Whole life costing of infrastructure investment: Economic and social infrastructure projects in Australia

M. Regan, Peter Love, J. Smith

Research output: Chapter in Book/Report/Conference proceedingConference contributionResearchpeer-review

1 Citation (Scopus)

Abstract

Public private partnerships (PPPs) commissioned by the Victorian State Government in Australia require life cycle costing of the public sector comparator, a risk-weighted and discounted model of traditional procurement as a benchmark for comparison of private bids. Value for money is a term used to measure procurement outcomes and is used widely in government as a proxy for ex ante assessment of the quantitative and qualitative performance of a specific procurement option. Value for money is also used by governments to select projects for delivery by public private partnerships. A public sector comparator for conventional delivery is used as a pricing benchmark (the quantitative evaluation) as well as an appraisal of the qualitative features of private proposals using project-specific criteria. A number of studies over the past decade show that public private partnerships may deliver value for money for projects in the built environment. However, less is known about the drivers of value for money. This study examines 13 PPPs delivered by the governments of the Northern Territory, New South Wales, and Victoria in Australia between 2005 and 2015. The major driver of value for money in PPPs is risk transfer of which life cycle costing and operating costs are a major component. These values are captured in the public sector comparator. The study also confirms that the qualitative attributes of bids received in a competitive market environment are contributing to greater asset utilisation, design and construction innovation and the delivery of improved services to or on behalf of government.

Original languageEnglish
Title of host publicationTransforming the future of infrastructure through smarter information
Subtitle of host publicationProceedings of the International Conference on Smart Infrastructure and Construction, ICSIC 2016
EditorsR J Mair, K Soga, Y Jin, A K Parlikad, J M Schooling
Place of PublicationUnited Kingdom
PublisherICE Publishing Company
Pages701-706
Number of pages6
ISBN (Electronic)9780727761279
Publication statusPublished - 2016
Event2016 International Conference on Smart Infrastructure and Construction, ICSIC 2016 - Cambridge, Cambridge, United Kingdom
Duration: 27 Jun 201629 Jun 2016

Conference

Conference2016 International Conference on Smart Infrastructure and Construction, ICSIC 2016
CountryUnited Kingdom
CityCambridge
Period27/06/1629/06/16

Fingerprint

Economics
Life cycle
Operating costs
Innovation
Costs

Cite this

Regan, M., Love, P., & Smith, J. (2016). Whole life costing of infrastructure investment: Economic and social infrastructure projects in Australia. In R. J. Mair, K. Soga, Y. Jin, A. K. Parlikad, & J. M. Schooling (Eds.), Transforming the future of infrastructure through smarter information : Proceedings of the International Conference on Smart Infrastructure and Construction, ICSIC 2016 (pp. 701-706). United Kingdom: ICE Publishing Company.
Regan, M. ; Love, Peter ; Smith, J. / Whole life costing of infrastructure investment: Economic and social infrastructure projects in Australia. Transforming the future of infrastructure through smarter information : Proceedings of the International Conference on Smart Infrastructure and Construction, ICSIC 2016. editor / R J Mair ; K Soga ; Y Jin ; A K Parlikad ; J M Schooling. United Kingdom : ICE Publishing Company, 2016. pp. 701-706
@inproceedings{30d1bde7b51f47a2bf0a5e71bcd11a17,
title = "Whole life costing of infrastructure investment: Economic and social infrastructure projects in Australia",
abstract = "Public private partnerships (PPPs) commissioned by the Victorian State Government in Australia require life cycle costing of the public sector comparator, a risk-weighted and discounted model of traditional procurement as a benchmark for comparison of private bids. Value for money is a term used to measure procurement outcomes and is used widely in government as a proxy for ex ante assessment of the quantitative and qualitative performance of a specific procurement option. Value for money is also used by governments to select projects for delivery by public private partnerships. A public sector comparator for conventional delivery is used as a pricing benchmark (the quantitative evaluation) as well as an appraisal of the qualitative features of private proposals using project-specific criteria. A number of studies over the past decade show that public private partnerships may deliver value for money for projects in the built environment. However, less is known about the drivers of value for money. This study examines 13 PPPs delivered by the governments of the Northern Territory, New South Wales, and Victoria in Australia between 2005 and 2015. The major driver of value for money in PPPs is risk transfer of which life cycle costing and operating costs are a major component. These values are captured in the public sector comparator. The study also confirms that the qualitative attributes of bids received in a competitive market environment are contributing to greater asset utilisation, design and construction innovation and the delivery of improved services to or on behalf of government.",
author = "M. Regan and Peter Love and J. Smith",
note = "DOI obsolete: 10.1680/tfitsi.61279.701, error report submitted",
year = "2016",
language = "English",
pages = "701--706",
editor = "Mair, {R J } and K Soga and Y Jin and Parlikad, {A K} and Schooling, {J M }",
booktitle = "Transforming the future of infrastructure through smarter information",
publisher = "ICE Publishing Company",
address = "United States",

