The PSC is used to establish the full and true cost of providing a facility and/or a service under a Traditional Procurement. The Traditional Procurement approach can vary by type of project depending on the procurement methods normally used to deliver the type of infrastructure. The procurement approach used as the PSC must be cost effective, viable, proven and sustainable and must have been successfully used to own, manage and deliver the type of infrastructure in the province on a sustainable basis. The PSC is normally the design-bid-build approach unless another approach meets the PSC criteria.
The PSC serves as a benchmark to evaluate the P3 alternative and to examine the impacts of changing key project parameters and inputs such as output specifications and risk allocation. Wherever possible, the costing for the PSC is based on previous infrastructure projects. The Service Delivery Ministry can provide benchmark costing that may help in identifying the costs. These costs should include the internal cost of undertaking the project.