An important benefit of the PPP method of procurement is that new projects are being viewed from the perspective of lifecycle operation. Investment economics need to consider not only the project delivery costs but the maintenance, repair and refurbishment expenses likely to be incurred over operational lifecycles of up to 40 years. International evidence is pointing to large multipliers for lifecycle costs over these time frames. It is not unusual for conventional commercial buildings to carry lifecycle costs for to five times the initial procurement cost in nominal terms and the multiplier increases with more complex applications such as power generation, water filtration and recycling, hospitals and public transport facilities.
Traditional procurement is subject to the stop-start budgetary volatility of governments elected for terms of 3 or 4 years. Short-termism and the mismatch of short-term fiscal cycles and long-term operational economics is mainly responsible for the poor condition of Australia's infrastructure assets and the frequent breakdown in service delivery of essential services such as urban transport. The lifecycle approach used with PPPs avoids this problem and assures long-term operational certainty.
PPPs are also applied to a wide range of applications. In Victoria, this method of procurement has been successfully used for public buildings (Royal Agricultural Society showground, convention centre); corrective services, law courts, hospitals, communications services, water treatment and waste management, a film and television studio, public transport facilities and new projects are underway for schools and a desalination plant. The Partnerships Victoria model is considered a best practice benchmark and is being employed as a policy framework in transition economies.