}

Regan, M, Love, P & Smith, J 2016, Whole life costing of infrastructure investment: Economic and social infrastructure projects in Australia. in RJ Mair, K Soga, Y Jin, AK Parlikad & JM Schooling (eds), Transforming the future of infrastructure through smarter information : Proceedings of the International Conference on Smart Infrastructure and Construction, ICSIC 2016. ICE Publishing Company, United Kingdom, pp. 701-706, 2016 International Conference on Smart Infrastructure and Construction, ICSIC 2016, Cambridge, United Kingdom, 27/06/16.

Whole life costing of infrastructure investment: Economic and social infrastructure projects in Australia. / Regan, M.; Love, Peter; Smith, J.

Transforming the future of infrastructure through smarter information : Proceedings of the International Conference on Smart Infrastructure and Construction, ICSIC 2016. ed. / R J Mair; K Soga; Y Jin; A K Parlikad; J M Schooling. United Kingdom : ICE Publishing Company, 2016. p. 701-706.

Research output: Chapter in Book/Report/Conference proceedingConference contributionResearchpeer-review

TY - GEN

T1 - Whole life costing of infrastructure investment: Economic and social infrastructure projects in Australia

AU - Regan, M.

AU - Love, Peter

AU - Smith, J.

N1 - DOI obsolete: 10.1680/tfitsi.61279.701, error report submitted

PY - 2016

Y1 - 2016

N2 - Public private partnerships (PPPs) commissioned by the Victorian State Government in Australia require life cycle costing of the public sector comparator, a risk-weighted and discounted model of traditional procurement as a benchmark for comparison of private bids. Value for money is a term used to measure procurement outcomes and is used widely in government as a proxy for ex ante assessment of the quantitative and qualitative performance of a specific procurement option. Value for money is also used by governments to select projects for delivery by public private partnerships. A public sector comparator for conventional delivery is used as a pricing benchmark (the quantitative evaluation) as well as an appraisal of the qualitative features of private proposals using project-specific criteria. A number of studies over the past decade show that public private partnerships may deliver value for money for projects in the built environment. However, less is known about the drivers of value for money. This study examines 13 PPPs delivered by the governments of the Northern Territory, New South Wales, and Victoria in Australia between 2005 and 2015. The major driver of value for money in PPPs is risk transfer of which life cycle costing and operating costs are a major component. These values are captured in the public sector comparator. The study also confirms that the qualitative attributes of bids received in a competitive market environment are contributing to greater asset utilisation, design and construction innovation and the delivery of improved services to or on behalf of government.

AB - Public private partnerships (PPPs) commissioned by the Victorian State Government in Australia require life cycle costing of the public sector comparator, a risk-weighted and discounted model of traditional procurement as a benchmark for comparison of private bids. Value for money is a term used to measure procurement outcomes and is used widely in government as a proxy for ex ante assessment of the quantitative and qualitative performance of a specific procurement option. Value for money is also used by governments to select projects for delivery by public private partnerships. A public sector comparator for conventional delivery is used as a pricing benchmark (the quantitative evaluation) as well as an appraisal of the qualitative features of private proposals using project-specific criteria. A number of studies over the past decade show that public private partnerships may deliver value for money for projects in the built environment. However, less is known about the drivers of value for money. This study examines 13 PPPs delivered by the governments of the Northern Territory, New South Wales, and Victoria in Australia between 2005 and 2015. The major driver of value for money in PPPs is risk transfer of which life cycle costing and operating costs are a major component. These values are captured in the public sector comparator. The study also confirms that the qualitative attributes of bids received in a competitive market environment are contributing to greater asset utilisation, design and construction innovation and the delivery of improved services to or on behalf of government.

UR - http://www.scopus.com/inward/record.url?scp=84987679879&partnerID=8YFLogxK

UR - https://www.ice.org.uk/knowledge-and-resources/ice-publishing-journals

M3 - Conference contribution

SP - 701

EP - 706

BT - Transforming the future of infrastructure through smarter information

A2 - Mair, R J

A2 - Soga, K

A2 - Jin, Y

A2 - Parlikad, A K

A2 - Schooling, J M

PB - ICE Publishing Company

CY - United Kingdom

ER -

Regan M, Love P, Smith J. Whole life costing of infrastructure investment: Economic and social infrastructure projects in Australia. In Mair RJ, Soga K, Jin Y, Parlikad AK, Schooling JM, editors, Transforming the future of infrastructure through smarter information : Proceedings of the International Conference on Smart Infrastructure and Construction, ICSIC 2016. United Kingdom: ICE Publishing Company. 2016. p. 701-706