The National Academies Press

Currently Skimming:

Pages 5-6

The Chapter Skim interface presents what we've algorithmically identified as the most significant single chunk of text within every page in the chapter.
Select key terms on the right to highlight them within pages of the chapter.

From page 5... ... 5 tion and operation of transportation facilities."22 Thus, on January 9, 2013, FHWA invited the public to provide ideas and comments by May 31, 2013, on what should be included or excluded from model PPP partnership contracts. A survey was used to determine whether in the past 10 years transit agencies have used PPPs for the purpose of acquiring, improving, constructing, developing, operating, maintaining, or financing infrastructure projects or used PPPs for transitoriented development (TOD) Read the entire page →
From page 6... ... 6 sources of capital; produce a higher quality end product; result in a higher level of customer satisfaction; and generally permit transit agencies "to focus on their strengths."26 Besides accelerating project delivery, PPPs take advantage of the private sector's expertise; attract and leverage public and private financial resources; and transfer risk and expense from the public sector to the private sector.27 Performance incentives may be included in a contract for a PPP to encourage the timely (or early) completion of a project within budget or the operation and maintenance of a facility to a transit agency's performance specifications.28 A PPP may save money for larger projects because of "economies of scale."29 PPPs may avoid cost overruns that occur because of "initial low bids from contractors being inflated by change orders."30 On the other hand, because the cost of a "turnkey contract" may be higher at the outset, a public sponsor may find it necessary later to reduce the scope of a project.31 Transit agencies responding to the survey having experience with PPPs similarly reported that there are advantages in using PPPs: • The design and construction phases are shorter, and there is more risk-sharing that benefits the sponsor of the transit project.32 • A PPP permits "sole sourcing" of architectural and engineering services for projects.33 • A PPP may be used for TOD or joint development to help pay for capital projects or defray 26 FHWA User Guidebook on Implementing PPPs, supra note 23, at 5. Read the entire page →

From page 5...

... 5 tion and operation of transportation facilities."22 Thus, on January 9, 2013, FHWA invited the public to provide ideas and comments by May 31, 2013, on what should be included or excluded from model PPP partnership contracts. A survey was used to determine whether in the past 10 years transit agencies have used PPPs for the purpose of acquiring, improving, constructing, developing, operating, maintaining, or financing infrastructure projects or used PPPs for transitoriented development (TOD)

Read the entire page →

From page 6...

... 6 sources of capital; produce a higher quality end product; result in a higher level of customer satisfaction; and generally permit transit agencies "to focus on their strengths."26 Besides accelerating project delivery, PPPs take advantage of the private sector's expertise; attract and leverage public and private financial resources; and transfer risk and expense from the public sector to the private sector.27 Performance incentives may be included in a contract for a PPP to encourage the timely (or early) completion of a project within budget or the operation and maintenance of a facility to a transit agency's performance specifications.28 A PPP may save money for larger projects because of "economies of scale."29 PPPs may avoid cost overruns that occur because of "initial low bids from contractors being inflated by change orders."30 On the other hand, because the cost of a "turnkey contract" may be higher at the outset, a public sponsor may find it necessary later to reduce the scope of a project.31 Transit agencies responding to the survey having experience with PPPs similarly reported that there are advantages in using PPPs: • The design and construction phases are shorter, and there is more risk-sharing that benefits the sponsor of the transit project.32 • A PPP permits "sole sourcing" of architectural and engineering services for projects.33 • A PPP may be used for TOD or joint development to help pay for capital projects or defray 26 FHWA User Guidebook on Implementing PPPs, supra note 23, at 5.

Read the entire page →

Key Terms

← Previous Chapter Skim

Next Chapter Skim →

This material may be derived from roughly machine-read images, and so is provided only to facilitate research.
More information on Chapter Skim is available.