Public Private Partnerships

Public Private Partnerships

A Public Private Partnership is a complex relationship between multiple stakeholders. It is designed to deliver best value for money for Government clients by minimising risks and optimising returns for all parties. Rider Levett Bucknall has worked for all parties to a PPP and understands the key cost and risk issues in the process. 2 CLIENT REQUIREMENTS The Public Private Partnership (PPP) delivery process presents a number of opportunities for Rider Levett Bucknall to add value, covering varied roles including cost consultant, risk manager and facilities advisor. PRE-BID AND BID PHASE - Government / Client The role as Government advisor is crucial in setting realistic cost expectations around a new facility by setting an accurate and robust Public Sector Comparator (PSC). Evaluation and analysis of capital and operational costs provided by bidders is crucial to the selection of the bid providing best value to Government. BID CONSORTIA Rider Levett Bucknall has acted in a range of roles for consortia bidding for PPP projects. Contractor Support Cost Planning Preparation of area measurement, quantity production and budget pricing to assist a contractor in preparing a construction price for the bid. Whole-of-life Modelling Consideration of life cycle, sustainability, and facilities management issues throughout the PPP concession period. Cover: Melbourne Convention Centre, Victoria, Australia

Consortia Support Capital Cost Assessment Preparation of initial estimates to test the PSC, tracking the cost of the evolving design and monitoring the contractor in the consortium as the bid price is developed. We critique the contractor bid price for both capital cost and life-cycle costs against market to ensure the consortium achieves value for money and improves its chances of winning the bid. Abatement Assessment Assessing the risk profile to the consortia should milestone and deliverables not be achieved. Facilities Risk Assessment Formulating sustainable operational performance targets covering service delivery, asset replacement, repairs and maintenance cycles and life costs. This includes advising on and auditing of target residual life requirements and other concession period issues related to the handover condition of the facilities. Provision of advice on outsourcing arrangements, service level agreements, performance measurement and benchmarking. Financier Support Financier due diligence reporting and risk assessments for the capital and operating phases. This role involves assessment of the adequacy of price, programme, quality, contingency and risk provisions to facilitate lenders and credit agencies to adequately price finance costs for the project. CONSTRUCTION PHASE During the construction phase, Rider Levett Bucknall act in a number of roles to assist the successful completion of this phase to transition into operations. Independent Certifier / Financier s Engineer Certifying progress drawdown and cost to complete reports for the consortium financier for interim payments to the contractor. Independent Reviewer / Probity Officer This is a joint role engaged by the Government and the consortium responsible for the independent assessment and/or ongoing advice throughout the tender process, providing appropriate sign-off at designated milestones and required reporting on the procurement performance and assessing technical completion of the facility. 3 Contractor Support Cost management support services to the contractor building the facility. This involves independent costing of design refinement opportunities, together with procurement optimisation of the sub-contractor trades. OPERATIONAL PHASE Most PPP s have a 20 to 30 year life. During the operations phase, Rider Levett Bucknall undertake a number of roles to assist the stakeholders. Condition Assessment A Government role to ensure ongoing maintenance standards and compliance with capital and refurbishment plans to ensure project agreement handover conditions are met. Reviewable Services A Government role to assess the capabilities of incumbent services providers and/or proposed new companies for soft FM services. Rider Levett Bucknall reviews their capabilities against services specifications. End of Term Arrangements The private sector Consortia is often required to ensure that the PPP assets meet the Government s return conditions at contract expiry. To ensure these obligations are met, an independent assessor is usually appointed to conduct facilities audits. This assessment requirement can also come about during contingency planning, risk transfers and change management.

