April 30, 2014 -
Because P3 projects encourage design innovation and integration, only minimal design work is undertaken by public authorities ahead of procurement. This means that the resulting cost estimates carry significant contingencies to account for variance.
This guide highlights industry best practices aimed at achieving a high degree of accuracy. It addresses design requirements, approaches to the application of contingences, sector-specific considerations, and the treatment of outputs. Through use of this guide, practitioners will develop cost estimates that are easily verifiable and can be benchmarked against existing construction cost data. The guide’s methods also promote a consistent approach to the preparation of cost estimates, allowing for improved cost comparisons over time.