P3 terminologies can vary significantly across jurisdictions. The following glossary defines key terms as used within this guide. | |
A specified bid value determined by the sponsor above which the project becomes unsustainable from the sponsors financial perspective | |
A study conducted as part of a traditional business case which assesses the degree to which the various features of a project are either sustainable or achieve the sponsors stated objectives | |
A document assessing the communities need for the project and any constraints being placed on the projects development | |
The cash flows of a project developed on the basis that it is developed and financed by the sponsor using its usual project delivery approach | |
Request for Expressions of Interest, a non-binding procurement document usually released prior to an RFQ to gauge the level of market interest in the project and to highlight any potential bidder concerns | |
The final procurement document usually released to a limited set of bidders with the intention of receiving final bids for the project | |
A binding procurement document released with the intention of qualifying proponents to submit proposals for a forthcoming RFP. The RFQ usually describes the project at a high-level and requests interested parties to submit their experience and qualifications with respect to specific project parameters | |
A tiered-pricing methodology in which bidders make more than one price submission based on varying scopes of the project | |
The cash flows of a project developed on the basis that it is developed by the private sector using a P3 methodology | |
The delivery methodology usually used by the sponsor to procure the asset-type being analysed. For most jurisdictions, this is usually a design-bid-build or design-build methodology | |
The difference in the risk adjusted net present cost of delivering the project using the sponsors traditional methodology for such projects and the anticipated cost of delivering it through the private sector, i.e. using a P3 methodology | |