Rider Levett Bucknall is proud to have been involved in the delivery of best practice solutions in the planning and management of the following major PPP projects. Australian Capital Territory Alexander Macanochie Centre ACT Prison Canberra Department of Justice and Community Safety - ACT Government Alexander Macanochie Centre - ACT Prison comprises a full fitout of a 300 bed low security prison in a domestic campus precinct style. New Youth Detention Centre for the ACT Canberra Department of Disability, Housing and Community Services - ACT Government New Youth Detention Centre for the ACT is a 40 bed low security detention centre in a domestic campus precinct style full fitout. New South Wales NSW Department of Education & Training Sydney ABN Amro NSW Department of Education & Training was the first Privately Financed Project (PFP) for a public facility in NSW. During the construction bid process, Rider Levett Bucknall prepared elemental cost models for Primary and High schools. During construction, the firm s role extended to Financier s Certifier. Rider Levett Bucknall also provided tax depreciation, insurance and life cycle cost advisory services to the Stages 1 and 2 projects. NSW Single Leap II Australia Royal Bank of Scotland NSW Single Leap 11 was a defence accommodation bid for 3,500 beds located in 14 sites across Australia. Rider Levett Bucknall provided a financiars audit report pre financial close. Orange & Associated Health Services Orange Mitchell Health Partnership Consortium Orange & Associated Health Services was an advisory services assignment for the design and construct and the Facility Management (FM)/Life Cycle Costing (LCC) aspects of the bid submission to the NSW Health Department. The FM/LCC aspects covered a term period of 28 years after construction. 4 Royal North Shore Hospital and Community Health Services PPP Sydney Royal North Shore Hospital Royal North Shore Hospital and Community Health Services PPP comprised construction the new acute hospital, community health building, carpark and alterations and additions to the existing Douglas Building. Rider Levett Bucknall was involved as payment certifier and also provided a review of hard FM costs for RBS on Royal North Shore hospital, comparing costs provided by the FM contractor and the FM consultant. UNSW Student Accommodation Sydney Campus Living Villages UNSW Student Accommodation for the 1,000 bed facility. Rider Levett Bucknall was the cost consultant, assisting Capmus Living Villages (CLV) to cost plan the project, tender to a preferred contractor (Watpac) and negotiate an acceptable D&C contract sum for the financiers. Rider Levett Bucknall acted as the independent certifier during the construction phase. Northern Territory Darwin Prisons Darwin NT Government, Sentinel (Project Co) Darwin Prisons is a multi-classification correctional facility comprising 1,000 beds together with a mental health and behavioural management facility comprising 36 beds. Rider Levett Bucknall provided Government cost advisory services to financial close and independent certifier and financier certifier services during construction. Queensland Cleveland Youth Detention Centre Townsville Department of Families Youth and Community Care Cleveland Youth Detention Centre caters for males aged 10-16 years who have been remended in custody or who have been sentenced to a period of detention. Rider Levett Bucknall provided cost consultancy services for 7,257m 2 of modifications to the existing centre including new buildings. New District Head Quarters, Minding Burra Police Station Townsville Queensland Police Service New District Headquarters, Mindingburra Polic Station is a 3,000m 2 three-storey building with state-of-the-art essential services. The new building provides accommodation and car parking for the Police District Headquarters in Mundingburra, Townsville. Sunshine Coast University Hospital Kawana Waters Queensland Health Sunshine Coast University Hospital is a new tertiary level teaching hospital to be constructed on a 20ha Greenfield site at Kawana Waters. When completed in 2016 tha facility will provide 450 beds, increasing to 650 beds in the future.

