTFH61-13D-00014
  • Files: TRIS, ATRI, USDOT
  • Created Date: Apr 23 2019 8:14AM