The emphasis which the P3 process places on performance and outputs should encourage innovation in design and operational methods. In order to achieve value-for-money, a P3 procurement must being carefully tuned to balance the risks transferred to the proponent with the need to secure competitive financing. This does not necessarily rule out imaginative proposals, but a reliance on experience and knowing what will work is at the heart of the best projects.
The P3 process itself also offers scope for innovation. New forms of teamwork develop within proponent teams, with the potentially creative synergy between designers, contractors, and operators finding innovative ideas. In addition, the P3 approach should encourage proponents to focus more sharply on ideas and solutions that will drive down the whole life-cost of the project. This will also be attractive to lenders, improving their chances of being the successful proponent.
A P3 presents a challenge to the private sector to deliver facilities and services which will improve the level of service and remove unwanted problems. This challenge can only be met effectively if the department and other stakeholders are clear about their requirements, and communicate these in a way that allows the private sector to develop the optimal solution. Hence, proponents need to be able to work to a well-written Performance Specification from the outset of the P3 procurement.