South Australia New Royal Adelaide Hospital Adelaide SA Health SA Health Partnership (Project Co) New Royal Adelaide Hospital is a capital works project set to deliver a world-class health facility and revitalisation of Adelaide s old rail yards. Construction commenced in 2011 with the facility due for completion due in 2016. Rider Levett Bucknall provided Government cost advisory services to financial close and financier certification during construction. Education Works New Schools Adelaide Department of Education and Children s Services Pinnacle Education (Project Co) Education Works New Schools includes six new schools on separate campuses at Munno Para West, Playford North, Regency Park, Inner North, Inner West and Sports Park Multi Campus. Each provides education from birth through to year 12. Completed in 2011, the campuses adopt the schools within schools concept and include children s centres, primary, middle, secondary and special education provision. Rider Levett Bucknall provided Government cost advisory services to financial close and independent certifier, independent reviewer, financier certifier and independent expert services during construction. SA Prisons and Secure Facilities South Australia Babcock & Brown SA Prisons and Secure Facilities includes a multi-classification prison (1000 beds), behavioural and mental health facility and a secure youth facility. Rider Levett Bucknall provided bid side cost management for Babcock and Brown and Brookfield Multiplex, due diligence and cost management. Regional Police and Courts Regional South Australia Piping Shrike (Project Co) Regional Police and Courts includes nine regional facilities, including Mt Barker, Victor Harbor, Berri, Gawler, Pt Lincoln and Port Pirie. Rider Levett Bucknall provided capital cost planning in bid phase. Victoria Barwon Water Biosolids Management Facility Geelong Barwon Region Water Corporation & Plenary Barwon Water Biosolids Management Facility is an environmentally sustainable, long term management scheme for the beneficial utilisation of biosolids produced at Black Rock and other regional water reclamation plants. Rider Levett Bucknall provided technical due diligance services and was the independent reviewer and independent certifier. 5 Casey Community Hospital Berwick Victorian State Government & Progress Health Consortium Casey Community Hospital is a new hospital of 229 beds built on a greenfield site. The hospital is now capable of treating up to 30,000 patients and 25,000 emergency presentations each year. Marngoneet Correctional Centre Lara Baulderstone Bilfinger JV Margoneet Correctional Centre is a new men s prison facility comprising 300 beds, medium security including fitout turnkey. The facility incorporates a range of technologically advanced security measures while aiming to create normal living conditions and minimising institutionalisation. Western Australia Acacia Prison, Wooroloo Perth Multiplex Acacia Prison is a 750 bed medium security male prison, which opened in 2001. Rider Levett Bucknall provided bid side cost management services to Multiplex. Perth Law Courts Perth Leighton / Broad Perth Law Courts are purpose built new district courts building including custodial cells completed in 2007. Rider Levett Bucknall provided bid side cost management services to the design and construct contractor. QEII Medical Centre Parking Project Perth Capella / WA Government QE11 Medical Centre - Parking Project is a multi-storey solution to the campus parking, due for completion in 2014. Rider Levett Bucknall provided technical due diligence, FM due diligence and independent certification services. Midland Hospital Perth Ramsay Health / John Holland Midland Hospital is a 307 bed new public/private hospital due for completion in 2015. Rider Levett Bucknall provided bid side cost management services to the design and construct contractor.

DARWIN WATERFRONT, DARWIN, NORTHERN TERRITORY Community Infrastructure ABN Amro and the Government of Northern Territory of Australia Darwin Waterfront Northern Territory is public private partnership project comprising a new convention centre, 650-metre seawall, extensive parklands, public promenade, wave pool and water recreation facilities, a multi-storey car park, cruise ship terminal and sheltered bridge link and walkway connection to the central business district. Services provided include bid-side cost management consultancy and independent certification. Services: Cost management 6 GOLD COAST light rail, GOLD COAST, QUEENSLAND RBS, John Holland and Itochu Gold Coast Light Rail will deliver some 14 kilometres of light rail corridor and 16 stations (Stage 1). Gold Coast Rapid Transit bidded in partnership with Royal Bank of Scotland, John Holland and Itochu. Rider Levett Bucknall performed constuction cost consultant and financiers audit services for the track stations and facilities of the project and due diligence services. Services: Cost management NSW PPP2 SCHOOLS PROGRAM, NSW Axiom Education NSW No 2 Pty Ltd NSW PPP2 Program is a response to bringing forward desperately needed schools in newly constructed suburbs in NSW. It involved the design, construction, life-cycle management and maintenance of school facilities for the full 30-year contract period. Apart from involving a higher lefel of risk transfer to the private sector, the program enabled the implementation of a superior standard of design and construction. This created an adaptable learning environment, facilitating the teaching and learning needs of students for the set curriculum of the 21st century. Architect: Perumal Pedavoli Services: Cost management

PERTH CONVENTION AND EXHIBITION CENTRE, perth, WESTERN AUSTRALIA WA Government & City of Perth Perth Convention and Exhibition Centre is a purpose built exhibition centre capable of handling up to 5,000 delegates as well as incorporating offices, a 138 room hotel and extensive car parking. Architect: Crawford Architects Services: Independent certification ROYAL WOMEN S HOSPITAL, melbourne, victoria Victorian State Government & Royal Women s Health Partnership The Royal Women s Hospital facility, Australia s largest specialist women s hospital, showcases international best practice in contemporary hospital design, offering world class facilities in areas such as gynaecology, obstetrics, neonatal paediatrics, cancer care, menopause and sexual health treatment. Architect: Woodhead Architects and DesignInc Services: Cost management, financiers due diligence, financiers engineer, independent reviewer and hard and soft FM cost review 7 Key advantages delivered by Rider Levett Bucknall through the procurement methodology of PPP s are bundling achieved under the PPP procurement model allowing for improved efficiencies, cost savings and guaranteed end cost, improved building quality, increased maintenance responsiveness and accelerated building programs.

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