Metro Magazine

APR 2013

Magazine serving the bus and rail transit & motorcoach operations since 1904

Issue link: https://metromag.epubxp.com/i/116664

Contents of this Issue

Navigation

Page 31 of 61

ALTERNATIVE PROJECT DELIVERY then getting construction started with traditional forms of delivery. Additionally, for us and most organizations that deal with alternative delivery, the mantra is allocate the risk to the entity best able to manage the risk. BAREND: In a PPP, for example, you have an integrated form of project de- livery, where there's one single point of accountability, unlike a traditional delivery where the designer and contractor each report to the state or city agency they are working for. In a PPP, there is a full integration of design, construction, long-term operations and fnancing. Tat integration allows much more risk transfer from the public sector to the private sector. And because you're able to transfer that risk, you can generate considerably more cost savings, because much of the risk you're transferring are risks that the private sector has much more ability to control than the public sector — overall project delivery, scheduling, budget. Basically, in a PPP, the private sector is taking the risk that project will be delivered on time and on budget, otherwise they do not get paid. REFFREGER: What a public transportation agency is acquiring, other than the services, is cost certainty, because there are different elements involved that allow the agency to know what the costs are. And, when the contractor is able to act as sort of one-stop shop, the integration of all those elements makes it easier for the agency to have cost certainty. There's also an amount of schedule certainty, because these are turnkey procurements where the agency is basically saying 'give me everything and this is the date by which I need to open.' Overall, alternative project delivery enables the public agency to focus on what they do, rather than maintaining equipment. Rotary has the broadest line of inground lifts in the industry. For more than 85 years, Rotary has set the standard in design, testing and manufacturing. Our Indiana-based employees take pride in producing world-class lifts the right way, every day. You can count on it. Call 800-448-5383 for more information or see our complete line of heavy-duty lifts at rotarylift.com/inground/mm. 30 < mETRO mAGAZINE APRIL 2013 BRUN-BRUNET: [Alstom] approaches all of these [alternative project delivery] structures as turnkey projects, and while there are diferences, they all ofer agencies and cities the same fundamental benefit — the ability to move new transportation projects forward in a resource-constrained environment. Giving private sector partners a stake in the project's success also reduces the level of public sector risk associated with things like managing project interfaces, integrating systems and technologies, minimizing delay and ensuring the system meets established performance requirements. Private sector involvement also helps ensure on-time delivery and that the project comes in on or under budget — Deloitte recently found that alternative project structures can be 20% less expensive than design-build projects. metro-magazine.com

Articles in this issue

Links on this page

Archives of this issue

view archives of Metro Magazine - APR 2013